BrainsWay Ltd. posted third‑quarter 2025 results that surpassed revenue expectations while falling short on earnings per share. Revenue climbed 29% to $13.5 million, operating income rose to $1.3 million, and adjusted EBITDA reached $2.0 million, an 80% jump from the same period in 2024. The company reported earnings per share of $0.04, missing the consensus estimate of $0.11, but it raised its full‑year 2025 revenue guidance to $51 million–$52 million and adjusted EBITDA guidance to 13%–14%.
The revenue beat was driven by a robust backlog of $65 million and a shift toward a recurring‑revenue model, with roughly 70% of new contracts structured as multi‑year leases. Adoption of the Deep TMS platform accelerated in both the United States and international markets, and the company secured an FDA clearance for an accelerated protocol for major depressive disorder, expanding its treatment indications and expected market share.
Gross margin improved to 75% from 74% in Q3 2024, reflecting efficient cost management and a higher mix of high‑margin lease agreements. Operating income margin expanded to 9.6% from 8.8% year‑over‑year, while adjusted EBITDA margin grew to 14.8% from 13.5%. The EPS miss, however, was largely attributable to higher operating expenses, including a $0.2 million increase in research and development and a $0.1 million rise in general and administrative costs, which offset the revenue growth.
Management’s upward revision of full‑year guidance signals confidence in sustained demand and the continued conversion of the backlog into recurring revenue. The new revenue outlook represents a 5% lift over the prior guidance, while the adjusted EBITDA guidance increase of 1% reflects expectations of further margin expansion as the company scales its lease portfolio.
Strategic investments also underpin the outlook. BrainsWay disclosed a $5 million investment in Neurolief Ltd., a developer of wearable neuro‑modulation platforms, positioning the company to broaden its product ecosystem. The combination of a growing recurring‑revenue base, FDA clearance, and strategic partnerships is expected to support long‑term growth in the mental‑health neurostimulation market.
Overall, BrainsWay’s Q3 2025 results demonstrate strong top‑line momentum and a maturing recurring‑revenue model, even as the company navigates higher operating costs that led to an EPS miss. The raised guidance and strategic initiatives suggest a positive trajectory for the remainder of the year and beyond.
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