How Kim Kardashian turned a small beauty brand into a breakout star
A single swipe on Instagram sent medical aesthetics company Sofwave’s valuation soaring.
Four years after its IPO, and two years after hitting a low valuation of NIS 239 million (approximately $70M), Sofwave reported a quarterly profit for the first time, reaching a valuation of approximately NIS 1 billion ($292M). Shares in the medical aesthetics firm surged 17% on the Tel Aviv Stock Exchange following the release of its second-quarter 2025 results, which included a net profit of $1.5 million. The company also ended the first half of the year in the black.
Founded as part of the Alon Medtech incubator in Yokneam, Sofwave develops, manufactures, and markets non-invasive medical devices for wrinkle reduction, skin rejuvenation, and firming. The company also provides technical and clinical support services. In addition to the device, marketed to dermatologists, plastic surgeons, and aesthetic practitioners, Sofwave sells a “pulse package,” a virtual consumable purchased through its online store that enables recurring revenue with each device use.
In a conversation with Calcalist, founder and chairman Dr. Shimon Eckhouse said: “We’ve invested heavily to create long-term partnerships with customers through recurring engagements, while also investing in building our brand.” He pointed to endorsements by Kim Kardashian as a turning point in visibility.
Kardashian took to Instagram earlier this year to share her love for Sofwave. “This is my third time doing Sofwave and I think it’s one of the only lasers that works for firming!” she wrote. Before that, she called it her “new best friend,” highlighting the technology’s ability to stimulate collagen, lift the skin, and deliver visible results with no downtime.
Sofwave was founded in 2015, began product sales in late 2019, and went public on the Tel Aviv Stock Exchange in May 2021 at a valuation of NIS 800 million. Its IPO was part of a wave of listings by “dream” tech companies, startups with promising technologies but little or no revenue and no profits. While Sofwave had already started selling its product before the IPO, it remained unprofitable, mainly due to heavy R&D and sales and marketing expenses, leading to a $19.5 million loss in 2022.
As interest rates rose and investor sentiment cooled toward speculative tech, Sofwave's stock dropped, bottoming out at NIS 239 million in June 2023. But consistent revenue growth, from $22 million in 2021 to $60 million in 2024 and $21 million in Q1 2025, alongside stabilized R&D expenses, fueled a recovery. Recurring pulse sales now make up 44% of total revenue as of Q2 2025.
Sofwave also reported solid U.S. market growth, with sales rising from $13.5 million in 2021 to $20 million in the first half of 2025. It has also gained ground in East Asia, with sales there doubling from $6 million in 2021 to $12 million in the same period.
As a result, the company has steadily narrowed its losses, from $4.5 million in 2024 to a profit of $1.5 million in Q2 2025, compared to a $1.5 million loss in the same quarter last year.
Regarding East Asia, Eckhouse noted: “We recently received regulatory approval in Japan, the world’s third-largest aesthetics market, and we are working toward approval in China, which we believe has the potential to match the U.S. market.”
The company is also targeting the emerging market created by weight loss injections. “Significant weight loss often leads to loose skin, creating demand for tightening treatments,” said Eckhouse. “We are also in early stages of launching a solution to address muscle mass loss.”
Most of Sofwave’s revenue comes from the U.S., and it expects tariffs imposed by President Trump to affect only 1% of its gross profit in 2025 ($29 million in H1). The company noted that major competitors are also exposed to these tariffs.
Since hitting rock bottom in June 2023, Sofwave’s stock has climbed about 300%, compared to a 73% gain in the TA-125 index.
