BrainsWay: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Nov. 10, 2026, BrainsWay (NASDAQ:BWAY) announced that its revenue grew 34% year over year to $18.1 million. The company is converting high customer demand into recurring revenue while expanding reimbursement coverage for its non-invasive brain stimulation systems. Three things management said stand out.

1. System Placements Drive Recurring Revenue Expansion Across Health Networks

Expanding the footprint of Deep Transcranial Magnetic Stimulation (Deep TMS), a therapy that uses magnetic fields to treat mental health disorders, generates recurring revenue through remaining performance obligations (RPO), which measure contracted revenue under multiyear customer contracts.

During the third quarter, we shipped 130 Deep TMS systems, representing 44% year-over-year growth. Our global installed base now exceeds 2,000 systems, further expanding patient access to Deep TMS while creating additional opportunities for commercial leverage across our existing customers.
-- Hadar Levy, Chief Executive Officer

2. Insurance Coverage for Accelerated Protocols Unlocks Broader Patient Demand

Securing insurance coverage for SWIFT, an accelerated Deep TMS protocol that shortens treatment duration from weeks to days, increases clinic throughput and provider demand.

Following the quarter, we announced that more than 70 million covered lives in the U.S. now have access to reimbursement policies covering our SWIFT accelerated protocol.
-- Hadar Levy, Chief Executive Officer

3. Manufacturing Scale and Cost Disciplines Lift Operating Margins

Higher production volume lowers the bill of materials (BOM), or component costs, allowing BrainsWay to convert top-line growth directly into higher profit margins.

Gross profit for the quarter increased 39% to $14.1 million compared with $10.2 million last year, while gross margin reached 78% compared with 75% both last year and in the second quarter of 2026.
-- Ido Marom, Chief Financial Officer

Looking Ahead

Commercial momentum is pushing full-year financial results toward the upper end of management guidance. BrainsWay relies on expanding enterprise partnerships and lower unit production costs to drive long-term value while monitoring pricing discipline.

As we look toward 2027, we believe BrainsWay is entering its next phase of growth. We see multiple complementary opportunities, expanding our installed base, increasing utilization through SWIFT and potential additional indication, scaling enterprise partnership and strengthening our international presence.
-- Hadar Levy, Chief Executive Officer

Strategic investments and broader reimbursement support expansion across global interventional psychiatry markets.

Our ambition is not simply to participate in the growth of interventional psychiatry. Our ambition is to help shape its future. We remain focused on expanding patient access, improving outcomes and creating long-term value for our shareholders.
-- Hadar Levy, Chief Executive Officer

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