Shares of BrainsWay (NASDAQ:BWAY) fell more than 2% in premarket trading on Wednesday after investors reacted to the company’s maintained full-year guidance despite stronger-than-expected first-quarter results.
The stock declined 2.69% following the earnings release.
Revenue and earnings exceed analyst expectations
BrainsWay reported adjusted earnings per share of $0.06 for the first quarter of fiscal 2026, beating analyst forecasts of $0.03 per share.
Revenue increased 35% year-on-year to $15.5 million, ahead of the consensus estimate of $14.31 million.
The company reaffirmed its full-year 2026 revenue guidance of between $66 million and $68 million. The midpoint of the range, at $67 million, came in slightly above analyst expectations of $66.43 million.
Deep TMS system shipments hit record level
BrainsWay shipped a record 117 Deep TMS systems during the quarter, representing growth of 44% compared with the same period in 2025.
Remaining performance obligations rose 25% year-on-year to approximately $75 million.
Adjusted EBITDA more than doubled to $2.8 million from $1.3 million a year earlier, while net income climbed to $2.3 million from $1.1 million in the prior-year quarter.
“We are off to an excellent start in 2026, delivering 35% revenue growth in the first quarter while generating $2.8 million of Adjusted EBITDA,” said Hadar Levy, chief executive officer of BrainsWay.
“Across the board, we are seeing meaningful progress in expanding awareness and access to Deep TMS, driven by broader reimbursement, increasing provider adoption, and continued engagement with leading mental health networks.”
Profitability outlook maintained
Gross margin remained unchanged at 75% compared with the prior-year period.
BrainsWay maintained its forecast for operating income to represent 13% to 14% of revenue in 2026.
The company also reiterated adjusted EBITDA guidance of between $12 million and $14 million for the full year, implying expected growth of 86% to 100% compared with 2025.
Company advances reimbursement and regulatory efforts
BrainsWay said it secured the first insurance coverage approval for its accelerated SWIFT Deep TMS protocol following clearance from the U.S. Food and Drug Administration.
The company also plans to submit a regulatory filing during the second quarter seeking FDA clearance for Deep TMS in the treatment of PTSD symptoms.