BrainsWay Ltd.

What they do

BrainsWay develops and markets the Deep TMS system, a non-invasive device that uses magnetic fields to stimulate deep brain regions. The company sells the system to clinics and hospitals primarily in the U.S., with growing international presence, and also generates recurring revenue from coils and maintenance services. Its products target indications including major depressive disorder and obsessive-compulsive disorder.

Revenue drivers

• Deep TMS System Sales — Sales of the equipment itself are a primary revenue source, driven by new customer placements in the U.S. and other geographies.
• Recurring Revenue – Coils and Services — Revenue from replacement coils (consumables) and maintenance contracts provides recurring income, increasing as the installed base grows.
• Geographic Expansion – U.S. & International — U.S. represents the largest market; international sales contribute incremental revenue, though exact split is not in the provided excerpt.
• Indication Expansion — Penetration into new psychiatric and neurological indications beyond depression and OCD could broaden the customer base and drive additional system sales.

Recent performance

For the fiscal year ended December 31, 2025, BrainsWay reported results in U.S. dollars as its functional currency. The filing does not include specific revenue or net income figures. The company had 39,165,806 ordinary shares outstanding as of the end of the period. An ADS ratio change effective March 3, 2026 adjusted the ordinary shares per ADS from 2:1 to 1:1.

Strategy

BrainsWay focuses on commercial expansion of its Deep TMS platform, emphasizing the U.S. market while building international presence. The company invests in clinical evidence to support regulatory clearances and reimbursement for additional indications. It also aims to grow the installed base to increase recurring revenue from coils and service contracts. Strategic priorities include capitalizing on the growing adoption of non-invasive neuromodulation therapies.

Risks

• Reimbursement and Regulatory Dependence — Revenue depends on securing and maintaining reimbursement coverage from payers and regulatory clearances for each indication.
• Concentration Risk in U.S. Market — Significant reliance on the U.S. market exposes revenue to U.S. healthcare policy changes, reimbursement cuts, or competitive pressures.
• Competition from Alternative Therapies — Competitors offering other non-invasive brain stimulation technologies (e.g., rTMS, tDCS, or newer devices) could reduce demand for Deep TMS.
• Technology Obsolescence and Clinical Efficacy — If long-term clinical outcomes disappoint or a superior technology emerges, the installed base and new sales could be adversely affected.

Outlook

Management is likely to continue expanding commercial adoption of Deep TMS in the U.S. and internationally, supported by ongoing clinical research. The company may pursue new indications to broaden its addressable market. The ADS ratio change may reflect an effort to enhance liquidity or align share structure. Specific forward-looking financial targets are not disclosed in the provided excerpt.