BrainsWay’s valuation has jumped 20-fold as its brain disorder treatment business takes off
The Israeli medical device maker posted record quarterly revenue of $17 million and raised its full-year outlook after adjusted EBITDA surged 141%.
BrainsWay ended the second quarter with improved performance and record results, prompting the company to raise its full-year guidance. Its shares, which had already climbed 117% over the past 12 months compared with a 35% gain for the TA-125 index, rose another 4% following the release of the results.
The company, led by CEO Hadar Levy, develops and markets medical devices for treating brain disorders, primarily psychiatric conditions and addictions.
BrainsWay's market capitalization has risen from approximately NIS 92 million ($31M) in May 2023 to around NIS 1.9 billion ($638M) today, an increase of more than 20-fold.
BrainsWay's revenue jumped 35% in the second quarter of 2026 compared with the corresponding quarter last year, reaching a quarterly record of $17 million. The increase flowed through to the company's bottom line: operating profit rose from approximately $600,000 to $2.4 million, while operating margin improved from 5% to 14%.
Adjusted EBITDA surged 141% to $3.5 million, while net income rose 34% to $2.7 million.
Following the strong quarter, BrainsWay raised its full-year revenue guidance to $68 million-$70 million, from $66 million-$68 million previously. The new forecast represents growth of up to 34% compared with 2025. The company also raised the lower end of its adjusted EBITDA guidance from $12 million to $13 million, while maintaining the upper end at $14 million.
BrainsWay's technology is based on deep transcranial magnetic stimulation, a non-invasive treatment that uses a helmet-like device placed on the patient's head to deliver magnetic pulses to targeted areas of the brain according to a prescribed treatment plan.
BrainsWay operates primarily in the United States. Last year, the company received FDA approval for a shortened treatment protocol for patients suffering from major depressive disorder (MDD), including those with accompanying anxiety symptoms. The protocol reduces treatment from several weeks to just a few days, potentially making treatment with Brainsway's system more accessible. The company also received approvals allowing it to provide the treatment to younger patients.
After years of losses, BrainsWay reached profitability in the fourth quarter of 2023 and has remained profitable since then. 2024 was the first full year in which the company recorded a net profit, and its performance improved further in 2025. Results from the first and second quarters of 2026 indicate that the turnaround is continuing.
