— First quarter revenue of $16.7M, +26% year-over-year growth; IFRS gross margin of 76.3%
— First quarter pulse recurring revenue of $7.0M, +49% year-over-year growth
— IFRS and non-IFRS operating loss of -$1M and -$0.2M, respectively
SAN CLEMENTE, Calif., May 06, 2025 (GLOBE NEWSWIRE) — Sofwave Medical Ltd (TASE: SOFW), an emerging leader in energy-based non-invasive, aesthetic medical devices for practitioners worldwide, reported financial results for the first quarter of fiscal year 2025, for the period ended March 31, 2025, and recent business highlights.
First Quarter Fiscal 2025 Financial Highlights
- First Quarter Revenue of $16.7M; representing 26% year-over-year growth
- Recurring Revenue of $7M, a year-over- year increase of 49% growth, representing 42% of total revenue
- Gross Profit was $12.7M, a year-over-year increase of 28%
- IFRS Gross Margin: 76.3%; *Non-IFRS 76.4%
- IFRS Operating Loss: $1.0M, flat as compared to $1.0M in the first quarter of 2024; *Non-IFRS Operating Loss: $0.2M
- Cash and Cash Equivalents as of March 31, 2025: $20.4M, Cash used in the first quarter of 2025 was $1.2M, including a onetime payment of $0.9M related to a trademark litigation, vs. $1.3M used in Q1/24.
(*) including $520K short term bank deposit
Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, “Sofwave delivered another outstanding quarter, starting fiscal 2025 with strong double-digit revenue growth and accelerating market leadership. First-quarter revenue increased 26% year-over-year to $16.7 million, reflecting continued momentum in both new system placements and procedure volume expansion.
“We achieved a major milestone with regulatory clearance in Japan, unlocking significant new opportunities across the APAC region. Additionally, the launch of our LiftHD™ body applicator at ASLMS 2025 generated exceptional market enthusiasm and positioned Sofwave to further extend our category leadership in non-invasive regenerative aesthetics.
“Recurring revenue grew 49% year-over-year to $7 million, now comprising over 40% of total revenue — a clear testament to the growing utilization and satisfaction among both patients and providers. With a strong cash position and increasing operating leverage, Sofwave is executing aggressively across all strategic initiatives to capitalize on the global demand for effective, non-invasive aesthetic solutions. We are building the next great platform company in aesthetics.”
Dr. Shimon Eckhouse, Chairman of the Board, added: “As a company keenly focused on growth, we continue to execute on our strategic vision to become the predominant leader in the non-invasive energy-based regenerative medicine space through best of breed technology and innovation. Sofwave’s track record of execution since our commercial launch in 2020 exemplifies this long-term goal. As we continue to gain momentum with providers they are quickly recognizing Sofwave’s innovation and ability to extend new revenue opportunities beyond sculpting and contouring treatments of the face and neck to include body treatments utilizing our novel, regulatory approved add-on handsets. Meanwhile, tailwinds dominated by widespread use of GLP-1 inhibitors continue to drive demand for Sofwave’s skin lifting and muscle toning treatments.”
Recent Operational Highlights
- Sofwave’s liftHD body applicator debuts at the 44th Annual Meeting of the American Society for Laser Medicine and Surgery (ASLMS) 2025
- Sofwave’s SUPERB™ non-invasive akin treatment technology receives regulatory clearance in Japan significantly expanding its coverage of the APAC region
- Over 520,000 treatments have been conducted since initial market approval
- Reiterating Company will achieve operating break-even in 2025
Financial Summary (Q1 FY’24)
| IFRS Results (U.S. dollars in thousands) | ||||||
| Q1 2025 | Q1 2024 | |||||
| Revenues | $16,671 | $13,184 | ||||
| Gross Profit | $12,722 | $9,914 | ||||
| Gross Margin | 76.3% | 75.2% | ||||
| Operating Loss | ($956) | ($957) | ||||
| *Non-IFRS Results (U.S. dollars in thousands) | ||||||
| Q1 2025 | Q1 2024 | |||||
| Gross Profit | $12,730 | $9,935 | ||||
| Gross Margin | 76.4% | 75.4% | ||||
| Operating (Loss) | ($199) | ($445) | ||||
(*) Excluding stock-based compensation.
About Sofwave Medical Ltd.
Sofwave Medical Ltd. has implemented an innovative approach to wrinkle reduction lifting and cellulite using its proprietary breakthrough technology. SUPERB™, Synchronous Ultrasound Parallel Beam technology, is FDA-cleared to improve facial lines and wrinkles, lifting the eyebrow and lifting lax submental tissue (beneath the chin), to improve the appearance of skin laxity on the upper arms, as well as the short-term improvement in the appearance of cellulite and treatment of acne scars. The company’s Pure Impact™ module uses 4th generation EMS technology and is cleared for muscle toning. Sofwave’s products provide physicians with smart yet simple, effective, and safe aesthetic solutions for their patients. Contact: Info@sofwave.com
Investor Contact:
Brian Ritchie
LifeSci Advisors LLC
(212) 915-2578
britchie@lifesciadvisors.com
