Lifeward Ltd’s 2025 Earnings Call: Revenue Miss, Medicare Pipeline Discrepancies, and Timelines Clash

Date of Call: Mar 18, 2026

Financials Results

• Revenue: $22M for full year 2025, down 14% from $25.7M in 2024
• Gross Margin: 38.2% (GAAP) and 41% (non-GAAP) for 2025, compared to 32% (GAAP) and 43% (non-GAAP) in 2024

Business Commentary:

Revenue Trends and Business Challenges:

• Lifeward Inc. reported a 14% decrease in revenue for 2025 compared to 2024, from $25.7 million to $22 million.
• The decline in revenue was primarily due to a 18% decrease in AlterG sales and a 50% decline in MyoCycle FES bike revenue. This reflects changes in distribution strategies and timing of distributor orders.

ReWalk Personal System Performance:

• Revenue from ReWalk Personal Exoskeleton remained relatively flat at $8.5 million in 2025, compared to $8.9 million in 2024, despite a 22% increase in units sold.
• The increase in unit sales indicates growing adoption driven by improved reimbursement coverage and clinical demand.

Operating Loss and Cash Usage:

• The company's operating loss narrowed by 33% in 2025 to $19.7 million compared to $29.3 million in 2024.
• This improvement was primarily due to better working capital management and lower inventory levels, although it was partially offset by lower revenues relative to operating expenses.

Strategic Expansion and Partnerships:

• Lifeward executed a strategic agreement with Oramed, which includes a $3 million loan agreement to strengthen liquidity.
• This partnership provides access to capital for growth initiatives and is expected to close soon, enhancing Lifeward's financial foundation.

New Product Acquisitions and Development:

• The acquisition of Skelable's technology is expected to expand Lifeward's leadership in robotic rehabilitation and open significant market opportunities.
• The technology supports a powered upper extremity orthotic system, aiming to assist individuals with weakened or paralyzed arms and hands, particularly post-stroke.

Sentiment Analysis:

Overall Tone: Positive

• "We’re excited about the potential of this program...", "This partnership significantly strengthens our financial foundation...", "We’re confident in our roadmap, confident in the strength of our technology platforms, and confident in our ability to execute."

Q&A:

• Question from Yi Jen (Ladenburg Thalmann): How much work is needed to get Oramed's oral insulin approved and how does it align with your commercial infrastructure?
  Response: Management stated they need to wait for the transaction close to provide specifics, but leveraged CEO's metabolic disease experience to drive synergies and a decentralized commercial model. Short-term focus is on core business while clinical trials are funded by the partnership.

• Question from Yi Jen (Ladenburg Thalmann): How would the oral insulin product leverage your current commercial infrastructure?
  Response: In the short term, clinical trials are fully funded by the partnership, allowing focus on core business. When commercialization comes, the company will use its experience developing distribution networks.

• Question from Yi Jen (Ladenburg Thalmann): What is the timeline for the upper extremity robotic platform and how does it complement ReWalk?
  Response: Targeting 12-24 months to market. It is expected to be a 510(k) exempt product with low clinical barriers. It is complementary to the ReWalk ecosystem.

• Question from Yi Jen (Ladenburg Thalmann): What are the competitive advantages of the upper extremity platform?
  Response: Management deferred detailed competitive analysis but stated the product will enter the market differently, emphasizing simplicity and efficacy.

• Question from Swayampakula Ramakanth (H.C. Wainwright & Co.): How should investors think about the strategy of diversifying into biotech and upper extremity robotics?
  Response: The strategy is to become a diversified innovation company leveraging expertise in reimbursement and commercialization across both med tech and biotech to create a durable, scalable enterprise.

• Question from Swayampakula Ramakanth (H.C. Wainwright & Co.): What drove the additional execution leading to revenue above expectations?
  Response: Execution improved due to building commercialization and reimbursement discipline from a 'startup' mindset, cleaning up manufacturing lift-and-shift issues, and establishing operational frameworks for new products.

• Question from Swayampakula Ramakanth (H.C. Wainwright & Co.): Can you quantify the backlog for Medicare placements entering 2026?
  Response: Management declined to provide exact numbers but noted the pipeline is growing due to expanding reimbursement coverage, with a 22% unit sales increase year-over-year expected to expand.

Contradiction Point 1

Revenue Performance and Guidance

Contradiction on whether revenue met, exceeded, or was below guidance.

What are your thoughts on the company's earnings performance, Swayampakula Ramakanth (H.C. Wainwright & Co.)? - Swayampakula Ramakanth (H.C. Wainwright & Co.)

2025Q4: 2025 revenue was $22M, below 2024 due to distributor dynamics and strategic focus. - Mark Grant(CEO)

What factors contributed to 2025 revenues exceeding the previously indicated range of $24–$26 million and the improved execution? - Yale Jen (Laidlaw & Co.)

2025Q2: In Q2 2025, Medicare revenue submissions grew compared to Q2 2024. This quarter marked the highest Medicare unit placements since the schedule was established in April 2024. - Almog Adar(CFO)

Contradiction Point 2

Product Launch Timelines and Regulatory Pathways

The upper extremity exoskeleton is stated to have a short timeline (18-24 months) and a low-barrier regulatory pathway (510(k) exempt) in Q4, contrasting with no specific timeline or pathway mentioned for ReWalk 7 in Europe in Q3.

Yi Jen (Ladenburg Thalmann) - Yi Jen (Ladenburg Thalmann)

2025Q4: Lifeward is confident of reaching market within 18–24 months. It is expected to follow a 510(k) exempt regulatory pathway due to its innovative nature... - Mark Grant(CEO)

What is the specific timeline for development and regulatory approval of the upper extremity robotic exoskeleton acquired from Skelable, and how does it complement the ReWalk system? - Yu He (H.C. Wainwright & Co.)

2025Q3: How is ReWalk 7 being introduced in Europe, and what is the market opportunity? ... More work is needed to gain payer approval in other countries. - William Grant(CEO)

Contradiction Point 3

Status of the Medicare Pipeline

Contradiction on the growth trajectory and status of the qualified lead pipeline.

Swayampakula Ramakanth (H.C. Wainwright & Co.) - Swayampakula Ramakanth (H.C. Wainwright & Co.)

2025Q4: A pipeline of >104 qualified leads was closed in the US for ReWalk at year-end, with a 22% growth in units sold year-over-year. The pipeline is expanding due to growing reimbursement coverage... - Mark Grant(CEO)

What is the current backlog of qualified leads for Medicare beneficiaries as of early 2026? - Swayampakula Ramakanth (H.C. Wainwright)

2025Q2: The company has more than 130 qualified leads in the U.S., a combination of Medicare, workers' compensation, and other opportunities, with the pipeline continuing to grow quarter-over-quarter. - William Grant(CEO)

Contradiction Point 4

Revenue Performance and Execution Confidence

Q4 2025 revenue was $22M, below the 2024 range of $24-26M, yet the company expressed confidence in execution. In Q3, management expressed high confidence in achieving the $24-26M guidance.

What were Yi Jen's key takeaways from Ladenburg Thalmann's earnings call? - Yi Jen (Ladenburg Thalmann)

2025Q4: The timeline and details will be clearer after the transaction closes. The partnership leverages Mark’s 30-year background in metabolic health. In the short term, the program is fully funded by Oramed, allowing Lifeward to maintain focus on its core business. - Mark Grant(CEO)

What is the remaining work for approval of Oramed's ORMD-0801 and how will it leverage Lifeward's commercial infrastructure? - Yu He (H.C. Wainwright & Co.)

2025Q3: Confidence comes from: ... - A strong existing backlog and pipeline for both products. - Almog Adar(CFO)

Contradiction Point 5

2025 Revenue Performance and Outlook

Contradiction on whether 2025 revenue is above or below guidance.

Swayampakula Ramakanth (H.C. Wainwright & Co.) - Swayampakula Ramakanth (H.C. Wainwright & Co.)

2025Q4: 2025 revenue was $22M, below 2024 due to distributor dynamics and strategic focus. - Mark Grant(CEO)

What factors contributed to 2025 revenues exceeding the previously indicated range of $24–$26 million and the improved execution? - Yale Jen (Laidlaw and Company)

2025Q1: Confidence is based on strong momentum... ReWalk has a record pipeline (over 120 qualified leads in the US, up 70% in two quarters)... - Larry Jasinski(CEO)