Sofwave reported 18% revenue growth in 2024, reaching $59.6 million. But more significantly, the company moved toward operating profitability. While its financials still show an operating loss of $3.58 million, excluding legal expenses related to a trademark lawsuit, Sofwave actually turned a modest operating profit.

"This shows the business is working well," Eckhouse and Korner told Bizportal.

The executives also highlighted the continued growth in pulse
sales, which indicate increased physician usage of Sofwave’s devices. Importantly, the company's treatments complement the booming market for weight-loss drugs from Novo Nordisk and Eli Lilly. "These drugs have side effects that impact the skin and muscle, and our products address these issues," they explained.

While Sofwave’s primary market remains the U.S., the company is awaiting regulatory approvals in China and Japan—both expected to be major growth drivers. "The Chinese market is projected to be as large as the U.S. market ,"they said. "Everything is in place, and we have distribution agreements ready. We're just waiting for approvals, which we hope to receive soon."

Key Highlights from Q4 and 2024

"We’re very pleased with both the quarter and the full year," said Eckhouse. "Beyond growth, we continue to see strong momentum in pulse sales, which confirms increasing adoption of our technology."

Sofwave’s flagship ultrasound-based skin tightening treatment is now widely used across the body. Additionally, its newer Pure Impact device, launched 8-9 months ago, is gaining traction.

"The weight-loss drug boom presents a perfect synergy for us," Eckhouse added. "These drugs deliver impressive weight-loss results but have significant side effects, particularly on the skin. That’s where we come in. They also cause substantial muscle loss, and that’s where Pure Impact is proving highly effective."

On the financial front, Korner emphasized the company’s milestone of reaching operational breakeven in 2024 (excluding legal expenses). "We achieved modest profitability, and Q4’s operating profit was significant. This confirms our business is both profitable and scalable," he said.

Weight-Loss Drug Popularity Driving Sofwave Growth

"The connection between Sofwave’s success and the weight-loss drug boom is undeniable," Eckhouse explained. "More than 70% of doctors prescribing aesthetic treatments also prescribe weight-loss medications. This trend is still in its early stages, and we see substantial long-term value."

Can Profitability Keep Improving?

"Yes, we are well-positioned for continued profitability," Korner stated. "Operating expenses are declining as a percentage of sales, and we expect this trend to continue."

What’s Driving the Growth in Pulse Sales?

"Pulse sales rise steadily as more systems are installed. This is a critical component of our long-term business strategy," said Korner. "Pulses are highly profitable and help maintain strong relationships with physicians. If a doctor isn’t purchasing pulses, it signals that they need support, which allows us to step in and provide assistance—boosting our brand reputation in the process."

Regulatory Approvals in China and Japan: The Next Big Growth Catalyst?

"We are in the final stages of regulatory approval in China. The process is with the regulators now, and we hope to receive the green light soon,"Korner said.

In China, Sofwave has partnered with a local company to handle the regulatory process, which is known for being long and unpredictable. "While the approval process carries risks, the potential is enormous," Korner emphasized. "China’s aesthetic market is projected to be on par with the U.S. market, making this a long-term but highly valuable opportunity."

Japan, while a smaller market, remains strategically important. "The regulatory process in Japan is more predictable than in China, and we are in the final administrative stages," said Eckhouse.

Once Approvals Are Granted, How Quickly Can Sofwave Scale?

"Within a few months. We already have distribution agreements in place with local partners," Eckhouse confirmed.

How Is the Economic Slowdown Affecting Sofwave? Any Impact from the New U.S. Administration?

"We saw some improvement in U.S. consumer sentiment after the elections, but the environment remains challenging," said Eckhouse. "So far, we haven’t seen any direct impact from the Trump administration on the aesthetics market."

Marketing vs. R&D: Will the Spending Ratio Remain the Same?

"It’s more accurate to look at marketing as a percentage of sales rather than comparing it directly to R&D," said Korner. "Marketing expenses are substantial, but they will decline as a percentage of revenue. We are seeing strong returns on our marketing investments."

Any Major Product Developments on the Horizon?

"Nothing specific to announce at the moment," Eckhouse said. "We continue refining our core technology for long-term applications. Right now, our primary focus remains on skin treatments, with early-stage work expanding into body treatments."

How Competitive Is the Market?

"It’s a competitive space, but one that thrives on innovation—and that’s exactly what we bring," Korner stated. "Our treatment is both clinician- and patient-friendly while delivering strong results."

Outlook for the Next Two Years?

"We feel very confident about our market position and brand recognition," said Eckhouse. "The investments we’ve made—both in technology and regulatory approvals—are starting to pay off. Despite the macro uncertainty, consumer demand for aesthetics remains strong. People continue investing in themselves, and we are well-positioned to capture this trend."