Brainsway (NASDAQ:BWAY) Announces Earnings Results, Misses Expectations By $0.07 EPS

Brainsway (NASDAQ:BWAY) posted its quarterly earnings data on Tuesday. The company reported $0.05 earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.07), FiscalAI reports. The business had revenue of $18.15 million during the quarter, compared to analysts’ expectations of $17.80 million. Brainsway had a return on equity of 12.74% and a net margin of 15.65%.

Here are the key takeaways from Brainsway’s conference call:

• Third-quarter revenue rose 34% to $18.1 million, while system shipments increased 44% year over year and the global installed base surpassed 2,000 systems. Remaining performance obligations grew 31% to approximately $85 million.
• Profitability and cash generation improved: gross margin expanded to 78%, operating income more than doubled to about $2.6 million, adjusted EBITDA rose 92% to $3.9 million, and operating cash flow reached $6.2 million. Management said operating expenses included about $1 million in additional one-time costs.
• Management expects full-year 2026 results to land at the upper end of prior guidance, with potential to modestly exceed it, and sees room for further margin expansion. The CFO said operating expenses may grow 15%–20% in 2027 while the company aims to sustain revenue growth.
• BrainsWay said more than 70 million U.S. covered lives now have reimbursement for its SWIFT protocol, and OCD coverage reaches approximately 180 million lives. Management said SWIFT is already driving close to half of new customer demand, though broader adoption depends on continued coverage expansion.
• The company is pursuing growth through provider partnerships, international markets, and new indications; management expects partner-related system orders to build further in 2027. Alzheimer’s findings remain preliminary, and the company said it plans to complete feasibility work by the end of 2027 before considering a larger trial; Deep TMS is not FDA-cleared to treat Alzheimer’s disease.

Brainsway Price Performance

NASDAQ BWAY traded down $1.26 during trading on Tuesday, hitting $10.38. 164,377 shares of the company’s stock traded hands, compared to its average volume of 146,470. The stock has a fifty day moving average of $12.56 and a two-hundred day moving average of $13.92. Brainsway has a 12-month low of $7.14 and a 12-month high of $17.40. The firm has a market cap of $417.84 million, a P/E ratio of 23.59 and a beta of 1.36.

Analysts Set New Price Targets

BWAY has been the subject of several analyst reports. Wall Street Zen upgraded Brainsway from a “hold” rating to a “buy” rating in a research note on Sunday, August 2nd. Weiss Ratings cut Brainsway from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, October 29th. Zacks Research cut Brainsway from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 11th. New Street Research reissued a “buy” rating on shares of Brainsway in a report on Friday, July 24th. Finally, HC Wainwright restated a “buy” rating on shares of Brainsway in a research report on Friday, October 30th. Five research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $18.20.

About Brainsway

BrainsWay Ltd. (NASDAQ: BWAY) is a medical technology company that develops and commercializes noninvasive therapies for brain disorders. Its core technology, Deep Transcranial Magnetic Stimulation (Deep TMS), uses a helmet-like device to deliver magnetic stimulation to targeted areas of the brain.

The company’s Deep TMS systems are used in the treatment of major depressive disorder and obsessive-compulsive disorder, and have also received regulatory clearances for certain additional indications, including smoking cessation.