BRSYF · BrainsWay Ltd.

BrainsWay delivered exceptional Q1 2026 results with revenue surging 35% year-over-year to $15.5M, propelled by a record shipment of 117 Deep TMS systems, expanding the installed base to approximately 1,820 systems and achieving 93% customer retention. Profitability accelerated sharply as net income more than doubled to $2.3M and Adjusted EBITDA jumped 117% to $2.8M, reflecting the high-margin recurring revenue model from 4-5 year leasing contracts and pay-per-use structure that minimizes customer CapEx barriers. Remaining Performance Obligations rose 25% to $75M, underscoring robust visibility into future revenue with a 1.3x book-to-bill ratio. The company maintained a pristine balance sheet with $58.9M in cash and no debt, supporting 11 consecutive quarters of positive free cash flow. Management reiterated full-year 2026 guidance of $66M-$68M revenue, 13%-14% operating income margin, and $12M-$14M Adjusted EBITDA, signaling confidence in sustained momentum. Key business catalysts include first insurance coverage for the FDA-cleared accelerated SWIFT protocol for MDD, expanded payer support for nurse practitioner-administered TMS, and Cigna's elimination of prior authorizations, all accelerating patient access and utilization. Strategic investments in mental health providers like Neurolief, BrainStim Health, and Axis, alongside a partnership with Valor Equity Partners, position BrainsWay to scale through 200+ targeted clinics, adding incremental gross margins without added OPEX. Pipeline advancements, such as AUD trial recruitment and planned Q2 2026 FDA submission for PTSD in MDD, further enhance long-term growth prospects in a massive TAM spanning depression, OCD, smoking addiction, and investigational indications like AUD and Alzheimer's.