Translation: Original published in Finnish on 04/29/2026 at 08:05 am EEST

Nexstim published its Q1’26 business update on Tue. The company reported that it delivered 3 systems during the quarter (Q1’25: 2). At the end of the quarter, there were 2 undelivered systems (Q1'25: 5). In the report, the company mainly reiterated information that had already been announced. As a new theme, the company highlighted the growing interest in its systems inBrain-Computer Interface (BCI) research. Q1 is seasonally quiet for Nexstim, so no reliable conclusions about the company's business progress can be drawn based on it. Our estimates remain unchanged after the business update. 

Early-year system sales seasonally quiet

Nexstim reports its results on a semi-annual basis and supplements its performance with Q1 and Q3 business updates. The updates do not report financial figures, but the company does report the number of system deliveries made during the period. The company reported that it delivered two diagnostics systems and one research system in Q1. In the comparison period, 2 systems were delivered. At the end of the quarter , there were 2 undelivered systems (Q1'25: 5). There were 3 deal announcements in Q1, which is the same number as deliveries. However, announced and delivered systems are not necessarily the same. No new deal announcements have been published since the review period. On the other hand, not all deals may be announced.

Our H1'26 revenue forecast is 4.2 MEUR, consisting of 2.4 MEUR in system sales (+8% vs. H1'25) and 1.8 MEUR in recurring revenue (-12% vs. H1’25). In the comparison period H1'25, the company delivered around 10 systems, so achieving our estimate for system sales necessitates a relatively strong Q2. We believe this assumption is warranted, supported by the increased sales resources provided by the Brainlab collaboration.

Sold systems and the development of the installed base

Source: Nexstim, Inderes

New sales incrementally increase the system base capable of therapy applications, and at the end of Q1'26 the system base stood at 135 units (Q1’25: 109 units). Of these, 52 (Q1’25: 41) systems were in the US and 85 (Q1'25: 76) in Europe and the rest of the world. The system base provides Nexstim with recurring revenue through, for example, system rental and maintenance contracts, user licenses, and sales of consumables, even though recurring revenue is currently under pressure according to the financial statement report. The company says it has sold more than 265 diagnostics systems. Sales of these products began at the start of the 2010s. In the Diagnostics Business, recurring revenue plays a smaller role, so the size of the system base is a less important variable than in the Therapy Business.

Source: Nexstim, Inderes

Active marketing with Brainlab

Regarding the Brainlab collaboration, Nexstim reported that it had attended several industry conferences marketing its technology integrated with Brainlab solutions. The update contained no essential new information regarding the Sinaptica and Magnus Medical collaborations or contract situations. A new theme mentioned in the update, however, was the increased interest in Nexstim's systems for Brain-Computer Interface (BCI) research. The use of TMS in research has increased sharply over the last decade and has remained at a high level this decade, partly due to new research areas such as brain-computer interfaces. We recently published an Article on the research use of TMS, which can be read here.

Expecting a year of growth and profit

For 2026, Nexstim guides revenue to increase (2025: 11.0 MEUR) and EBIT to improve (2025: 0.6 MEUR). We find the target to be achievable, supported by the growing sales power brought by the Brainlab collaboration in the diagnostics business. Further, the potential progress of the Sinaptica collaboration brings growth potential. The Sinaptica agreement brought revenue to the comparison period through system sales and contract fees, so there may be headwinds if the cooperation does not lead to revenue this year. Negative development is likely to also come from recurring revenue development, which appears to be temporarily under pressure based on the financial statements. Our revenue estimate for 2026 is 12.7 MEUR and EBIT is 1.2 MEUR. The estimate is based on 14% growth in system sales supported by Brainlab, a -1% development in recurring revenue, and 1 MEUR in revenue from Sinaptica.