Lifeward Ltd.

08/14/2025 | Press release | Distributed by Public on 08/14/2025 06:16

Third consecutive quarter of U.S. ReWalk pipeline growth with over 130 qualified leads in process (Form 8-K)

Third consecutive quarter of U.S. ReWalk pipeline growth with over 130 qualified leads in process

Appoints new CEO and CFO to spearhead strategic change and accelerate growth

MARLBOROUGH, MA, and YOKNEAM ILLIT, Israel, August 14, 2025 - Lifeward Ltd., (Nasdaq: LFWD) ("Lifeward" or the "Company"), a global leader in innovative medical technology to transform the lives of people with physical limitations or disabilities, today announced its financial results for the three and six months ended June 30, 2025.
Recent Highlights and Accomplishments for Lifeward

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Achieved FDA clearance and subsequent U.S. launch in April 2025 for the ReWalk 7, the latest innovation in the ReWalk pipeline, with over 20 ReWalk 7 units installed to date with overwhelmingly positive feedback from customers.


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Expanded and advanced the pipeline of qualified leads for the ReWalk and achieved the highest quarterly total of ReWalk units placed for Medicare beneficiaries since fee schedule established in April 2024.


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Continued expansion of U.S. payer base for the ReWalk Personal Exoskeleton. On the Medicare front, a ruling by an Administrative Law Judge established a legal basis for medical necessity by affirming that the ReWalk Personal Exoskeleton is "reasonable and necessary" for a Medicare beneficiary. Additionally, the partnership with CorLife, a division of NuMotion, has already facilitated and accelerated processing for workers compensation claims, with the first paid claim.

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Improved quarterly cash burn to $3.9 million, down from $5.6 million in Q2 2024 and $5.5 million in Q1 2025, driven by operational efficiencies, facility consolidations, and other cost reduction initiatives.

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Successfully transitioned to in-house manufacturing of the ReWalk Personal Exoskeleton during Q2, concluding the Company's agreement with Sanmina and delivering cost savings, improved quality control, and greater production flexibility.


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Strengthened the Company's executive leadership with the appointment of Mark Grant as Lifeward's President and CEO and Almog Adar as Lifeward's CFO to bolster the Company's strategic initiatives toward sustainable growth.

"During the second quarter of 2025, we advanced on multiple fronts; improving cash burn through disciplined cost control, securing regulatory and legal milestones that expand market access, strengthening our manufacturing capabilities, and broadening our global reach through strategic partnerships," said Mark Grant, President and Chief Executive Officer. "These achievements position Lifeward for greater efficiency, scale, and impact in delivering innovative mobility solutions worldwide."

Second Quarter 2025 Financial Results
Revenue was $5.7 million in the second quarter of 2025, compared to $6.7 million in the second quarter of 2024, a decrease of $1.0 million, or approximately 15%, and compared to $5.0 million in the first quarter of 2025, an increase of approximately 14%. Revenue from the sale of traditional products and services, including the ReWalk Personal exoskeletons, the MyoCycle FES bike, and the ReStore Exo-Suit, was $2.5 million, down $0.6 million, or 19% compared to the prior-year quarter. Excluding the one-time Medicare-related revenue recognized in the second quarter of 2024, revenue from these products grew year over year. In the prior-year quarter, the Company recorded approximately $0.7 million of Medicare-related revenue for claims submitted in 2023 and the first quarter of 2024. Revenue from the sale of AlterG products and services was $3.2 million, compared to $3.6 million in the second quarter of 2024, a decrease of $0.4 million, or approximately 11%. This decrease was primarily due to the timing of deliveries to international distributors.
Gross margin was 43.9% during the second quarter of 2025, compared to 41.1% in the second quarter of 2024. On a non-GAAP basis, which excludes the amortization of purchase price allocation adjustments and stock-based compensation expense as detailed in the attached non-GAAP reconciliation table, adjusted gross margin was 44.0% in the second quarter of 2025, compared to 46.9% in the prior-year quarter, a decrease of 2.9 percentage points. The year-over-year decrease in non-GAAP margin primarily reflects the absence of a one-time Medicare-related revenue benefit recognized in the second quarter of 2024.
Total operating expenses in the second quarter of 2025 were $9.1 million, compared to $7.2 million in the second quarter of 2024. The increase was largely driven by a $2.8 million goodwill impairment charge, triggered by a significant decline in our share price that created a gap between our market value and book value. This non-cash charge has no impact on our liquidity or the ongoing operating performance of the business. On a non-GAAP basis, which excludes the items listed in the attached non-GAAP reconciliation table, adjusted operating expenses were $6.0 million in the second quarter of 2025, compared to $6.9 million in the second quarter of 2024, a $0.9 million decrease. This decrease primarily reflects greater efficiency in reimbursement activities following receipt of the CMS code, improved productivity in marketing and sales operations, and lower R&D spending after the completion of major development programs. We expect this positive trend to continue in the second half of 2025 as these efficiency measures remain in place.
Operating loss in the second quarter of 2025 was $6.6 million, compared to $4.4 million in the second quarter of 2024. On a non-GAAP basis, which excludes the items in the attached non-GAAP reconciliation table, adjusted operating loss was $3.5 million in the second quarter of 2025, compared to a loss of $3.7 million in the second quarter of 2024.
Net loss was $6.6 million, or $0.58 per share, for the second quarter of 2025, compared to a net loss of $4.3 million, or $0.50 per share, in the second quarter of 2024. On a non-GAAP basis, which excludes the items in the attached non-GAAP reconciliation table, adjusted net loss was $3.5 million, or $0.31 per share, in the second quarter of 2025, compared to $3.6 million, or $0.42 per share, during the second quarter of 2024.

Liquidity
As of June 30, 2025, Lifeward had $5.1 million in unrestricted cash and cash equivalents on its balance sheet with no debt. During the second quarter of 2025, cash used in operations was $3.9 million, compared to $5.6 million in the second quarter of 2024. The improvement primarily reflects operational efficiencies and the closure of the Fremont facility.
2025 Financial Guidance
Lifeward is resetting its full-year 2025 guidance under the new management team, focusing on execution toward revenue of $24-$26 million and a non-GAAP net loss of $12-$14 million.
Conference Call
Lifeward management will host its conference call as follows:
Date
August 14, 2025
Time
8:30 AM EST
Telephone
U.S:
1-833-316-0561

International:
1-412-317-0690

Israel:
1-80-9212373

Germany:
0800-6647650
Access code
Please reference the "Lifeward Earnings Call"
Webcast (live, listen-only and archive)
https://edge.media-server.com/mmc/p/kegov6it

The archived webcast will be available via the following https://edge.media-server.com/mmc/p/kegov6it or through the "Investors" section on our website at GoLifeward.com.

About Lifeward
Lifeward designs, develops, and commercializes life-changing solutions that span the continuum of care in physical rehabilitation and recovery, delivering proven functional and health benefits in clinical settings as well as in the home and community. Our mission at Lifeward is to relentlessly drive innovation to change the lives of individuals with physical limitations or disabilities. We are committed to delivering groundbreaking solutions that empower individuals to do what they love. The Lifeward portfolio features innovative products including the ReWalk Exoskeleton, the AlterG Anti-Gravity system, the ReStore Exo-Suit, and the MyoCycle FES System.
Founded in 2001, Lifeward has operations in the United States, Israel, and Germany. For more information on the Lifeward mission and product portfolio, please visit GoLifeward.com.

Lifeward®, ReWalk®, ReStore®, and Alter G® are registered trademarks of Lifeward Ltd. and/or its affiliates.


Lifeward Ltd. published this content on August 14, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on August 14, 2025 at 12:16 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]