Arauca Capital B.V. / Arauca Capital Fund on Sofwave Medical Ltd.

Arauca's investment hypothesis is that Sofwave should be viewed as a utilisation platform rather than simply an equipment manufacturer. Usage-fee revenue grew 51% and reached a record 46% of sales, while equipment revenue still grew 35% and gross margin increased to 76.5%, suggesting installed systems are generating an increasingly valuable recurring stream. Arauca sees no evidence through June that new Asian competition has materially affected Sofwave's economics, and the provider footprint continued to expand even in Korea. The share-price decline briefly reduced the valuation to roughly 10 times the manager's 2028 earnings estimate while the underlying business remained profitable, cash generative and debt free. Arauca continues to own the position but is explicitly monitoring competition and sizing the holding according to the changing risk-reward.