Sofwave Medical Ltd. — Investor Presentation 2025

Aug 5, 2025

Q2 2025 Summary

August 2025

Sofwave - The Aesthetic Device Regeneration Company

This presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer or solicitation to buy or subscribe for securities of Sofwave Medical Ltd. (the "Company" or "Sofwave") and should not be regarded as a recommendation or an opinion on such matters. The information included in this Presentation is not comprehensive and does not include all the information with respect to the Company and its business required for any decision concerning an investment in the Company's securities. This Presentation includes forecasts, estimates, assessments, expectations and other information, intent or belief pertaining to future events and/or matters, which constitute "forward-looking statements" as defined in the Securities Law 5728-1968, which is based on current expectations, projections and assumptions about future events. Actual results may differ materially due to variety of factors, some of which the Company has no control over and cannot be reasonably foreseen at this date, including, but not limited to the risk factors which are inherent to the Company's activity, third party decisions, including regulatory authorities and engagements with third parties, as well as by developments in the economic environment and the external factors which impact the Company's activity, which cannot be assessed in advance and are out of the Company's control. Such information may not materialize, in whole or in part, or may materialize in a manner significantly different to that forecast. Therefore, actual future results, performances or achievements of the Company may differ materially from what is or may be expressed or implied in this Presentation. Certain information and factual statements (including markets or trends) contained herein are based on or derived from publicly available documents or independent third party sources the accuracy of such information and the assumptions on which such information is based have not been independently verified. The past performance information contained herein is not indicative of future results and there can be no assurance that the Company will achieve comparable results or that the Company will be able to implement its investment strategy or achieve any investment objective.

DISCLAIMER

Dr. Shimon Eckhouse, Co-Founder and Chairman

Lou Scafuri, CEO

Assaf Korner, CFO

Presenters:

Investor meeting August 2025

Q2 2025 in Numbers

75.5% GM

Q2/25 \$9.2M Recurring Revenues +53% YoY Growth

~\$24M Cash As of June 30, 2025 (inc. short term deposits)

Q2/25 \$21M Revenues +43% YoY Growth

~600,000(*) Treatments (since commercialization)

H1/25 \$37.7M Revenues +35% YoY Growth

Q2/25 IFRS first ever Net income of \$1.5M

H1/25 IFRS Net income of \$0.4M

Market Conditions and Trends Q2 2025

• Global geopolitical and economic uncertainties: Consumer confidence and capital purchases remain impacted by macroeconomic conditions
• Tariffs impacting competitors pricing and competitiveness
• US Market: Core physicians more resilient; Medspa growth challenged by access to capital
• Growing adoption of GLP-1 are driving demand for lifting, laxity and toning treatments

Market Landscape & Macro Trends Q3 and Beyond: Boldly Looking Ahead

• Anticipate continued solid momentum despite uncertain
  -

market conditions:

Geopolitical

High Interest rates

Tariffs

Rising demand for energy-based volumization treatments as filler usage declines and GLP-1 usage increases. Natural appearance is "in"

Q2 2025 Overview

Emerging Market Leadership

Quarterly Performance – Key Highlights
Exceptional Q2 Results YoY	More high points than low points; Momentum continued- Strong finish
>Brand Awareness & >Pulse Sales	Reached record-high levels ~600,000 treatments to date
Product and ROI Positioning	Superior to competitive offerings and our value proposition is emerging as best in class
Rising Market Demand	Growth in tightening, lifting, and toning driven by the prevalence of GLP-1. Increased traction with Plastic Surgeons

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The GLP-1 Aesthetic Patient – New Demand for Tightening & Toning McKinsey US Medical Aesthetics Providers Survey — December 2024 (n = 174)

McKinsey article titled "GLP-1s are boosting demand for medical aesthetics" (published May 15, 2025) findings include:

• 63% of GLP-1 patients seeking facial aesthetic procedures were new to medical aesthetics services
• 61% of these patients had lost between 11–30% of their body weight, leading to concerns around skin laxity facial volume loss and muscle loss

Market Realignment – GLP-1 Impact & Category Shift

Noninvasive Skin Tightening Treatments are in High Demand

• GLP-1 medications have changed the body contouring landscape
  • Noninvasive energy based fat reduction procedures fell ~40% YoY in 2024
  • Demand for Skin tightening grew ~39% (ISAPS 2024)
  • Filler usage is off by -18%
• Clinics now seek noninvasive, no downtime tightening, lifting and toning devices that offer consistent natural looking outcomes, delegable, and generate high-margin and predictable ROI

Source: ISAPS 2024 Global Aesthetic Procedure Summary

Providers seek Competitive Advantage

• Clinics now compete fiercely for patients.
• Patients seek better results (innovation)
• New technology with better outcome = competitive edge
• Delegable treatments = higher throughput
• National branding = lower patient acquisition cost

Market Realities & What Providers Need

How Sofwave is Taking Market Share

3 Strategic Pillars of Scaling Phase

Market Expansion

Regulatory approvals, especially in key growth markets like Japan and China

Provider Success

Superior outcomes Demonstrated clear ROI, scalability, and ease of integration into practices

Demand Generation

Increase patient awareness through accelerated social media and digital

efforts

Q2 2025: Dramatic Increase Global Brand Awareness

Accelerate Brand Awareness on both B2C and B2B to drive procedure demand

• Sofwave's brand has gained significant traction in the celebrity sphere, primarily due to the positive response it received from Kardashian and other influencers
• 308K Avg. Monthly Users on Sofwave.com up 99% YoY
• GLP-1 Reach increased to 34% "Share of Voice" in Q2 across Instagram, TikTok, Facebook and Threads within the GLP-1 and post-weight loss conversation
  • SoV is percentage of social conversation in the aesthetics category that mentions Sofwave and/or Pure Impact compared to competitors (on keywords like "GLP-1," "weight loss," "skin laxity," and "muscle tone")
  • Total of 40K Monthly GLP-1 searches coming from position 0 or 1 in Google search results

	Kardashian 2nd	Peak

Q2 2025: "Kardashian Effect" Accelerating Brand Visibility Growth Showcasing Kardashian posts rapidly accelerated brand awareness and engagement organically

Accelerating Brand Visibility Growth Q2 2025 Social Metrics: Compared to Q2 2025

Followers: 292,993 Engagements: 72,814	37% 112%
Followers: 473,826 Reactions: 489,191	24% 42%
Followers: 132,893 Video Views: 712,504 Mentions: 4,927	57% 947% 41%
Followers: 11,217 Engagements: 57,158	34% 63%
Followers: 98,728 Video Views: 712,504	37% 256%

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Q2 2025: MAKING WAVES: "National Got Lift Day"

Social Community Foundation well in place

GLP-1 Treatment and Pure Impact, A Unique Opportunity for Sofwave

Dr. Shimon Eckhouse

GLP 1 and muscle loss

• GLP-1 receptor agonists are highly effective for weight loss
• But ~25–40% of total weight lost is lean muscle mass
  • Muscle loss has a significant aesthetic effect
  • Impacts physical function and strength
  • Has a negative impact on long-term weight maintenance
  • Muscle mass is important for glucose metabolism and mobility

EMS a Non-invasive muscle rebuilding tool

• EMS activates muscles via electrical impulses
• Induces hypertrophy and improves muscle tone without exercise
• Targets fast-twitch fibers often lost in aging and weight loss

1 Month Follow-up Results – Ovio360 Four 30 Minute Sessions

Pure Impact and LiftHD Skin Tightening

Photos Courtesy of Dr. Brian Biesman

1 Month Post 2nd Baseline 1 Month Post 4 Pure Impact 1 LiftHD LiftHD

• Photos Courtesy of Dr. Brian Biesman

Baseline 1 Month Post 4 Pure Impact 1 LiftHD

Q3 2025 Launch of Pure Impact VIP

4th Generation Plyometric Technology for faster results and improved outcome

• Simultaneous Treatment = Maximum Efficiency
  • Enables providers to treat skin laxity and muscle tone at the same time
  • Reduces chair time and increases revenue per session
• 6-Channel Capability for Rapid, Effective Body Treatments
  • Treat up to six zones in one 30-minute session abdomen, arms, thighs, and more
  • Delivers versatile, high-throughput body contouring and toning
• Enhanced Patient Outcomes
  • Dual-modality approach yields superior aesthetic results
  • Especially appealing to post-weight loss GLP-1 patients with skin laxity and poor muscle tone
• Practice Enthusiasm & Sales Team Momentum
  • Sparks excitement across sales and clinical teams
  • Drives new placements and upgrades across the installed base
  • Leverages Sofwave's brand visibility and national marketing reach

Financial Highlights

• Continued strong YoY revenue increase with +43% in Q2.25 vs. Q2.24
• Q2/25 Pulse revenues increased to \$9.2M (+53% YoY)
• Q2/25 Capital equipment revenues increased to \$11.8M (+37% YoY)

Q2 Revenue Growth (\$'m)

Annual Growth (\$'m)

Revenue Growth

Quarterly Revenue Growth

Quarterly Revenue Growth YoY (\$m)

Q2 2025 Geographical Split

Non-IFRS Quarterly Operating Loss/Income (\$M)

Non-IFRS excluding Stock Based Compensation and onetime litigation expenses

All operating expenses decreased sustainably as percentage of revenues

Operating income ~14% on a Non-IFRS basis

First quarter ever of IFRS net income of \$1.5M

Financial Highlights Q2 2025 – P&L (\$'K)

	For the 3 months ended June 30,		Stock Based Compensation		Excluding Stock Based Compensation
	2025	2024	2025	2024	2025	2024
Revenues	20,990	14,642	-	-	20,990	14,642
COGS	5,136	3,494	5	17	5,131	3,477
Gross Profit	15,854	11,148	5	17	15,859	11,165
	75.5%	76.1%			75.6%	76.3%
R&D expenses	2,822	2,687	136	134	2,686	2,553
S&M expenses	9,059	8,036	374	227	8,685	7,809
G&A expenses	1,794	1,638	193	280	1,601	1,358
Operating Income (loss)	2,179	(1,213)	708	658	2,887	(555)

ng mpensation
2024
14,642
3,477
11,165
76.3%
2,553
7,809
1,358
(555)

All operating expenses decreased sustainably as percentage of revenues

Operating income ~7% on a Non-IFRS basis

IFRS net income in the first half of 2025 of \$0.4M

Financial Highlights H1 2025 – P&L (\$'K)

	For the 6 months ended June 30,
	2025	2024
Revenues	37,661	27,826
COGS	9,085	6,764
Gross Profit	28,576	21,062
	75.9%	75.7%
R&D expenses	5,911	5,335
S&M expenses	17,870	14,565
G&A expenses	3,572	3,332
Operating Loss	1,223	(2,170)

Stock Based Compensation		Excluding Stock Based Compensation
2025	2024	2025	2024
-	-	37,661	27,826
13	39	9,072	6,725
13	39	28,589	21,101
		75.9%	75.8%
301	282	5,610	5,053
748	299	17,122	14,266
403	550	3,169	2,782
1,465	1,170	2,688	(1,000)

19 mpensation
2024
27,826
6,725
21,101
75.8%
5,053
14,266
2,782
(1,000)

	June 30, 2025	Dec. 31, 2024
Cash and Cash Equivalents (*)	24,015	21,616
Trade Receivables	7,780	8,668
Other Receivables	2,677	2,641
Inventory	5,914	5,880
Total Current Assets	40,386	38,805
Total Non-Current Assets	4,489	4,224
Total Assets	44,875	43,029
Total current liabilities	17,386	17,502
Total non-current liabilities	939	1,001
Shareholders' equity	26,550	24,526
Total liabilities and shareholders' equity	44,875	43,029

Financial Highlights – BS (\$'K)

Strong cash position with \$24M(*) as of June 30, 2025

Generated \$3.6M cash in Q2/25 and \$2.4M in H1/25

(*) including \$520K short term bank deposit

Investment Highlights

• Sofwave is delivering the next-generation patented energy based non-invasive aesthetic skin treatments disrupting an industry with outdated solutions
• Rapid industry adoption achieving +43% YoY revenue growth in Q2/25, scalable, lean infrastructure in-place to support continued high growth and profitability
• Broad range of FDA clearances for lifting, laxity and wrinkle treatment on face and neck, cellulite, acne scars, arm laxity and muscle toning
• Significant recurring revenue; over 40% of total revenue; ~600,000 treatments completed
• Significant brand awareness growing social media following to over 1,000,000 followers