Rewalk Robotics Ltd. ((LFWD)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Lifeward Ltd. revealed a mixed sentiment, with notable operational improvements and strategic expansions, particularly in the ReWalk product line and European market access. Despite these positive strides, challenges persist, including declining revenue in the ATLAS G product line and increased operating expenses. However, the company remains optimistic about its transformation and future growth, supported by operational efficiencies and financial backing.
Record Quarter for ReWalk Placements
Lifeward Ltd. achieved another record quarter for ReWalk placements, specifically for Medicare beneficiaries. This marks the second consecutive record since the Centers for Medicare & Medicaid Services (CMS) established their fee schedule in April 2024, highlighting the growing demand and acceptance of the ReWalk product line.
Operational Efficiencies Achieved
The company has successfully implemented operational efficiencies, resulting in a 16% reduction in quarterly cash burn and a 27% reduction in non-GAAP operating loss compared to the previous year. These improvements are pivotal in Lifeward Ltd.’s strategy to streamline operations and enhance profitability.
Expansion into European Market
With the CE Mark approval, Lifeward Ltd. has expanded its access to the European market. This expansion represents about 40% of their global addressable exoskeleton opportunity, positioning the company to capture significant market share in this region.
Improved Gross Profit Margins
Lifeward Ltd. reported GAAP gross profit of $2.7 million, or 43.7% of revenue in 2025, up from $2.2 million or 36.2% of revenue in 2024. This improvement was driven by lower production costs, reflecting the company’s focus on cost management and efficiency.
$3 Million Loan Agreement
The company announced the completion of a $3 million loan agreement with Oramed, which enhances its near-term liquidity and supports its ongoing transformation plans. This financial backing is crucial for sustaining operations and pursuing growth initiatives.
Decline in ATLAS G Product Revenue
Revenue from the ATLAS G product and services declined to $3.1 million in Q3 2025, down from $3.6 million in Q3 2024. This decrease is attributed primarily to timing factors and the quarterly revenue mix, indicating challenges in this segment.
Increased GAAP Operating Expenses
GAAP operating expenses increased to $5.9 million in 2025 from $5.4 million in 2024. This rise is largely due to a $2 million earn-out write-down recognized in the prior year, reflecting the company’s ongoing investment in growth and development.
Forward-Looking Guidance
During the earnings call, Lifeward Ltd. reaffirmed its full-year 2025 revenue expectations between $24 million and $26 million, with a projected non-GAAP net loss ranging from $12 million to $14 million. The company anticipates further reductions in operating loss as sales volumes grow, supported by a $3 million loan agreement with Oramed and ending the quarter with $2 million in cash.
In summary, Lifeward Ltd.’s earnings call reflected a cautiously optimistic outlook, with significant operational improvements and strategic expansions counterbalanced by challenges in certain product lines and increased expenses. The company’s commitment to transformation and growth, backed by financial support, positions it well for future success.