Recent Corporate Highlights

 

 

 

“During the third quarter of 2025, Lifeward continued to make steady progress across commercial execution, operations, and patient access,” said Mark Grant, President and Chief Executive Officer. “Since joining the company, I’ve taken a careful look at our business and implemented a focused plan to simplify how we operate, sharpen our commercial priorities, and strengthen the processes that matter most to patients, payors and providers. The gains we saw this quarter - record Medicare placements, and meaningful improvements in operating efficiency - are early signs that this work is starting to take hold. These results reflect the commitment of our teams and the growing alignment across the organization. We recognize there is more to do to complete our transformation over the coming quarters, and the momentum we are seeing gives us confidence. With CE mark approval, broader Medicare access, and a more disciplined commercial model, Lifeward is becoming a more focused, more efficient, and more patient-centered company - positioned to serve more people and create durable long-term value.”

Third Quarter 2025 Financial Results

 

 

Total operating expenses in the third quarter of 2025 were $5.9 million, compared to $5.4 million in the third quarter of 2024. The increase is primarily attributable to an earnout write-down of $2.0 million that was recognized in the prior-year quarter. On a non-GAAP basis, which excludes the items listed in the attached non-GAAP reconciliation table, adjusted operating expenses were $5.7 million in the third quarter of 2025, compared to $6.7 million in the third quarter of 2024, a $1.0 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 fourth quarter of 2025 as these efficiency measures remain in place.

 

Operating loss in the third quarter of 2025 was $3.1 million, compared to $3.2 million in the third quarter of 2024. On a non-GAAP basis, which excludes the items in the attached non-GAAP reconciliation table, adjusted operating loss was $3.0 million in the third quarter of 2025, compared to a loss of $4.1 million in the third quarter of 2024.

 

Net loss was $3.2 million, or $0.20 per share, for the third quarter of 2025, compared to a net loss of $3.1 million, or $0.35 per share, in the third quarter of 2024. On a non-GAAP basis, which excludes the items in the attached non-GAAP reconciliation table, adjusted net loss was $3.0 million, or $0.19 per share, in the third quarter of 2025, compared to $4.0 million, or $0.45 per share, during the third quarter of 2024.

 

About Lifeward

 

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements may include projections regarding the Company's future performance and other statements that are not statements of historical fact and, in some cases, may be identified by words like "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "should," "would," "seek" and similar terms or phrases. The forward-looking statements contained in this press release are based on management's current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. Important factors that could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements include, among others: the acceptance of the ReWalk 7 Personal Exoskeleton by healthcare professionals and patients; uncertainties associated with future clinical trials and the clinical development process, the product development process and FDA regulatory submission review and approval process; the Company's ability to have sufficient funds to meet certain future capital requirements, which could impair the Company's efforts to develop and commercialize existing and new products; the Company's ability to maintain and grow its reputation and the market acceptance of its products; the Company's ability to achieve reimbursement from third-party payors, including CMS, for its products; the Company's limited operating history and its ability to leverage its sales, marketing and training infrastructure; the Company's expectations as to its clinical research program and clinical results; the Company's expectations regarding future growth, including its ability to increase sales in its existing geographic markets and expand to new markets; the Company’s ability to continue to operate as a going concern; the Company's ability to obtain certain components of its products from third-party suppliers and its continued access to its product manufacturers; the Company’s ability to navigate any difficulties associated with moving production of its AlterG Anti-Gravity Systems to a contract manufacturer and transitioning the manufacturing of its ReWalk products to its in-house manufacturer; the Company's ability to improve its products and develop new products; the Company's compliance with medical device reporting regulations to report adverse events involving the Company's products, which could result in voluntary corrective actions or enforcement actions such as mandatory recalls, and the potential impact of such adverse events on the Company's ability to market and sell its products; the Company's ability to gain and maintain regulatory approvals; the Company's ability to maintain adequate protection of its intellectual property and to avoid violation of the intellectual property rights of others; the risk of a cybersecurity attack or breach of the Company's IT systems significantly disrupting its business operations; the Company's ability to use effectively the proceeds of its offerings of securities; and other factors discussed under the heading "Risk Factors" in the Company’s annual report on Form 10-K, as amended, for the year ended December 31, 2024 filed with the SEC and other documents subsequently filed with or furnished to the SEC. Any forward-looking statement made in this press release speaks only as of the date hereof. Factors or events that could cause the Company’s actual results to differ from the statements contained herein may emerge from time to time, and it is not possible for the Company to predict all of them. Except as required by law, the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

 

Lifeward does not provide GAAP reconciliation of its non-GAAP financial guidance because the Company is unable to predict with reasonable certainty and without unreasonable effort items that would be included in such a reconciliation, including, but not limited to, stock-based compensation expense, acquisition-related expense, and earnout expense. The timing and amounts of these items are uncertain and could be material to Lifeward’s results computed in accordance with GAAP.

Lifeward Ltd. And subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

		(Unaudited)				(Audited)
		September 30,				December 31,
		2025				2024
Assets
Current assets
Cash and cash equivalents		$	1,956			$	6,746
Restricted Cash			234				197
Trade receivables, net of credit losses of $193 and $160, respectively			6,126				6,004
Prepaid expenses and other current assets			1,919				1,624
Inventories			7,111				6,723
Total current assets			17,346				21,294
Restricted cash and other long-term assets			205				240
Operating lease right-of-use assets			221				548
Property and equipment, net			641				867
Goodwill			4,755				7,538
Total assets		$	23,168			$	30,487
Liabilities and equity
Current liabilities
Trade payables			5,251				5,022
Current maturities of operating leases			149				858
Other current liabilities			3,653				3,737
Earnout liability			-				608
Total current liabilities			9,053				10,225
Non-current operating leases			88				22
Other long-term liabilities			1,272				1,391
Shareholders’ equity			12,755				18,849
Total liabilities and equity		$	23,168			$	30,487

Lifeward Ltd. And subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

		Nine Months Ended
		September 30,
		2025				2024
Net cash used in operating activities		$	(13,271	)		$	(17,749	)
Net cash used in investing activities			(5	)			-
Net cash from financing activities			8,425				-
Effect of Exchange rate changes on Cash, Cash Equivalents and Restricted Cash			103				(29	)
Decrease in cash, cash equivalents, and restricted cash			(4,748	)			(17,778	)
Cash, cash equivalents, and restricted cash at beginning of period			7,108				28,792
Cash, cash equivalents, and restricted cash at end of period		$	2,360			$	11,014

Lifeward Ltd. And subsidiaries

(Unaudited)

(In thousand)

		Three Months Ended																Nine Months Ended
		September 30,								September 30,								September 30,								September 30,
		2025								2024								2025								2024
Dollars in thousands		$				% of revenue				$				% of revenue				$				% of revenue				$				% of revenue
GAAP gross profit		$	2,707				43.7	%		$	2,220				36.2	%		$	7,340				43.3	%		$	6,372				35.2	%
Adjustments:
Amortization of intangible assets			-				-				387				6.3	%			-				-				1,153				6.4	%
Stock-based compensation expenses			3				-				3				-				10				0.1	%			12				0.1	%
Non-GAAP gross profit		$	2,710				43.7	%		$	2,610				42.5	%		$	7,350				43.4	%		$	7,537				41.7	%

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