BrainsWay's Stock Split Aims to Boost Value and Investor Access

BURLINGTON, Mass. and JERUSALEM – February 17, 2026 – BrainsWay Ltd., a global leader in noninvasive brain stimulation technology, has announced a strategic change to its capital structure designed to simplify its standing on the world's financial markets and make its stock more accessible to investors. The company will adjust the ratio of its American Depositary Shares (ADSs), which trade on the Nasdaq, to its ordinary shares listed on the Tel Aviv Stock Exchange (TASE).

Effective March 3, 2026, the current 2-to-1 ratio of ordinary shares to a single ADS will be changed to a 1-to-1 structure. This action will function as a 2-for-1 forward split for its ADSs, meaning current holders will receive one additional ADS for each one they hold. While the move will effectively halve the trading price of the company's Nasdaq-listed stock, it is intended to provide a clearer valuation picture and enhance market liquidity as the company continues a period of significant growth.

A Strategic Move to Harmonize Global Listings

For internationally-listed companies like BrainsWay, maintaining a presence on multiple exchanges presents both opportunities and complexities. The dual-listing on NASDAQ (under the symbol BWAY) and the TASE allows the company to tap into different investor pools, but disparate share structures can create confusion and potential valuation gaps. The previous 2-to-1 ratio meant that the price of one ADS on Nasdaq represented two ordinary shares in Tel Aviv, requiring investors to perform calculations to make direct comparisons.

By moving to a 1-to-1 ratio, BrainsWay is eliminating this friction. The adjustment aims to create a more direct and transparent relationship between the share prices on both exchanges, allowing investors to more easily assess the company's value regardless of where they purchase its securities. This harmonization is a key objective of the change.

“Changing the ADS ratio to align on a one-for-one basis with our ordinary shares is intended to simplify comparisons of our share price on NASDAQ and TASE, allowing for a clearer focus on the value of our rapidly growing business, regardless of the exchange on which investors hold our securities,” said Hadar Levy, Chief Executive Officer of BrainsWay, in the company’s official announcement. “It is our hope that the simplified structure may enhance liquidity, improve accessibility, and better reflect the strength of our business.”

Unlocking Value and Enhancing Liquidity

The ratio change is expected to have a significant impact on the stock's market dynamics. A forward split, by lowering the per-share price, often makes a stock more attractive to a broader range of retail investors who may be deterred by higher-priced equities. This increased accessibility can lead to greater trading volume and improved liquidity, which benefits all shareholders by tightening bid-ask spreads and facilitating easier trading.

Investor sentiment surrounding BrainsWay has been decidedly positive leading up to this announcement. The company's stock has appreciated 23.4% over the past four weeks and recently touched a new 52-week high of $26.59. This upward momentum reflects growing confidence in the company’s performance and prospects. The strategic split could amplify this enthusiasm by drawing in new investors.

Wall Street analysts appear to share this optimism, with a consensus “Moderate Buy” rating on the stock and an average price target of $30.00. Investment firm HC Wainwright recently reiterated its “buy” rating and raised its price target from $24.00 to $30.00, signaling confidence in the company's trajectory. The structural change is a technical adjustment, but it sends a message of confidence and a desire to broaden the shareholder base, which the market often views favorably.

Fueling a Broader Growth Strategy

This capital structure optimization is not happening in isolation. It is backdropped by BrainsWay's robust financial health and an ambitious long-term growth strategy. The company is making this move from a position of significant strength, having achieved its fifth consecutive quarter of net income and sixth consecutive quarter of positive adjusted EBITDA and operating cash flow as of its last full reporting period.

BrainsWay reported a 29% year-over-year revenue increase for the full year 2024, reaching $41 million. Its guidance for 2025 was recently raised to between $50 million and $52 million, reflecting continued strong demand for its Deep Transcranial Magnetic Stimulation (Deep TMS™) technology. The company also maintains a formidable balance sheet, with $69.4 million in cash and no debt as of the end of 2024, providing substantial flexibility to fund its strategic initiatives.

These initiatives are focused on cementing its leadership in the neurostimulation market. Key objectives include expanding the commercialization of its FDA-cleared treatments for major depressive disorder (MDD) and obsessive-compulsive disorder (OCD), while advancing clinical trials for new indications. The company expects data from a study on an accelerated Deep TMS protocol in the third quarter of 2025 and plans to initiate a trial for its next-generation system in treating alcohol use disorder in the second half of 2025. This focus on superior science and an expanding body of clinical evidence is central to its mission.

A Favorable Market for Neurostimulation

The timing of BrainsWay's strategic move aligns with powerful tailwinds in the broader healthcare industry. The market for noninvasive mental health treatments is expanding rapidly as providers, payers, and patients seek effective alternatives to traditional therapies and medications. Recent policy changes from major insurance providers are set to significantly accelerate this trend.

Evernorth Behavioral Health, a part of The Cigna Group, recently announced it would eliminate prior authorization requirements for Transcranial Magnetic Stimulation (TMS) for its contracted providers, a change set to take effect just days after BrainsWay's ratio adjustment on March 6, 2026. This decision is expected to dramatically reduce administrative barriers and broaden patient access to treatments like Deep TMS. Furthermore, Highmark Blue Cross Blue Shield is also slated to expand coverage for BrainsWay's accelerated protocol for MDD in February 2026.

These developments signal a growing acceptance and integration of TMS therapy within the standard of care for mental health. For BrainsWay, this shifting landscape creates a fertile ground for growth. By simplifying its stock structure and enhancing its appeal to investors now, the company is positioning itself to fully capitalize on the increasing demand for its clinically proven and life-changing neurostimulation technologies.