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BURLINGTON, Mass. and JERUSALEM - BrainsWay Ltd. (NASDAQ & TASE: BWAY), a company specializing in noninvasive neurostimulation treatments for mental health disorders, announced today a strategic equity investment in Stella MSO, LLC. The $5 million investment secures BrainsWay a minority stake in Stella Mental Health, a management services organization that oversees more than 20 clinics in the U.S. and Israel. The company’s strong balance sheet, with a current ratio of 5.03 and minimal debt, positions it well for such strategic investments.
The move is part of BrainsWay’s broader strategy to enhance the reach and understanding of innovative treatments like Deep Transcranial Magnetic Stimulation (Deep TMS) Therapy. By investing in high-performing mental health service providers, BrainsWay aims to support interventional psychiatry and maintain its focus on advancing its technology and customer support. The strategy appears to be working, with revenue growing nearly 27% in the last twelve months and maintaining a robust 74.5% gross profit margin. For detailed analysis and additional insights, check out the comprehensive Pro Research Report available on InvestingPro.
Hadar Levy, CEO of BrainsWay, emphasized the importance of the investment in facilitating growth and impactful patient care through Stella’s network. The terms of the agreement grant BrainsWay a preferred, annually compounding security, with a redemption mechanism for the shares.
Michael Gershenzon, CEO of Stella, expressed enthusiasm about the partnership, highlighting the potential for accelerated growth and expanded patient access to transformative care.
BrainsWay’s Deep TMS technology is FDA-cleared for several mental health conditions, including major depressive disorder, obsessive-compulsive disorder, and smoking addiction. The company continues to conduct clinical trials for additional psychiatric, neurological, and addiction disorders.
This investment aligns with BrainsWay’s commitment to improving mental health treatment and outcomes on a global scale. The information for this report is based on a press release statement.
In other recent news, BrainsWay reported first-quarter revenues of $11.5 million, closely aligning with H.C. Wainwright’s projection of $11.3 million. The company achieved net earnings of $0.03 per share for the first quarter, consistent with initial estimates from H.C. Wainwright. BrainsWay’s management has maintained their revenue guidance for the year within the range of $49-51 million. The firm ended the first quarter with $71.6 million in cash, cash equivalents, and short-term deposits, excluding restricted cash. This financial position is believed to offer the company significant strategic flexibility. H.C. Wainwright reaffirmed its Buy rating on BrainsWay, maintaining a $16.00 price target on the stock. The analyst firm has adjusted its full-year 2025 revenue forecast to $51.6 million, up from the previous $50.8 million. Additionally, the 2026 revenue estimate has been slightly increased to $60.8 million. BrainsWay is also preparing to launch its next-generation Deep TMS 360 system and is progressing with its U.S. multi-center trial for an accelerated Deep TMS protocol.
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