SofWave Medical (SOFW) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $16.671M versus $13.184M in Q1 2024, up 26% year over year; net loss was $1.112M versus $0.983M.

• Recurring pulse revenue reached $7.035M, up 49% year over year and representing 42% of total revenue.

• More than 520,000 treatments have been performed; management cited lean, scalable infrastructure and continued growth momentum.

Financial highlights

• Gross profit was $12.722M versus $9.914M in Q1 2024; reported gross margin was 76.3% versus 75.2%.

• Gross margin excluding stock-based compensation was 76.4% versus 75.4% in Q1 2024.

• Reported operating loss was $0.956M versus $0.957M; non-IFRS operating loss was $0.199M versus $0.445M, excluding stock-based compensation and one-time litigation expenses.

• Systems sales, including the basic pulse package, were $9.636M; recurring pulse sales were $7.035M, versus $8.448M and $4.736M, respectively, a year earlier.

• Net financing expense was $0.216M versus net financing income of $0.004M; pretax loss was $1.172M, with a $0.060M tax benefit.

Outlook and guidance

• Japan commercial sales are planned for Q2 2025 following PMDA approval; plans include in-house sales, expanded distribution and multi-channel marketing.

• Management reiterated its goal of operating break-even in 2025 and expects continued momentum despite uncertain conditions.

• Growth priorities include regulatory approvals and market expansion, provider ROI and practice integration, and patient awareness through social and digital marketing.