BrainsWay's Q1 2025: Navigating Key Contradictions in Margins, Market Expansion, and Geopolitical Risks

Gross margin expectations, timing of accelerated treatment protocol data, expansion in international markets, demand for Deep TMS systems, and geopolitical risks and business impact are the key contradictions discussed in BrainsWay's latest 2025Q1 earnings call.



Strong Revenue and System Shipments Growth:
- BrainsWay Ltd. reported revenue of $11.5 million for Q1 2025, marking a 27% increase year-over-year.
- The company shipped a total of 81 Deep TMS systems, representing a 42% increase compared to Q1 2024.
- Growth was mainly driven by the increasing demand for Deep TMS in the treatment of mental health conditions such as OCD, anxious depression, and the adoption of pay-per-use and lease-based models.

Market Leadership and Customer Base Expansion:
- BrainsWay maintains its leadership position in the non-invasive neuromodulation space, with a strong installed base of 1,434 systems globally.
- The company has expanded its customer base through large enterprise network engagements and increased demand for its technology.
- This growth is attributed to the technological and clinical differentiation of BrainsWay, with a high percentage of customers switching from competing TMS technologies.

Focus on R&D and Clinical Data:
- BrainsWay continues to advance its R&D roadmap, with a focus on expanding treatment indications for OCD, anxious depression, and PTSD.
- The company is making progress in its clinical trials, aiming to submit data to the FDA for accelerated treatment protocols and PTSD by the end of the year.
- This focus on R&D is crucial for reinforcing BrainsWay's market position and expanding patient access to Deep TMS therapy.