Lifeward Ltd.'s Q1 2025: Unpacking Contradictions on Tariffs, Workers' Comp, and Acquisition Performance

Tariff and supply chain impact, workers' compensation strategy, AlterG acquisition performance, ReWalk impact on full-year revenue, and AlterG performance improvement are the key contradictions discussed in Lifeward Ltd.'s latest 2025Q1 earnings call.



Revenue Performance:
- Lifeward Ltd reported revenue of $5 million for Q1 2025, down $300,000 year-on-year, but excluding catch-up revenues from 2023, the business was up year-on-year.
- The decline was attributed to the seasonal nature of the business, with Q1 typically being the slowest quarter.

ReWalk Product Pipeline:
- Lifeward's ReWalk product pipeline showed positive trends with over 120 qualified leads in the US, up over 70% since Q2 2024, and 36 active rentals, primarily in Germany.
- This growth is driven by the FDA clearance of the ReWalk 7, partnerships with CorLife and AlterG, and expanding distribution rates.

Operational Efficiency and Cost Control:
- The company achieved a 25% reduction in operating loss for Q1 2025, with expectations for further reductions in Q2, Q3, and Q4.
- This improvement is due to multiple actions taken to reduce expenses, including headcount, facilities, and cost of goods, and consolidating functions into a single operating entity.

AlterG Product Growth:
- AlterG, Lifeward's line of anti-gravity treadmills, experienced a 19% and 17% growth in the last two quarters, driven by international sales.
- Growth is attributed to the launch of the AlterG NEO line and transitioning to a contract manufacturer, which reduced costs and improved margins.

Leadership Transition:
- Lifeward's CEO, Larry Jasinski, announced plans to retire midyear, with the company focusing on a smooth leadership transition.
- The foundation for sustainable business growth is considered strong, with the company ready to execute on its strategic objectives.