Lifeward Ltd. Reports Fourth Quarter and Full Year 2024 Financial Results

Record quarterly and annual revenue of $7.5M and $25.7M, respectively

Continued strong growth in U.S. pipeline of ReWalk opportunities with over 110 qualified leads in process

Strategic shift towards profitability: 2025 Sustainable Growth Plan focuses on growth of core product lines with a streamlined cost structure and reduced operating loss

MARLBOROUGH, Mass. and YOKNEAM ILLIT, Israel, March 07, 2025 (GLOBE NEWSWIRE) -- Lifeward Ltd., (Nasdaq: LFWD) ("Lifeward" or the "Company"), a global leader in innovative medical technology to transform the lives of people with physical limitations or disabilities, today announced its financial results for the three months and full year ended December 31, 2024.

Recent Highlights and Accomplishments for Lifeward

   -- Strong conclusion to 2024 with Lifeward annual revenue of $25.7 million, 
      up 85% from 2023. 
 
   -- ReWalk Personal Exoskeleton sales up 130% in 2024 fueled by recently 
      established Medicare coverage. 
 
   -- Launch of Lifeward 2025 Sustainable Growth Plan which balances 
      investments to drive revenue growth with aggressive expense reduction to 
      significantly reduce the non-GAAP operating loss in 2025. 
 
   -- New partnership with CorLife, a healthcare services provider and benefits 
      coordinator, to exclusively distribute the ReWalk Personal Exoskeleton 
      for individuals with workers' compensation claims expected to achieve 
      greater growth and penetration into the workers' compensation market for 
      exoskeletons. 
 
   -- Expanded partnership with MYOLYN to broaden Lifeward's distribution 
      rights of the MyoCycle FES Cycling Therapy System to include referral 
      sales for home use applications, the largest market segment for 
      functional electrical stimulation ("FES") cycles. 
 
   -- Completion of previously announced actions to further streamline the 
      Company's U.S. operations, including the closure of two U.S. facilities 
      and reducing overall headcount by a cumulative 35% since the AlterG 
      acquisition. 
 
   -- Completion of a registered direct offering priced at $2.75 per share for 
      gross proceeds of approximately $5.0 million to fund continuing 
      commercial efforts, working capital, and general corporate purposes. 

"This past year, we made significant strides in sales driven by the major milestone of achieving Medicare coverage of the ReWalk exoskeleton and we expect private insurance to follow," said Larry Jasinski, Chief Executive Officer. "We continue to build a robust pipeline of ReWalk cases, which we believe will drive sustained growth in the coming quarters. We are focused on achieving balanced growth while strategically working towards profitability. We are fully committed to implementing cost-efficient measures that not only enhance our operational effectiveness but also drive sustainable success. We are confident that these efforts will empower us to build a stronger foundation for the future of Lifeward."

Revenue was $7.5million in the fourth quarter of 2024, compared to $6.9million during the fourth quarter of 2023, up $0.6 million, or 10%. Revenue related to the sale of ReWalk exoskeletons, MyoCycles, and ReStore Exo-Suits was $2.0million, down $0.1 million, or 6% compared to the prior year. This performance was primarily driven by a shortfall in ReWalk system sales due to scheduling challenges and delays for initial training sessions at local clinics. Revenue from the sale of AlterG products and services was $5.5 million, a $0.8 million, or 17%, increase from the fourth quarter of 2023. The growth in AlterG resulted from strong demand from international customers.

Gross margin was 24.4% during the fourth quarter of 2024, compared to 35.5% in the fourth quarter of 2023, with the restructuring charge explained below as the primary cause of the variance. On a non-GAAP basis, which excludes the items listed in the attached non-GAAP reconciliation table, adjusted gross margin was 45.4% in the fourth quarter of 2024, compared to 46.9% in the fourth quarter of 2023. This decline was primarily attributable to the mix of products sold in the quarter.

Total operating expenses in the fourth quarter of 2024 were $17.1 million, compared to $8.6 million in the fourth quarter of 2023, with the impairment charge explained below as the primary cause of the variance. On a non-GAAP basis, which excludes the items listed in the attached non-GAAP reconciliation table, adjusted operating expenses were $6.7 million in the fourth quarter of 2024, compared to $7.0 million in the fourth quarter of 2023. This decline is primarily due to reduced marketing, general and administrative expenses resulting from prior expense reduction actions.

Operating loss in the fourth quarter of 2024 was $15.2 million, compared to $6.1 million in the fourth quarter of 2023. On a non-GAAP basis, which excludes the items in the non-GAAP reconciliation table below, adjusted operating loss was $3.3 million in the fourth quarter of 2024, compared to a loss of $3.8 million in the fourth quarter of 2023.

Net loss was $15.3 million, or $1.73 per share, for the fourth quarter of 2024, compared to a net loss of $5.6 million, or $0.66 per share, in the fourth quarter of 2023. On a non-GAAP basis, which excludes the items in the attached non-GAAP reconciliation table, adjusted net loss was $3.3 million, or $0.38 per share, in the fourth quarter of 2024, compared to $3.3 million, or $0.38 per share, during the fourth quarter of 2023.

Liquidity

As of December 31, 2024, Lifeward had $6.7 million in unrestricted cash and cash equivalents on its balance sheet with no debt. During the fourth quarter of 2024, cash used in operations was $4.0 million. On January 8, 2025, Lifeward completed a registered direct offering of common shares which raised gross proceeds of approximately $5.0 million to add to its cash position.

2025 Financial Guidance

For 2025, Lifeward expects full year revenue in the range of $28 million to $30 million, with adjusted gross margins between 47% and 49%. As a result of the recent actions by the Company to streamline its operations, Lifeward expects non-GAAP operating expenses of between $22 million to $23 million, which results in anon-GAAP operating loss of $7 million to $9 million.

On a quarterly basis, Lifeward expects revenue in the first quarter of 2025 to be the lowest of the year due to seasonal trends, followed by sequential revenue growth through the rest of 2025.The full benefits of operating expense reductions are expected to phase in throughout the second half of 2025. As a result of the progress of these factors, Lifeward anticipates a quarterly adjusted operating loss of approximately $1 million by the fourth quarter of 2025.

Lifeward does not provide GAAP reconciliation of its non-GAAP financial guidance because the Company is unable to predict with reasonable certainty and without unreasonable effort items that would be included in such a reconciliation, including, but not limited to, stock-based compensation expense, acquisition-related expense, and earnout expense. The timing and amounts of these items are uncertain and could be material to Lifeward's results computed in accordance with GAAP.

Conference Call

Lifeward management will host its conference call as follows:

 
Date                                                   March 7, 2025 
Time                                                    8:30 AM EST 
Telephone          U.S:                                         1-833-316-0561 
 International:                                                 1-412-317-0690 
                   Israel:                                        1-80-9212373 
 Germany:                                                         0800-6647650 
Access code                                  Please reference the "Lifeward 
                                             Earnings Call" 
Webcast (live, listen-only and archive)      https://edge.media-ser 
                                             ver.com/mmc/p/9u4xjdep 
 
 

The archived webcast will be available via the following https://edge.media-server.com/mmc/p/9u4xjdep or through the "Investors" section on our website at GoLifeward.com.

About Lifeward

Lifeward designs, develops, and commercializes life-changing solutions that span the continuum of care in physical rehabilitation and recovery, delivering proven functional and health benefits in clinical settings as well as in the home and community. Our mission at Lifeward is to relentlessly drive innovation to change the lives of individuals with physical limitations or disabilities. We are committed to delivering groundbreaking solutions that empower individuals to do what they love. The Lifeward portfolio features innovative products including the ReWalk Exoskeleton, the AlterG Anti-Gravity system, the ReStore Exo-Suit, and the MyoCycle FES System.

Founded in 2001, Lifeward has operations in the United States, Israel, and Germany. For more information on the Lifeward mission and product portfolio, please visit GoLifeward.com.

Lifeward$(R)$, ReWalk(R), ReStore(R), and Alter G(R) are registered trademarks of Lifeward Ltd. and/or its affiliates.

Forward-Looking Statements

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