BrainsWay Ltd. (BWAY): History, Ownership, Mission, How It Works & Makes Money

When you look at BrainsWay Ltd. (BWAY), a company pioneering noninvasive neurostimulation treatments, do you see a niche medical device maker or a high-growth mental health disruptor? The 2025 numbers defintely tilt toward the latter, with the company raising its full-year revenue guidance to a range of $51 million - $52 million, supported by a Q3 net profit surge of 137% to $1.6 million. This financial momentum, plus an installed base of over 1,600 Deep TMS™ systems globally, shows a business model scaling rapidly to meet the massive need for better mental health solutions. How did a company with a market capitalization of around $313.7 million build this kind of contracted revenue visibility-now totaling $65 million in remaining performance obligations-and what does their core technology actually do to earn that valuation?

BrainsWay Ltd. (BWAY) History

BrainsWay Ltd. is built on a foundation of deep neuroscience research, moving their proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) technology from a lab-based concept to a commercially viable treatment for mental health disorders. The company's trajectory shows a clear, defintely intentional path from securing core intellectual property to achieving multiple, market-expanding FDA clearances.

Given Company's Founding Timeline

Year established

BrainsWay was founded in 2003.

Original location

The company was initially incorporated in Delaware, but its operational roots and original subsidiary were set up in Jerusalem, Israel. Today, it maintains dual headquarters in Burlington, Massachusetts, and Jerusalem.

Founding team members

The company was founded by Uzi Sofer, Avner Hagai, and David Zacut. Their work was based on the 'H-coil' technology, which emerged from research by scientists like Abraham Zangen and Yiftach Roth at the U.S. National Institutes of Health (NIH).

Initial capital/funding

BrainsWay secured its first major capital infusion in early 2007 by completing an Initial Public Offering (IPO) on the Tel Aviv Stock Exchange (TASE), raising ₪33 million (New Israeli Shekels).

Given Company's Evolution Milestones

Given Company's Transformative Moments

The pivot from an R&D-focused entity to a commercial-stage medical device company was the first major transformative moment, driven by the 2013 FDA clearance for MDD. That approval gave them a credible, non-invasive alternative to medication for a large patient population.

The next major shift is happening right now, in 2025. You can see the company moving beyond just selling hardware to integrating deeper into the mental health treatment ecosystem. This is a smart move for long-term revenue visibility.

• Strategic Minority Investments: In 2025, BrainsWay completed four strategic minority equity investments in U.S. mental health providers. This strategy accelerates patient access to Deep TMS and strengthens commercial partnerships. For example, the investment in Heading Health included an initial $1.5 million equity stake.
• Accelerated Protocol Clearance: The September 2025 FDA clearance for an accelerated Deep TMS protocol for MDD is a game-changer. This shortens the acute treatment phase to just six days, down from the standard four weeks of daily sessions, which directly addresses patient convenience and clinic throughput.
• Expanded Patient Population: In November 2025, the FDA granted a label expansion for Deep TMS as an adjunct therapy for MDD in adolescents aged 15 to 21. This opens up a new, critical demographic for treatment.
• Financial Strength and Outlook: Based on Q3 2025 performance, the company raised its full-year 2025 revenue guidance to between $51 million and $52 million, with an Adjusted EBITDA guidance of 13% to 14%. This signals a clear trend toward sustained profitability and scale.

To understand the financial implications of these recent strategic moves, you should read Exploring BrainsWay Ltd. (BWAY) Investor Profile: Who's Buying and Why?, which maps out who is backing this growth story.

BrainsWay Ltd. (BWAY) Ownership Structure

BrainsWay Ltd. is controlled by a mix of institutional investment firms and individual retail investors, with a smaller but significant stake held by company insiders. This structure means major strategic decisions, especially those requiring shareholder votes, balance the interests of large financial institutions like Valor Management LLC with the collective power of individual shareholders.

BrainsWay Ltd.'s Current Status

BrainsWay Ltd. (BWAY) is a publicly traded medical device company, dual-listed on the NASDAQ and the Tel Aviv Stock Exchange (TASE). This dual listing increases transparency and access to capital, but also subjects the company to rigorous reporting requirements from both the U.S. Securities and Exchange Commission (SEC) and Israeli regulators. The company's market capitalization was approximately $304.93 million as of November 2025, reflecting its position as a commercial-stage leader in Deep Transcranial Magnetic Stimulation (Deep TMS) technology.

The firm has raised its full-year 2025 revenue guidance to a range of $51 million - $52 million, indicating strong commercial traction, which is defintely a good sign for shareholders. For a deeper dive into the numbers, check out Breaking Down BrainsWay Ltd. (BWAY) Financial Health: Key Insights for Investors.

BrainsWay Ltd.'s Ownership Breakdown

The ownership structure, as of late 2025, shows that institutional investors hold the largest block of shares, which is typical for a mid-cap, growth-focused technology stock. This concentration of institutional ownership can sometimes lead to less volatile stock prices, but it also means a few large players can sway a vote.

BrainsWay Ltd.'s Leadership

The company is steered by an experienced management team, blending co-founder vision with seasoned operational expertise. This leadership group is responsible for capitalizing on the strong market momentum, including the projected 2025 adjusted EBITDA of 13% - 14% of revenue.

• Hadar Levy, Chief Executive Officer (CEO): Appointed in 2023, Mr. Levy is the primary driver of the company's commercial strategy, focusing on expanding the installed base of Deep TMS systems, which surpassed 1,600 globally in Q3 2025.
• Ido Marom, Chief Financial Officer (CFO): He manages the financial health, including the company's significant cash position of $70.7 million as of September 30, 2025.
• Amiram Boehm, Independent Chairman: As the Independent Chairman, he oversees the Board of Directors, ensuring corporate governance standards are met.
• David Zacut, Co-Founder & Vice-Chairman: A key figure maintaining the original vision and technological integrity of the Deep TMS platform.
• Yiftach Roth, Founder & Chief Scientific Officer: He leads the R&D pipeline, which is crucial for securing new FDA clearances and expanding the addressable market beyond current indications.

What this leadership structure tells you is that the founders still have a seat at the table, but a professional management team is running the day-to-day operations and driving commercial growth.

BrainsWay Ltd. (BWAY) Mission and Values

BrainsWay Ltd. stands for a purpose beyond profit: to transform patient lives by pioneering noninvasive neurostimulation treatments, driven by a deep commitment to superior clinical science and broad patient access.

BrainsWay's Core Purpose

You're investing in a medical device company, so you need to know their North Star is clinical efficacy. BrainsWay's core purpose is baked into their business strategy, focusing on expanding their Deep Transcranial Magnetic Stimulation (Deep TMS) platform, which already has four FDA-cleared indications, including Major Depressive Disorder and Obsessive-Compulsive Disorder.

This commitment to clinical advancement is defintely not cheap; for instance, Research and Development (R&D) expenses hit $2.4 million in the third quarter of 2025 alone, up $0.6 million from the prior year, showing they are putting real money behind their science. The whole strategy rests on three clear pillars that map their values to growth:

• Elevate market awareness of Deep TMS's clinical impact.
• Advance the R&D roadmap to unlock new treatment indications.
• Broaden patient access through global expansion and health system integration.

That last point-broadening access-is key. It's why they made four strategic minority investments in U.S. mental health providers in 2025, accelerating patient access to the Deep TMS therapy.

Official mission statement

While a single-sentence mission statement is hard to pin down, the company's stated mission is centered on evidence-based, large-scale patient impact. They are dedicated to leading through superior science and building on an unparalleled body of clinical evidence to increase global awareness of, and broad access to, Deep TMS. Honestly, their ultimate mission is simple: improving patient lives on a large scale.

Here's the quick math on their impact: the total installed base now stands at more than 1,600 systems globally, and these devices have delivered over 7 million individual treatments.

Vision statement

The vision is about transforming lives through bold neuroscientific advancement. BrainsWay sees itself as the global leader in advanced noninvasive neurostimulation treatments for mental health disorders. Their vision is to use their proprietary Deep TMS platform to improve health and transform lives. You can see this vision in their financial guidance for 2025, where they expect to drive between $51 million and $52 million in revenue, proving you can do good and still generate strong returns. For more on how they connect this purpose to their long-term strategy, check out this resource: Mission Statement, Vision, & Core Values of BrainsWay Ltd. (BWAY).

BrainsWay's slogan/tagline

BrainsWay doesn't use a short, catchy tagline in its official communications, preferring to state its position clearly: Global leader in advanced noninvasive neurostimulation treatments for mental health disorders. This precise phrasing emphasizes their technological edge and market position, which is definitely more authoritative than a simple slogan.

BrainsWay Ltd. (BWAY) How It Works

BrainsWay operates by developing and commercializing a proprietary medical device platform, Deep Transcranial Magnetic Stimulation (Deep TMS), which uses magnetic fields to non-invasively stimulate deep brain structures, treating mental health disorders. This technology is sold or leased to healthcare providers, creating a hybrid revenue model driven by system placements and recurring revenue from treatment sessions.

The company delivers value by offering a clinically-proven, non-systemic treatment alternative for patients who haven't responded to medication or psychotherapy, expanding the treatment options available to mental health clinics.

BrainsWay Ltd.'s Product/Service Portfolio

The core of BrainsWay's business is its Deep TMS platform, which is a single hardware system cleared for multiple indications, allowing clinics to treat a broader patient population with one device. The system is the first and only Transcranial Magnetic Stimulation (TMS) device to secure three distinct FDA-cleared indications based on pivotal clinical studies.

BrainsWay Ltd.'s Operational Framework

BrainsWay's operational model is centered on commercializing its Deep TMS technology through a high-margin, recurring revenue structure, which is defintely a smart way to scale a medical device business. For the full year 2025, the company expects revenue to be between $51 million and $52 million.

• System Placement and Leasing: The primary value driver is the placement of Deep TMS systems, with the installed base surpassing 1,600 systems globally as of Q3 2025. The shift to multi-year lease agreements (about 70% of recent contracts) smooths out revenue and builds a predictable base.
• Recurring Revenue Generation: Revenue comes from the initial system placement (sale or lease) and ongoing fees, including maintenance, service, and disposable components used in each treatment session. This model resulted in a Q3 2025 gross margin of 75%.
• Strategic Market Expansion: The company makes minority equity investments in high-performing mental health providers to accelerate the adoption and awareness of Deep TMS therapy within the broader mental health ecosystem.
• R&D Focus: While commercialization is key, R&D continues to focus on expanding indications, such as the $2.5 million NIH grant-supported study for Deep TMS in Alcohol Use Disorder (AUD).

BrainsWay Ltd.'s Strategic Advantages

The competitive edge for BrainsWay is rooted in its technology's clinical validation and its financial stability, allowing for aggressive market penetration. You can dive deeper into this stability by reading Breaking Down BrainsWay Ltd. (BWAY) Financial Health: Key Insights for Investors.

• Proprietary Deep TMS Technology: The patented H-Coil technology allows for deeper and broader stimulation of brain regions than traditional TMS, which is a major clinical differentiator.
• Regulatory Moat: Being the first and only TMS company with three FDA-cleared indications-MDD, OCD, and Smoking Addiction-creates a significant barrier to entry and a broader addressable market. The recent November 2025 FDA clearance for an accelerated MDD protocol further enhances patient convenience and market appeal.
• High Revenue Visibility: The recurring revenue model provides strong visibility, evidenced by the $65 million in remaining performance obligations (RPO) on the books as of Q3 2025.
• Financial Flexibility: The company maintains a robust balance sheet, reporting $70.7 million in cash and cash equivalents with no debt as of September 30, 2025, which funds strategic investments and R&D without external financing pressure.

BrainsWay Ltd. (BWAY) How It Makes Money

BrainsWay Ltd. primarily generates revenue through the sale and, increasingly, the multi-year leasing of its proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) systems to mental health providers. This core business is supplemented by recurring revenue from lease payments, consumables, and service contracts that sustain the installed base of over 1,600 systems globally.

BrainsWay Ltd.'s Revenue Breakdown

Here's the quick math: while the company does not break out the exact percentage split of total revenue between one-time sales and recurring streams, the trend is clear. Approximately 70% of recent customer engagements are structured as multi-year lease agreements, which is a key driver for the 'Strongly Increasing' recurring revenue trend. This shift is what you want to see for long-term predictability.

Business Economics

The core economic engine for BrainsWay Ltd. is the transition from a capital equipment sales model to a high-margin, recurring-revenue model driven by long-term leasing. The company's gross margin for the third quarter of 2025 stood at a healthy 75%, reflecting the high profitability of the Deep TMS technology and the stability provided by these recurring revenue streams.

• Lease-Driven Backlog: The strategic focus on multi-year lease agreements creates a substantial backlog of contracted future revenue, known as Remaining Performance Obligations (RPO). As of September 30, 2025, the RPO totaled $65 million, providing strong revenue visibility for the coming years.
• Installed Base Leverage: With an installed base of over 1,600 systems, the company benefits from a growing stream of revenue from consumables (like treatment coils) and maintenance service contracts, which are high-margin and defintely more predictable than one-time sales.
• Market Expansion: The recent FDA clearance of an accelerated Deep TMS protocol for Major Depressive Disorder (MDD) is a significant economic catalyst, potentially lowering the total treatment time and making the therapy more accessible and appealing to providers and patients, which should boost system utilization and consumable revenue.

The company is also making strategic minority-stake investments in U.S. mental health providers, which are designed to drive the adoption and utilization of the Deep TMS systems in high-performing clinics. If you are looking to understand the capital behind these moves, check out Exploring BrainsWay Ltd. (BWAY) Investor Profile: Who's Buying and Why?

BrainsWay Ltd.'s Financial Performance

BrainsWay Ltd. is demonstrating a clear path to scaling profitability, with Q3 2025 results showing significant operating leverage. Total revenue for the third quarter of 2025 was $13.5 million, marking a strong year-over-year increase of 29%. This growth is translating directly to the bottom line, which is what matters most to investors.

• Profitability Surge: Net profit for Q3 2025 was $1.6 million, a massive increase of 137% compared to the same period in 2024.
• Cash Position: The balance sheet remains solid, with cash, cash equivalents, and restricted cash totaling $70.7 million as of September 30, 2025.
• Full-Year Guidance: Management raised its full-year 2025 guidance, projecting total revenue between $51 million and $52 million.
• Margin Targets: Full-year 2025 guidance also projects an Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin in the range of 13%-14%, up from previous guidance, indicating continued operational efficiency as the business scales.

BrainsWay Ltd. (BWAY) Market Position & Future Outlook

BrainsWay is positioned as the innovation-driven challenger in the non-invasive neurostimulation market, moving aggressively to capture share with its proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) technology. The company's future hinges on expanding its multi-indication FDA clearances and successfully executing its strategy of investing in mental health clinics to drive system adoption, aiming for full-year 2025 revenue between $51 million and $52 million.

You can see the Mission Statement, Vision, & Core Values of BrainsWay Ltd. (BWAY) clearly reflect this focus on technology leadership and broader access. This is a business built on recurring revenue from consumables and leases, which gives it a strong foundation for sustainable growth, especially with its remaining performance obligations (RPOs) totaling approximately $65 million as of Q3 2025.

Competitive Landscape

The TMS market is essentially a two-horse race between BrainsWay and Neuronetics (NeuroStar), plus a few high-impact disruptors. Since precise, independent 2025 market share data for all competitors is not publicly available, I've mapped the competitive landscape using their respective 2025 revenue guidance and core technological advantages to give you a clear, relative market size picture.

Here's the quick math: Based on the 2025 revenue guidance midpoint for the two major public TMS companies (BrainsWay at $51.5M and Neuronetics at $150M), BrainsWay holds roughly 25.6% of that combined market. Neuronetics, with its large, established network and installed base, is the defintely market leader in terms of sheer revenue scale.

Opportunities & Challenges

BrainsWay's strategic playbook is clear: expand indications, accelerate treatment, and invest in the delivery channel. But, like any growth story, it comes with specific risks you need to watch.

Industry Position

BrainsWay holds a strong position as the technology leader in the Deep TMS segment, a modality projected to grow at a Compound Annual Growth Rate (CAGR) of 13.52% through 2030, outpacing other TMS types.

• Owns the only Deep TMS technology with FDA clearances for Major Depressive Disorder (MDD), Obsessive-Compulsive Disorder (OCD), and smoking addiction. [cite: 5 in step 1]
• The installed base of over 1,600 systems globally provides a reliable, high-margin consumables and service revenue stream (Gross Margin was 75% in Q3 2025).
• Its focus on leasing (approximately 70% of recent engagements are multi-year leases) provides strong revenue visibility and predictable cash flow.
• The company is rapidly improving profitability, with full-year 2025 Adjusted EBITDA guidance raised to a range of 13% to 14% of revenue.

The core of the strategy is to move beyond the MDD focus of competitors and establish Deep TMS as the multi-indication, versatile neurostimulation platform. That's a smart move in a market where technology differentiation is key.