Sofwave Stock Surges 320%: How the Israeli Company Rides the Ozempic Wave

The medical aesthetics company Sofwave has become one of the biggest stars on the Tel Aviv Stock Exchange. The stock has surged by approximately 48% since the beginning of 2026 and by approximately 320% over the last three years, and the company's value has climbed to approximately 1.48 billion shekels. The reports published for the second quarter explain why investors continue to vote with their feet.

Revenue for the quarter grew by approximately 43% and reached approximately 30 million dollars, compared to approximately 21 million dollars in the same period last year. Gross profit rose by approximately 44% to approximately 22.9 million dollars, and net profit surged by approximately 66% to approximately 2.5 million dollars — this despite recording a one-time expense regarding the examination of a dual listing on NASDAQ.

The picture for the first half is also impressive: revenue of approximately 54.4 million dollars and a surge of approximately 832% in profit. In the coffers sits approximately 38.8 million dollars in cash, with no debt and no need for fundraising.

The engine behind the story is not just the sale of devices, but what happens after the sale. Sofwave sells "pulses" — essentially usage doses that clinics purchase again and again to operate the systems. Revenue from pulses jumped in the quarter by approximately 52% to approximately 13.9 million dollars.

This is a subscription-like model: about 3,100 systems are already installed in the field, and over 975 thousand treatments have been performed since the commercial launch. Each new system becomes a repeat customer, and this is exactly the type of stable income that investors love.

Beyond that, Sofwave has a tailwind from a hot global trend. GLP-1 weight loss drugs, such as Ozempic and Wegovy, lead to rapid weight loss that often leaves loose skin. The company's non-invasive ultrasound treatments are positioned as one of the most sought-after solutions for this, which expands the potential target audience and connects the company to a consumption trend that is only growing.

Against the backdrop of the strong results and the company's success in the recent period, the company is seeking to grant a new compensation package to CEO Louis Scafuri, who has led it since 2019. It is proposed to grant him 369,009 performance-based stock units (PSU), which constitute approximately 0.87% of the company's capital.

At the current stock price, and assuming all units do indeed vest, their theoretical value is estimated at approximately 13 million shekels — but it is important to qualify: this is a potential market value and not the official cost that the company states.

Accounting-wise, the expense that will be recorded in the reports for the units stands at only approximately 707 thousand dollars (approximately 2.2 million shekels), and the actual vesting is conditional on meeting targets and can be significantly lower. Scafuri will pay only 30 agorot for each share, a symbolic amount derived from stock exchange rules.

The units will vest over three years, but only if the company meets targets: 70% of the package is related to the revenue target and 30% to the adjusted operating profit target. Below 80% of the target, the CEO receives nothing, and beyond this threshold, the vesting increases gradually up to a ceiling. In other words, if the company does not continue to grow, the big bonus will also shrink.

There is also a sensitive point here: approving the package will jump the CEO's annual compensation cost to approximately 8.35 million shekels, while the company's own compensation policy set a ceiling of 5.5 million shekels per year. That is, it is a deviation that requires special approval from the assembly. The board of directors justifies this by Scafuri's contribution and the need to retain him in a competitive market, but shareholders who are sensitive to corporate governance issues may raise an eyebrow.

What does this mean for investors? Those who hold the stock enjoy a profitable company, generating cash, with a recurring revenue engine and exposure to a global consumer trend. On the other hand, a stock that has already risen 320% prices in high expectations, and any slowdown in the growth rate or missing a target could weigh on it.

The compensation package conditional on targets actually aligns the interests of management with those of the public, but the deviation from the ceiling reminds us that even in success stories, it is worth reading the fine print.

Louis Scafuri, CEO of Sofwave, stated:

"Sofwave has presented another record quarter, reflecting the continued strength of our commercial performance and the growing demand for non-invasive regenerative aesthetic treatments. Demand continues to grow in our global markets, supported by increasing adoption by practitioners, expanding patient awareness, and growing interest in regenerative aesthetic treatments, including among patients using weight loss treatments (GLP-1). With a strong balance sheet, improving profitability, and increasing operating leverage, we believe that Sofwave is entering its next phase as a profitable and scalable growth company. We remain focused on meticulous execution while continuing to invest in innovation, commercial expansion, and long-term value for shareholders."

Dr. Shimon Eckhouse, Chairman of the Board and co-founder, added:

"We believe that aesthetic medicine is undergoing a structural transformation towards evidence-based regenerative technologies, which provide results with clinical significance and a natural look with minimal recovery time. We believe that this transformation represents one of the most important long-term opportunities in our industry, and Sofwave is leveraging this development to establish its position as a leading company through unique technology, clinical validation, and meticulous execution. Looking ahead, we remain confident in Sofwave's strategy to expand its leadership in regenerative aesthetics through continued innovation, meticulous capital allocation, and thoughtful expansion of its technological platform. We believe that these strengths position the company to create sustainable value for doctors, patients, and shareholders for many years."