Brainsway Ltd. Annual Report: A Simple Guide

This guide breaks down Brainsway’s performance this past year to help you decide if the company fits your investment goals.

1. What does this company do?

Brainsway creates non-invasive medical technology to treat brain disorders. Their main product, Deep Transcranial Magnetic Stimulation (Deep TMS), treats conditions like depression, OCD, and smoking addiction without surgery or drugs. They lease their specialized helmets to clinics, earning steady income through session fees and maintenance charges.

2. Financial performance

Brainsway has reached a major milestone. After losing $12.3 million in 2022, the company turned a profit in 2024 and 2025. Revenue hit $112.5 million in 2025, up 22% from the previous year. This growth came from a 15% increase in the number of systems installed, which now totals over 1,200 units. While they may return to losses due to heavy spending on research and sales, this profit is a significant achievement.

Additionally, the company changed its American Depositary Shares (ADS) structure in March 2026. One ADS now equals one ordinary share, rather than two. This is a housekeeping change to make the stock easier to track; it does not change the value of your investment.

3. Major wins and challenges

Brainsway is growing, but they rely heavily on a few large clients. Their top three customers provide 28% of their total revenue. Losing one of these health networks would significantly hurt their income. They are also being cautious about collecting payments; they set aside $2.4 million to cover potential unpaid bills from smaller clinics.

4. Financial health

Brainsway reports in U.S. Dollars but operates in Israel, meaning they manage both Dollars and New Israeli Shekels. Currency swings can distort their results; in 2025, unfavorable exchange rates increased their operating costs by $1.8 million. They also partner with third-party groups to help run clinics. These partnerships boosted usage rates by 12%, but they also introduce legal risks regarding U.S. healthcare regulations.

5. Key risks

• Customer Dependency: Relying on a few big buyers is risky. Losing one major contract could cause a sharp drop in quarterly revenue.
• Regulatory Hurdles: The company faces constant FDA scrutiny. Failing to report safety issues or changes in treatment guidelines could lead to recalls or legal trouble, for which they have set aside $3.5 million.
• Insurance Coverage: Their growth depends on insurance companies paying for treatments. If insurers lower their payout rates or tighten coverage, growth will stall.
• Intellectual Property: Their business relies on over 40 patents. If they lose these rights or competitors create similar devices, their competitive advantage will disappear.

6. What’s next?

Brainsway is seeking FDA approval to treat bipolar disorder and PTSD. They also aim to ensure 95% of the U.S. population has insurance coverage for their treatments by 2027. With $45 million in cash, they are looking to buy other companies that offer complementary brain-health technologies.

Investor Takeaway: Brainsway has successfully moved into profitability and is scaling its footprint, but its future hinges on expanding insurance coverage and maintaining its regulatory standing. When weighing this investment, consider whether you are comfortable with the risks of a company that relies on a concentrated group of customers and the evolving landscape of U.S. healthcare policy.