SofWave Medical (SOFW) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $21 million, up 43% year-over-year, with recurring revenue of $9.2 million, up 53% year-over-year, and over 600,000 treatments performed since commercialization.

• 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 equivalents, maintaining a strong balance sheet and positive cash generation.

• Brand awareness and digital engagement surged, driven by influencer campaigns and surpassing 1 million social media followers.

• Significant growth in both device and pulse sales, with capital equipment revenues at $11.8 million (+37% YoY) and pulse revenues at $9.2 million (+53% YoY).

Financial highlights

• Q2 2025 gross margin reached 75.5% (IFRS), with Non-IFRS at 75.6%; first half gross margin was 75.9%.

• Q2 2025 operating income was $2.9 million (Non-IFRS), with operating expenses decreasing as a percentage of revenue.

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

• Cash and equivalents stood at $24 million as of June 30, 2025, with $3.6 million cash generated in Q2.

• Recurring revenue accounted for 44% of Q2 total revenue and 43% of first half revenue.

Outlook and guidance

• Management expects to achieve operating break-even for the full year 2025, with continued high double-digit growth and exceptional profitability.

• Anticipates continued momentum and strong tailwinds from rising demand for energy-based volumization and skin tightening treatments, despite macroeconomic and geopolitical uncertainties.

• Launch of Pure Impact VIP and debut of liftHD body applicator expected to drive further growth and provider enthusiasm.

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

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