• Q4 2024 Revenue: $7.5 million, up from $6.9 million in Q4 2023.
• Full Year 2024 Revenue: $25.7 million, an 85% increase from 2023.
• AlterG Product Revenue: $5.5 million in Q4 2024, highest since acquisition in August 2023.
• ReWalk Product Revenue: $2.0 million in Q4 2024.
• Gross Margin (GAAP): 24.4% in Q4 2024, down from 35.5% in Q4 2023.
• Adjusted Gross Margin (Non-GAAP): 45.4% in Q4 2024, compared to 46.9% in Q4 2023.
• Operating Expenses (GAAP): $17.1 million in Q4 2024, up from $8.6 million in Q4 2023.
• Adjusted Operating Expenses (Non-GAAP): $6.7 million in Q4 2024, down from $7.0 million in Q4 2023.
• Operating Loss (GAAP): $15.2 million in Q4 2024, compared to $6.7 million in Q4 2023.
• Adjusted Operating Loss (Non-GAAP): $3.3 million in Q4 2024, improved from $3.8 million in Q4 2023.
• Cash and Equivalents: $6.7 million at year-end 2024, with no debt.
• 2025 Revenue Guidance: $28 million to $30 million.
• 2025 Adjusted Gross Margin Guidance: 47% to 49%.
• 2025 Non-GAAP Operating Expenses Guidance: $22 million to $23 million.
• 2025 Non-GAAP Operating Loss Guidance: $7 million to $9 million.

• Warning! GuruFocus has detected 6 Warning Signs with LFWD.

Release Date: March 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Lifeward Ltd (NASDAQ:LFWD) achieved record revenue of $7.5 million in Q4 2024, marking the highest quarterly revenue in the company's history.
• The company reported an 85% increase in full-year revenue for 2024, reaching $25.7 million, demonstrating significant business scaling.
• Lifeward Ltd (NASDAQ:LFWD) has established a Sustainable Growth Plan aimed at reducing costs and improving operating efficiency.
• The company has expanded its distribution agreement with MYOLYN, allowing for greater market penetration, particularly in the home market.
• Lifeward Ltd (NASDAQ:LFWD) has secured a meaningful contract with BARMER in Germany, setting a standard for providing exoskeletons.

Negative Points

• The ReWalk sales were below expectations due to delays and attrition in Medicare cases, impacting revenue predictability.
• GAAP gross margin decreased to 24.4% in Q4 2024 from 35.5% in Q4 2023, primarily due to restructuring charges.
• The company recorded a $9.8 million impairment charge on intangible assets, affecting GAAP operating expenses.
• Lifeward Ltd (NASDAQ:LFWD) received a going concern qualification from auditors, reflecting concerns about the adequacy of its balance sheet.
• The company experienced patient attrition and deferrals in the ReWalk product line, affecting sales cycles and revenue.

Q & A Highlights

Q: For the 2025 guidance, how do you see the growth of each component? Is the guidance generally more conservative? A: Mike Lawless, CFO: The guidance reflects growth across our three major product lines: ReWalk, AlterG, and MyoCycles. MyoCycles, being the smallest contributor, will likely show the biggest percentage growth due to an expanded distribution agreement. We expect growth in all three lines, focusing on more profitable and efficient growth.

Q: What impact will the CoreLife partnership have on the workers' compensation segment? A: Larry Jasinski, CEO: The CoreLife partnership provides us with a larger conduit into the workers' compensation market, which is about 6% of all spinal cord injuries. CoreLife can process these efficiently, reducing our expenses and ensuring timely payments.

Q: Will the next-gen ReWalk be introduced this year? A: Larry Jasinski, CEO: Yes, we anticipate the next-gen ReWalk will be on the market this year. The product has completed all testing, and we expect FDA clearance in the first half of the year.

Q: How much of the recent announcements, like CoreLife and MyoCycle, are factored into the revenue guidance? A: Larry Jasinski, CEO: We have factored them in conservatively. CoreLife is a new arrangement, but it has good growth potential. The expanded MyoCycle agreement allows us to sell directly to home users, which is a larger market.

Q: What are the learnings from the Medicare reimbursement cycle, and how does it affect discussions with private payers? A: Mike Lawless, CFO: The Medicare cycle has been longer than expected, but it provides a baseline for private payers. We anticipate CMS will become more efficient, and the commercial side seems to have a shorter path.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.