SofWave Medical (SOFW) investor relations material

Executive summary

• Achieved $21M in Q2 revenue, up 43% year-over-year, and $37.7M in H1 revenue, up 35% year-over-year.

• Recurring revenue reached $9.2M in Q2, up 53% year-over-year, representing up to 44% of total revenue.

• Reported first-ever net income of $1.5M for Q2 and $400K profit for the first half of the year.

• Over 600,000 treatments performed since commercialization; social media following surpassed 1 million.

• Ended H1 with $24M in cash and equivalents.

Financial highlights

• Q2 gross margin reached 75.5% (IFRS), with Non-IFRS at 75.6%.

• Q2 gross profit was $15.9M, up 42% year-over-year.

• Q2 IFRS operating income $2.2M; Non-IFRS $2.9M.

• First half gross profit $28.6M, up 36% year-over-year; IFRS gross margin 75.9%.

• Sales and marketing expenses dropped significantly while brand awareness increased.

Outlook and guidance

• Management expects to achieve operating break-even for the full year 2025.

• Anticipates continued high double-digit growth and exceptional profitability driven by recurring revenue.

• Scalable, lean infrastructure in place to support growth and profitability.

• Expects strong demand for energy-based volumization treatments despite macroeconomic headwinds.

• Sees opportunity for further growth in new markets, including recent entry into Japan and plans for China, Russia, and Brazil.