Editor’s Note: This story has been updated from its original version to include new information relevant to the contents. On Aug. 21, BrainsWay announced a separate investment in Neurolief Ltd. and we have added that information below.

BrainsWay Ltd. (Nasdaq: BWAY), a health technology company that develops deep transcranial magnetic stimulation (TMS) devices for mental health treatment, has invested $2.3 million to acquire a minority stake in Axis Integrated Mental Health. Another $1 million is slated for investment on top of that after specific milestones are reached – for a total of $3.3 million.

Axis Integrated Mental Health provides TMS, Spravato, ketamine therapy and care coordination at clinics across northern Colorado. The investment is BrainsWay’s second major deal of 2025 after the company disclosed a $5 million investment in Stella Mental Health back in June. At the time, BrainsWay executives admitted the company had been “actively evaluating similar investments in other leading U.S. mental health providers.”

Its latest investment in Axis comes after BrainsWay reported a quarterly revenue increase of 26% year-over-year during its Q2 earnings call on Aug. 13.

BrainsWay also made a $5 million convertible loan investment in Neurolief Ltd., a company that developed a wearable multi-channel brain neuromodulation platform for at-home use. Terms of that deal come with an option to acquire Neurolief over time.

These investments are a part of the company’s ongoing strategy to acquire minority positions in U.S. mental health providers to expand TMS care access. And BrainsWay executives signaled no sign of slowing down this effort, which was made possible via a previous $20 million equity investment from Valor Equity Partners. 

“In late 2024, we identified a new opportunity to generate shareholder value by making minority interest investments in mental health providers as well as other enterprises that we believe are complementary to our business,” Hadar Levy, CEO of BrainsWay, said during the earnings call. “This strategy allows us to tap into a market we know well, building additional market awareness, R&D road map, data analysis capability and extending access to deep TMS while avoiding stepping into an operational role outside of our core focus as a deep TMS technology company.”

BrainsWay did not respond to a request for comment regarding what the milestones are that Axis needs to reach before it receives the additional $1 million. Its minority stake in Axis is a preferred, annually compounding agreement and will become more valuable each year.

While TMS therapy has been FDA-approved for the treatment of depression since 2008, its use cases have continued to expand. In 2017, the FDA officially greenlighted TMS for treating obsessive compulsive disorder (OCD) and in 2021 and 2022, it was cleared for treating depression with anxiety symptoms. It can even be used as a smoking cessation treatment.

Now, in 2025, the technology is becoming more widely used as an essential frontline tool in outpatient mental health across the U.S. rather than a last-resort therapy. The TMS market is expected to reach $3 billion by 2033, according to some estimates.

“We see tremendous opportunities for these health care providers to offer expanded services and grow their businesses once they secure the necessary capital,” Levy stated in a press release.

Outside of BrainsWay competitor Neuronetics’ 2024 acquisition of Greenbrook TMS, the space has been relatively quiet apart from FDA approvals of new TMS devices among other providers like MagVenture and Magstim. BrainsWay’s investment activity signals renewed activity in this area of mental health care.

“This is just the first of what we expect to be many investments under this strategy. We are actively engaged with several other mental health clinic enterprises for similar engagement,” Levy reiterated during the recent earnings call. “We believe that these activities are critical as we work to further cement our role in shaping the future of mental health treatment.”