Brainsway Ltd (BWAY)

Brainsway Ltd – 2024 Annual Financial Report

Report Date: 2025-04-30
Period Covered: Fiscal Year Ended December 31, 2024
Form Type: 20-F

Executive Summary

• Revenue: $41.0 million, up 29% from $31.8 million in 2023
• Net Income: $2.9 million, reversing a $4.2 million loss in 2023
• Lease Liabilities: $5.6 million (IFRS 16 adoption)
• Cash & Equivalents: $69.3 million, plus short-term deposits of $35.5 million

Profit & Loss Analysis

• Achieved operating profit of $1.4 million vs. an operating loss of $5.0 million in 2023
• Research & Development expenses held at $7.2 million (flat)
• Selling & Marketing costs of $16.2 million, optimized U.S. commercial footprint
• General & Administrative expenses rose to $5.8 million due to expanded corporate infrastructure

Debt & Lease Capitalization

• Lease liabilities jumped to $5.6 million from $0.5 million as IFRS 16 required on-balance-sheet recognition
• No other material debt facilities; strong liquidity position supports growth

Drivers of Profitability

• U.S. remains primary market (81% of revenue)
• Successful launch and reimbursement expansions in OCD and late-life depression
• Ongoing expansion of pay-per-use and hybrid lease models for new indications

Pros & Cons

Pros:

• Transition to profitability
• Strong cash runway ($105 million in cash & deposits)
• FDA clearance for multiple indications drives expanded adoption

Cons:

• Heavy dependence on U.S. reimbursement environment
• Lease capitalization increases leverage ratios
• Clinical and regulatory risk for future indications

Revenue by Model (2024):
• System sales: 54% ($22.4 million)
• Operating leases: 35% ($14.5 million)
• Service & consumables: 8% ($3.4 million)

Revenue by Geography (2024):
• United States: 81%
• International (Canada, Europe, Asia, Israel, other): 19%

Brainsway has successfully returned to profitability in 2024, driven by U.S. market penetration for Deep TMS in depression and OCD. The strong cash position and multiple FDA clearances position the company for measured expansion into new indications and territories. Key challenges include managing the higher leverage from lease capitalization and securing broader reimbursement for emerging indications such as smoking addiction. Moving forward, Brainsway’s focus on hybrid commercial models, next-generation coil technology, and methodical clinical development should sustain growth while maintaining tight control over R&D spend and unit economics.