Economy03:02 · Aug 24

SupWave Medical Rises as Rare Success Story on Tel Aviv Stock Exchange

Globes

Translated & summarized from Globes by baba

Key points

01SupWave Medical evolved from a research-stage startup to a profitable company valued at 1.25 billion shekels.
02The company sells patented ultrasound devices and generates recurring revenue from software pulses with nearly 100% gross margin.
03Kardashian sisters’ social media endorsements significantly increased SupWave’s U.S. market presence and sales leads.
04SupWave reported five consecutive profitable quarters and holds $38.8 million in cash with no debt.
05The company is expanding internationally, targeting China, Japan, and Brazil with institutional backing.
06Analysts project revenues of $155 million and net profit of $20 million by 2027, despite risks from competition and regulation.

In this story

People

Shimon Akhoyaz, Louis Scafuri, Ariel Sverdlik, Kim Kardashian, Khloe Kardashian

OrganizationsSupWave Medical, Migdal, Meitav, Phoenix

PlacesYokneam, China, Japan, Brazil, United States

The story · English

SupWave Medical, an Israeli aesthetic medical device company founded in 2015 and headquartered in Yokneam, has emerged as a standout performer on the Tel Aviv Stock Exchange amid a challenging market environment. The company transitioned from a research-stage "dream" to a mature, profitable commercial platform, offering the patented SUPERB ultrasound system for skin tightening and muscle strengthening. SupWave sells the device to clinics for $85,000-$100,000 with a gross margin of about 60%, and generates recurring revenue through software "pulses" used in treatments, priced at around $1 each with nearly 100% gross margin. This business model creates a rapid return on investment for clinics, accelerating adoption.

SupWave’s growth is further fueled by the rising demand for treatments addressing skin laxity and muscle loss caused by popular weight-loss drugs like Ozempic and Wegovy. The company’s combined face and body treatment system, including the Pure Impact VIP muscle stimulation technology, enables clinics to increase revenue per patient. International exposure surged after Kardashian sisters Kim and Khloe publicly endorsed SupWave products on social media, boosting the company’s share of category discussions to 54% and doubling AI-driven search presence, with 45% of U.S. device sales originating from direct consumer leads.

Led by experienced executives including founder and chairman Dr. Shimon Akhoyaz, CTO Ariel Sverdlik, and CEO Louis Scafuri, SupWave has reported five consecutive profitable quarters, with a net profit of approximately $2.5 million in Q2 2023 and a cash balance of $38.8 million with no debt. The company is valued at about 1.25 billion shekels. It is pursuing regulatory approvals for commercial entry into China, expanding in Japan and Brazil, and has attracted institutional investors such as Migdal, Meitav, and Phoenix.

Analysts forecast SupWave’s revenues to reach $118 million in 2026 and $155 million in 2027, with net profits around $20 million, implying an attractive forward price-to-earnings ratio of about 21 for 2027. However, the company faces risks including increased competition, potential disruptive technologies, regulatory changes, and safety incidents that could impact reputation and demand. Despite these challenges, SupWave is considered one of the highest-quality fundamental investment opportunities to have emerged in the Israeli capital market in recent years.

The analysis and conclusions presented reflect the author’s opinion and do not constitute investment advice or recommendations.

Read the original at Globes