SofWave Medical (SOFW) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $21 million, up 43% year-over-year, and first half revenue of $37.7 million, up 35% year-over-year.

• Recurring revenue reached $9.2 million in Q2 2025, up 53% year-over-year, representing 44% of total revenue.

• Reported first-ever net income of $1.5 million for Q2 2025 and $0.4 million for the first half, with both IFRS and Non-IFRS operating and net income positive.

• Ended the first half with $24 million in cash and over 600,000 treatments performed since commercialization.

• Strong brand awareness and demand generation, with significant growth in both device and pulse sales, and social media following surpassing 1 million.

Financial highlights

• Q2 2025 gross margin reached 75.5% (IFRS), with Non-IFRS at 75.6%.

• Q2 IFRS operating income was $2.2 million and Non-IFRS $2.9 million, about 14% of total revenues.

• Q2 IFRS net income was $1.5 million; Non-IFRS $2 million.

• Generated $3.6 million in cash in Q2 2025, marking the third cash-generating quarter out of the last four.

• North America led with over 50% of total revenues; Asia-Pacific showed strong growth, supported by new regulatory approvals.

Outlook and guidance

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

• Expects continued high double-digit growth and exceptional profitability, driven by recurring revenue and expanding treatment adoption.

• Sees strong tailwinds from rising demand for energy-based volumization and skin tightening treatments, despite macroeconomic headwinds.

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

• Plans to expand into new markets, including Japan, Russia, Brazil, and potentially China.