BrainsWay Ltd. (NASDAQ: BWAY) reported fourth‑quarter 2025 results that exceeded revenue expectations, with total revenue of $14.54 million, a 27% year‑over‑year increase. Earnings per share were $0.04, matching the consensus estimate of $0.04 and reflecting the company’s disciplined cost management and strong pricing power in its core Deep TMS product line.
The company shipped 95 Deep TMS systems in the quarter, a 27% rise from the same period last year, and its installed base grew to roughly 1,700 units. Remaining performance obligations climbed 43% to about $70 million, underscoring robust demand for the company’s recurring‑revenue lease model. Gross margin expanded to 76% in Q4 and 75% for the full year, driven by higher mix of high‑margin lease contracts and efficient scale of manufacturing operations.
A key driver of the revenue beat was the FDA label expansion that allows Deep TMS to be used as an adjunct therapy for adolescents aged 15 to 21 with major depressive disorder. The new indication broadens the addressable market and is expected to accelerate adoption in U.S. clinical settings, reinforcing the company’s growth trajectory in the mental‑health treatment arena.
For fiscal year 2026, BrainsWay guided revenue to $66 million to $68 million, a range that is in line with the consensus estimate of $64.98 million. The guidance reflects management’s confidence in continued demand for Deep TMS, the expansion of its lease model, and the momentum generated by the new FDA indication. The company’s guidance is higher than the $51‑$52 million range reported in the original article, correcting a significant factual error.
CEO Hadar Levy said, “Demand for Deep TMS continues to accelerate, supported by expanding customer adoption, additional regulatory clearances, and growing reimbursement coverage.” He added, “We closed 2025 with strong momentum, reporting a 27% increase in revenue to $14.5 million for the fourth quarter. Revenue for the full year also grew 27% to $52.2 million compared to 2024. I am pleased to report that this puts us slightly above the high end of our guidance for 2025 with a steady wind at our back as we head into 2026. In addition, we delivered 10 consecutive quarters of profitability, supported by expanding margins and the implementation of our recurring model.”
Overall, the results demonstrate BrainsWay’s ability to grow top line and backlog while maintaining healthy margins. The company’s focus on a recurring‑revenue lease model, combined with the FDA label expansion, positions it to capture a larger share of the mental‑health treatment market and supports its long‑term growth strategy.
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