• Quarterly record revenue in Q2 of $21M, +43% year-over-year growth; IFRS gross margin of 75.5%
• Second quarter pulse recurring revenue of $9.2M, +53% year-over-year growth
• First half revenue of $37.6M, +35% year-over-year growth; IFRS gross margin of 75.9%
• Generated $3.6M in cash in the second quarter
• Positive first half and second quarter IFRS and Non-IFRS operating and net income vs first half loss in the same year ago period
• Over 600,000 treatments completed since inception; over 1 million followers on social media
SAN CLEMENTE, Calif., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Sofwave Medical Ltd (TASE: SOFW), an emerging leader in energy-based non-invasive, aesthetic medical devices for practitioners worldwide, reported financial results for the second quarter and first half of fiscal year 2025, for the period ended June 30, 2025, and recent business highlights.
Second Quarter and First Half Fiscal 2025 Financial Highlights
- Second Quarter Revenue of $21M, representing 43% year-over-year growth
- Recurring Revenue of $9.2M, a year-over-year increase of 53%, representing 44% of total revenue
- Gross Profit was $15.9M, a year-over-year increase of 42%
- IFRS Gross Margin: 75.5%; *Non-IFRS 75.6%
- IFRS Operating Income: $2.2M, up from ($1.2M) in second quarter of 2024; *Non-IFRS: $2.9M
- IFRS Net Income: $1.5M; up from ($1.5M) in second quarter of 2024; *Non-IFRS: $2M
- First Half Revenue of $37.7M, representing 35% year-over-year growth
- Recurring Revenue of $16.2M, a year-over-year increase of 51%, representing 43% of total revenue
- Gross Profit was $28.6M, a year-over-year increase of 36%
- IFRS Gross Margin: IFRS 75.9%; *Non-IFRS 75.9%
- IFRS Operating Income: $1.2M; *Non-IFRS: $2.7M
- IFRS Net Income: $0.4M; *Non-IFRS: $2.0M
- Cash and Cash Equivalents as of June 30, 2025: $24.0M; generated $3.6M in cash in the second quarter of 2025
Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, "We delivered record quarterly revenue of $21 million in the second quarter, representing 43% year-over-year growth and positioning us strongly as we enter the second half of fiscal 2025. On the bottom line, we generated both IFRS and Non-IFRS operating and net income, and we continue to expect to achieve operating break-even for the full year. Our proven business model is delivering solid ROI for our providers, fueling strong customer loyalty and expansion within existing accounts. Our broad range of FDA clearances-including lifting, laxity and wrinkle treatment on the face and neck, cellulite, acne scars, arm laxity, and muscle toning-is driving rapid industry adoption. Looking ahead, we have a scalable, lean infrastructure in place to support continued high growth and profitability. Our consistent operational execution, combined with rapidly expanding brand awareness-now surpassing 1,000,000 social media followers-is reinforcing Sofwave's position as a category leader in non-invasive aesthetic innovation."
Dr. Shimon Eckhouse, Chairman of the Board, added: "Sofwave continues to deliver next-generation patented energy based non-invasive aesthetic skin treatments that are disrupting an industry with outdated solutions. Our significant recurring revenue, now over 40% of total revenue, is indicative of the high level of satisfaction from patients and providers. with approximately 600,000 treatments that have been conducted with our technology since commercial launch, and key trends, like the widespread use of GLP-1 inhibitors, continue to drive demand for Sofwave's skin lifting and muscle toning treatments. Importantly, we also continue to demonstrate operating expense discipline and maintain a strong balance sheet."
Recent Operational Highlights
- Sofwave's liftHD body applicator debuts at the 44th Annual Meeting of the American Society for Laser Medicine and Surgery (ASLMS) 2025
- Sofwave's SUPERB non-invasive akin treatment technology receives regulatory clearance in Japan significantly expanding its coverage of the APAC region
- Approximately 600,000 treatments have been conducted since initial market approval
- Reiterating Company will achieve operating break-even in 2025
Financial Summary (Q2 FY'25)
| IFRS Results (U.S. dollars in thousands) | ||
| Q2 2025 | Q2 2024 | |
| Revenue | $20,990 | $14,642 |
| Gross Profit | $15,854 | $11,148 |
| Gross Margin | 75.5% | 76.1% |
| Operating Income | $2,179 | ($1,213) |
| Net Income | $1,517 | ($1,530) |
| *Non-IFRS Results (U.S. dollars in thousands) | ||
| Q2 2025 | Q2 2024 | |
| Gross Profit | $15,859 | $11,166 |
| Gross Margin | 75.6% | 76.3% |
| Operating Profit/ (Loss) | $2,887 | ($554) |
| Net Income | $2,225 | ($871) |
(*) Excluding stock-based compensation.
About
Sofwave Medical Ltd. has implemented an innovative approach to wrinkle reduction lifting and cellulite using its proprietary breakthrough technology. SUPERB, Synchronous Ultrasound Parallel Beam technology, is FDA-cleared to improve facial lines and wrinkles, lifting the eyebrow and lifting lax submental tissue (beneath the chin), lifting lax skin in the arms, as well as the short-term improvement in the appearance of cellulite and treatment of acne scars. The company's Pure Impact module uses EMS technology and is cleared for muscle toning. Sofwave's products provide physicians with smart yet simple, effective, and safe aesthetic solutions for their patients. Contact: Info@sofwave.com
Investor Contact:
Brian Ritchie
LifeSci Advisors LLC
(212) 915-2578
britchie@lifesciadvisors.com
