Lifeward Inc. Earnings Call: Optimism Amid Challenges

Rewalk Robotics Ltd. ((LFWD)) has held its Q1 earnings call. Read on for the main highlights of the call.

During the recent earnings call, Lifeward Inc. expressed a cautiously optimistic sentiment despite facing challenges such as revenue decline and supply constraints. The company highlighted significant progress in strategic partnerships, product approvals, and operational efficiencies, suggesting a positive outlook for future performance.

FDA Clearance of ReWalk 7

Lifeward Inc. announced a major milestone with the FDA clearance of the ReWalk 7, their next-generation exoskeleton. This approval marks a significant advancement in their product offerings, potentially enhancing their competitive edge in the market.

Partnership with CorLife

The company has entered into a strategic partnership with CorLife, aimed at improving access in the workers’ compensation segment. This collaboration is expected to drive profitable growth and expand Lifeward’s market reach.

Expansion in Germany

Lifeward has successfully expanded its contract with BARMER in Germany, setting a precedent for potential collaborations with other insurers in the region. This expansion could significantly boost their presence and influence in the European market.

Increase in Qualified ReWalk Leads

The pipeline of qualified ReWalk leads in the US has seen a remarkable increase of over 70% in the past two quarters. This surge indicates a growing interest and potential for future sales in the US market.

AlterG Product Growth

AlterG products have shown impressive growth, with sales increasing by 19% and 17% in the last two quarters. This growth is largely driven by strong international sales, highlighting the global demand for these products.

Reduction in Operating Loss

Lifeward reported a 25% reduction in operating loss for Q1, with expectations for further reductions as revenue continues to grow. This improvement in operational efficiency is a positive indicator of the company’s financial health.

Q1 Revenue Decline

The company reported Q1 revenues of $5 million, a decline of $300,000 from the previous year. This decrease was attributed to catch-up revenues in 2024, reflecting a temporary setback in their financial performance.

Temporary Supply Constraints

AlterG experienced temporary supply constraints due to a transition to a contract manufacturer. These constraints limited potential sales growth but are expected to be resolved in the near future.

Lower Gross Margins

Lifeward’s GAAP gross margin was reported at 42.2% in Q1 2025, falling below expectations due to the volume and mix of ReWalk products and transitional costs for AlterG. This highlights the challenges faced in maintaining profitability.

Challenges with DME MACs

The company continues to face complexities in processing claims with DME MACs, although some progress in standardization has been noted. Addressing these challenges remains a priority for Lifeward.

Forward-Looking Guidance

Lifeward Inc. provided a detailed forward-looking guidance during the call. Despite a revenue decline to $5 million in Q1 2025, the company emphasized operational progress, including a 70% increase in qualified ReWalk leads and significant AlterG sales growth. Lifeward achieved a 25% reduction in Q1 operating loss and expects further reductions. The company reaffirmed its 2025 sales guidance between $28 million to $30 million, with an anticipated Q4 adjusted operating loss of approximately $1 million.

In summary, Lifeward Inc.’s earnings call highlighted a mix of challenges and achievements. While facing revenue declines and supply constraints, the company made significant strides in product approvals, partnerships, and operational efficiencies. These efforts suggest a positive outlook for Lifeward’s future performance, with expectations for continued growth and financial improvement.