Financial Data and Key Metrics Changes - LifeWorks reported revenues of $5.7 million in Q2 2025, a decrease of $1 million or about 15% year-over-year compared to $6.7 million in Q2 2024, but an increase of approximately 14% quarter-over-quarter from $5 million in Q1 2025 [19][24] - GAAP gross profit was $2.5 million or 43.9% of revenue in Q2 2025, compared to $2.8 million or 41.1% in Q2 2024 [22] - GAAP operating loss for Q2 2025 was $6.6 million compared to $4.4 million in Q2 2024, while non-GAAP operating loss was $3.5 million compared to $3.7 million in the same period last year [24] Business Line Data and Key Metrics Changes - Revenue from traditional products and services totaled $2.5 million in Q2 2025, down from $3.1 million in Q2 2024, a decrease of about 19% [19] - Revenue from AlterG products and services was $3.2 million in Q2 2025, down from $3.6 million in Q2 2024, primarily due to the timing of deliveries to international distributors [20] - The ReWalk product line saw its highest quarterly total of units placed to Medicare beneficiaries since the schedule was established in April 2024 [19] Market Data and Key Metrics Changes - The pipeline of qualified leads for the ReWalk product line increased by 86% since Q3 2024, ending the quarter with more than one-third of leads in process in the U.S. [21] - In Germany, there were 46 leads in process at the quarter end, including 34 active rentals, which historically convert to sales within three to six months [21] Company Strategy and Development Direction - The company’s growth strategy is anchored in three core pillars: accelerating commercial adoption, portfolio diversification, and operational excellence [12][13] - The focus is on building strong momentum from recent Medicare and commercial insurer wins by reducing approval times and expanding coverage [12] - The company aims to leverage software innovation and AI integration to deepen customer engagement and ensure solutions are effective and commercially viable [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that revenue cycles in their markets are inherently extended, particularly those dependent on payer approvals and coverage decisions [28] - The company expects gradual growth in the next few quarters, with meaningful acceleration weighted toward the back half of their strategic plan [28] - Management remains committed to developing solutions that enhance independence and quality of life for patients [30] Other Important Information - The company ended Q2 2025 with $5.1 million in cash and cash equivalents and no debt, indicating a strong liquidity position [24] - LifeWorks is considering both debt and equity opportunities to support operations and growth plans while implementing cost management strategies [26] Q&A Session Summary Question: Can you provide details on Medicare revenue for the quarter? - Management clarified that in Q2 2024, there was a one-time revenue recognition of approximately $700,000, and excluding this, Medicare-related sales grew year-over-year [33] Question: What is the current status of leads in the U.S. and Germany? - Management confirmed that Medicare leads are greater than 130, with a strong pipeline building quarter over quarter [34][36] Question: How does the current tariff situation impact the company? - Management stated that the ReWalk exoskeleton is exempt from tariffs, but there are some tariff situations with the UltraG product that are being addressed [39] Question: What are the plans for AlterG commercialization? - Management emphasized the importance of focusing on channel partners and specific markets to ensure sustainable growth for the AlterG product line [51] Question: What is the reasoning behind lowering the guidance? - Management explained that the trajectory of growth has changed, and while pipelines are growing, the timing of revenue recognition is still being understood [60]

[Executive Summary & Recent Highlights](index=1&type=section&id=ExecutiveSummaryHighlights) Lifeward Ltd. reported Q2 2025 results, highlighting record ReWalk systems for Medicare, pipeline growth, new executive leadership, ReWalk 7 launch, and improved cash burn [Introduction](index=1&type=section&id=Introduction) Lifeward Ltd. announced its Q2 2025 financial results, highlighting a record number of ReWalk systems placed for Medicare beneficiaries, consistent U.S. ReWalk pipeline growth, and the appointment of a new CEO and CFO to drive strategic changes and accelerate growth - Lifeward achieved a **record number of ReWalk systems** placed for Medicare beneficiaries since the fee schedule was established[1](index=1&type=chunk) - The company reported its **third consecutive quarter of U.S. ReWalk pipeline growth**, with **over 130 qualified leads** in process[1](index=1&type=chunk) - **New executive leadership** was appointed, with Mark Grant as President and CEO and Almog Adar as CFO, to spearhead strategic change and accelerate growth[1](index=1&type=chunk) [Operational Highlights](index=1&type=section&id=OperationalHighlights) Lifeward advanced on multiple fronts in Q2 2025, including FDA clearance and launch of ReWalk 7, expansion of the ReWalk pipeline and U.S. payer base, significant improvement in cash burn, successful transition to in-house manufacturing for ReWalk Personal Exoskeleton, and strengthening of executive leadership - Achieved **FDA clearance and launched ReWalk 7** in April 2025, with **over 20 units installed** and positive customer feedback[4](index=4&type=chunk) - Expanded and advanced the ReWalk pipeline, achieving the **highest quarterly total of ReWalk units placed for Medicare beneficiaries** since the fee schedule was established in April 2024[4](index=4&type=chunk) - **Improved quarterly cash burn to $3.9 million**, down from $5.6 million in Q2 2024 and $5.5 million in Q1 2025, due to operational efficiencies and cost reduction initiatives[4](index=4&type=chunk) - Successfully transitioned to **in-house manufacturing** of the ReWalk Personal Exoskeleton, leading to cost savings, improved quality control, and greater production flexibility[4](index=4&type=chunk) - **Strengthened executive leadership** with the appointment of Mark Grant as President and CEO and Almog Adar as CFO[4](index=4&type=chunk) [Second Quarter 2025 Financial Results](index=2&type=section&id=FinancialPerformanceQ22025) Lifeward's Q2 2025 results show decreased revenue, improved GAAP gross margin, increased GAAP operating expenses due to impairment, and improved liquidity [Revenue Analysis](index=2&type=section&id=RevenueAnalysis) Lifeward's revenue for Q2 2025 was $5.7 million, a 15% decrease year-over-year but a 14% increase quarter-over-quarter. The YoY decrease was primarily due to the absence of a one-time Medicare-related revenue benefit recognized in Q2 2024 and timing of international deliveries for AlterG products Revenue Overview | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | Change (%) | | :----- | :-------------------- | :-------------------- | :----------- | :--------- | | Revenue | $5.7 | $6.7 | -$1.0 | -15% | | Revenue (Q1 2025) | $5.0 | N/A | +$0.7 | +14% | Revenue by Product Category | Product Category | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | Change (%) | | :--------------- | :-------------------- | :-------------------- | :----------- | :--------- | | Traditional Products & Services | $2.5 | $3.1 | -$0.6 | -19% | | AlterG Products & Services | $3.2 | $3.6 | -$0.4 | -11% | - Excluding a one-time Medicare-related revenue of approximately **$0.7 million** recognized in Q2 2024, revenue from traditional products and services **grew year-over-year**[5](index=5&type=chunk) [Gross Margin](index=2&type=section&id=GrossMargin) GAAP gross margin improved to 43.9% in Q2 2025 from 41.1% in Q2 2024. However, non-GAAP adjusted gross margin decreased to 44.0% from 46.9% year-over-year, primarily due to the absence of the one-time Medicare-related revenue benefit from the prior year Gross Margin Performance | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | GAAP Gross Margin | 43.9% | 41.1% | +2.8 pp | | Non-GAAP Adjusted Gross Margin | 44.0% | 46.9% | -2.9 pp | - The year-over-year **decrease in non-GAAP margin** reflects the absence of a one-time Medicare-related revenue benefit recognized in Q2 2024[6](index=6&type=chunk) [Operating Expenses and Loss](index=2&type=section&id=OperatingExpensesLoss) Total GAAP operating expenses increased to $9.1 million in Q2 2025 from $7.2 million in Q2 2024, mainly due to a $2.8 million goodwill impairment charge. Non-GAAP adjusted operating expenses decreased by $0.9 million to $6.0 million, driven by efficiencies in reimbursement, marketing/sales, and lower R&D spending. GAAP operating loss widened to $6.6 million, while non-GAAP adjusted operating loss slightly improved to $3.5 million Operating Expenses and Loss Summary | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | | :----- | :-------------------- | :-------------------- | :----------- | | Total GAAP Operating Expenses | $9.1 | $7.2 | +$1.9 | | Goodwill Impairment Charge | $2.8 | $0.0 | +$2.8 | | Non-GAAP Adjusted Operating Expenses | $6.0 | $6.9 | -$0.9 | | GAAP Operating Loss | ($6.6) | ($4.4) | -$2.2 | | Non-GAAP Adjusted Operating Loss | ($3.5) | ($3.7) | +$0.2 | - The increase in GAAP operating expenses was largely driven by a **$2.8 million non-cash goodwill impairment charge**[7](index=7&type=chunk) - The **decrease in non-GAAP operating expenses** reflects greater efficiency in reimbursement activities, improved productivity in marketing and sales, and lower R&D spending[7](index=7&type=chunk) [Net Loss and EPS](index=2&type=section&id=NetLossEPS) Lifeward reported a GAAP net loss of $6.6 million, or $0.58 per share, for Q2 2025, compared to a net loss of $4.3 million, or $0.50 per share, in Q2 2024. On a non-GAAP basis, the adjusted net loss was $3.5 million, or $0.31 per share, an improvement from $3.6 million, or $0.42 per share, in the prior-year quarter Net Loss and EPS Summary | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | | :----- | :-------------------- | :-------------------- | :----------- | | GAAP Net Loss | ($6.6) | ($4.3) | -$2.3 | | GAAP Net Loss Per Share | ($0.58) | ($0.50) | -$0.08 | | Non-GAAP Adjusted Net Loss | ($3.5) | ($3.6) | +$0.1 | | Non-GAAP Adjusted Net Loss Per Share | ($0.31) | ($0.42) | +$0.11 | [Liquidity](index=3&type=section&id=Liquidity) As of June 30, 2025, Lifeward had $5.1 million in unrestricted cash and cash equivalents with no debt. Cash used in operations significantly improved to $3.9 million in Q2 2025, down from $5.6 million in Q2 2024, reflecting operational efficiencies and facility closures Liquidity Position | Metric | As of June 30, 2025 (in millions) | As of June 30, 2024 (in millions) | Change (YoY) | | :----- | :-------------------------------- | :-------------------------------- | :----------- | | Unrestricted Cash & Cash Equivalents | $5.1 | N/A | N/A | | Cash Used in Operations (Q2) | $3.9 | $5.6 | -$1.7 | - The company had **no debt** on its balance sheet as of June 30, 2025[10](index=10&type=chunk) [Financial Guidance](index=3&type=section&id=FinancialGuidance) Lifeward's new management team reset full-year 2025 guidance, projecting revenue of $24-26 million and a non-GAAP net loss of $12-14 million [2025 Full-Year Guidance](index=3&type=section&id=2025FullYearGuidance) Lifeward has reset its full-year 2025 financial guidance under the new management team, projecting revenue between $24 million and $26 million and a non-GAAP net loss between $12 million and $14 million 2025 Full-Year Projections | Metric | 2025 Full-Year Guidance (in millions) | | :----- | :------------------------------------ | | Revenue | $24–$26 | | Non-GAAP Net Loss | $12–$14 | [Corporate Information](index=3&type=section&id=CorporateInformation) This section covers Q2 2025 conference call details, Lifeward's mission and products, forward-looking statement disclaimers, and non-GAAP financial measure explanations [Conference Call Details](index=3&type=section&id=ConferenceCallDetails) Lifeward management will host a conference call on August 14, 2025, at 8:30 AM EST to discuss the financial results. Details for telephone access and webcast are provided Conference Call Information | Detail | Information | | :----- | :---------- | | Date | August 14, 2025 | | Time | 8:30 AM EST | | U.S. Telephone | 1-833-316-0561 | | International Telephone | 1-412-317-0690 | | Webcast | https://edge.media-server.com/mmc/p/kegov6it | [About Lifeward](index=3&type=section&id=AboutLifeward) Lifeward Ltd. is a global leader in innovative medical technology, designing, developing, and commercializing solutions for physical rehabilitation and recovery. The company's mission is to drive innovation to empower individuals with physical limitations, offering products like the ReWalk Exoskeleton, AlterG Anti-Gravity system, ReStore Exo-Suit, and MyoCycle FES System. Founded in 2001, Lifeward operates in the U.S., Israel, and Germany - Lifeward **designs, develops, and commercializes life-changing solutions** for physical rehabilitation and recovery[13](index=13&type=chunk) - Key products include the **ReWalk Exoskeleton, AlterG Anti-Gravity system, ReStore Exo-Suit, and MyoCycle FES System**[13](index=13&type=chunk) - Founded in 2001, Lifeward has operations in the **United States, Israel, and Germany**[14](index=14&type=chunk) [Forward-Looking Statements](index=4&type=section&id=ForwardLookingStatements) This section contains standard forward-looking statements regarding future performance, subject to uncertainties, risks, and changes in circumstances. It highlights important factors that could cause actual results to differ materially, including product acceptance, regulatory approvals, funding, market acceptance, reimbursement, and intellectual property protection - Forward-looking statements are based on management's current expectations and are subject to **uncertainty, risks, and changes in circumstances**[16](index=16&type=chunk) - **Key risk factors** include acceptance of new products (e.g., ReWalk 7), uncertainties in clinical trials and regulatory processes, ability to meet capital requirements, market acceptance, and third-party payer reimbursement (including CMS)[16](index=16&type=chunk) - The company undertakes **no obligation to publicly update** any forward-looking statements, except as required by law[16](index=16&type=chunk) [Non-GAAP Financial Measures Explanation](index=5&type=section&id=NonGAAPFinancialMeasuresExplanation) Lifeward uses non-GAAP financial measures, such as non-GAAP net loss, to supplement GAAP statements, believing they provide more meaningful comparisons by excluding non-cash share-based compensation and acquisition costs. The company emphasizes that these measures are not GAAP alternatives and may not be comparable to other companies, urging investors to review reconciliations - Non-GAAP measures are used to provide **more meaningful comparisons** between operating results by excluding non-cash share-based compensation expense and acquisition costs[18](index=18&type=chunk) - Non-GAAP financial measures are **not prepared in accordance with GAAP** and should not be considered alternatives to GAAP measures[18](index=18&type=chunk) - Lifeward **does not provide GAAP reconciliation** for its non-GAAP financial guidance due to the inability to predict certain items with reasonable certainty[20](index=20&type=chunk) [Media & Investor Contacts](index=5&type=section&id=MediaInvestorContacts) Contact information for Lifeward's Media Relations and Investor Contact is provided, including the Vice President of Marketing & New Business Development and the Chief Financial Officer - **Media inquiries** can be directed to Kathleen O'Donnell, Vice President, Marketing & New Business Development[21](index=21&type=chunk) - **Investor inquiries** can be directed to Almog Adar, Chief Financial Officer[21](index=21&type=chunk) [Condensed Consolidated Financial Statements (GAAP)](index=6&type=section&id=CondensedConsolidatedFinancialStatementsGAAP) This section presents Lifeward's GAAP financial statements, including statements of operations, balance sheets, and cash flows, detailing financial position and performance [Statements of Operations](index=6&type=section&id=StatementsOfOperations) The condensed consolidated statements of operations show a net loss of $6.6 million for Q2 2025, compared to $4.3 million in Q2 2024. Revenue decreased year-over-year, while operating expenses increased significantly due to an impairment charge Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $5,724 | $6,707 | $10,758 | $11,990 | | Gross profit | $2,511 | $2,757 | $4,633 | $4,152 | | Total operating expenses | $9,074 | $7,200 | $16,049 | $15,097 | | Operating loss | ($6,563) | ($4,443) | ($11,416) | ($10,945) | | Net loss | ($6,562) | ($4,304) | ($11,396) | ($10,580) | | Basic net loss per ordinary share | ($0.58) | ($0.50) | ($1.05) | ($1.23) | [Balance Sheets](index=7&type=section&id=BalanceSheets) The condensed consolidated balance sheets show total assets decreased to $26.8 million as of June 30, 2025, from $30.5 million at December 31, 2024. Cash and cash equivalents also decreased, while goodwill saw a significant reduction due to impairment Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $5,139 | $6,746 | | Total current assets | $20,710 | $21,294 | | Goodwill | $4,755 | $7,538 | | Total assets | $26,777 | $30,487 | | Total current liabilities | $10,360 | $10,225 | | Shareholders' equity | $15,110 | $18,849 | [Statements of Cash Flows](index=8&type=section&id=StatementsOfCashFlows) The condensed consolidated statements of cash flows indicate a net cash outflow from operating activities of $9.4 million for the six months ended June 30, 2025, an improvement from $13.3 million in the prior year. Net cash provided by financing activities was $7.8 million, compared to none in the prior year Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | ($9,429) | ($13,290) | | Net cash used in investing activities | ($5) | $0 | | Net cash provided by financing activities | $7,779 | $0 | | Decrease in cash, cash equivalents, and restricted cash | ($1,585) | ($13,305) | | Cash, cash equivalents, and restricted cash at end of period | $5,523 | $15,487 | [Non-GAAP Reconciliations and Supplemental Data](index=9&type=section&id=NonGAAPReconciliationsSupplementalData) This section provides supplemental revenue data by customer location and detailed GAAP to non-GAAP reconciliations for net loss, operating loss, gross profit, and operating expenses [Revenues by Customer Location](index=9&type=section&id=RevenuesByCustomerLocation) Lifeward's revenue breakdown by customer location shows that the United States remains the largest market, though it experienced a decline in Q2 2025 compared to the prior year. Europe also saw a slight decrease, while the Rest of the World segment grew Revenues by Customer Location (in thousands) | Region | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | United States | $3,062 | $3,849 | $6,271 | $7,596 | | Europe | $2,103 | $2,308 | $3,439 | $3,477 | | Asia - Pacific | $124 | $214 | $166 | $394 | | Rest of the world | $435 | $336 | $882 | $523 | | Total Revenues | $5,724 | $6,707 | $10,758 | $11,990 | [Non-GAAP Net Loss Reconciliation](index=9&type=section&id=NonGAAPNetLossReconciliation) The non-GAAP net loss reconciliation adjusts GAAP net loss for items such as amortization of intangible assets, restructuring costs, remeasurement of earnout liability, impairment charges, and stock-based compensation expenses. For Q2 2025, the non-GAAP net loss was $3.5 million, an improvement from $3.6 million in Q2 2024 Non-GAAP Net Loss Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP net loss | ($6,562) | ($4,304) | ($11,396) | ($10,580) | | Adjustments: | | | | | | Amortization of intangible assets | $0 | $832 | $0 | $1,663 | | Restructuring | $700 | $0 | $700 | $0 | | Remeasurement of earnout liability | ($608) | ($488) | ($608) | ($492) | | Impairment charges | $2,783 | $0 | $2,783 | $0 | | Stock-based compensation expenses | $182 | $376 | $402 | $757 | | Non-GAAP net loss | ($3,505) | ($3,584) | ($8,119) | ($8,883) | | Non-GAAP net loss per share | ($0.31) | ($0.42) | ($0.75) | ($1.03) | [Non-GAAP Operating Loss Reconciliation](index=10&type=section&id=NonGAAPOperatingLossReconciliation) The non-GAAP operating loss reconciliation adjusts GAAP operating loss by adding back non-cash and non-recurring items. For Q2 2025, the non-GAAP operating loss was $3.5 million, an improvement from $3.7 million in Q2 2024 Non-GAAP Operating Loss Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP operating loss | ($6,563) | ($4,443) | ($11,416) | ($10,945) | | Adjustments: | | | | | | Amortization of intangible assets | $0 | $832 | $0 | $1,663 | | Restructuring | $700 | $0 | $700 | $0 | | Remeasurement of earnout liability | ($608) | ($488) | ($608) | ($492) | | Impairment charges | $2,783 | $0 | $2,783 | $0 | | Stock-based compensation expenses | $182 | $376 | $402 | $757 | | Non-GAAP operating loss | ($3,506) | ($3,723) | ($8,139) | ($9,248) | [Non-GAAP Gross Profit Reconciliation](index=10&type=section&id=NonGAAPGrossProfitReconciliation) Non-GAAP gross profit for Q2 2025 was $2.5 million (44.0% of revenue), compared to $3.1 million (46.9% of revenue) in Q2 2024, after adjusting for amortization of intangible assets and stock-based compensation expenses Non-GAAP Gross Profit Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | % of revenue | Three Months Ended June 30, 2024 | % of revenue | | :-------------------- | :------------------------------- | :----------- | :------------------------------- | :----------- | | GAAP gross profit | $2,511 | 43.9% | $2,757 | 41.1% | | Adjustments: | | | | | | Amortization of intangible assets | $0 | 0% | $383 | 5.7% | | Stock-based compensation expenses | $4 | 0.1% | $5 | 0.1% | | Non-GAAP gross profit | $2,515 | 44.0% | $3,145 | 46.9% | [Non-GAAP Research & Development Reconciliation](index=11&type=section&id=NonGAAPResearchDevelopmentReconciliation) Non-GAAP research and development expenses for Q2 2025 were $0.73 million (12.8% of revenue), a decrease from $1.16 million (17.3% of revenue) in Q2 2024, after adjusting for stock-based compensation Non-GAAP Research & Development Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | % of revenue | Three Months Ended June 30, 2024 | % of revenue | | :-------------------- | :------------------------------- | :----------- | :------------------------------- | :----------- | | GAAP research & development | $767 | 13.4% | $1,205 | 18.0% | | Adjustments: | | | | | | Stock-based compensation expenses | ($37) | (0.6)% | ($46) | (0.7)% | | Non-GAAP research & development | $730 | 12.8% | $1,159 | 17.3% | [Non-GAAP Sales & Marketing Reconciliation](index=11&type=section&id=Non-GAAPSales%26MarketingReconciliation) Non-GAAP sales and marketing expenses for Q2 2025 were $3.45 million (60.3% of revenue), a decrease from $3.91 million (58.3% of revenue) in Q2 2024, after adjustments for amortization, restructuring, and stock-based compensation Non-GAAP Sales & Marketing Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | % of revenue | Three Months Ended June 30, 2024 | % of revenue | | :-------------------- | :------------------------------- | :----------- | :------------------------------- | :----------- | | GAAP sales & marketing | $3,785 | 66.1% | $4,403 | 65.6% | | Adjustments: | | | | | | Amortization of intangible assets | $0 | 0% | ($383) | (5.7)% | | Restructuring | ($277) | (4.8)% | $0 | 0% | | Stock-based compensation expenses | ($56) | (1.0)% | ($107) | (1.6)% | | Non-GAAP sales & marketing | $3,452 | 60.3% | $3,913 | 58.3% | [Non-GAAP General & Administrative Reconciliation](index=11&type=section&id=Non-GAAPGeneralAdministrativeReconciliation) Non-GAAP general and administrative expenses for Q2 2025 were $1.84 million (32.1% of revenue), compared to $1.80 million (26.7% of revenue) in Q2 2024, after adjustments for M&A, amortization, restructuring, earnout liability remeasurement, and stock-based compensation Non-GAAP General & Administrative Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | % of revenue | Three Months Ended June 30, 2024 | % of revenue | | :-------------------- | :------------------------------- | :----------- | :------------------------------- | :----------- | | GAAP general & administrative | $1,739 | 30.4% | $1,592 | 23.7% | | Adjustments: | | | | | | Remeasurement of earnout liability | $608 | 10.6% | $488 | 7.3% | | Restructuring | ($423) | (7.4)% | $0 | 0% | | Stock-based compensation expenses | ($85) | (1.5)% | ($218) | (3.3)% | | Non-GAAP general & administrative | $1,839 | 32.1% | $1,796 | 26.7% |

Core Insights - Lifeward Ltd. reported a record number of ReWalk systems placed for Medicare beneficiaries, marking the third consecutive quarter of growth in the U.S. pipeline with over 130 qualified leads [1][3] - The company appointed a new CEO and CFO to drive strategic changes and accelerate growth [1][7] - Lifeward's financial results for Q2 2025 showed a revenue of $5.7 million, a decrease of approximately 15% year-over-year, but an increase of about 14% compared to Q1 2025 [4][10] Financial Performance - Revenue from traditional products, including ReWalk Personal exoskeletons, decreased by 19% year-over-year to $2.5 million, while revenue from AlterG products fell by approximately 11% to $3.2 million [4][5] - Gross margin improved to 43.9% in Q2 2025 from 41.1% in Q2 2024, although the adjusted gross margin decreased to 44.0% from 46.9% due to the absence of one-time Medicare-related revenue [5][30] - Total operating expenses rose to $9.1 million in Q2 2025, primarily due to a $2.8 million goodwill impairment charge, while adjusted operating expenses decreased to $6.0 million [6][9] Losses and Cash Flow - The operating loss for Q2 2025 was $6.6 million, compared to $4.4 million in Q2 2024, with an adjusted operating loss of $3.5 million [9][10] - The net loss was $6.6 million, or $0.58 per share, compared to a net loss of $4.3 million, or $0.50 per share, in the prior year [10][23] - As of June 30, 2025, Lifeward had $5.1 million in unrestricted cash and cash equivalents, with cash used in operations improving to $3.9 million from $5.6 million in Q2 2024 [11][26] Strategic Developments - Lifeward achieved FDA clearance for the ReWalk 7 in April 2025, with over 20 units installed and positive customer feedback [7] - The company expanded its U.S. payer base for the ReWalk Personal Exoskeleton, with a ruling affirming its medical necessity for Medicare beneficiaries [7] - Lifeward transitioned to in-house manufacturing of the ReWalk Personal Exoskeleton, enhancing cost savings and production flexibility [7][8] Future Guidance - Lifeward has reset its full-year 2025 guidance, targeting revenue between $24 million and $26 million and a non-GAAP net loss of $12 million to $14 million [12]

Core Insights - Lifeward Ltd. has appointed Almog Adar as the new Chief Financial Officer, succeeding his previous role as Vice President of Finance and Chief Accounting Officer [1][3] - The appointment is seen as a strategic move to support the company's growth and strengthen its financial foundation [2][3] Company Overview - Lifeward is a global leader in innovative medical technology aimed at transforming the lives of individuals with physical limitations or disabilities [1][6] - The company designs, develops, and commercializes solutions that provide functional and health benefits in both clinical and home settings [6] - Lifeward's product portfolio includes notable innovations such as the ReWalk Exoskeleton, AlterG Anti-Gravity system, MyoCycle FES System, and ReStore Exo-Suit [6] Leadership Background - Almog Adar joined Lifeward in 2020 and has held various senior roles, contributing to the company's financial strategy and operations [3][4] - Prior to Lifeward, Mr. Adar gained extensive experience in financial management at Infinya Recycling Ltd. and Delta Galil Industries, as well as auditing at Ernst & Young [4][5] - He holds a Bachelor of Arts degree in Accounting and Economics and is a Certified Public Accountant licensed in Israel [5] Strategic Vision - Mr. Adar expressed commitment to enhancing Lifeward's execution and accelerating growth through a disciplined strategy [3] - The company aims to leverage its strengths to create lasting value for patients, customers, and shareholders [3] Company History - Lifeward was founded in 2001 and operates in the United States, Israel, and Germany [7] - The company's mission focuses on relentless innovation to improve the lives of individuals with physical limitations or disabilities [6]

Core Viewpoint - Lifeward Ltd. is set to release its second quarter 2025 financial results on August 14, 2025, before market opening, highlighting its ongoing commitment to innovation in medical technology for individuals with physical limitations or disabilities [1]. Company Overview - Lifeward designs, develops, and commercializes solutions aimed at physical rehabilitation and recovery, with a mission to drive innovation that transforms the lives of individuals with disabilities [3]. - The company's product portfolio includes notable innovations such as the ReWalk Exoskeleton, AlterG Anti-Gravity system, MyoCycle FES System, and ReStore Exo-Suit, which provide functional and health benefits in both clinical and home settings [3]. Financial Communication - The financial results will be discussed in a conference call and live webcast hosted by the President and CEO, Mark Grant, along with the Vice President of Finance, Almog Adar, scheduled for 8:30 a.m. EDT on the same day [2]. - Access to the conference call will be available through various toll-free numbers for different regions, and a live webcast will be accessible via the company's website [2].

Core Viewpoint - Lifeward Ltd. has expanded its distribution partnership with SportsMed Products Ltd. to include the United Arab Emirates and the Gulf Cooperation Council region, enhancing the reach of its AlterG product lines [1][2]. Company Overview - Lifeward Ltd. is a global leader in innovative medical technology focused on transforming the lives of individuals with physical limitations or disabilities, with a mission to drive innovation in rehabilitation and recovery [3]. - The company offers a range of products including the ReWalk Exoskeleton, AlterG Anti-Gravity System, ReStore Exo-Suit, and MyoCycle FES System, and has operations in the United States, Israel, and Germany [3]. Partnership Details - The partnership with SportsMed Products Ltd. aims to leverage their established presence in the UK and Ireland, where they have sold over 300 AlterG devices since becoming the exclusive dealer in 2015 [2]. - SportsMed Performance Trading LLC, operating in the GCC, has launched a demo zone in Dubai for customers to experience the latest AlterG NEO+ system [2]. Market Expansion - The expansion into the UAE and GCC is seen as a critical step for Lifeward to enhance the global reach and success of its AlterG product lines [2].

Company Overview - MedRhythms, Inc. is pioneering next-generation neurotherapeutics aimed at improving walking, mobility, and related functional outcomes through a proprietary technology platform that integrates sensors, software, and music with advanced neuroscience [5] - The company has developed a pipeline of products targeting various neurological conditions, including stroke, multiple sclerosis, and Parkinson's disease [5] Leadership Transition - Larry Jasinski has been appointed as the new Chief Executive Officer, effective immediately, succeeding co-founder Brian Harris, who will transition to Chief Scientific Officer [1][3] - Jasinski brings over 30 years of executive leadership experience in the medical device and neurotechnology industries, including a successful IPO at Lifeward and national reimbursement for the first exoskeleton system for spinal cord injury [2] Strategic Growth Plans - The appointment of Jasinski is seen as a critical inflection point for MedRhythms, as the company prepares for national expansion of its home-use products, InTandem® for chronic stroke and Movive™ for Parkinson's disease, both of which are FDA-listed Class II devices [4] - The company aims to accelerate market adoption and build on its clinical foundation to reach more patients with chronic health and mobility conditions [4] Market Position and Vision - MedRhythms has established clinical data supporting the effectiveness of its products and operates in sizable market segments, having gained coverage from CMS and other entities [4] - The company is focused on transforming patients' lives and is positioned to become a valuable business entity in the neurorehabilitation space [4]

Core Viewpoint - Lifeward Ltd. has successfully closed a public offering of 4,000,000 ordinary shares and accompanying warrants, raising approximately $2.6 million in gross proceeds, which will be used for commercial efforts and working capital [1][3]. Group 1: Offering Details - The public offering price was set at $0.65 per ordinary share and associated ordinary warrant, with the warrants having an exercise price of $0.65 and expiring five years from the issuance date [1]. - H.C. Wainwright & Co. served as the exclusive placement agent for the offering [2]. - The potential additional gross proceeds from the exercise of the ordinary warrants, if fully exercised, could amount to another $2.6 million [3]. Group 2: Company Overview - Lifeward Ltd. is a leader in innovative medical technology aimed at transforming the lives of individuals with physical limitations or disabilities [1]. - The company offers a range of products including the ReWalk Exoskeleton, AlterG Anti-Gravity System, ReStore Exo-Suit, and MyoCycle FES System, focusing on rehabilitation and recovery [6]. - Founded in 2001, Lifeward operates in the United States, Israel, and Germany, with a mission to drive innovation in the field of physical rehabilitation [6].

Core Viewpoint - Lifeward Ltd. has announced a public offering of 4,000,000 ordinary shares and accompanying warrants at a price of $0.65 per share, aiming to raise approximately $2.6 million for commercial efforts and working capital [1][3]. Group 1: Offering Details - The public offering includes 4,000,000 ordinary shares and warrants to purchase an additional 4,000,000 shares at the same price of $0.65 [1]. - The ordinary warrants will be exercisable immediately and will expire five years from the issuance date [1]. - The expected gross proceeds from the offering are approximately $2.6 million before deducting fees and expenses [3]. Group 2: Use of Proceeds - The net proceeds from the offering will be used for continuing commercial efforts, working capital, and general corporate purposes [3]. Group 3: Regulatory Information - The offering is being conducted under a registration statement on Form S-1, which was declared effective by the SEC on June 25, 2025 [4]. - A preliminary prospectus has been filed with the SEC and is available on their website [4]. Group 4: Company Overview - Lifeward Ltd. specializes in innovative medical technology aimed at transforming the lives of individuals with physical limitations or disabilities [6]. - The company’s product portfolio includes the ReWalk Exoskeleton, AlterG Anti-Gravity System, ReStore Exo-Suit, and MyoCycle FES System [6]. - Founded in 2001, Lifeward operates in the United States, Israel, and Germany [6].

Core Viewpoint - The recent ruling by an Administrative Law Judge establishes that the ReWalk Exoskeleton is a "reasonable and necessary" medical device for enabling paralyzed individuals to walk, paving the way for Medicare coverage and potentially broader commercial insurance access [1][2]. Group 1: Legal and Regulatory Developments - The ALJ ruling supports an appeal by a Medicare beneficiary for coverage of the ReWalk Exoskeleton, affirming its medical necessity for individuals with spinal cord injuries [1]. - This ruling builds on a prior decision by the Centers for Medicare & Medicaid Services (CMS) in April 2024, which finalized a reimbursement pathway for personal exoskeletons [2]. Group 2: Company Innovations and Products - The ReWalk Exoskeleton is noted as the only personal exoskeleton that allows paralyzed individuals to navigate stairs and curbs, in addition to walking in everyday environments [2]. - The latest model, ReWalk 7, received FDA clearance in March 2025 and is now commercially available in the United States [2]. Group 3: Company Mission and Vision - Lifeward aims to transform the lives of individuals with physical limitations through innovative medical technology, focusing on expanding data and programs for the paralyzed community [2][3]. - The company is committed to delivering groundbreaking solutions that empower individuals to regain mobility and improve their quality of life [3].