Lifeward Reports $5.034 Million Revenue in Q1 2025, Net Loss Improves

Lifeward Ltd. reported a revenue of $5.034 million for the first quarter of 2025, a decrease of 4.7% compared to $5.283 million in the same period of 2024. The decline in revenue was primarily attributed to the recognition of $0.5 million in rental income for ReWalk systems in the first quarter of 2024, following the establishment of a Medicare reimbursement rate. However, the company noted an increase in sales of AlterG systems due to stronger international demand. Gross profit for the quarter was $2.122 million, representing 42.2% of revenue, up from $1.395 million or 26.4% of revenue in the prior year, driven by lower production costs and the closure of its Fremont facility.

Operating expenses for Lifeward decreased to $6.975 million from $7.897 million year-over-year, with significant reductions in sales and marketing expenses, which fell by 23.5% to $3.837 million. Research and development expenses also decreased by 28.8% to $918,000, reflecting the completion of development programs for key products. Despite these reductions, general and administrative expenses rose by 39.5% to $2.220 million, influenced by a bad debt expense related to Medicare claims. The company reported a net loss of $4.834 million for the quarter, an improvement from a net loss of $6.276 million in the first quarter of 2024.

In terms of strategic developments, Lifeward completed the acquisition of AlterG, Inc. in August 2023, enhancing its product offerings in the rehabilitation market. The company also launched the ReWalk 7, a new generation of its personal exoskeleton, in the U.S. market following FDA clearance. Additionally, Lifeward established a partnership with CorLife, a division of Numotion, to distribute the ReWalk Personal Exoskeleton to individuals with workers' compensation claims, aiming to increase market penetration.

Operationally, Lifeward's cash and cash equivalents stood at $5.728 million as of March 31, 2025, down from $6.746 million at the end of 2024. The company reported a negative operating cash flow of $5.493 million for the quarter, a decrease from $7.673 million in the previous year. Lifeward's accumulated deficit reached $269.7 million, raising concerns about its ability to continue as a going concern without securing additional financing. The company plans to finance its operations through existing cash, potential reductions in cash burn, and future equity or debt issuances.

Looking ahead, Lifeward aims to drive growth through expanded coverage and reimbursement for its ReWalk Personal Exoskeleton, increased sales of AlterG systems, and further placements of the MyoCycle device. The company is also focused on enhancing its product lines and exploring additional acquisitions to broaden its market presence. However, the ongoing need for financing and the uncertainty surrounding future capital raise significant challenges for the company's financial stability.