BrainsWay Ltd. (NASDAQ: BWAY) entered into a strategic equity financing agreement with BrainStim Health Inc., a British Columbia‑based mental‑health provider, on February 19 2026. The deal gives BrainsWay an initial $1.0 million investment, with the possibility of an additional $1.5 million through two milestone‑based tranches, for a total potential of $2.5 million. The investment secures a minority position in BrainStim in the form of a preferred, annually compounding security with a redemption mechanism.
The transaction represents BrainsWay’s fifth minority‑stake investment in growth‑oriented clinical service platforms. By investing in BrainStim, BrainsWay can focus on the scientific and clinical advancement of its proprietary Deep Transcranial Magnetic Stimulation (dTMS) technology while leveraging BrainStim’s established interventional psychiatry practice to broaden patient access to dTMS across North America. The partnership aligns with BrainsWay’s broader initiative to expand awareness of its technology and to build market penetration through strategic platform investments.
BrainsWay’s financial performance in 2024 underscores the company’s ability to fund such strategic initiatives. Full‑year 2024 revenue rose 29% to $41.0 million, and Q4 revenue increased 27% year‑over‑year. The company reported a gross margin of 75% and an operating income of $1.4 million, a turnaround from an operating loss in 2023. Liquidity remains strong, with a current ratio of 3.19 and a debt‑to‑equity ratio of 0.1, providing ample capacity to support future growth investments.
The dTMS market is projected to exceed $1 billion by 2026, driven by expanding mental‑health awareness and FDA approvals for multiple indications. BrainsWay holds FDA clearance for major depressive disorder, obsessive‑compulsive disorder, and smoking addiction, positioning it as a global leader in non‑invasive neurostimulation. The company’s recent investments in Stella Mental Health, Axis Integrated Mental Health, and Heading Health further illustrate its strategy of partnering with clinical platforms to accelerate adoption of dTMS.
"Our investment in BrainStim is now the fifth minority‑stake investment into growth‑oriented clinical service platforms announced by the Company. These minority stake investments support our broader strategic initiative to expand access to and awareness of cutting‑edge mental health interventions such as Deep TMS, while allowing BrainsWay to continue focusing on the scientific and clinical advancement of its technology," said Hadar Levy, BrainsWay’s CEO. Dr. Venu Karapeddy, BrainStim’s Chief Medical Officer, added, "As a long‑time BrainsWay partner and an advocate for their dTMS technology, we are incredibly excited to link arms as we accelerate the growth of BrainStim. Partnering with an interventional psychiatry pioneer like BrainsWay only serves to strengthen our value proposition and increase our success. We look forward to this exciting chapter of organization growth and fulfilling our mission of delivering life‑changing care at scale."
Investors reacted cautiously to the announcement, noting the modest size of the investment relative to BrainsWay’s market capitalization and the company’s ongoing focus on research and development. While the transaction does not immediately alter BrainsWay’s revenue streams, it signals continued confidence in the scalability of its Deep TMS platform and its commitment to expanding clinical reach through strategic minority stakes.
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