BWAY — BrainsWay Ltd.

Summary of BrainsWay Q3 2025 Earnings Call

1. Key Financial Results and Metrics:

• Revenue: Record quarterly revenue of $13.5 million, a 29% increase from $10.5 million in Q3 2024.
• Deep TMS Systems: 90 systems shipped during the quarter, totaling over 1,600 installed systems globally.
• Gross Profit: $10.2 million, up from $7.7 million year-over-year, maintaining a gross margin of 75%.
• Operating Profit: Increased to $1.3 million from $0.3 million in the prior year.
• Adjusted EBITDA: Rose 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: $70.7 million in cash and cash equivalents, up $1.1 million from year-end 2024.
• Remaining Performance Obligations: $65 million, a 37% year-over-year increase.

2. Strategic Updates and Business Highlights:

• Sales Strategy: Focus on large enterprise customers with a shift towards multiyear lease agreements, now comprising 70% of recent customer engagements.
• Accelerated Treatment Protocol: FDA approval for an accelerated protocol for major depressive disorder (MDD), reducing treatment time from 4 weeks to 6 days, expected to enhance patient appeal and demand.
• Investment Strategy: Continued minority investments in mental health providers, with recent investments in Stella Mental Health, Axis, and Neurolief LTD, aimed at enhancing market presence and utilization of Deep TMS systems.
• Clinical Research: A $2.5 million NIH grant awarded for a study on the accelerated protocol for alcohol use disorder (AUD).

3. Forward Guidance and Outlook:

• Revenue Guidance: Raised to $51 million to $52 million for full-year 2025, up from previous guidance of $50 million to $52 million.
• Operating Profit Guidance: Increased to 6% to 7% of revenue, up from 4% to 5%.
• Adjusted EBITDA Guidance: 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’s device due to current administrative challenges, which could impact market entry timelines.
• Investment Risks: The success of minority investments depends on the profitability and management of the partner companies, which introduces uncertainty.

5. Notable Q&A Insights:

• Accelerated Protocol Demand: Strong initial demand for the accelerated protocol, expected to drive company growth.
• Future Investments: A robust pipeline for additional minority investments, with plans to finalize at least one more by year-end 2025.
• International Growth: Anticipated growth in Asia Pacific and Europe, with specific markets like Japan, South Korea, and Germany showing strong demand.
• Metrics Reporting: Plans to provide more granular metrics on system placements and performance of minority investments in future updates.

Overall, BrainsWay's Q3 2025 results reflect strong growth and strategic initiatives aimed at expanding market presence and enhancing treatment offerings, despite some regulatory challenges and risks associated with new investments.