Good morning, everyone. My name is Sachi, and I will be your conference operator today. At this time, I would like to welcome everyone to BrainsWay's second quarter 2026 financial results conference call. All lines have been placed on mute to prevent any background noise. With us today are BrainsWay's Chief Executive Officer, Hadar Levy, and Chief Financial Officer, Ido Marom. A copy of the press release is available on the company's investor relations website, www.brainsway.com. Before I turn the call over to management, I would like to remind you that this conference call, including both management's prepared remarks and the question and answer session, may contain projections or other forward-looking statements regarding, among other topics, BrainsWay's anticipated future operating and financial performance, Business Plans and Prospects, and Expectations Towards Products and Fit Plans, which are all subject to risks and uncertainties, including shifting market conditions resulting from geopolitical, supply chain, and other factors, as well as the use of non-GAAP financial information. Additional information regarding these and other risks are available in the company's earnings release and in its other filings with the SEC, including the Risk Factors section, contained in GrainsWays Form 20-S. Finally, please note that the company's SK will be filed tomorrow at approximately 6 a.m. Eastern Time in accordance with the SEC's operating schedule. I would now like to turn the call over to Michael.

Thank you. Welcome everyone and thank you for joining us today. We entered the second half of 2026 from a position of strength, with accelerating growth, expanding profitability, and increasing visibility into future revenue. But more importantly, we believe BrainSway is entering the next phase of its evolution, from a living deep TMS company into a broader platform of interventional services. Our second quarter results provide further evidence that the foundation of this platform is getting stronger. Revenue grew 35% to $17.1 million for the second quarter, compared with $12.6 million in the prior year period. We achieved this level of growth while maintaining operational discipline, resulting in expanded margins and increased profitability. In the second quarter, operating income increased over 300% to $2.4 million, compared with $0.6 million for the prior year. Adjusted EBITDA increased 141% to $3.5 million, compared with $1.5 million for the same period last year, with adjusted EBITDA margin expanding to 20% from 11%. This also marked our 12th consecutive quarter of stability, underscoring the scalable nature of the business model. These results matter not only because of the growth they represent today, but because every system we install, every reimbursement expansion we achieve, and every new clinical indication we develop Strengthen the platform and expand our long-term opportunities.

Let me take a minute to walk you through a few key metrics that we monitor each quarter to measure our continued growth.

During the second quarter of 2026, we shipped 125 deep TMS systems, a 42% increase over the same period last year, bringing our install base to approximately 1,950 units. Every system represents more than an initial choice placement. It creates potential for multi-year recurring revenue, additional utilization, new indications and protocols, deeper provider relationships, and greater clinical data. And importantly, as we expand the capabilities of the platform, we increase Remaining performance obligations have increased to $80.4 million as of June 30, 2026, a 30% increase compared with the same period last year. We believe the continued growth in remaining performance obligations over the past several quarters demonstrates the strong market demand for DeepTMS, as well as the success of our leasing strategy focus on servicing enterprise customers. This is an important evolution in our business model. As the install base grows, we believe revenue visibility, recurring revenue, and operating leverage can increasingly compound. Our strategy is built around what we believe is a powerful road flyway with a series of reinforcing roads, drivers that build on one and Thank you for watching. We have also seen reimbursements continue to extend with two accelerated switching protocols, which we call SWIFT. We currently estimate there are approximately 57 million covered lines in the U.S. with access to our SWIFT for Accelerated DTMS protocols. and further strengthen the value proposition for purpose. During the quarter, we presented the first prospective 20-month durability data for the SWIFT Xcelerated Service. The study demonstrated that patients with 10 minutes for clinical improvement through one year following treatment The only independent adoption within our existing institution, we consider seeking to broaden the clinical utility of CCMS models. During the quarter, we presented results from the largest real-world study to date evaluating deep TMS in patients with comorbid PTSD and major depressive disorder, which is one of the most challenging psychiatric population to treat. Across 462 patients treated at 11 clinical sites, more than 83% experienced a meaningful response in PTSD symptoms, while substantial improvement was also observed in depression symptoms. We believe these findings further strengthen the growing body of evidence supporting deep TMS and reinforce our recent FDA submission seeking clearance for Comorbid PTSD and ADD. It's clear this would represent another important opportunity to expand the clinical utility of deep TMS platforms, increasing the value proposition for every system already installed in the field without requiring providers to purchase additional capital accrued. Taking together these clinical regulatory advances are occurring against the backdrop of an interventional psychiatry market that we believe is entering an important period of long-term growth. Fairs are steadily expanding reversely for neuromodulation therapies. Demands for non-pharmacologic, Both providers and patients and awareness conditions such as treatment-resistant depression, OCD, and PTSD continue to extend. We believe Brentway is well positioned to benefit from this bell-wing, giving our clinical evidence-based pipeline strategy, reimbursement infrastructure, and install-based DTMS services. Capturing these opportunities requires more than innovative technology. It also requires expanding patients' access in investing in providers as they scale their practices. That is one of the key objectives of our Strategic Minority Investment Program. This initiative is designed to do much more than efficacy-deploy capital in promising investment options. It allows us to partner with leading behavioral We plan to grow and succeed by accelerating patient acceptance to care and building awareness of cutting-edge interventional psychiatry treatment approaches. During the quarter, we continue to execute again this strategy with a strategic investment in Hopemark Health, a growth-oriented behavioral health platform serving multiple clinics in the greater Chicago area. Thank you for watching. This minority stake investment reflects our strategy of partnering with leading providers organizations and expanding our presence within the broader behavioral health ecosystem. while allowing BrainsWay to remain focused on advancing our technology, clinical evidence and commercial execution. Looking ahead, we continue to assess a pipeline of investment opportunities and remain disciplined in identifying partners that can generate both financial growth and meaningful strategic value. Another important part of our long-term platform strategy is extending neuromodulation beyond the clinic. Today, DeepTMS anchors treatment in the clinical setting. Over time, we see an opportunity to extend the patient's journey into the home and ultimately connect treatment with the data and digital monitoring. That is the strategic context beyond our investment in neurosis. Following the FDA approval for its ProVivarex system in March, The commercial launch has begun and progressing. While it remains early in the launch, we are encouraged by the progress being made by Nualif and the execution discipline that they roll out. International expansion represents another important layer of our long-term opportunity. Across our current partner market, we estimate there are more than 170 million untreated patients. Importantly, we are not starting from zero. We are building on established commercial partnerships and existing infrastructure, providing what we believe is an attractive and capital-efficient path to scale. As intervention out of psychiatry expands globally, we believe our international footprint can become an increasingly important contributor to Brainstra's growth. In closing, we are pleased with our performance this quarter, but we believe we are still in the early stage of much larger opportunity. For many years, Brainstra has been known as a deep TMS company. Today, we are building something broader A global platform for interventional psychology. Every system we install, every reimbursement expansion, every new indication, and every strategic partnership strengthens that platform. And we are building it from a position of increasing financial strength with a strong growth, expanding profitability, and greater revenue visibility. One platform, millions of patients, decades of growth, With that, I will now turn the call over to Ido for his review of our second quarter of 2026 financial results. Ido.

Thank you, Hadar. During the second quarter of 2026, we continued to execute on our growth strategy, which drove a 35% increase in revenue to $17.1 million, compared with $12.6 million for the same period last year. During the quarter, we played 125 DTMS systems, bringing our total install base to approximately 1,960 systems as of June 30, 2026. Gross profit for the quarter was $12.8 million, up 34% from $9.5 million in a prior year period, while gross margin remained stable at 75%. Turning to operating expenses. Sales and marketing expenses for the second quarter of 2026 totaled $4.9 million, steady with the second quarter of 2025. This reflects continued operating leverage and improved efficiency across our sales organization, enabling us to support our commercial activities while maintaining a disciplined cost structure. Research and development expenses were $3.2 million compared with $2.3 million last year. The increase was primarily driven by investments in clinical development and research, including our ongoing PTSD and alcohol use disorder research initiatives. General and administrative expenses were $2.3 million compared with $1.6 million in the top year period, an increase of approximately $0.7 million driven by higher professional fees and administrative costs. The operating income was approximately $2.4 million compared with $0.6 million recorded for the second quarter of 2025, with operating margin extending to 40% of revenue from 5%. This performance reflects The second quarter ended June 30, 2026, with a reported net income of $2.7 million, up 34% compared with $2 million in the same period of 2025. Adjusted EBITDA was $3.5 million, an increase of 141% compared with $1.5 million in the second quarter of 2025. Adjusted EBITDA margins extended to 20% from 2011 to 2020. We are very excited by our progress in scaling our growth and profitability. Remaining performance obligations due to $80.4 million as of June 30, 2026. A 30% year-over-year increase. We reported cash and cash equivalents of $62.4 million in the second quarter of 2026, compared with $1.2 million in the third quarter, reflecting the strong payment term structure related to certain strategic needs. The capital structure of the company remained debt-free, giving us significant flexibility to pursue strategic growth initiatives, including our minority investment focus. We believe our strong capital position will support the continued work of our core scientific and technology operations, as well as our strategic investment program, which aims to increase patient access to innovative equipment while also building long-term value of our core shareholders. Our full year 2026 guidance from a range of $66 million to $68 million to a range of $68 to $70 million for the full year 2026. This new guidance range, if achieved, will represent a year-over-year expected growth rate of 30% to 34%. In addition, we are narrowing our ranges for operating margins to 13.5% to 40% of revenue and adjusted EBITDA to $13 million to $40 million, representing anticipated growth of approximately 90% to 100% over full year 2025. This concludes my preferred remarks and I will now turn the call back to the operator to please open up the call for questions.

Operator? Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. The confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment, please while we pose the question. The first question is from Sam Iber from U.S. Bancorp ACIG.

Hi, good morning, thanks for taking time to be here. Maybe I want to start on the guidance. You know, obviously applying the same 30% versus the back half of the year. So, maybe you can talk about some of the changes that you've made so far, generally, that you're confident you can do.

What we are seeing, you know, based on the growing earnings of our obligations, is a very good visibility for the second half of the year. The OCD is specifically a district protocol that is very likely to have the name of library for some of the developers. So we continue to reach some very strong demands for new systems, new orders for the end of the year, and that's really interesting to have confidence in.

I guess generally what do you hear from providers that have adopted it so far? Are they generally aware that it exists? How much education do you need to do on the marketplace? And just generally for those that have adopted it, are they starting to see better proof of better education demand because of the different

Yeah, absolutely. The feedback is very, very strong and very good. Look, at the end of the day, it's just a matter of better convenience for the patients, but also for the clinic. So, you know, a busy clinic can really and other providers. Thank you for joining us. Yeah, so currently we're only speaking about 10 presentations. Obviously, we are looking to get a few results from the reader. But currently we're only focusing on 10 presentations, which are all one presentation. They are the ones... Thank you very much. Thank you very much. Thank you. Once you have reimbursement in your territory, I would say that you can see a significant increase in the usage of, in the adoption of the SWIFT protocol, getting close to 50% of the total population in the local area.

Okay, Guy, then as a follow-up, you spoke about the $80.4 million performance obligations. I'm assuming that's lease systems, and I'm assuming that's... The backlog is growing and we are very proud with this 30% increase in the backlog. Remember, these are all orders that we still didn't recognize the

The revenue will be recognized going forward. One of the main drivers for supporting this growth is definitely the minority investment that we are making Those growing platforms, each one of them are expanding their ability. They're not only buying some new locations, but they're also growing organically and expanding the utilization of TMS inside their business. Thank you for watching. I don't anticipate this number will continue to grow toward the end of the year and that's what really gives us good visibility when we're entering into 2027. Perfect.

Thanks for taking any questions. Congrats on the quarter.

As a reminder, to ask a question, please press star 1. The next question is from Ahmed Mahmoud from H.C. Wainwright. Please go ahead.

Hi, thank you for taking our questions. This is Ahmed on for ROM. Could you give us some clue on how ProliferRx fails on ramping, and do you expect to decide whether to acquire new relief, and what factors will determine that decision?

Thank you for taking this question. You know, I think as I said in my script, you know, Norlif is a very important... We extend our outreach also for home use care. Currently, Novolift are running a launch mainly with the VA channel. I think I said in the last part, they already got reimbursement from the VA channel. Deploying some of the first commercial stage within the VA channel, but also in some private clinics. The progress is going very well, but what we would like to monitor in the next 90 days, what we call the resource launch, is just to see what are the main KPIs that will help us to accelerate Thank you for joining us. We are very encouraged with the commercial progress and the soft launch that they are making in the US. More to come and I believe that I will report and give much more details on some of the

Thank you.

Yeah, look, on the minority investment, we have done today six minority investments. I believe we are expecting, and we still have a pipeline of minority investments that we are reviewing very carefully in some very thorough due diligence process. There is definitely a good interest. My expectation is to invest in growing businesses, Ido Marom, Colleen Hanlon So as long as each one of them will continue to grow and based on their projections, you know, each one of them can expand to 10 to 15 locations every year. So if they will execute very well and they are executing very well, I am expecting to continue We are growing with one of the most growing market which is interventional psychiatry. So I do believe that the future of this business will be offering options to patients which will be a combination of