Lifeward Ltd. Q2 FY2025 earnings call

Mark Grant mentioned his personal journey and mission related to Lifeward. In Q2 2025, revenue was $5.7 million with a record quarter for ReWalk Medicare placements. Achieved FDA clearance for ReWalk 7 Personal Exoskeleton, over 20 units installed in US with positive feedback. Completed transition to in-house manufacturing of ReWalk Personal Exoskeleton, closed AlterG manufacturing facility in Fremont. Expanded payer base for ReWalk, partnership with CorLife accelerated lead pipeline. Improved quarterly cash burn to $3.9 million. Growth strategy has three pillars: accelerating commercial adoption, portfolio diversification, operational excellence. GmbH team in Germany is operating profitably. Almog Adar discussed his role as CFO and financial results, including GAAP and non-GAAP figures, cash position, and operational efficiencies.

In Q2 2025, revenue was $5.7 million. Year-over-year, revenue decreased by $1 million or about 15% compared to Q2 2024. Quarter-over-quarter, revenue increased by approximately 14% from Q1 2025. Revenue from traditional products and services (including ReWalk Personal Exoskeleton, MyoCycle FES bike, and ReStore Exo-Suit) was $2.5 million in Q2 2025, down from $3.1 million in Q2 2024. Revenue from AlterG products and services was $3.2 million in Q2 2025, down from $3.6 million in Q2 2024. GAAP gross profit in Q2 2025 was $2.5 million or 43.9% of revenue, while non-GAAP gross profit was $2.5 million or 44% of revenue. GAAP operating expenses were $9.1 million in Q2 2025, up from $7.2 million in Q2 2024, largely due to a $2.8 million goodwill impairment charge. Non-GAAP adjusted operating expenses were $6 million in Q2 2025, down from $6.9 million in Q2 2024. GAAP operating loss was $6.6 million in Q2 2025, compared to $4.4 million in Q2 2024. Non-GAAP operating loss was $3.5 million in Q2 2025, compared to $3.7 million in Q2 2024.

Lifeward is resetting full 2025 guidance. Now expects full year revenue in the range of $24 million to $26 million and projected non-GAAP net loss in the range of $12 million to $14 million. Growth in next few quarters expected to be more gradual with meaningful acceleration in back half.

Medicare collection remains slower than anticipated. Inventory increased due to transition to in-house manufacturing. Tariff situation with China and Taiwan for AlterG product could potentially impact, though effect is immaterial at this stage.

Q: Color on Medicare revenue for the quarter?

A: In Q2 2024, there was a one-time revenue recognition of ~$700,000 related to submissions in 2023 and Q1 2024. Excluding that, Q2 2025 Medicare sales grew year-over-year and it's the highest quarterly revenues with placed units with CMS since launch.

Q: Clarify number of leads in US and Germany?

A: More than 130 leads in US, combined including CMS, workers' comp, and VA opportunities; 46 leads in Germany at quarter end with 34 active rentals.

Q: Impact of tariff situation?

A: ReWalk Exoskeleton has exemptions from tariffs. AlterG product faces tariff situation with China and Taiwan, but effect is immaterial.

Q: Distribution of ReWalk 7 units?

A: Distributed across all channels with high focus on CMS Medicare.

Q: Benefit of ALJ ruling?

A: Shapes policies, coverage determination, and processes.

Q: Reimbursement for ReWalk 7?

A: Payment differs across payer channels; expanding reimbursement over time as innovation is brought forward.

Q: Plans for AlterG commercialization?

A: Looking at channel partners globally and renewed focus on go-to-market for specific markets.

Q: Margin expansion from in-house manufacturing?

A: Transition to in-house manufacturing is expected to improve margin, though short-term impacted by inventory from taking on additional inventory and delivering two products in parallel.

Q: Reason for lowering guidance?

A: Trajectory of growth in previous plan different due to timing of payer approvals and coverage decisions; being realistic to set expectations correctly.

Q: MYOLYN products and AlterG growth in guidance?

A: Expect growth from last year on both product lines.