Brainsway Reports Strong Third Quarter Growth, Exceeding Expectations
Translated & summarized from Calcalist by baba
Brainsway reported a 34% year-over-year revenue increase to a record $18.1 million in its third quarter, with net profit rising 38% to $2.2 million. The company, which develops brain disorder treatments, expects to meet or exceed its annual forecast of $70 million in revenue. Its non-invasive dTMS technology has gained FDA approval for accelerated treatments and expanded insurance coverage in the U.S. The company's stock has seen significant growth since 2023 but has recently declined.
The story in 5 lines · by baba
- Brainsway's third-quarter revenue reached a record $18.1 million, a 34% increase year-over-year.
- The company's net profit grew 38% to $2.2 million in the third quarter.
- Brainsway expects to meet or exceed its annual revenue forecast of $70 million.
- The company's dTMS technology received FDA approval for accelerated treatments.
- Brainsway's stock value has fluctuated, reaching a peak of 2 billion shekels before a recent 28% drop.
Brainsway, a medical device company specializing in treatments for brain function disorders, particularly mental health conditions and addictions, announced robust financial results for its third quarter. The company, led by CEO Hadar Levi, achieved record revenues of $18.1 million, marking a 34% increase compared to the same period last year. This revenue growth was accompanied by significant improvements in profitability. Adjusted EBITDA surged by 95% to $3.9 million, while operating profit doubled from $1.3 million to $2.6 million, boosting the operating profit margin from 10% to 14%. The net profit reached $2.2 million, a 38% rise year-over-year.
These results follow a pattern of strong performance in previous quarters. The company's revenue growth has consistently hovered around 35-36% in the first two quarters of the year, with net profit increases ranging from 33% to 109%. Based on this sustained growth, Brainsway anticipates finishing the year at the upper end of its forecast, or potentially exceeding it. The current annual forecast projects revenues of $70 million and an adjusted EBITDA of $14 million.
Brainsway's technology utilizes deep transcranial magnetic stimulation (dTMS), a non-invasive treatment delivered via a helmet-like device that emits magnetic pulses to the brain. The company primarily operates in the United States. Last year, it received FDA approval for an accelerated, short-duration treatment protocol for major depressive disorder, including patients with comorbid anxiety symptoms. This shortened treatment, lasting only a few days instead of weeks, has made the therapy more accessible. The company has also secured approvals to offer its treatment to younger demographics and expanded insurance coverage to over 70 million people in the U.S.
Further expanding its market reach, Brainsway has invested in clinic networks across the U.S. as a minority shareholder to enhance its marketing capabilities. The company, which became profitable in the fourth quarter of 2023, has seen its stock performance reflect its financial success. After hitting a low of 92 million shekels in May 2023, its market value soared to a record 2 billion shekels in July of this year. However, the stock has experienced a 28% decline in the past four months, with the company currently valued at 1.5 billion shekels. Despite this recent dip, the stock is up 17% year-to-date, outperforming the Tel Aviv 125 index's 6% rise.