Q3 FY2026
Filed Nov 10, 2026Q3 2026 revenue rose 34% to $18.1 million, operating income rose 107% to $2.6 million, and full-year 2026 guidance is now expected at the upper end of prior ranges
Revenue grew 34% year-over-year, operating income grew 107%, net income grew 42%, Adjusted EBITDA grew 92% (non-GAAP), and operating cash flow was $6,183 thousand against $1,386 thousand in the prior-year quarter. Management expects full-year 2026 results at the upper end of prior guidance ranges, with potential to modestly exceed them. Finance income fell sharply, and nine-month operating cash flow was below the prior-year nine months.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues, Q3 2026 (three months ended Sep 30)other | $18.15M | – | 34% |
| Cost of revenues, Q3 2026other | $4.01M | – | – |
| Gross profit, Q3 2026other | $14.13M | – | – |
| Research and development expenses, net, Q3 2026other | $3.53M | – | – |
| Selling and marketing expenses, Q3 2026other | $5.54M | – | – |
| General and administrative expenses, Q3 2026other | $2.47M | – | – |
| Total operating expenses, Q3 2026other | $11.54M | – | – |
| Operating income (IFRS), Q3 2026other | $2.59M | – | 107% |
| Operating income margin, Q3 2026other | 14% | – | – |
| Finance income, Q3 2026other | $309K | – | – |
| Finance expense, Q3 2026other | $741K | – | – |
| Income before taxes on income, Q3 2026other | $2.16M | – | – |
| Taxes on income, Q3 2026other | $64K | – | – |
| Net income (IFRS), Q3 2026other | $2.22M | – | 42% |
| Basic net income per share, Q3 2026other | $0.06 | – | – |
| Diluted net income per share, Q3 2026other | $0.05 | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $3.87M | – | 92% |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 21% | – | – |
| Net cash provided by operating activities, Q3 2026other | $6.18M | – | – |
| Revenues, nine months ended Sep 30, 2026other | $50.78M | – | – |
| Cost of revenues, nine months ended Sep 30, 2026other | $12.21M | – | – |
| Gross profit, nine months ended Sep 30, 2026other | $38.58M | – | – |
| Research and development expenses, net, nine months ended Sep 30, 2026other | $9.63M | – | – |
| Selling and marketing expenses, nine months ended Sep 30, 2026other | $15.32M | – | – |
| General and administrative expenses, nine months ended Sep 30, 2026other | $6.63M | – | – |
| Total operating expenses, nine months ended Sep 30, 2026other | $31.59M | – | – |
| Operating income (IFRS), nine months ended Sep 30, 2026other | $6.99M | – | – |
| Finance income, nine months ended Sep 30, 2026other | $2.44M | – | – |
| Finance expense, nine months ended Sep 30, 2026other | $1.94M | – | – |
| Income before taxes on income, nine months ended Sep 30, 2026other | $7.49M | – | – |
| Taxes on income, nine months ended Sep 30, 2026other | $264K | – | – |
| Net income (IFRS), nine months ended Sep 30, 2026other | $7.22M | – | – |
| Basic net income per share, nine months ended Sep 30, 2026other | $0.18 | – | – |
| Diluted net income per share, nine months ended Sep 30, 2026other | $0.17 | – | – |
| Adjusted EBITDA, nine months ended Sep 30, 2026non-GAAP | $10.18M | – | – |
| Net cash provided by operating activities, nine months ended Sep 30, 2026other | $13.66M | – | – |
| Remaining performance obligations (RPOs), as of Sep 30, 2026other | approximately $85 million | – | 31% |
| Deep TMS systems shipped, Q3 2026other | 130 systems | – | 44% |
| Deep TMS installed base, as of Q3 2026other | approximately 2,080 systems | – | – |
| OCD coil sales, Q3 2026other | 54 coils | – | 17% |
| OCD coil installed base, as of Q3 2026other | approximately 1,000 OCD coils | – | – |
| Cash and cash equivalents, short-term deposits and restricted cash, as of Sep 30, 2026other | $63.4M | – | – |
FY2026 outlook
- NoteFull-year 2026 results expected at the upper end of previously issued guidance ranges, with potential to modestly exceed the guidance (headline names revenue, operating income margin and Adjusted EBITDA)
Capital returns
- No share repurchases or dividends are reported in the filing.
- Minority investments: $3 million follow-on MSO investment in Radial Health, Inc. and $0.8 million follow-on MSO investment in Heading Health, as stated in the release.
- Cash flow from investing in the nine months included purchase of financial assets measured at fair value of $(14,458) thousand and investment in short-term deposits of $(33,021) thousand.
What drove it
- The company states that revenue growth was accompanied by higher profitability and cash generation, per CEO Hadar Levy.
- The company states that growing adoption of Deep TMS, recurring revenue and operating leverage reflect the strength of its business model.
- The company states that favorable coverage for the SWIFT accelerated Deep TMS protocol now extends to more than 70 million covered lives in the U.S., based on payer policy data it compiled.
- Subsequent to quarter end, the company entered a strategic collaboration with Inland Psychiatric Medical Group, described as a clinical network with over 30 locations, including a multisystem Deep TMS order for planned installation.
- Deferred revenues rose on the balance sheet from $10,551 thousand to $16,778 thousand (current), and the Q3 statement of cash flows shows an increase in deferred revenues of $3,062 thousand.
Concerns
- Finance income fell to $309 thousand in Q3 2026 from $1,126 thousand in Q3 2025, and to $2,439 thousand in the nine months from $4,540 thousand.
- Net cash provided by operating activities for the nine months was $13,658 thousand, compared with $18,779 thousand in the prior-year nine months.
- Trade receivables, net rose to $6,621 thousand from $4,111 thousand at Dec 31, 2025, and the nine-month statement of cash flows shows an increase in trade receivables of $(2,510) thousand.
- Selling and marketing expenses increased to $5,542 thousand from $4,729 thousand in Q3 2025; research and development expenses increased to $3,532 thousand from $2,396 thousand.
- The release states that Deep TMS is not FDA cleared for the treatment of suicidal ideation or for comorbid early-stage Alzheimer's disease, and that the cited research data do not indicate FDA clearance for those conditions.
What to watch
- Whether full-year 2026 results reach the upper end of guidance and modestly exceed it, as management indicates.
- Conversion of the approximately $85 million of remaining performance obligations into revenue.
- Deep TMS shipments and installed base growth, following 130 systems shipped in Q3 2026.
- Trend in finance income, which declined sharply year-over-year in both the quarter and the nine months.
- Operating cash flow trend, given the lower nine-month figure versus the prior year.
- Progress of the Inland Psychiatric Medical Group multisystem order and the broader reimbursement coverage initiatives mentioned by management.
- Results of the follow-on MSO investments in Radial Health, Inc. and Heading Health.
Balance sheet and cash flow
- Cash and cash equivalents: $30,054 thousand at Sep 30, 2026 versus $67,700 thousand at Dec 31, 2025.
- Short-term deposits: $33,122 thousand at Sep 30, 2026 (none at Dec 31, 2025).
- Restricted cash: $251 thousand at both dates.
- Cash, short-term deposits and restricted cash totaled $63.4 million at Sep 30, 2026, an increase of approximately 1% compared with June 30, 2026, as stated in the release.
- Trade receivables, net: $6,621 thousand at Sep 30, 2026 versus $4,111 thousand at Dec 31, 2025.
- Deferred revenues, current: $16,778 thousand at Sep 30, 2026 versus $10,551 thousand at Dec 31, 2025; non-current: $6,342 thousand versus $6,762 thousand.
- Total assets: $125,895 thousand at Sep 30, 2026 versus $113,191 thousand at Dec 31, 2025.
- Total equity: $82,238 thousand at Sep 30, 2026 versus $73,163 thousand at Dec 31, 2025.
- Accumulated deficit: $(83,584) thousand at Sep 30, 2026 versus $(90,806) thousand at Dec 31, 2025.
- Nine-month cash flow from operating activities: $13,658 thousand versus $18,779 thousand in the prior-year period.
- Nine-month cash flow from financing activities: $(2,099) thousand versus $(1,227) thousand in the prior-year period.
- Cash and cash equivalents at end of period (statement of cash flows): $30,054 thousand at Sep 30, 2026 versus $70,458 thousand at Sep 30, 2025.
Analysis
BrainsWay reported third-quarter 2026 revenue of $18,146 thousand, up 34% from $13,512 thousand in the prior-year quarter, according to the release. Operating income rose to $2,590 thousand from $1,253 thousand, and the operating margin widened to 14% from 9%. Net income rose 42% to $2,222 thousand and diluted EPS was $0.05 against $0.04. Adjusted EBITDA, a non-IFRS measure, was $3,873 thousand, up 92% from $2,021 thousand, with the margin at 21% against 15%. The company's own reconciliation adds back share-based payment cost, which rose to $808 thousand from $364 thousand in the prior-year quarter.
The volume data point the same way. The company shipped 130 Deep TMS systems in the quarter, up 44% year-over-year, and reports an installed base of approximately 2,080 systems. OCD coil sales rose 17% to 54 coils. Remaining performance obligations were approximately $85 million at September 30, 2026, up 31% year-over-year. Deferred revenues on the balance sheet increased to $16,778 thousand (current) from $10,551 thousand at December 31, 2025. The filing does not state a cause for that increase beyond the cash flow line itself.
Cash generation was strong in the quarter. Net cash provided by operating activities was $6,183 thousand against $1,386 thousand a year earlier. Over the nine months, however, operating cash flow was $13,658 thousand against $18,779 thousand in the prior-year period, so the year-to-date comparison runs the other way. Cash, short-term deposits and restricted cash totaled $63.4 million at quarter end, which the release describes as an increase of approximately 1% compared with June 30, 2026. Cash and cash equivalents alone fell to $30,054 thousand from $67,700 thousand at December 31, 2025, as the company moved funds into $33,122 thousand of short-term deposits.
The income statement shows a sharp fall in finance income. Finance income was $309 thousand in Q3 2026 against $1,126 thousand a year earlier, and $2,439 thousand for the nine months against $4,540 thousand. Because the prior-year figures were larger, the pre-tax gain in the quarter was driven by operating income rather than finance income in the filing's own figures, but the release does not explain the decline. Taxes on income were $64 thousand against $242 thousand.
Management says full-year 2026 revenue, operating income margin and Adjusted EBITDA are expected at the upper end of previously issued guidance ranges, with potential to modestly exceed them. The filing does not print the guidance ranges, so the position against them cannot be measured from this document. The release also cites clinical and payer developments, including a $3 million follow-on investment in Radial Health, Inc. and a $0.8 million follow-on in Heading Health, but these are not quantified in the financial statements.
Management, verbatim
Our third-quarter results demonstrate our ability to translate strong revenue growth into higher profitability and cash generation. Revenue increased 34%, while operating income grew 107% and operating cash flow reached $6.2 million,
Hadar Levy, Chief Executive Officer, BrainsWay
We believe these initiatives position BrainsWay for sustained growth, increasing profitability, and long-term value creation,
Hadar Levy, Chief Executive Officer, BrainsWay
Not in the filing
stated, not guessed- Prior-quarter (Q2 2026) figures for all income statement and cash flow lines, which the release does not print.
- Year-over-year percentage changes for most income statement lines; the release prints changes only for revenue, operating income, operating margin, net income, Adjusted EBITDA, Adjusted EBITDA margin, RPOs, Deep TMS shipments and OCD coils.
- Gross margin as a percentage; the release does not print it.
- Year-over-year change in Q3 2026 net cash provided by operating activities as a percentage.
- Numeric full-year 2026 guidance ranges for revenue, operating income margin and Adjusted EBITDA; the release refers only to the upper end of previously issued ranges.
- The previous release's outlook section, so no comparison against prior guidance is made.
- Segment or geographic revenue breakdown.
- Share repurchase and dividend data.
- Share price reaction and analyst consensus, which are not in the document.
- Total outstanding share count and weighted average shares used for EPS.
- Balance sheet and cash flow prior-quarter comparatives, and the June 30, 2026 cash balance in dollars.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.