Contradictions Unveiled: BrainsWay's Q2 2025 Earnings Call Highlights Diverging Views on Protocols, Shipments, and Strategic Growth

Accelerated protocol and pricing, OCD coil shipments and installed base, accelerated treatment protocol and FDA submission timeline, strategic partnerships and enterprise account focus, TMS 360 and indication expansion are the key contradictions discussed in BrainsWay's latest 2025Q2 earnings call.



Revenue Growth and Install Base Expansion:
- BrainsWay Ltd. reported record quarterly revenue of $12.6 million for Q2 2025, up 26% year-on-year.
- The company shipped a total of 88 Deep TMS systems during the quarter, up 35% year-on-year, expanding its installed base to 1,522 systems.
- The growth was driven by a focus on generating recurring revenue streams through multiyear lease agreements and high customer retention rates.

Strong Financial Performance and Cash Position:
- BrainsWay achieved a gross margin of 75% for Q2 2025, maintaining the same margin as the previous year.
- The company ended the quarter with $78.3 million in cash, cash equivalents, and short-term deposits, up $8.7 million from the end of 2024.
- This financial strength is attributed to the stability and visibility provided by multiyear lease agreements and strong collections during the quarter.

Investment in Strategic Initiatives and Partnerships:
- BrainsWay announced a strategic minority investment in Stella MSO, a management services organization, for $5 million.
- The company aims to sign at least 5 contracts by the end of 2026, targeting growing and profitable mental health networks.
- These investments are part of a broader strategy to build market awareness, R&D road map, and data analysis capabilities while avoiding operational roles outside of their core TMS technology focus.

Accelerated TMS Protocol and Regulatory Approvals:
- BrainsWay submitted data to the U.S. FDA from its randomized multicenter U.S. clinical trial for an accelerated treatment protocol for Deep TMS.
- The company is expecting a response from the FDA by the fourth quarter of 2025, with the potential for clearance before the year-end.
- The accelerated protocol aims to improve convenience and patient appeal by shortening the treatment days from 4 weeks to 6 days, which could enhance commercialization and reimbursement prospects.