Rewalk Robotics Ltd. ((LFWD)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for ReWalk Robotics Ltd. painted a mixed picture, with the company celebrating significant achievements in product placements and operational efficiencies, particularly in Germany. However, these successes were tempered by a decline in revenue and a substantial goodwill impairment charge. Despite these challenges, the company remains optimistic about future growth, albeit with adjusted guidance to reflect current market conditions.
Record Quarter for ReWalk Medicare Placements
ReWalk Robotics Ltd. reported a record quarter for ReWalk Medicare placements, with Q2 2025 revenue reaching $5.7 million. This milestone underscores the growing acceptance and integration of ReWalk’s products within the Medicare system, marking a significant achievement for the company.
Transition to In-House Manufacturing
The company successfully completed its transition to in-house manufacturing of the ReWalk Personal Exoskeleton. This move has delivered cost savings, improved quality control, and greater production flexibility, positioning ReWalk to better meet market demands and enhance its competitive edge.
Growth in Active Pipeline
ReWalk’s active pipeline in the U.S. has seen substantial growth, increasing by 86% since Q3 2024. With more than 130 qualified leads in process, the company is poised to capitalize on these opportunities and drive future revenue growth.
Operational Efficiencies
Operational efficiencies have led to a significant improvement in ReWalk’s quarterly cash burn, which decreased to $3.9 million from $5.6 million in Q2 2024. This improvement is attributed to strategic facility consolidations and other cost-saving measures.
International Success in Germany
ReWalk’s GmbH team in Germany is operating profitably, building a strong patient community, and leveraging their payer acceleration and market scale to quickly roll out innovative business models. This success highlights the company’s ability to adapt and thrive in international markets.
Revenue Decline Year-Over-Year
Despite the positive developments, ReWalk reported a year-over-year revenue decline, with Q2 2025 revenues at $5.7 million compared to $6.7 million in the second quarter of 2024. This represents a decrease of $1 million or about 15%, reflecting ongoing market challenges.
Goodwill Impairment Charge
A $2.8 million goodwill impairment charge was recorded, triggered by a significant decline in share price. This charge highlights the gap between the company’s market value and book value, presenting a challenge for ReWalk’s financial outlook.
Inventory and Cash Flow Challenges
The transition to in-house manufacturing has led to an increase in inventory, impacting cash flow. This challenge underscores the complexities involved in scaling production for both the ReWalk 6 and ReWalk 7 models.
Guidance Adjustment
ReWalk Robotics Ltd. has adjusted its full 2025 guidance under the new management team, projecting a non-GAAP net loss in the range of $12 million to $14 million. The company forecasts full-year revenue between $24 million and $26 million, with strategic plans to expand its payer base and drive further growth in ReWalk revenues in the latter half of the year.
In summary, ReWalk Robotics Ltd.’s earnings call reflects a company navigating through both achievements and challenges. While the sentiment was mixed, with notable successes in product placements and operational efficiencies, the company faces hurdles such as revenue decline and goodwill impairment. Nevertheless, ReWalk remains focused on its strategic goals, adjusting its guidance to align with current market realities and positioning itself for future growth.