Sofwave Medical Reports Second Quarter and First Half 2026 Financial Results and Business Highlights

• Second quarter revenue of $30M, +43% year-over-year growth; IFRS gross margin of 76.5%
• Second quarter usage fee revenue of $13.9M, 52.2% year-over-year growth
• First half revenue of $54.4M, +44% year-over-year growth; IFRS gross margin of 75.8%
• Second quarter IFRS and non-IFRS net income of $2.5M and $3.0M (or $3.8M exc. one-time expenses), versus IFRS and non-IFRS net income of $1.5M and $2.2M in the prior year period
• Generated $3.6M in cash in the second quarter
• Approximately 3,100 Sofwave systems sold to date and more than 975,000 Sofwave treatments administered since commercialization

SAN CLEMENTE, Calif., Aug. 04, 2026 (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 second quarter and first half of fiscal year 2026, for the period ended June 30, 2026, and recent business highlights.

Second Quarter and First Half Fiscal 2026 Financial Highlights

• Second Quarter Revenue of $30M; representing 43% year-over-year growth
  • Recurring Usage Fee of $13.9M, a year-over-year increase of 52.2%, representing 46% of total revenue
  • Gross Profit was $22.9M, a year-over-year increase of 45%
  • IFRS and Non-IFRS Gross Margin: 76.5%
  • IFRS Operating Income: $2.9M, compared to income of $2.2M for the second quarter of 2025; Non-IFRS Operating Income: $3.3M and $4.1M excluding one-time Nasdaq listing expenses.
  • IFRS and non-IFRS net income: $2.5M and $3.0M respectively, versus net income of $1.5M and $2.2M, respectively, for the prior year period. Excluding one-time as well, non-IFRS net income was $3.8M.
• First Half Revenue of $54.4M; representing 44% year-over-year growth
  • Recurring Usage Fee of $24.9M, a year-over-year increase of 54%, representing 46% of total revenue
  • Gross Profit was $41.2M, a year-over-year increase of 44%
  • IFRS and Non-IFRS Gross Margin: 75.8%
  • IFRS Operating Income: $4.5M, compared to income of $1.2M for the first half of 2025; Non-IFRS Operating Income: $5.3M and $6.2M excluding one-time Nasdaq listing expenses.
  • IFRS and non-IFRS net income: $3.8M and $4.6M(**) respectively, versus net income of $0.4M and $1.9M, respectively, for the prior year period. Excluding one-time as well, non-IFRS net income was $5.4M.
• Cash and Cash Equivalents as of June 30, 2026: $38.8M(*); generated $3.6M in cash in the second quarter of 2026.

(*) including $10M short term bank deposit and $520K restricted short term bank deposit
(**) Non-IFRS results exclude stock-based compensation expense.

Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, “Sofwave delivered another record quarter, reflecting the continued strength of our commercial execution and the growing demand for regenerative, non-invasive aesthetic treatments. Second quarter revenue increased 43% year over year to $30.0 million, while recurring usage fee revenue grew 52.2% to $13.9 million, representing 46% of total revenue. These results reflect not only the expansion of our installed base, but also the increasing utilization of our technology by providers worldwide.

We also achieved our fifth consecutive quarter of positive IFRS net income, generated $3.6 million in cash during the quarter and continued to improve operating leverage while investing in the strategic initiatives that will drive our next phase of growth. Our operating expense ratio continued to decline as a percentage of revenue, demonstrating the scalability of our business model as utilization revenue becomes a larger component of our financial performance.

Today, our installed base has become one of the Company’s most important strategic assets. With approximately 3,100 systems sold and an estimated nearly one million treatments performed worldwide, we have built a growing network of providers whose increasing utilization is strengthening our recurring revenue model, expanding our clinical experience and reinforcing our competitive position.

Demand continues to grow across our global markets, supported by increasing provider adoption, expanding patient awareness and the growing interest in regenerative aesthetic treatments, including among patients using GLP-1 therapies. With a robust balance sheet, improving profitability and increasing operating leverage, we believe Sofwave is entering its next phase as a scalable, profitable growth company. We remain focused on disciplined execution while continuing to invest in innovation, commercial expansion and long-term shareholder value,” Mr. Scafuri concluded.

Dr. Shimon Eckhouse, Chairman of the Board, added, “The Board believes aesthetic medicine is undergoing a structural transformation toward regenerative, evidence based technologies that deliver clinically meaningful, natural looking outcomes with minimal downtime. We believe this represents one of the most significant long-term opportunities in our industry, and Sofwave is aiming to establish its leadership position through differentiated technology, clinical validation and disciplined execution.

The milestones achieved by the Company, including its expanding installed base, nearly one million treatments performed worldwide and growing utilization revenue, are significant not simply because of their scale, but because they demonstrate the strengthening quality of the business. Clinical evidence, provider experience, brand recognition and an expanding ongoing usage fee revenue model, create durable competitive advantages that we believe become increasingly valuable as the installed base continues to grow.

The Board is equally encouraged by the Company’s ability to translate commercial momentum into improving profitability, cash generation and operating leverage while continuing to invest in innovation. This balance between growth and financial discipline provides an increasingly strong foundation for long term value creation.

Looking ahead, we remain confident in Sofwave’s strategy to expand its leadership in regenerative aesthetics through continued innovation, disciplined capital allocation and thoughtful expansion of its technology platform. We believe these strengths position the Company to create sustainable value for physicians, patients and shareholders for many years to come,” Dr. Eckhouse concluded.

Recent Operational Highlights

• Approximately 3,100 Sofwave systems sold to date and over 975,000 treatments have been conducted since initial market approval
• Significant and growing brand awareness; over 1.6M social media followers to date
• Installed base utilization continues to expand, supporting utilization usage fee growth
• Strong demand driven by increasing adoption of regenerative aesthetic treatments and expanding use of GLP-1 therapies

Financial Summary (Q2 FY’26)

(*) Excluding stock-based compensation expense.

Non-IFRS Financial Measures
This press release includes information about certain financial measures that are not prepared in accordance with International Financial Reporting Standards (“IFRS”), including non-IFRS gross profit, non-IFRS gross margin, non-IFRS operating income (loss), and non-IFRS net income (loss). These non-IFRS measures adjust for non-cash share-based compensation expense. Management believes that these non-IFRS measures provide useful supplemental information to investors by excluding items that are not directly attributable to the Company’s core operating performance. Non-IFRS measures should be considered in addition to, not as a substitute for, financial measures prepared in accordance with IFRS. A reconciliation of IFRS to non-IFRS measures is provided in the table included in this press release above.

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), lifting lax skin in the 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 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

Forward-Looking Statements
This press release contains “forward-looking statements” as defined in the Israeli Securities Law 5728-1968. These forward-looking statements are based on the Company’s current expectations, estimates, forecasts and projections about future events and are not guarantees of future performance. Words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “should,” “would,” “could,” “may,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied in such statements due to various factors, including but not limited to: risks inherent to the Company’s activities; third-party decisions, including by regulatory authorities; changes in economic conditions; and other external factors beyond the Company’s control. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:
Brian Ritchie
LifeSci Advisors LLC
(212) 915-2578
britchie@lifesciadvisors.com