Brainsway Reports 107% Surge in Operating Profit, Exceeds Q3 Expectations

Israeli medical technology company Brainsway, traded on NASDAQ and the Tel Aviv Stock Exchange, announced its third-quarter 2026 financial results, revealing a significant increase in operational performance. The company reported revenues of $18.1 million, a 34% rise from the $13.5 million in the same period last year. Operating profit more than doubled, reaching $2.6 million compared to $1.3 million in the prior year's third quarter, marking a 107% increase. The operating profit margin improved to 14% from 9% year-over-year. Adjusted EBITDA also saw substantial growth, up 92% to $3.9 million from $2 million, with the margin increasing to 21% from 15%. Net profit rose 42% to $2.2 million.

Brainsway supplied 130 Deep TMS systems during the quarter, a 44% increase from the previous year, bringing its total installed base to approximately 2,080 systems. Sales of OCD treatment systems increased by 17% to 54 units. The company's future order backlog stood at $85 million as of September 30, 2026, up 31% year-over-year. Cash flow from operations was $6.2 million, and the company held $63.4 million in cash and equivalents.

Clinical research updates included findings from a study published in a peer-reviewed journal, indicating a 70% reduction in suicidal ideation among patients treated with Deep TMS technology over six weeks. However, the company noted that the FDA has not approved the technology for treating suicidal thoughts. Another pilot study on patients with depression and early-stage Alzheimer's showed an 83.3% response rate and a 50% remission rate for depressive symptoms, though further clinical research is required, and FDA approval for this indication is pending.

In the US health insurance sector, data suggests over 70 million individuals have coverage for the accelerated Deep TMS protocol. Brainsway also reported follow-on investments totaling $3.8 million in Radial Health and Heading Health, companies providing management services to mental health clinic networks. Following the quarter's end, Brainsway announced a strategic collaboration with Inland Psychiatric Medical Group, a Southern California network with over 30 clinics, including an order for Deep TMS systems and plans for scientific and clinical cooperation.

Looking ahead, Brainsway anticipates its 2026 revenues, operating profit margin, and adjusted operating profit will reach the upper end of its previously issued forecast, with potential to exceed it. CEO Hadar Levy stated the company is focused on expanding insurance coverage, increasing system utilization, launching new treatment protocols, and growing research and clinical activities. He attributed the company's performance to its business model, the growing adoption of Deep TMS, and sustained momentum in recurring revenue and operational leverage.