BWAY — BrainsWay Ltd.

Summary of BrainsWay Q3 2025 Earnings Call

1. Key Financial Results and Metrics:

• Revenue: Q3 2025 revenue reached $13.5 million, a 29% increase from $10.5 million in Q3 2024.
• Gross Profit: $10.2 million, up from $7.7 million year-over-year, with a gross margin of 75%.
• Operating Profit: Approximately $1.3 million, significantly up from $0.3 million in the prior year.
• Adjusted EBITDA: Increased to $2 million from $1.1 million year-over-year.
• Net Profit: $1.6 million, compared to $0.7 million in Q3 2024.
• Cash Position: Ended the quarter with $70.7 million in cash, up from $69.6 million at year-end 2024.
• Remaining Performance Obligations: Grew to $65 million, a 37% year-over-year increase.

2. Strategic Updates and Business Highlights:

• System Shipments: 90 Deep TMS systems shipped in Q3, a 43% increase year-over-year, bringing the total installed base to over 1,600 systems.
• Sales Model Transition: Approximately 70% of recent customer engagements are now multiyear lease agreements, enhancing customer retention and revenue stability.
• Regulatory Approvals: FDA granted an expansion of the Deep TMS treatment protocol to include an accelerated protocol for major depressive disorder, potentially increasing patient appeal.
• Investment Strategy: Continued minority equity investments in mental health providers, with a $20 million strategic investment from Valor Equity Partners. Recent investments have shown a 50% increase in utilization rates at partner clinics.

3. Forward Guidance and Outlook:

• Revenue Guidance: Increased to $51 million to $52 million for FY 2025, up from previous guidance of $50 million to $52 million.
• Operating Profit Guidance: Revised to 6% to 7% of revenue, up from 4% to 5%.
• Adjusted EBITDA Guidance: Now expected in the range of 13% to 14%, up from 12% to 13%.

4. Bad News, Challenges, or Points of Concern:

• Regulatory Delays: Potential delays in FDA clearance for Neurolief could impact market entry and growth timelines.
• Market Conditions: The company acknowledged risks related to shifting market conditions, including geopolitical and supply chain factors that could affect operations.

5. Notable Q&A Insights:

• Accelerated Protocol Demand: Management indicated strong demand for the accelerated treatment protocol, which shortens the treatment phase from 4 weeks to 6 days.
• Minority Investments Pipeline: There is a robust pipeline for additional minority investments, with plans to finalize at least one more by year-end 2025.
• International Growth: Significant growth expected in Asia Pacific and Europe, with strong demand noted in countries like Japan, China, and Germany.
• Reporting Changes: Future financial reporting may include more granularity on system placements and performance metrics related to minority investments, although these investments will not impact top-line revenue.

Overall, BrainsWay reported a strong quarter with significant revenue growth and strategic advancements, while also navigating potential regulatory and market challenges.