Lifeward outlines $24M–$26M 2025 revenue target while advancing in-house manufacturing and ReWalk 7 rollout

Earnings Call Insights: Lifeward Ltd. (LFWD) Q2 2025

MANAGEMENT VIEW

* President and CEO William Mark Grant, on his first earnings call, emphasized a "clear strategy: delivering life-changing solutions efficiently and at scale guided by an unwavering commitment to the patients at the heart of everything we do." He highlighted a personal connection to Lifeward’s mission, referencing his own spinal cord injury and two decades of medical device leadership.
* Grant reported Q2 2025 revenue of $5.7 million, calling it a "record quarter for ReWalk Medicare placements." He detailed the recent FDA clearance and U.S. rollout of the ReWalk 7 Personal Exoskeleton, with "over 20 ReWalk 7 units" installed and strong patient and therapist feedback. European CE clearance is in final stages, with launch planned after approval.
* The company transitioned to in-house manufacturing of the ReWalk Exoskeleton, aiming for "cost savings, improved quality control and greater production flexibility," and finalized the closure of the AlterG facility in Fremont, California.
* Grant stated, "we improved our quarterly cash burn to $3.9 million, down from $5.6 million in Q2 '24, also $5.5 million in Q1 '25 driven by operational efficiencies, facility consolidations and other reduction initiatives."
* Three-pillar growth strategy was outlined: accelerating commercial adoption (with payer expansion and strategic alliances), portfolio diversification (leveraging software and AI), and operational excellence (driving margin improvement and capital discipline). Germany was cited as a profitable example of this model.
* CFO Almog Adar stated, "my focus will be on maintaining rigorous financial oversight, aligning resource with the highest impact opportunities and managing our cash position prudently to support sustainable long-term growth."

OUTLOOK

* Lifeward is "resetting its full 2025 guidance under the new management team," now expecting full-year revenue in the range of $24 million to $26 million and a projected non-GAAP net loss between $12 million and $14 million.
* Grant explained that growth is "expected to be more gradual than some might anticipate with meaningful acceleration weighted toward the back half of our strategic plan and beyond." He emphasized a "measured approach" to investments, citing the need for disciplined execution.

FINANCIAL RESULTS

* Revenue for Q2 2025 was reported at $5.7 million, up from $5 million in Q1 2025 but down from $6.7 million in Q2 2024.
* Traditional product revenue (ReWalk, MyoCycle, ReStore) totaled $2.5 million, while AlterG contributed $3.2 million.
* Gross profit for the quarter was $2.5 million (43.9% of revenue, GAAP), compared to $2.8 million (41.1%) in Q2 2024. Non-GAAP gross profit was $2.5 million (44% of revenue).
* GAAP operating expenses were $9.1 million, including a $2.8 million goodwill impairment "triggered by a significant decline in our share price." Non-GAAP adjusted operating expenses were $6 million.
* GAAP operating loss was $6.6 million, non-GAAP operating loss was $3.5 million. Cash and equivalents stood at $5.1 million, with no debt. Cash burn improved to $3.9 million.
* The company is considering "both debt and equity opportunities to support our operations and growth plans, while implementing cost management plans to preserve resource and maintain focus on our core business."

Q&A

* I-Eh Jen, Laidlaw & Company: Asked about Medicare revenue and pipeline leads. CFO Adar clarified, "excluding this portion of onetime item in Q2 2024, we have a growth like for the submit -- the original submission that we made in Q2 2025 compared to Q2 2024 for Medicare. And in addition, this is our highest quarterly revenues with the placed unit with CMS since we launched the plan."
* Jen also requested clarity on U.S. and German lead numbers. Grant responded, "the Medicare leads are greater than 130 right now and the pipeline continues to build quarter- over-quarter." Adar added, "it's a combination. It's not only CMS, it's also workers' comp and VA opportunities."
* Jen asked about tariffs and guidance. Adar replied, "our ReWalk Exoskeleton is a medical device that has some exemptions... effect is immaterial at this stage for us," and confirmed expected growth in ReWalk revenues in Q3 and Q4.
* Swayampakula Ramakanth, H.C. Wainwright: Inquired about ReWalk 7 placements and payer distribution. Grant replied, "They're distributed across all channels. But yes, we have a high focus on CMS Medicare."
* Ramakanth questioned the impact of the ALJ ruling. Grant said, "as ALJ decisions come forward, they do, they shape how the policies are written, they shape coverage determination."
* On reimbursement pricing, Grant noted, "for Medicare, the ReWalk 6 and ReWalk 7 are the same ASP, but across the other payers, it's actually completely different." He indicated the priority is market penetration over near-term pricing changes.
* On AlterG commercialization, Grant said, "There is a definite resurgence of growth that can happen with the AlterG product. We're looking at channel partners across the globe right now."
* Ramakanth asked about margin guidance. Adar stated, "we are expecting the margin to be improved for sure... I cannot provide right now a number, but there is an improvement in terms of the margin." Grant added, "this is actually going to impede the margin in the short term, but that will improve over time."
* On guidance reduction, Grant said, "The trajectory of growth that was in the previous plan is just different... the timing has not been what we've expected."
* Benjamin Haynor, Lake Street Capital: Asked about the ALJ process and pipeline metrics. Grant responded, "you need to have a high hit rate. So the product needs to be the right patient at the right time." On U.S. roadmap, Grant stressed the need for "focused execution" and "different channel partners."
* Haynor asked about growth in MYOLYN and AlterG; Grant confirmed, "We expect growth from last year on both product lines, yes."

SENTIMENT ANALYSIS

* Analysts’ tone was generally inquisitive, with multiple follow-ups on guidance, margin outlook, and pipeline conversion, indicating a neutral to slightly cautious sentiment.
* Management maintained a confident but realistic tone, with Grant stating, "I want to be realistic in my initial overview of the organization set expectations correctly," and Adar noting improvements in margins and operational efficiencies. Compared to last quarter, management’s tone shifted to more measured optimism, reflecting new leadership and updated guidance.
* Management’s prepared remarks were confident, emphasizing strategy and operational improvements, while Q&A responses were pragmatic and transparent about challenges and timing uncertainties.
* Analysts’ sentiment this quarter was slightly more probing regarding the sustainability of growth and the rationale for lowered guidance versus prior calls, reflecting heightened scrutiny on execution and timelines.

QUARTER-OVER-QUARTER COMPARISON

* Guidance shifted from a $28 million–$30 million revenue range in Q1 to $24 million–$26 million in Q2, reflecting a more cautious outlook under new management.
* Strategic focus evolved to highlight operational discipline, in-house manufacturing, and a three-pillar growth strategy.
* Management’s tone moved from forward-leaning optimism in Q1 to a more disciplined, realistic approach in Q2.
* Key metrics this quarter include improved cash burn and record ReWalk Medicare placements, but also a $2.8 million goodwill impairment following a share price decline.
* Analysts focused more sharply on guidance changes and timing of pipeline conversion this quarter, compared to growth momentum and integration in Q1.

RISKS AND CONCERNS

* Management cited "Medicare collection remains slower than anticipated," and that "payments from Medicare administrative contractors are still not occurring on a regular cycle."
* Inventory increased due to the transition to in-house manufacturing and the need to support parallel production for ReWalk 6 and 7, which is expected to normalize after European CE approval.
* Tariff exposure for AlterG products in China and Taiwan was described as "immaterial at this stage."
* The company is considering "debt and equity opportunities" as cash is projected to fund operations into Q4 2025.

FINAL TAKEAWAY

Lifeward’s new leadership is steering the company toward disciplined execution, operational efficiency, and strategic growth, resetting 2025 revenue guidance to $24 million–$26 million while focusing on accelerating adoption of the ReWalk 7, expanding commercial reach, and driving margin improvements through in-house manufacturing and cost controls. The company acknowledges slower-than-anticipated Medicare collections and a more gradual growth trajectory, but remains confident in its long-term opportunities, citing a growing pipeline, positive product feedback, and a commitment to sustainable value creation.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/lfwd/earnings/transcripts]

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