Thank you, Shimon. Good morning, everyone. We're very excited and pleased to report our Q2 2025 Results. For the quarter, we achieved $21 million in revenue, which represents a 43% year-over-year growth. Of these revenues, $9.2 million came on a recurring revenue basis, which represents a 53% year-over-year growth. Our margins were 75.5%, and we reported as well our first-ever net income of $1.5 million. For the first half of the year, our revenues were $37.7 million, which represents a 35% year-over-year growth, and we're also reporting a profit of $0.4 million for the first half. We ended the first half of the year with $24 million in cash, and we have performed over 600,000 treatments with the Sofwave device since we began commercialization. What's going on in the market? Because I'm sure all of our investors are hearing very different things.
We all are very aware of the geopolitical and economic uncertainties that are out there. There are headwinds with consumer confidence and with capital purchases in general, as well as we have the fact that tariffs are impacting certain of our competitors, particularly in the U.S. We have certain Korean and Chinese entrants there that are struggling right now to get a toehold in the marketplace, and this is improving our competitiveness. If we look at the market in general, we see the core market of the plastics industry remaining quite healthy. However, the med spa market, with access to capital and high interest rates, is being challenged. Besides the headwinds, there are crosswinds and tailwinds.
We look at a glass as being more than half full from the standpoint that even in the second half of the year, with continued geopolitical concerns, high interest rates, and tariffs, we see the tailwind for the rising demand for energy-based volumization treatments to be very, very strong. People want natural appearance. We see the use of filler usage declining and GLP-1 usage increasing. We have the ideal product at the right place and at the right time. As we look at the quarter, we had exceptional results. There were many more high points than low points. We tend to be so critical. We, of course, see opportunity to do even more. I could say the performance was balanced around the regions. There wasn't any one specific quarter that made the quarter. We executed very strong across all levels despite the geopolitical considerations that happened in the region.
We had a very, very strong finish in June. Our brand awareness and total sales remained at record levels. We also, in terms of our product and the ROI positioning, it's emerging as superior in terms of the value proposition. Why patients get the procedure and why patients buy. We're demonstrating time in and time out that we have the superior product and the best offering for support to the customer. We see, despite what other companies may report, a growing demand in the marketplace for tightening, toning, and lifting, particularly within the core segment. A few interesting things I want to point out as well. If we look on the next slide, please. If we look at the most recent study performed by McKinsey that was just published in May, they talk about the GLP-1 phenomena and how it's driving aesthetic procedures.
63% of their group of patients that were surveyed are now seeking facial aesthetic procedures that would absolutely do. These are new patients coming in and seeking aesthetic treatment for the first time. If you look as well, just about 2/3 of these patients lost between 11% - 30% to devaluate, leading to all sorts of concerns about loose skin, laxity, sagging, facial volume loss, as well as muscle mass loss. Other statistics just published by ISAPS support this. The marketplace is changing. The marketplace for aesthetic procedures is still very strong, but you need to be in the right segment. We look here at this graph on the bottom of this chart. We see, of course, the exponential rise in the GLP-1 use, particularly in the last two years.
These other treatments, one treatment category in particular, has completely fallen off the radar, which is the desire to have energy-based devices reduce fat, fat destruction devices. According to ISAPS and their global survey, this is up by 40% from 2023 - 2024, and the downward trend continues. On the opposite side of this, the demand for skin tightening grew by 39% from 2023 - 2024, and we expect this trend to continue. We see pillows, I mentioned just previously, people want the natural look as well. Pillow volume is down, and I think this speaks to the fact this was thousands of physicians that are core providers that filled out a structured survey, and the numbers are the numbers of the numbers. There's a very strong market for what Sofwave Medical is offering, the best in class.
There's demand for no downtime, lifting and toning devices that have consistent best-of-breed results that are delegatable, that the doctors and providers can make money on and have a proven predictable ROI. The challenge is consumer spending. What are we selling in essence? You know, we sell a device and we sell pulses, but everything we do has to provide a competitive advantage to our providers. They simply have to have a better offering. They're competing for patients. Patients want the best results. They want the latest, the greatest. They want the best technology that has the best outcome. Doctors want the competitive edge. They need to offer Sofwave. What's also in their benefit is something that's delegatable, where they can use anyone in the office and have a high throughput throughout their treatment room.
They have overhead, just like we have overhead in business, and they have a very astute view when they make an investment in today's marketplace. The other thing they want is they want national branding. They want the companies to do the lifting in terms of the awareness before that patient ever gets in their office and ever gets in their chair. Now, Sofwave is the rising star. The proof is in the numbers. The proof is in our growth that we have the best solution for non-invasive lifting and tightening. We're ideally positioned today and tomorrow from the standpoint that we have a holistic approach to the customer. We see these customers as our partner. We're their partners with patient acquisition and patient retention. We're providing the vehicle to them, not only with the technology, but in the support services and in the brand awareness.
Again, that drives the demand for the procedure. Patients are coming back. The phone is ringing for them to get to the practice, and they're coming back for more and more treatments. We see this in our pulse numbers. The brand awareness is critical. The other thing that's also important is once a provider makes an investment into a given product, they want to make sure their margins are protected. They look at gross margins just the way we do from a corporate perspective. We have a feature in our offering which allows for minimum advertised pricing protection, which we routinely police and make sure that we manage to make sure that our providers and the Sofwave treatment is viewed as premium so that a provider can continue to make a high gross margin.
He thinks about offering a patient that presents themselves with all the multiple choices that he or she may have in the practice, Sofwave is going to make the highest margin off. Sofwave becomes a treatment of choice. The strategy to take market share, again, this is a slide from the last presentation where we continue to go into new markets based upon regulatory approvals. We just recently announced the approval in the Japanese market. Hopefully China somewhere in the future. We have access to a market such as that.
We have other markets on our radar from Russia, Brazil, where we see the opportunity again to add some of these top 10 markets in terms of our go-to-market strategy, expand our coverage, making sure the provider, the customer is successful, making sure the product works within their practice, that they get consistent outcomes, that their patients are satisfied, continue to work with them on delivering a significant ROI, making sure that it's scalable, that they continue to be able to treat more and more patients and integrate into any practice. Our device fits into any practice. It's becoming a staple amongst. We have certain providers where the first device they're buying now is Sofwave. They may have just been doing injectables or in certain cases just surgical procedures. The first device that they are considering now because of the growing demand and tightening now is Sofwave.
This is driven by patient awareness across the various channels that are available to us. The brand awareness, you know, some interesting things are coming out of these numbers. First of all, we need to do this in both B2C and B2B. You need to drive, you need to sell devices, you need to drive a demand procedure, and you need to be very, very careful how you spend this money. As you look at our financials, you'll see actually our sales and marketing expense is significantly dropping despite the fact that the awareness is going up. Recently, we talked about in the last quarter the Kardashian effect, but we have many more influencers coming on board organically as a result of that. Our website visits have doubled despite the fact that a lot of people are going to AI engines now for searches.
Our website visits are 100% year- over- year. I'm going to introduce a new term that I think we should start looking at in the future, which is called share of voice. Now, what share of voice means, it means that how often using key search words such as GLP-1, weight loss, skin laxity, muscle tone, very competent, highly competitive keywords across 10 competitive companies, Sofwave's share of voice was recently measured at 34% in Q2. We're going to increase this as well. This means as consumers look for any of these major keywords as they tie together solutions for the lax skin, the muscle toning, and the like, that Sofwave appears either in the number zero or number one position in the Google search results. We had recently, I think it was 10 days ago, we had another post organically by Khloe Kardashian.
You can see the spike in the numbers. You can see how it cascades, how it amplifies here. The mentions, when something happens, goes across their entire network. We picked up 16,000 followers as a result of Khloe Kardashian's last post. This is all organic at this point in time. If we look at the numbers in general, overall, across all the social metrics, they're all flashing green across every potential social channel. It's significant. It's significant the number of TikTok views, significant the number of views on YouTube. The percentage increase, the organic reach has increased close to 600%. What's really interesting and really defines the quality of this content is the engagement rate. Engagement rate means like, share, or comment. The industry average for beauty and aesthetics is 1.5%. We were above that last year in Q2. We were 2.3%.
Now we're at 8.3%, 73% year- over- year, outperforming the industry by 400%. We built a significant platform. We made the investments since day one and adding best-of-class digital expertise. It's appearing in the numbers as are our national campaigns, which we see on the next slide, which illustrates we have a community. It's very, very important that you have social proof and you have a community of people that go out because you don't want to do it all on your own. You want all your users, you want all your friends to make sure that they're engaged and involved when you do something. The Got Lit campaign was highly successful. We ran this on June 6th. The click-through rate, meaning the number of people who clicked on a link, was 8%. The average click-through rate on most posts is 0.6%.
On the most successful campaigns of all sorts, 5% is a phenomenal rate. We achieved an 8% rate, as well as, if you look at our PR campaigns, we won additional awards in highly influential magazines such as Elle, Women's Health, and the like. To summarize all those numbers, and before I turn it over to Shimon, just a few closing words. First off, we made the investments in brand visibility and influence of partnerships and national campaigns. They are paying off. They're paying off not only in the numbers, but in the demand generation that's happening out there. We're creating buzz. We're filling appointment books. A happy customer is one that's treating with the device. They're making money. The patients are coming back. That's the power of what we're doing and how we're approaching the market. This demand we see as something like a perpetual motion machine.
In our viewpoint, how customers are trusting us, we're viewed as a partner. A very, very different approach to most other aesthetic device companies. At the end of the day, since our business model depends upon selling pulses, and when you look at the number of pulses we're in, the 40% that we're selling in every growing number, this is significant and will continue to generate what we believe to be high double-digit growth and exceptional profitability. I'd like now to turn it over to Shimon.
Thank you very much,
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As you can see here, the use of a large number, the use of a large number of units gives us an additional advantage, and that is the ability to mimic what we call plyometric exercises, as we are showing here in this video. The world of plyometric exercises has developed greatly in the last 20 years, with the main idea being the simultaneous activation of a large number of muscles and doing this in a way that creates explosive energy.
We achieve this by being able to treat a large number of areas in the body simultaneously, and this is a very, very nice demonstration of what we are doing today for this step. We have today FDA approval that allows simultaneous treatment on the upper part of the body or the front part of the body, in the thighs, back, arms, in the thighs, in the abdomen area, and in the arms. When you look at exercises of the type called plyometric exercise, we are doing very similar things, both in the ability to treat all of them simultaneously and in the ability to mimic the way the muscle is activated, as it happens in plyometric exercise of the type we talked about earlier. In terms of the...
because of the use of units that are independent units with independent electrodes, we are able today to do things that are difficult or almost impossible to do with wired technologies. We are able to activate muscle groups in a controlled way, not in a way that always activates the same muscle, but moving from muscle to muscle, and more than that, the form of the pulses we give matches what we call plyometric exercise. The latest innovation we talked about a few months ago is what we call the Pure Impact VIP, which is actually taking those same activation units that we are now operating from our main console, from our main platform, and operating them independently.
What this gives us, and this comes a lot from market demand, is first, the ability to simultaneously activate both the ultrasound treatment that gives skin tightening, which firms the skin, and also the Pure Impact treatment that gives muscle mass renewal and muscle sculpting, and this combination is starting to become more and more interesting in the market. This is a product we announced a few weeks ago, which we call Pure Impact VIP. It uses the same platform we developed earlier for the independent units, but its control is independent, and this allows the physician using it to also do at the same time an ultrasound treatment to firm the skin and also do muscle mass renewal. I will show you here an interesting example, this is already from a year ago, of a treatment by a well-known and leading plastic surgeon from Beverly Hills.
In this case, it is a 60-year-old patient, these are the results of four treatments, he also does an excellent job of a before and after video, which shows the impact of what we are doing with the Pure Impact, and this is a result that is very, very significant for this patient, because of course he looks not bad even without the treatment, but when he gets the treatment, he looks at himself and sees an aesthetic result that is much more significant. In the next slide, this is a typical picture again of a patient who looks very, very good, but if you look carefully at the picture, you can see on the left side that at baseline before the treatment, he has quite a few wrinkles on the arm. Both men and women really do not like that.
The results in the middle picture and in the right picture are results of treatment with Pure Impact, which increases muscle mass, shapes the muscles in a better way, but beyond that, because of the ultrasound treatment, he also gets a reduction of the wrinkles and what we call significant skin tightening. This is another result again from another physician who does a lot of work in this field and uses both technologies simultaneously, both to shape muscles and to eliminate wrinkles that really bother both women and men in the area of their arm. In summary, the Pure Impact VIP is a new product that we are launching in the third quarter. We announced it, as I said, a few weeks ago.
It has several unique features, the main features being the ability to treat simultaneously a large distribution of muscles in the body at once, to do it in a way that is very, very effective, and of course, we combine it together with our ultrasound capabilities that provide a complete package that solves the problems of the not-so-good results of weight loss treatments from GLP-1. I will pass the floor to Asaf. Asaf, please.
in the second quarter totaled about $11.8 million, representing growth of 37% compared to the same quarter two years ago. In the next slide, we see the growth in revenues, the continuous growth in each of the quarters in the last five years, and I want to especially emphasize the increase in the growth rate that we see in the last three quarters. Louis and Shimon will elaborate a lot on the market situation and what the story is, but also in the fourth quarter of 2024 and the first quarter of 2025, and of course also in this quarter, we see some acceleration in our growth rate. We are very satisfied with this. Looking at revenues geographically, North America continues to lead with over 50% of total revenues, but we also see the nice growth in revenues in Asia-Pacific.
This is supported by the regulatory approval we received in Japan in April this year, but not only that, we are also very satisfied with the performance in the other countries. This is a growing region with very significant potential, and the very nice growth in this region is supported by Japan, but also, as I said, in other areas, not just by this regulatory approval. If we look at the operating profit graph, we reached a record operating profit on a non-IFRS basis of $2.9 million, and of course, no less important, we are also reporting net income on an IFRS basis in the second quarter of about $1.5 million, and net income of about $400,000 in the first six months of the year.
Looking at the income statement in the second quarter, we continue to present a very healthy gross margin of over 75%, moving to operating profit of $2.9 million, which is about 14% of total revenues. We talked about the leverage of our operating expenses versus revenues, and actually all our operating expenses, R&D, sales marketing, and G&A, as a percentage of revenues, decreased significantly in this quarter, and also in the first half of the year we see a move from an operating loss of about $1 million to an operating profit of $2.7 million, or about 7% of total revenues in the half. Moving on to the balance sheet, we are very pleased to report that we generated about $3.6 million in cash in the second quarter of 2025. This is the third quarter out of the last four quarters in which we are generating cash.
We present a very healthy cash balance of about $24 million. In summary, we present a second quarter with very significant growth in revenues, both in the sale of pulses and in the sale of devices.
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$3.6 million. I will turn it back to Lou for a quick summary.
If you just call this on the presentation, just a few of the highlights. We are truly delivering next-generation technology. We have a very strong intellectual property portfolio across both Sofwave and Pure Impact Technology. We're disrupting the industry that has outdated solutions. We're achieving rapid industry adoption. Last quarter, we're 43% revenue year over year. It's illustrative of what Sofwave is capable of doing.
We have created a company with scalable and lean infrastructure, and we believe that we can continue to support high growth and profitability. We also have done all the homework and all the preliminary work of a very broad range, nine FDA clearances around lifting, laxity, toning, and wrinkle reduction on the base and neck, as well as other areas such as cellulite and body. The arm laxity and muscle toning represents another major, major opportunity for us. We have significant recurring revenue. We're not in the box business. We are selling holistically. A device or value proposition is unique, wherein our pulses now represent 40% of our total revenue, with a continuing expanding volume of treatments being adopted. We have significant brand awareness and social media following with over a million followers.
I'd like to close this portion of the presentation, and now I'll open it up for questions and answers.
Thank you very much, Lou. [Foreign language]
The second question I would like to refer to you, Luke, is what are the reasons for the increase in sales in Europe?
Channel to market capability is critical. In years gone by, in other major aesthetic companies, we had as many as 110 countries. Sofwave Medical now presently has in the low 40s in a number of countries.
We're building it not only with the EV train claim rule with the larger countries contributing, we've also added on distributors in Eastern Europe as well, as well as our efforts in the UK where selling direct is beginning to yield benefits for us. Thank you.
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are no more questions, so we can summarize.
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I want to thank Lou Scafuri and Asaf for being here with us and building this wonderful company. Thank you very much, everyone. Assaf, Lou, and myself are, of course, available to any question, comment, or complaint. Thank you very much.