Q2 FY2026
Filed Aug 12, 2026Second-quarter 2026 revenue increased 35% to $17.1 million, Adjusted EBITDA increased 141% to $3.5 million, and BrainsWay raised full-year 2026 revenue and Adjusted EBITDA guidance.
The company reported 35% revenue growth, substantial operating-margin expansion, 141% Adjusted EBITDA growth, positive operating cash flow, record system shipments, higher RPOs, and increased full-year revenue and Adjusted EBITDA guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $17.11M | – | 35% |
| Cost of revenuesother | $4.34M | – | – |
| Gross profitother | $12.77M | – | – |
| Research and development expenses, netother | $3.22M | – | – |
| Selling and marketing expensesother | $4.85M | – | – |
| General and administrative expensesother | $2.30M | – | – |
| Total operating expensesother | $10.38M | – | – |
| Operating incomeother | $2.39M | – | more than 300% |
| Operating marginother | 14% | – | – |
| Finance incomeother | $1.41M | – | – |
| Finance expenseother | $879K | – | – |
| Income before taxes on incomeother | $2.92M | – | – |
| Taxes on incomeother | $208K | – | – |
| Net incomeother | $2.71M | – | 34% |
| Basic net income per shareother | $ 0.07 | – | – |
| Diluted net income per shareother | $ 0.07 | – | – |
| Adjusted EBITDAnon-GAAP | $3.5M | – | 141% |
| Adjusted EBITDA marginnon-GAAP | 20% | – | – |
| Remaining performance obligationsother | $80.4M | – | 30% |
| Deep TMS systems shippedother | 125 Deep TMS systems | – | 42% |
| Total installed baseother | approximately 1,949 | – | – |
| Cash flow from operationsother | $6.31M | – | – |
| Six-month revenueother | $32.64M | – | – |
| Six-month operating incomeother | $4.40M | – | – |
| Six-month net incomeother | $5M | – | – |
| Six-month Adjusted EBITDAnon-GAAP | $6.31M | – | – |
Full-year ended December 31, 2026 outlook
- Revenue$68 million to $70 million
- NoteOperating income of 13.5% to 14% of revenue
- NoteAdjusted EBITDA of $13 million to $14 million
- NoteRevenue growth of approximately 30% to 34% compared with revenue for 2025
- NoteAdjusted EBITDA growth of approximately 90% to 100% over 2025
What drove it
- Record total shipments of 125 Deep TMS systems, a 42% increase compared with the same period last year.
- Remaining performance obligations rose to $80.4 million as of June 30, 2026, a 30% increase compared with the same period last year.
- The company cited expanding reimbursement coverage and increasing utilization throughout its installed base.
- The company continued expansion of insurer coverage for the SWIFT accelerated Deep TMS protocol.
- Selling and marketing expenses were 4,852 (U.S. dollars in thousands), compared with 4,940 (U.S. dollars in thousands) in the prior-year period, while revenue increased 35%.
Concerns
- Finance income was 1,406 (U.S. dollars in thousands), compared with 2,303 (U.S. dollars in thousands) in the prior-year period.
- Research and development expenses, net were 3,219 (U.S. dollars in thousands), compared with 2,344 (U.S. dollars in thousands) in the prior-year period.
- The company identifies reimbursement timing and adequacy, market acceptance, regulatory approvals, commercialization, product competition, capital requirements, and investment execution among risks that could cause results to differ materially from forward-looking statements.
What to watch
- Execution against full-year revenue guidance of $68 million to $70 million and Adjusted EBITDA guidance of $13 million to $14 million.
- Whether RPOs of $80.4 million and the approximately 1,949 installed-base figure support continued growth.
- Deep TMS system shipment levels following the record 125 systems shipped in the second quarter of 2026.
- Further insurer coverage and utilization of the SWIFT accelerated Deep TMS protocol.
- Operating-income performance against guidance of 13.5% to 14% of revenue.
Balance sheet and cash flow
- Cash and cash equivalents: $ 62,108 (U.S. dollars in thousands) as of June 30, 2026; $ 67,700 (U.S. dollars in thousands) as of December 31, 2025.
- Restricted cash: 251 (U.S. dollars in thousands) as of June 30, 2026; 251 (U.S. dollars in thousands) as of December 31, 2025.
- Cash and cash equivalents and restricted cash totaled $62.4 million as of June 30, 2026, an increase of approximately 6% compared with March 31, 2026.
- Trade receivables, net: 7,032 (U.S. dollars in thousands) as of June 30, 2026; 4,111 (U.S. dollars in thousands) as of December 31, 2025.
- Inventory: 7,310 (U.S. dollars in thousands) as of June 30, 2026; 6,523 (U.S. dollars in thousands) as of December 31, 2025.
- Other non-current financial assets: 25,000 (U.S. dollars in thousands) as of June 30, 2026; 14,656 (U.S. dollars in thousands) as of December 31, 2025.
- Total assets: $ 121,975 (U.S. dollars in thousands) as of June 30, 2026; $ 113,191 (U.S. dollars in thousands) as of December 31, 2025.
- Deferred revenues: 10,232 (U.S. dollars in thousands) current and 9,826 (U.S. dollars in thousands) non-current as of June 30, 2026.
- Lease liabilities: 1,239 (U.S. dollars in thousands) current maturities and 5,894 (U.S. dollars in thousands) non-current as of June 30, 2026.
- Liability in respect of development grants: 1,854 (U.S. dollars in thousands) current and 4,393 (U.S. dollars in thousands) non-current as of June 30, 2026.
- Equity: 79,189 (U.S. dollars in thousands) as of June 30, 2026; 73,163 (U.S. dollars in thousands) as of December 31, 2025.
- Net cash provided by operating activities: 6,307 (U.S. dollars in thousands) for the three months ended June 30, 2026; 12,787 (U.S. dollars in thousands) for the three months ended June 30, 2025.
- Net cash used in investing activities: (2,644) (U.S. dollars in thousands) for the three months ended June 30, 2026; (16,263) (U.S. dollars in thousands) for the three months ended June 30, 2025.
- Purchase of property and equipment and system components, net: (884) (U.S. dollars in thousands) for the three months ended June 30, 2026; (1,166) (U.S. dollars in thousands) for the three months ended June 30, 2025.
- Purchase of financial assets measured at fair value: (1,625) (U.S. dollars in thousands) for the three months ended June 30, 2026; (5,000) (U.S. dollars in thousands) for the three months ended June 30, 2025.
- Net cash used in financing activities: (158) (U.S. dollars in thousands) for the three months ended June 30, 2026; (264) (U.S. dollars in thousands) for the three months ended June 30, 2025.
- Increase (decrease) in cash and cash equivalents: 3,472 (U.S. dollars in thousands) for the three months ended June 30, 2026; (3,689) (U.S. dollars in thousands) for the three months ended June 30, 2025.
Analysis
BrainsWay reported a strong second quarter under IFRS. Revenue increased 35% to $17.1 million from $12.6 million, while gross profit was $12,766 thousand versus $9,499 thousand. The company also reported record shipments of 125 Deep TMS systems, up 42%, and RPOs of $80.4 million, up 30%. Management linked the momentum to reimbursement expansion and greater utilization throughout the installed base.
Profitability improved materially. Operating income increased to $2,391 thousand from $578 thousand and operating margin expanded to 14% from 5%. Adjusted EBITDA, which the company presents as a non-IFRS measure, increased to $3,500 thousand from $1,451 thousand, while Adjusted EBITDA margin expanded to 20% from 11%. Selling and marketing expense was lower than the prior-year period despite the reported revenue growth, whereas research and development and general and administrative expenses increased.
Net income was $2,710 thousand, compared with $2,027 thousand, and both basic and diluted net income per share were $0.07, compared with $0.05. Cash flow from operating activities was $6,307 thousand for the quarter. Cash and cash equivalents were $62,108 thousand at June 30, 2026, and cash and cash equivalents plus restricted cash totaled $62.4 million. Finance income declined to $1,406 thousand from $2,303 thousand, a notable offset within earnings below operating income.
The company raised full-year 2026 revenue guidance to $68 million to $70 million from $66 to $68 million and raised the lower end of Adjusted EBITDA guidance to $13 million to $14 million from $12 million to $14 million. It also increased operating-income guidance to 13.5% to 14% of revenue from 13%-14%. The updated outlook calls for anticipated revenue growth of approximately 30% to 34% and Adjusted EBITDA growth of approximately 90% to 100% over 2025.
Balance-sheet activity included $25,000 thousand of other non-current financial assets, compared with $14,656 thousand at December 31, 2025. Quarterly investing cash use was $2,644 thousand, including $1,625 thousand for financial assets measured at fair value and $884 thousand for property, equipment and system components. The filing did not report share repurchases, dividends, free cash flow, or revenue by operating segment.
Management, verbatim
This quarter marked our second consecutive quarter of approximately 35% revenue growth and further expansion in operating leverage. Revenue reached a record $17.1 million, Adjusted EBITDA more than doubled to $3.5 million, and we generated more than $6.0 million of operating cash flow. Record system shipments and RPO of $80.4 million further strengthen our visibility into continued growth.
Hadar Levy, Chief Executive Officer of BrainsWay
We are seeing strong momentum across the business, which is fueled by expanding reimbursement coverage and increasing utilization throughout our installed base. As a result, we are raising our full-year financial guidance for 2026.
Hadar Levy, Chief Executive Officer of BrainsWay
Not in the filing
stated, not guessed- Revenue by operating segment was not reported.
- Prior-quarter comparisons for revenue, profit, EPS, Adjusted EBITDA, shipments, RPOs, and other operating metrics were not reported.
- Gross margin was not reported.
- Free cash flow was not reported.
- Share repurchases and dividends were not reported.
- A consolidated total-debt figure was not reported.
- Gross-margin, operating-expense, and tax-rate guidance were not reported.
- A prior outlook section from the previous release was not provided; therefore, no actual-versus-prior-guidance comparison is included.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.