BrainsWay Ltd. reported Q3 2025 revenue of $13.51 million, surpassing the consensus estimate of $13.04 million by $0.47 million (a 3.6% beat). GAAP earnings per share were $0.04, exactly matching analyst expectations. Revenue grew 29% year‑over‑year and 7% quarter‑over‑quarter, driven by a 43% year‑over‑year increase in Deep TMS system shipments (90 units) and a shift toward multi‑year lease agreements that now account for roughly 70% of the company’s recurring revenue. Gross margin expanded to 75% from 74% in the prior year, while operating income rose to $1.3 million and adjusted EBITDA reached $2.0 million, reflecting both higher revenue and improved cost efficiency.
The revenue lift was underpinned by the company’s recent FDA clearance of an accelerated Deep TMS protocol for major depressive disorder, which broadened the patient population eligible for treatment. The recurring revenue model, with $65 million in remaining performance obligations, provided a stable cash‑flow foundation and helped offset the modest increase in operating expenses. The 43% jump in system shipments indicates strong demand from both new and existing customers, reinforcing the company’s market position in the neurostimulation sector.
The earnings beat can be attributed to a combination of higher mix and operational leverage. The shift to lease agreements increased the proportion of high‑margin recurring revenue, while cost controls kept variable expenses in check. Gross margin expansion and the rise in operating income demonstrate that the company is successfully scaling its business without sacrificing profitability. The alignment of GAAP EPS with consensus further signals disciplined earnings management.
Management raised its full‑year 2025 guidance, projecting revenue of $51 million to $52 million—an increase of $2 million to $3 million over the prior guidance range. Operating income guidance was lifted to 6%–7% of revenue from 4%–5%, and adjusted EBITDA guidance was raised to 13%–14% from 10%–11%. These adjustments reflect confidence in sustained demand, the continued success of the recurring revenue model, and the company’s ability to maintain cost discipline as it expands its installed base beyond 1,600 systems.
The company’s cash position of $70.7 million as of September 30, 2025 provides ample runway for continued investment in research, commercial expansion, and potential strategic initiatives. The FDA clearance and the high proportion of lease agreements position BrainsWay to capture a growing share of the mental‑health neurostimulation market, while the company’s strong operating metrics suggest resilience against potential macro‑economic headwinds.
CEO Hadar Levy emphasized the company’s focus on exploring new therapeutic applications and accelerating treatment protocols. He highlighted the company’s confidence in achieving profitability and expanding its market presence, underscoring the strategic importance of the recurring revenue model and the recent regulatory milestone.
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