Sofwave Q3 revenue up 35% to $28.5M; China nod

Capital equipment sales were $15.2 million, up 19%. That is the machine sale. Usage fees are what the practice pays per treatment, and the company is now pulling more of its money from that second bucket. Gross profit reached $21.8 million, up 41%.

IFRS gross margin was 76.6%, against 73.7% in the same quarter of 2025. Non-IFRS gross margin, which strips out stock-based compensation, was 76.7%.

Net income was the sharper story. IFRS net income was $4.1 million, against $1.0 million a year ago. Non-IFRS net income was $4.6 million, against $1.4 million. The company says this is its sixth straight quarter of positive IFRS net income, and it generated $2.6 million in cash during the quarter.

Cash, cash equivalents and short-term deposits stood at $41.4 million on Sept. 30. That figure includes a $10 million short-term bank deposit and a $520,000 restricted deposit.

Nine-month figures show the same pattern. Revenue was $82.9 million, up 41%. Usage fees were $38.2 million, up 56%, or 46% of the total. IFRS net income for the nine months was $7.9 million.

China is the other headline. The National Medical Products Administration approved the Sofwave System for mainland China to improve mid-to-lower facial wrinkles in adults aged 22 and older. The company says a 200-subject randomized, controlled study in China supported the approval. That is an NMPA action, not an FDA one, and it has no bearing on the U.S. clearances.

HTDK leads marketing, distribution and sales in mainland China, according to CEO Louis Scafuri. The first China order is 70 systems. Ten shipped in the third quarter, and the company expects the other 60 to ship in the fourth quarter.

Geography is also worth a look. North America was 49% of third-quarter revenue, APAC 37%, EMEA 12% and LATAM 2%.

What it means for practices

Analysis: The usage fee growth tells you the installed base is being used, and used hard. A 60% jump in per-treatment revenue means the company is selling into practices that already own a system and are running it. For a clinic that bought in, the question is whether its own treatment volume is keeping pace with the vendor's. If it is not, the recurring fee is a cost that is growing faster than the patient count supporting it.

Analysis: The margin gains suggest the company is not discounting its way to growth. A 76 percent gross margin on a device that is also a consumable business is a healthy spread, and it gives the company room to keep spending on clinical work, which Scafuri tied to continued investment in clinical development and commercial expansion.

Analysis: The company's own figures show about 3,400 systems sold and roughly 1.1 million treatments since commercialization. Divide one by the other and you get a rough average of about 320 treatments per system. That is a company-level average across installs of different ages and sizes, so do not read it as a practice benchmark. It is still a useful yardstick if you run a unit and are tracking your own pace.

What owners can do

Pull your own usage-fee invoices for the last four quarters and set them against your treatment counts. If the fee per treatment has crept up, ask the vendor in writing what drove the change and whether it applies to your contract.

Check your contract terms for any tie between usage pricing and treatment volume, minimum commitments, or price changes. The company's release does not describe its contract terms, so the only source for those is your own agreement.

If you are in a market where a China-style rollout would matter to you, that is a question for a vendor rep, not for this release. Ask who is training your staff and whether the training is tied to a fee.

What we don't know yet

The release does not say whether the 60 remaining China systems have shipped, and it gives no price for them. It does not give a U.S. treatment count, a split of new versus repeat customers, or a per-treatment fee. It also does not say how many of the 3,400 systems are still in active use.

The company's non-IFRS measures exclude stock-based compensation, and the release says the one-time Nasdaq listing expenses were excluded from one non-IFRS operating line. The release does not spell out how the company will report those items going forward, so read the IFRS line as the one with fewer adjustments.

Business information, not medical or legal advice. Verify regulatory status at FDA.gov.