Lifeward's Q3 2025: Contradictions Emerge on AlterG Sales Strategy, Germany Market Expansion, and ReWalk 7 Access

Date of Call: November 14, 2025

Financials Results

• Revenue: $6.2M in Q3 2025, up $0.1M or 1.1% YOY (Q2 2025: $5.7M; Q3 vs Q2 +8%)
• Gross Margin: GAAP gross margin 43.7% in Q3 2025 vs 36.2% in Q3 2024; non-GAAP gross margin 43.7% in Q3 2025 vs 42.5% in Q3 2024
• Operating Margin: GAAP operating loss $3.1M in Q3 2025 vs $3.2M in Q3 2024; non-GAAP operating loss $3.0M vs $4.1M in Q3 2024; adjusted Opex $5.7M vs $6.7M prior year

Guidance:

• Full-year 2025 revenue reaffirmed at $24.0M to $26.0M.
• Full-year 2025 projected non-GAAP net loss reaffirmed at $12.0M to $14.0M.
• Company expects Q4 operating loss to further reduce due to seasonality, backlog and ongoing efficiency measures.

Business Commentary:

• ReWalk Placements and Medicare Sales:
• Lifeward delivered a record 15 ReWalk units in Q3, compared to 4 units in Q3 2024.

• The increase was driven by the establishment of CMS's fee schedule, leading to higher Medicare unit sales.

• Operational Efficiency and Cost Reduction:

• The company achieved a 16% reduction in quarterly cash burn, resulting in a 27% reduction in non-GAAP operating loss compared to Q3 2024.

• This was primarily due to operational efficiencies and the consolidation of manufacturing facilities.

• Revenue and Product Line Performance:

• Lifeward's revenue for Q3 2025 was $6.2 million, an increase of 1.1% year-on-year.

• Revenue from traditional products and services increased by 24%, driven by year-over-year increases in Medicare-related sales.

• Expansion in European Market:

• Lifeward secured CE mark approval, expanding access to the European market, which represents 40% of their global addressable opportunity.
• This approval is expected to drive growth through enhanced patient access and distribution scalability.

Sentiment Analysis:

Overall Tone: Positive

• Management highlighted a "record quarter for ReWalk placements," a 16% reduction in quarterly cash burn, a 27% reduction in non-GAAP operating loss YOY, CE mark approval expanding European access, and reaffirmed full-year guidance while securing a $3M loan to bolster liquidity.

Q&A:

• Question from Yale Jen (Laidlaw & Company): I want to confirm that you mentioned 23 systems in rental. Is that correct? If so, what's the breakdown between the United States and Germany?
  Response: There are 33 active rentals, all in Germany.

• Question from Yale Jen (Laidlaw & Company): What impact has the CorLife collaboration had in Q3 or moving forward?
  Response: The CorLife partnership is building a growing pipeline and training processes; it's progressing quarter-to-quarter and expected to expand access over time.

• Question from Yale Jen (Laidlaw & Company): What percentage of dollar sales were from Medicare versus others?
  Response: Approximately 50% of total revenue for ReWalk products was Medicare-related.

• Question from Yale Jen (Laidlaw & Company): What's the rough revenue of ReWalk within the $3.1M of traditional product sales?
  Response: About $2.9M of the traditional product revenue is related to ReWalk.

• Question from Yu He (H.C. Wainwright): After your review of the company, what did you learn versus your initial diligence and what operational changes are needed to reach an inflection and growth stage?
  Response: Priority is establishing data-driven KPIs and fundamentals, leveraging channel partnerships and payer access, and scaling operations with improved COGS to enable reproducible growth.

• Question from Yu He (H.C. Wainwright): What triggered increased Medicare sales this quarter and how sustainable is it?
  Response: The uptick reflects a refocused sales force (separated capital vs patient/payer teams); sustainability depends on developing channel partnerships, with more visible impact expected in Q1 next year.

• Question from Yu He (H.C. Wainwright): You reaffirmed $24M–$26M guidance which implies ~21% growth from Q3 — what gives you confidence to hit that?
  Response: Confidence is driven by typical Q4 seasonality (strongest quarter), existing backlog and a robust pipeline.

• Question from Yu He (H.C. Wainwright): AlterG revenue declined ~15% — what needs to be done to stabilize and restore growth?
  Response: We're reorganizing sales with a dedicated capital sales team for AlterG and a focused neuro‑rehab team for ReWalk to restore focus and drive AlterG sales.

• Question from Yu He (H.C. Wainwright): How is ReWalk 7 being introduced in Europe/Germany and is it still focused on workers' comp or broader segments?
  Response: In Germany, 33 rentals are converting to sales typically within 3–6 months; CE mark enables broader European access but additional payer approvals/listings are required to expand beyond Germany and workers' comp.

• Question from Yu He (H.C. Wainwright): How comfortable are you that the company can overcome its financial overhang and avoid future similar situations?
  Response: Management is optimistic—says fundamentals are repairable, innovation is strong, and they're actively pursuing strategic partnerships while acknowledging challenges.

• Question from Yale Jen (Laidlaw & Company): Any updates on expanding AlterG into the sports arena versus medical space?
  Response: We've started two U.S. beta regions with a capital sales team targeting sports and rehab; broader rollout expected next year as changes scale.

• Question from Yale Jen (Laidlaw & Company): For the sports arena, will sales be primarily self-pay or reimbursed?
  Response: Sports sales are mainly self-pay, but international government grants (e.g., DoD) and tenders provide blended reimbursement opportunities.

Contradiction Point 1

AlterG Sales Focus and Strategy

It involves changes in the sales strategy for AlterG, which could impact revenue projections and market penetration.

Can you provide an update on efforts to expand AlterG into the sports market compared to its presence in the medical field? - Yale Jen (Laidlaw & Company (UK) Ltd., Research Division)

2025Q3: Two beta regions in the U.S. have switched to having a capital sales team focused on AlterG and a neuro rehab specialist focused on ReWalk 7. The capital sales team will cover high school sports elites and up, while the rehab specialists will work in rehab facilities, providing double coverage. This change is part of a broader transformation and is expected to show stronger results in the new year. - William Grant(CEO)

What plans are in place to sustain AlterG's growth trajectory? - Swayampakula Ramakanth (H.C. Wainwright & Co, LLC, Research Division)

2025Q2: AlterG is an exceptional product, and growth is expected through strategic channel partnerships and targeted market focus in professional athletics and high schools. - William Grant(CEO)

Contradiction Point 2

Germany Market Strategy and ReWalk 7 Access

It involves the strategic approach to the German market and the accessibility of ReWalk 7, which could impact revenue growth and market penetration.

How is ReWalk 7 being introduced in Germany, and is the focus still on workers' comp insurance or expanding into other insurance segments? - Yale Jen (Laidlaw & Company (UK) Ltd., Research Division)

2025Q3: In Germany, there are 33 active patients in the rental period, which converts to sales in 3 to 6 months. Germany has 40% coverage, with 100% access. ReWalk 7 is well-positioned with good access, and opportunities are expanding outside Germany. - William Grant(CEO)

What is the current status of leads in the U.S. and Germany? - Yale Jen (Laidlaw & Company (UK) Ltd., Research Division)

2025Q2: In Germany, there are 33 active patients in the rental period, which converts to sales in 3 to 6 months. Germany has 40% coverage, with 100% access. ReWalk 7 is well-positioned with good access, and opportunities are expanding outside Germany. - William Grant(CEO)

Contradiction Point 3

ReWalk 7 Introduction in Germany

It impacts the understanding of the strategy and timing for introducing ReWalk 7 in Germany, which is crucial for market penetration and revenue growth.

In Germany, how is ReWalk 7 being introduced, and is it still focused on workers' comp insurance or expanding into other insurance segments? - Yale Jen (Laidlaw & Company (UK) Ltd., Research Division)

2025Q3: In Germany, there are 33 active patients in the rental period, which converts to sales in 3 to 6 months. - William Grant (President, CEO & Director)

How different is ReWalk 7 from ReWalk 6? Is there a price change? - Swayampakula Ramakanth (H. C. Wainwright)

2025Q1: We expect ReWalk 7 to ramp quarter-over-quarter through the remainder of this year and begin impacting revenue growth in the second half of this year. - Larry Jasinski (CEO)

Contradiction Point 4

AlterG Performance and Prospects

It involves the reported performance and stabilization efforts for AlterG, which is a crucial revenue source for the company.

What was the status of AlterG this quarter, and how will it be stabilized? - Yu He (H.C. Wainwright & Co, LLC, Research Division)

2025Q3: The decline is due to a lack of focus in the sales team, which is now being addressed with beta programs and dedicated teams for AlterG and ReWalk. - William Grant (President, CEO & Director)

Can you provide details about AlterG's performance and future outlook? - Swayampakula Ramakanth (H. C. Wainwright)

2025Q1: AlterG is now stabilizing post-integration. The new NEO line and contract manufacturing have improved margins. Growth in the last two quarters highlights international strength and integration successes. - Larry Jasinski (CEO)

Contradiction Point 5

AlterG Sales Strategy and Performance

It involves a change in strategy and focus for AlterG, which could impact its sales performance and market positioning.

What updates are there on expanding AlterG into the sports market versus the medical market? - Yale Jen (Laidlaw & Company (UK) Ltd., Research Division)

2025Q3: The decline is due to a lack of focus in the sales team, which is now being addressed with beta programs and dedicated teams for AlterG and ReWalk. - William Grant(CEO)

Will the next-gen ReWalk product be introduced this year? - Yale Jen (Laidlaw & Company)

2024Q4: Our focus remains on creating a dedicated capital sales team for AlterG, a dedicated marketing team for AlterG, and strong rehab specialists to support the ReWalk in the United States and globally. - Larry Jasinski(CEO)