SofWave Medical (SOFW) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenue of $21.1M, up 56% year-over-year, with $8.3M from recurring sources, representing 40% of total revenue and a 55% increase year-over-year.

• Gross margin was 73.7% in Q3 2025; first nine months gross margin was 75.1%.

• IFRS net income was $1M in Q3 and $1.4M for the first nine months, compared to a net loss in the prior year.

• Over 667,000 treatments performed since commercialization, reflecting robust global demand and adoption.

• Brand awareness and share of voice expanded to 41%, with significant increases in organic reach and social engagement.

Financial highlights

• Q3 2025 gross profit was $15.5M, up 53% year-over-year.

• Cash and cash equivalents as of September 30, 2025, were $26.5M, with $2.5M cash generated in Q3.

• Recurring revenue accounted for over 40% of total revenue in Q3.

• Capital equipment revenues reached $12.8M in Q3 2025, up 57% year-over-year.

• Shareholders' equity increased to $28.0M as of September 30, 2025.

Outlook and guidance

• Expects to achieve net profitability in 2025, with continued momentum driven by demand for energy-based volumization treatments and GLP-1 agonist adoption.

• Anticipates improved consumer spending as interest rates decline and expects continued growth from expanding product indications.

• FDA warning on RF microneedling seen as a strategic upside for positioning as a safe, FDA-cleared alternative.