BrainsWay pairs proprietary Deep TMS, 75% gross margins and a growing recurring lease base with strong near-term growth, but tariff, reimbursement and competitive risks make valuation discipline essential.
Overview
BrainsWay is a commercial-stage medical-technology company whose proprietary Deep TMS platform treats severe psychiatric and neurological conditions without surgery or systemic drug side effects. Its H-coil technology reaches deeper brain structures than standard figure-8 systems, and its FDA-cleared OCD and smoking-addiction indications add differentiation. The business combines capital system sales with recurring leases, which account for approximately 58% of revenue; the $80.4 million RPO backlog provides further visibility. **Q2 2026 revenue grew 35% to $17.11 million, while Adjusted EBITDA rose 141% to $3.50 million and operating margin expanded to 14%.** Management raised FY2026 revenue guidance to $68–$70 million, implying 30%–34% growth, and Adjusted EBITDA guidance to $13–$14 million. The company has $62.4 million of cash, no debt and recorded its 12th consecutive profitable quarter. At $13.37, the shares were below both the 50-day and 200-day moving averages after index-related selling; reported consensus targets of $18.20–$19.27 and BTIG’s $20 target indicate a more constructive view. Near-term catalysts include SWIFT adoption, MSO network deployments and possible new indications, balanced by tariff, competition and reimbursement risks.