ReWalk(LFWD) - 2025 Q3 - Quarterly Results

Revenue Performance - Lifeward reported revenue of $6.2 million in Q3 2025, a slight increase of approximately 1% from $6.1 million in Q3 2024, and an 8% increase from $5.7 million in Q2 2025[5] - Revenue from traditional products, including ReWalk exoskeletons, increased by 24% year-over-year to $3.1 million, attributed to Medicare-related sales growth[5] - Revenue for Q3 2025 was $6,195 million, a slight increase from $6,128 million in Q3 2024, while total revenue for the nine months ended September 30, 2025, was $16,953 million, down from $18,118 million in the same period last year[23] Financial Losses and Improvements - Non-GAAP operating loss decreased to $3.0 million in Q3 2025, compared to a loss of $4.1 million in Q3 2024, representing a 27% improvement[7] - Operating loss for Q3 2025 was $(3,140) million, which is 50.7% of revenue, compared to $(3,174) million or 51.8% of revenue in Q3 2024[30] - Net loss for Q3 2025 was $(3,170) million, compared to $(3,084) million in Q3 2024, with a basic net loss per share of $(0.20) versus $(0.35) in the prior year[29] - Non-GAAP net loss for Q3 2025 was $(2,996) million, compared to $(3,960) million in Q3 2024, with a non-GAAP net loss per share of $(0.19) versus $(0.45) in the prior year[29] Cost Management and Efficiency - Quarterly cash burn improved to $3.8 million, down 16% year-over-year from $4.5 million in Q3 2024, reflecting operational efficiencies[4] - Operating expenses decreased to $5.7 million on a non-GAAP basis, down from $6.7 million in Q3 2024, reflecting improved efficiency in reimbursement activities[6] - Gross margin increased to 43.7% in Q3 2025, up from 36.2% in Q3 2024, driven by lower production costs following the closure of the Fremont facility[5] Cash Flow and Assets - Cash and cash equivalents at the end of Q3 2025 were $1,956 million, a decrease from $6,746 million at the end of December 2024[25] - Total assets as of September 30, 2025, were $23,168 million, down from $30,487 million at the end of December 2024[25] - The company reported net cash used in operating activities of $(13,271) million for the nine months ended September 30, 2025, compared to $(17,749) million in the same period of 2024[27] - The company experienced a decrease in cash, cash equivalents, and restricted cash of $(4,748) million for the nine months ended September 30, 2025, compared to $(17,778) million in the same period of 2024[27] Research and Development Expenses - Research and development expenses for Q3 2025 were $721 million, down from $998 million in Q3 2024, while sales and marketing expenses decreased to $3,168 million from $4,156 million[23] - GAAP research and development expenses for Q3 2025 were $721,000, representing 11.6% of revenue, compared to $998,000 (16.3%) in Q3 2024[31] - Non-GAAP research and development expenses for Q3 2025 were $689,000, or 11.1% of revenue, down from $960,000 (15.7%) in Q3 2024[31] General and Administrative Expenses - GAAP general and administrative expenses for Q3 2025 were $1,958,000, representing 31.6% of revenue, compared to $240,000 (3.9%) in Q3 2024[31] - Non-GAAP general and administrative expenses for Q3 2025 were $1,884,000, or 30.4% of revenue, compared to $2,024,000 (33.0%) in Q3 2024[31] - The company reported a significant increase in GAAP general and administrative expenses for the nine months ended September 30, 2025, totaling $5,917,000 (34.9%) compared to $3,424,000 (18.9%) in the same period of 2024[31] Strategic Initiatives - The company secured a $3.0 million loan from Oramed Ltd. to support ongoing operations and strategic initiatives[4] - Lifeward reaffirmed its full-year 2025 revenue guidance, expecting revenue in the range of $24 to $26 million and a projected non-GAAP net loss of $12 to $14 million[11] - The company received CE mark approval for the ReWalk 7 Personal Exoskeleton, enabling commercial sales in Europe, which currently accounts for approximately 40% of exoskeleton sales[4] Stock-Based Compensation - Stock-based compensation expenses for Q3 2025 were $74,000 (1.2%) compared to $158,000 (2.6%) in Q3 2024[31]