SofWave Medical (SOFW) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $20.990M, up 43% year over year; H1 revenue was $37.661M, up 35%.

• Q2 recurring revenue was $9.152M, up 53% year over year and 44% of total revenue; H1 recurring revenue grew 51% and was 43% of total.

• IFRS net income was $1.517M in Q2 and $405k in H1, versus losses in the prior-year periods.

• More than 600,000 treatments have been performed since commercialization; social media following surpassed 1 million.

Financial highlights

• Q2 IFRS gross margin was 75.5% (Non-IFRS 75.6%); H1 IFRS gross margin was 75.9%.

• Q2 IFRS operating income was $2.179M and Non-IFRS operating income was $2.9M; operating expenses declined as a percentage of revenue.

• Q2 operating cash flow was $3.637M; H1 operating cash flow was $2.331M.

• Cash and equivalents were $23.495M at June 30, 2025; shareholders’ equity was $26.55M.

Outlook and guidance

• Management expects to achieve operating break-even for full-year 2025, supported by scalable infrastructure and recurring revenue growth.

• Following the U.S. tariff increase to 15% on Israeli imports, the estimated impact on 2025 gross profit was ~1%.

• Japan, Russia, Brazil, and potentially China are among planned market expansions.