Sofwave Medical Reports Third Quarter 2025 Financial Results and Business Highlights
MWN-AI** Summary
Sofwave Medical Ltd. (TASE: SOFW), a leader in energy-based non-invasive aesthetic medical devices, reported impressive financial results for the third quarter of 2025, achieving a record quarterly revenue of $21.1 million—an increase of 56% year-over-year. This surge was driven by significant demand for its products, indicated by $8.3 million in recurring revenue, which grew by 55% and accounted for 40% of total revenue. The company recorded a gross profit of $15.5 million, with an IFRS gross margin of 73.7%.
For the first nine months of 2025, Sofwave reported total revenue of $58.7 million, marking a 42% increase, and recurring revenue of $24.5 million, reflecting a 52% year-over-year increase. Notably, the company shifted from a net loss of $3.8 million in the same period last year to a net income of $1.4 million, alongside a positive cash flow of $2.5 million.
CEO Louis Scafuri attributed the quarterly success to robust demand among new and existing customers, positioning the company for continued growth. Sofwave also emphasized its operational achievements, including the administration of approximately 667,000 pulse treatments since commercialization and the recent FDA clearance for its Pure Impact VIP™ EMS device.
Looking ahead, Sofwave aims to achieve net profitability within 2025, underpinned by the growing need for energy-based volumization treatments. Executive comments highlighted the company's innovative technology and competitive edge in the shifting aesthetic market, affirming its status as one of the fastest-growing entities in aesthetic medical technology.
MWN-AI** Analysis
Sofwave Medical Ltd (TASE: SOFW) has delivered impressive third-quarter financial results for 2025, underscoring its robust position in the aesthetic medical device market. The company achieved a record revenue of $21.1 million, reflecting a remarkable 56% year-over-year growth. This performance is indicative of strong demand for its innovative energy-based treatments, particularly in a seasonally slow quarter for the industry. Recurring revenue also saw significant growth, climbing 55% to $8.3 million, showcasing the company's successful implementation of a subscription model that enhances revenue predictability.
The gross margin stands at an impressive 73.7%, signifying efficient cost management and strong product demand. Moreover, Sofwave has demonstrated a shift towards profitability, reporting both IFRS and non-IFRS net income for the second consecutive quarter—an important milestone after the losses experienced in previous years. This shift aligns with the company’s forecast to achieve net profitability by the end of 2025, which presents an attractive prospect for potential investors.
Sofwave’s innovation pipeline further strengthens its market position, as highlighted by the FDA clearance of their Pure Impact VIP™ device, designed for comprehensive muscle strengthening. With approximately 667,000 treatments administered since commercialization, the company's established presence leaves significant room for growth, especially as market trends lean towards non-invasive solutions.
Investors should consider Sofwave's strategic positioning within the aesthetic market, capitalizing on the diminishing demand for fillers and the rising popularity of GLP-1 treatments. The current momentum, alongside ambitious growth targets, suggests that Sofwave Medical is a compelling investment opportunity. However, potential investors must remain cautious about the inherent risks in the med-tech space and the competitive landscape. Overall, Sofwave appears to be a strong contender for growth amidst evolving consumer preferences in the aesthetic arena.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
— Record quarterly revenue in third quarter of $21.1M, +56% year-over-year growth; IFRS gross margin of 73.7%
— Third quarter pulse recurring revenue of $8.3M, +55% year-over-year growth
— First nine months revenue of $58.7M, +42% year-over-year growth; IFRS gross margin of 75.1%
— First nine months IFRS and non-IFRS net income of $1.4M and $3.2M, respectively, versus a net loss of $3.8M and $2.1M, respectively, in the same year ago period
— Approximately 667,00 pulse treatments administered since commercialization
— Company expects to achieve net profitability in 2025
SAN CLEMENTE, Calif., Nov. 04, 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 third quarter and first nine months of fiscal year 2025, for the period ended September 30, 2025, and recent business highlights.
Third Quarter and First Nine Months 2025 Financial Highlights
- Third Quarter Revenue of $21.1M; representing 56% year-over-year growth
- Recurring revenue of $8.3M, a year-over-year increase of 55%, representing 40% of total revenue
- Gross Profit was $15.5M, a year-over-year increase of 53%
- IFRS and *Non-IFRS Gross Margin: 73.7%
- IFRS Operating Income: $1.5M; *Non-IFRS: $1.9M
- IFRS Net Income: $1.0M; *Non-IFRS: $1.4M
- Positive cash flow: $2.5 million compared to $0.2M in the corresponding period
- First Nine Months Revenue of $58.7M, representing 42% year-over-year growth
- Recurring revenue of $24.5M, a year-over-year increase of 52%, representing 42% of total revenue
- Gross Profit was $44.1M, a year-over-year increase of 41%
- IFRS and *Non-IFRS Gross Margin : 75.1%
- IFRS Operating Income/Loss: $2.7M; as compared to an operating loss of $3.5M during first nine months of 2024; *Non-IFRS: $4.6M
- IFRS Net Income/Loss: $1.4M; as compared to an operating loss of $3.8M during first nine months of 2024; *Non-IFRS: $3.2M
- Cash and Cash Equivalents as of September 30, 2025: $26.5M
Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, “Sofwave delivered exceptional third quarter results, achieving record revenue during what is historically the med-device aesthetics industry’s slowest quarter. This impressive performance was driven by well over 50% year-over-year growth in both capital equipment placements and recurring pulse revenue, demonstrating robust demand from both new and existing customers alike. Importantly, we achieved our second consecutive quarter of positive IFRS net income and generated $2.5 million in cash flow. We look forward to concluding fiscal 2025 with significant momentum in our business, as we continue to leverage the growing demand for energy-based volumization treatments as filler usage declines and GLP-1 usage increases. These achievements reinforce Sofwave’s position as one of the fastest-growing companies in aesthetic medical technology.”
Dr. Shimon Eckhouse, Chairman & Co-Founder, added, “Sofwave's record quarterly revenue is a powerful testament to our disruptive technology and the value we deliver to patients and providers alike. The fantastic growth of the business clearly reflects the aesthetic market’s shift toward next-generation, evidence-based treatment solutions. With approximately 667,000 treatments conducted since commercial launch and rapidly expanding brand recognition, Sofwave continues to gain market share in the non-invasive medical aesthetics space. Additionally, the sustained momentum driven by GLP-1 adoption remains a substantial catalyst for lifting, laxity and toning treatments, which positions us to further expand our business across the breadth of geographies we serve."
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 667,000 treatments conducted since commercialization.
- Company expects to achieve net profitability in 2025
Financial Summary
| IFRS Results (U.S. dollars in thousands) | ||||
| Q3’25 | Q3’24 | 9M’25 | 9M’24 | |
| Revenues | $21,074 | $13,507 | $58,735 | $41,333 |
| Gross Profit | $15,529 | $10,156 | $44,105 | $31,218 |
| Gross Margin | 73.7% | 75.2% | 75.1% | 75.5% |
| Operating Income/Loss | $1,488 | ($1,314) | $2,711 | ($3,484) |
| Net Income/Loss | $982 | ($1,330) | $1,387 | ($3,843) |
| *Non-IFRS Results (U.S. dollars in thousands) | ||||
| Q3’25 | Q3’24 | 9M’25 | 9M’24 | |
| Revenues | $21,074 | $13,507 | $58,735 | $41,333 |
| Gross Profit | $15,538 | $10,172 | $44,126 | $31,271 |
| Gross Margin | 73.7% | 75.3% | 75.1% | 75.7% |
| Operating Income/Loss | $1,878 | ($782) | $4,565 | ($1,783) |
| Net Income/Loss | $1,373 | ($798) | $3,241 | ($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: [email protected]
Investor Contact:
Brian Ritchie
LifeSci Advisors LLC
(212) 915-2578
[email protected]
FAQ**
What strategies are in place to maintain the impressive 56% year-over-year growth in quarterly revenue for Sofwave Medical Ltd Ord SOFWF, and how do you plan to further expand your market share in the aesthetic medical technology space?
Given the strong performance of pulse recurring revenue at $8.3M and a 55% increase year-over-year for Sofwave Medical Ltd Ord SOFWF, what initiatives are being implemented to enhance customer retention and drive additional recurring revenue streams?
With approximately 667,000 pulse treatments administered since commercialization, how does Sofwave Medical Ltd Ord SOFWF plan to continue leveraging this momentum to attract new customers and increase treatment adoption rates?
What specific steps is Sofwave Medical Ltd Ord SOFWF taking to achieve net profitability by 2025, and what potential challenges do you foresee in accomplishing this goal amid the evolving landscape of the aesthetic medical device industry?
**MWN-AI FAQ is based on asking OpenAI questions about SofWave Medical Ltd Ord (OTC: SOFWF).
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