Sofwave Medical Reports Fourth Quarter and Full Year 2025 Financial Results and Achieves Full-Year Profitability
MWN-AI** Summary
Sofwave Medical Ltd. (TASE: SOFW) reported impressive financial results for the fourth quarter and full fiscal year 2025, highlighting a significant turnaround to profitability and strong growth across key metrics. For Q4 2025, the company achieved record revenue of approximately $28.9 million, representing a remarkable 58% increase compared to the same quarter in 2024. This quarter also saw a significant jump in recurring revenue, which soared 83% year-over-year to reach $13.2 million, making up 46% of total revenue. Sofwave’s gross margin for the quarter was a robust 75.6%, allowing for an operating income of $4.2 million and a net income of $4.1 million, a stark recovery from a loss during the same period the previous year.
For the entire fiscal year, Sofwave reported total revenue of $87.6 million, marking a 47% year-over-year growth and achieving full-year net profitability with IFRS net income of $5.5 million, compared to a loss of $4.5 million in 2024. The company’s recurring revenue for the full year also increased by 62%, totaling $37.7 million and contributed substantially to maintaining high gross margins at 75.3%.
CEO Lou Scafuri attributed the company’s success to the increasing global adoption of its SUPERB™ technology and its ability to effectively meet the market's growing demand for non-invasive aesthetic treatments. As Sofwave enters 2026, it emphasizes its commitment to innovation with the anticipated introduction of the Pure Impact VIP™ technology for muscle toning. The serviced base of Sofwave systems continues to expand actively, with over 2,700 systems sold across more than 50 countries, and more than 770,000 treatments administered since commercialization. The management expressed optimism about leveraging the company's momentum for further growth and market leadership in the aesthetic sector.
MWN-AI** Analysis
Sofwave Medical Ltd. (TASE: SOFW) has showcased impressive financial results for Q4 and the full fiscal year ended December 31, 2025. With quarterly revenue climbing to $28.9 million, a robust 58% year-over-year increase, and a full-year revenue of $87.6 million, up 47% year-over-year, the company has clearly established its growth trajectory in the aesthetic medical device market.
Notably, Sofwave achieved a full-year profitability milestone with a net income of $5.5 million compared to a loss of $4.5 million in 2024. This swing to profitability, especially driven by a high gross margin of approximately 75% — a compelling figure that denotes the effectiveness of their operational model — marks a significant achievement that investors should take note of.
The company reports 83% year-over-year growth in its recurring revenue segment, which now contributes 46% of total revenue. This is an encouraging indicator of customer loyalty and the established use of their products in the market. With a total of approximately 2,700 systems sold and over 770,000 treatments administered globally, Sofwave's footprint in the aesthetic industry is clearly expanding.
Looking forward, management has articulated a strategic growth plan focused on innovative and non-invasive products, notably the recent FDA-cleared Pure Impact VIP™ device, expected to enhance market presence further. Given the increasing demand for non-invasive treatments as consumer preferences evolve, Sofwave seems poised to capture greater market share.
In conclusion, investors should consider Sofwave a compelling opportunity, with its demonstrated growth, improved profitability, and strategic positioning in a burgeoning market. A continued emphasis on innovation and customer satisfaction may provide additional upward momentum in their stock valuation moving forward into 2026 and beyond.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Record quarterly revenue in fourth quarter of $28.9M, +58% year-over-year growth; IFRS gross margin of 75.6%
- Fourth quarter pulse recurring revenue of $13.2M, +83% year-over-year growth
- Full fiscal year 2025 revenue of $87.6M, +47% year-over-year growth; IFRS gross margin of 75.3%
- Company achieves net profitability with full fiscal year 2025 IFRS and non-IFRS net income of $5.5M and $7.8M, respectively, versus a net loss of $4.5M and $2.1M, respectively, in the same period last year
- Approximately 2,700 Sofwave systems sold to date and more than 770,000 Sofwave treatments administered since commercialization
- Installed base continues to expand globally with systems placed across more than 50 countries
SAN CLEMENTE, Calif., March 17, 2026 (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 fourth quarter and full fiscal year 2025, for the period ended December 31, 2025, and recent business highlights. The Company delivered record fourth quarter revenue of $28.9 million and achieved full-year IFRS profitability in 2025, marking an important milestone in Sofwave’s continued growth and operating leverage.
Fourth Quarter and Full Fiscal 2025 Financial Highlights
- Fourth Quarter Revenue of $28.9M; representing 58% year-over-year growth
- Recurring revenue of $13.2M, a year-over-year increase of 83%, representing 46% of total revenue
- Gross Profit was $21.9M, a year-over-year increase of 55%
- IFRS and *Non-IFRS Gross Margin: 75.6%
- IFRS Operating Income: $4.2M; *Non-IFRS: $4.6M
- IFRS Net Income: $4.1M; *Non-IFRS: $4.6M
- Cash from Operating Activities: $8.5 million compared to $0.4M in the corresponding period
- Full Fiscal 2025 Revenue of $87.6M, representing 47% year-over-year growth
- Recurring revenue of $37.7M, a year-over-year increase of 62%, representing 43% of total revenue
- Gross Profit was $66.0M, a year-over-year increase of 45%
- IFRS and *Non-IFRS Gross Margin : 75.3%
- IFRS Operating Income/Loss: $6.9M; as compared to an operating loss of $3.6M during Full Fiscal Year of 2024; *Non-IFRS: $9.2M
- IFRS Net Income: $5.5M; as compared to a net loss of $4.5M in full fiscal 2024; *Non-IFRS: $7.8M
- Cash and Cash Equivalents as of December 31, 2025: $35.3M
Management Commentary
“Sofwave closed 2025 on a high note, delivering fourth quarter revenue of approximately $28.9 million — a 58% year-over-year increase — and generated full-year revenue of approximately $87.6 million, representing 47% growth over 2024," said Lou Scafuri, Sofwave CEO. "These results reflect the continued global adoption of our SUPERB™ technology and expanding utilization across our installed base. Importantly, we achieved net profitability for full fiscal 2025, reflecting the overall strength of our business and the operating leverage of our high-margin, recurring revenue model.
“As the aesthetic market increasingly shifts toward regenerative and non-invasive treatments, Sofwave is well-positioned to address expanding demand from both patients and providers. We are encouraged by emerging demand driven by GLP-1 related skin laxity and muscle loss, which is creating new opportunities for lifting, tightening and toning treatments.
“Additionally, we have a strategic growth plan in place, focused on delivering sustainable, innovative, non-invasive regenerative aesthetic solutions, like Pure Impact VIP™, our next-generation full body muscle strengthening and toning technology. We look forward to continuing to expand our platform while driving sustainable growth in 2026.”
Dr. Shimon Eckhouse, Chairman & Co-Founder, added, “Sofwave's record quarterly revenue and strong full year results are a powerful testament to the shift in the aesthetic market to regenerative and non-invasive technologies, like non-surgical skin tightening. Our SUPERB™ ultrasound platform was designed to stimulate natural collagen and tissue regeneration in a safe and repeatable manner, supporting natural-looking outcomes with minimal downtime.
“As patients increasingly seek natural-appearing results that restore skin quality and structure, we believe Sofwave is uniquely positioned to lead this emerging category. Sofwave’s brand recognition continues to grow, with over 2,700 Sofwave systems sold and more 770,000 Sofwave treatments since commercial launch. We enter 2026, with strong momentum and confidence in our commercial execution strategy."
Recent Operational Highlights
- Received FDA, pre-market clearance for Pure Impact VIP™ standalone EMS device for comprehensive multi-body area muscle strengthening and firming.
- Approximately 770,000 treatments conducted since commercialization.
Financial Summary
| IFRS Results (U.S. dollars in thousands) | ||||
| Q4’25 | Q4’24 | FY’25 | FY’24 | |
| Revenues | $28,903 | $18,318 | $87,637 | $59,651 |
| Gross Profit | $21,856 | $14,106 | $65,961 | $45,336 |
| Gross Margin | 75.6% | 77.0% | 75.3% | 76.0% |
| Operating Income/Loss | $4,156 | ($108) | $6,868 | ($3,580) |
| Net Income/Loss | $4,098 | ($715) | $5,487 | ($4,546) |
| *Non-IFRS Results (U.S. dollars in thousands) | ||||
| Q4’25 | Q4’24 | FY’25 | FY’24 | |
| Revenues | $28,903 | $18,318 | $87,637 | $59,651 |
| Gross Profit | $21,859 | $14,117 | $65,986 | $45,400 |
| Gross Margin | 75.6% | 77.1% | 75.3% | 76.1% |
| Operating Income/Loss | $4,619 | $595 | $9,186 | ($1,176) |
| Net Income/Loss | $4,562 | ($12) | $7,804 | ($2,142) |
(*) Excluding stock-based compensation
About Sofwave Medical Ltd.
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
FAQ**
How has the significant year-over-year growth of SofWave Medical Ltd Ord SOFWF’s fourth quarter revenue to $28.9 million impacted its market position in the aesthetic medical device industry?
Given that SofWave Medical Ltd Ord SOFWF achieved a gross margin of 75.6% in Q4, what measures are being taken to sustain or improve profitability moving into 2026?
With approximately 2,700 SofWave systems sold, how does SofWave Medical Ltd Ord SOFWF plan to increase adoption rates and expand its global market presence further?
Considering the positive momentum reported, what strategic initiatives will SofWave Medical Ltd Ord SOFWF implement to address emerging demand for non-invasive treatments in the evolving aesthetic market?
**MWN-AI FAQ is based on asking OpenAI questions about SofWave Medical Ltd Ord (OTC: SOFWF).
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