BrainsWay Deepens Canadian Reach with BrainStim Health Investment

BURLINGTON, Mass. and JERUSALEM – February 19, 2026 – BrainsWay Ltd., a global leader in noninvasive neurostimulation, has announced a strategic investment in the Canadian mental health provider BrainStim Health Inc. The deal involves an initial $1.0 million investment for a minority stake, with the potential for an additional $1.5 million based on performance milestones. This move marks a significant step in expanding the availability of BrainsWay's proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) technology within the Canadian healthcare market.

The financing agreement provides BrainsWay with a minority position in BrainStim through a preferred, annually compounding security, and includes a share redemption mechanism. For BrainStim, a British Columbia-based provider focused on a growing network of mental health clinics, the capital injection and strategic alignment with a technology pioneer are set to accelerate its growth and mission.

A Pattern of Strategic Partnerships

This investment is not an isolated event but rather the latest move in a well-defined corporate strategy. The deal with BrainStim is the fifth minority-stake investment BrainsWay has announced, illustrating a deliberate shift toward fostering growth through partnerships rather than direct clinic ownership. This model allows the company to remain focused on its core competencies: the scientific advancement of its technology, expansion of clinical indications, and providing support to its customer base.

“Our investment in BrainStim is now the fifth minority-stake investment into growth-oriented clinical service platforms announced by the Company,” said Hadar Levy, BrainsWay’s Chief Executive Officer. “These minority stake investments support our broader strategic initiative to expand access to and awareness of cutting-edge mental health interventions such as Deep TMS, while allowing BrainsWay to continue focusing on the scientific and clinical advancement of its technology.”

This approach began to take shape in late 2024 and gained momentum throughout 2025. In June 2025, BrainsWay invested $5 million in Stella Mental Health, a management services organization supporting clinics in the US and Israel. This was followed by a potential $3.3 million investment in Colorado-based Axis Integrated Mental Health. A pivotal move came with a $5 million convertible loan to Neurolief Ltd., developer of a wearable, at-home neuromodulation device, which recently secured FDA approval for its Proliv™Rx system for treatment-refractory depression. The company also invested up to $4 million in Tangient ATX Inc., which operates the rapidly growing "Heading Health" clinic network in Texas. These partnerships collectively demonstrate a clear strategy to embed Deep TMS and other advanced therapies into diverse and expanding clinical ecosystems across North America.

A New Frontier for Canadian Mental Healthcare

The partnership with BrainStim Health specifically targets a crucial and often underserved segment of the population. BrainStim specializes in providing interventional psychiatry for conditions like severe trauma, stress, anxiety, and depression, with a particular focus on veterans and first responders. By expanding access to Deep TMS, the collaboration aims to bring a powerful, non-invasive treatment option to individuals who may not have responded to traditional therapies.

Deep TMS is a non-invasive procedure that uses magnetic fields to stimulate nerve cells in specific areas of the brain associated with various mental health conditions. The technology has secured FDA clearance in the United States for treating major depressive disorder (MDD), obsessive-compulsive disorder (OCD), and smoking addiction. Its expansion into Canada via a dedicated partner like BrainStim addresses a growing demand for innovative mental health solutions north of the border.

“As a long-time BrainsWay partner and an advocate for their dTMS technology, we are incredibly excited to link arms as we accelerate the growth of BrainStim,” stated Dr. Venu Karapeddy, BrainStim’s Chief Medical Officer. “Partnering with an interventional psychiatry pioneer like BrainsWay only serves to strengthen our value proposition and increase our success. We look forward to this exciting chapter of organization growth and fulfilling our mission of delivering life-changing care at scale.” The investment will likely enable BrainStim to open new clinics, hire more specialized staff, and raise awareness about advanced treatment options within the communities it serves.

The Rise of Neurostimulation Technology

This partnership highlights a broader trend in psychiatry: the move towards technologically advanced, non-pharmacological interventions. For decades, treatment for many mental health disorders has relied primarily on medication and psychotherapy. While effective for many, a significant portion of patients fail to find adequate relief. Neurostimulation technologies like Deep TMS are filling this critical gap.

BrainsWay has been at the forefront of this evolution, building an unparalleled body of clinical evidence for its platform. With an installed base of over 1,200 systems as of mid-2024, the company's technology is shifting from a last-resort therapy to an essential frontline tool in outpatient mental health. This perception is bolstered by growing support from insurers, with major players like Cigna and Highmark recently removing prior authorization requirements for TMS, simplifying patient access.

Innovation continues to drive the company's agenda. In late 2025, BrainsWay received FDA clearance to use Deep TMS as an adjunct therapy for MDD in adolescents aged 15 to 21, opening a new and vital patient demographic. Furthermore, the company is actively conducting clinical trials to expand the applications of its technology into other areas, including Alcohol Use Disorder. The overall market for TMS is projected to reach $3 billion by 2033, and BrainsWay's strategic investments position it to capture a significant share of that growth.

Financial Health and Investor Outlook

BrainsWay's ability to pursue this ambitious investment strategy is backstopped by a remarkably strong financial position. The company has posted impressive revenue growth, including a 29% year-over-year increase in its most recent reported quarter (Q3 2025), alongside a robust gross margin of 75%. Having achieved ten consecutive quarters of positive free cash flow, the company is debt-free and holds over $70 million in cash, providing ample capital for further strategic deployment.

This financial health allows BrainsWay to absorb short-term market fluctuations while executing its long-term vision. While the company's stock (NASDAQ & TASE: BWAY) saw a slight dip following the announcement, the overarching strategy has drawn positive attention from analysts. For instance, the recent FDA approval for its partner Neurolief's at-home device prompted H.C. Wainwright to raise its price target on BrainsWay stock from $24 to $30, citing the significant expansion of the company's addressable market.

By investing in clinical partners, BrainsWay is building a powerful ecosystem that drives recurring revenue from treatment session fees, system sales, and service contracts. This high-margin, scalable model, supported by major backers like Valor Equity Partners, is designed to generate sustainable, long-term shareholder value by expanding the entire market for advanced mental health treatments, one strategic partnership at a time.