SofWave Medical (SOFW) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $16.7 million, up 26% year-over-year, driven by new system placements, increased procedure volume, and $7 million from recurring pulses, up 49% year-over-year.

• Performed over 520,000 treatments and ended the quarter with $20.4 million in cash.

• Brand awareness and demand surged, supported by organic celebrity endorsements, expanded digital presence, and new product launches.

• Achieved regulatory clearance in Japan and launched the LiftHD body applicator, expanding market opportunities.

Financial highlights

• Q1 2025 revenue reached $16.7 million, a 26% increase compared to Q1 2024.

• Pulse sales revenue grew 49% year-over-year to $7 million; device sales rose 14% to $9.7 million.

• Gross profit was $12.7 million, a 28% year-over-year increase; non-GAAP margin was 76.4%, IFRS margin 76.3%.

• Recurring revenue accounted for $7 million, or 42% of total revenue.

• Cash and cash equivalents totaled $20.4 million at quarter-end.

Outlook and guidance

• Expecting first scaled revenues from Japan in the current quarter following regulatory clearance.

• Management reiterated the goal to achieve operating break-even in 2025.

• Continued high growth and profitability anticipated, supported by scalable infrastructure and strong brand momentum.

• Ongoing expansion into new markets, including Brazil and China in the longer term.

• Strategic focus on expanding global demand for non-invasive aesthetic solutions and leveraging regulatory milestones.