Financial Data and Key Metrics Changes - Lifeward reported revenue of $6.2 million in Q3 2025, a slight increase of approximately 1.1% from $6.1 million in Q3 2024, and an 8% increase from $5.7 million in Q2 2025 [6][7] - GAAP gross profit for Q3 2025 was $2.7 million, or 43.7% of revenue, compared to $2.2 million, or 36.2% of revenue in Q3 2024, driven by lower production costs [9][10] - GAAP operating loss for Q3 2025 was $3.1 million, a slight improvement from $3.2 million in Q3 2024, while non-GAAP operating loss was $3 million compared to $4.1 million in the same period last year [11][12] Business Line Data and Key Metrics Changes - Revenue from traditional products, including ReWalk, MyoCycle, and ReStore, totaled $3.1 million in Q3 2025, up 24% from $2.5 million in Q3 2024, driven by increased Medicare-related sales [8] - Revenue from AlterG products decreased to $3.1 million in Q3 2025 from $3.6 million in Q3 2024, primarily due to timing factors [8] Market Data and Key Metrics Changes - Lifeward expanded patient access with the first Medicare Advantage commercial revenue for the ReWalk 7 personal exoskeleton and received CE mark approval, enhancing access to the European market, which represents about 40% of the global addressable exoskeleton opportunity [4][12] - The company closed the quarter with a pipeline of over 117 qualified leads for ReWalk in the U.S. and 49 leads in Germany, including 33 active rentals [8] Company Strategy and Development Direction - The company is focused on rebuilding fundamentals, defining strategic direction, and improving operational discipline, with a commitment to creating durable long-term value [3][5] - Lifeward is exploring global expansion opportunities and strategic partnerships to enhance financial position and market access [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and the potential for growth, emphasizing the importance of operational efficiencies and a focused sales approach [5][12] - The company reaffirmed its full-year 2025 guidance, expecting revenue in the range of $24-$26 million and a projected non-GAAP net loss of $12-$14 million [12] Other Important Information - Lifeward completed a $3 million loan agreement with AuraMed to enhance liquidity and support the transformation plan [4][12] - The company ended Q3 2025 with $2 million in cash and cash equivalents and no debt, indicating a stable financial position [11][12] Q&A Session Summary Question: Breakdown of rental systems for ReWalk - Lifeward confirmed that there are 33 active rentals, all in Germany [17] Question: Impact of collaboration with CoreLife - Management noted that the partnership with CoreLife is progressing well, with a growing pipeline and learning from training processes [19] Question: Percentage of revenue from Medicare - Medicare accounts for approximately 50% of total revenue, specifically for ReWalk products [21][24] Question: Revenue contribution from ReWalk within traditional product sales - Revenue from ReWalk products is approximately $2.9 million within the $3.1 million of traditional product sales [25] Question: Changes needed for AlterG to stabilize - Management indicated a need for a dedicated sales team for AlterG to regain focus and improve sales performance [38] Question: Introduction of ReWalk 7 in Germany - The company has a solid pipeline with 33 active rentals that are expected to convert to sales within three to six months [39] Question: Comfort level regarding financial stability - Management expressed optimism about the turnaround potential and the strength of the product portfolio, indicating a positive outlook for overcoming financial challenges [42]

Core Insights - Lifeward is transitioning from technology validation to commercial growth with the appointment of Mark Grant as CEO, effective June 2, 2025, marking a critical phase for the company [1][2] - The rehabilitation technology industry is experiencing a strategic return, with Lifeward's ReWalk system gaining Medicare coverage and commercial insurance support, indicating a growing demand and willingness to pay [5][9] Company Developments - Mark Grant has over 30 years of experience in the medical technology field, focusing on commercialization and channel development, previously holding executive roles at Medtronic and IMRA Surgical [3][4] - Under Grant's leadership, Lifeward aims to significantly reduce non-GAAP operating losses in 2025 through revenue growth and cost optimization, with projected revenue growth from $25.7 million in 2024 to a range of $28 million to $30 million in 2025 [11][12] Product Portfolio - Lifeward's core products include ReWalk, AlterG, MyoCycle, and ReStore, addressing neurological rehabilitation, orthopedic recovery, and home training, covering the entire rehabilitation pathway from hospital to community [10][13] - The ReWalk system has received FDA approval and Medicare coverage, with a new generation, ReWalk 7, set to launch in 2025, showcasing significant sales growth and international market expansion [16][18] Market Positioning - The rehabilitation technology market is witnessing a second value discovery phase, with Lifeward positioned to capitalize on this trend due to its established product structure and initial market mechanisms [12] - Lifeward's products are designed for various medical conditions, including spinal cord injuries, brain injuries, strokes, and orthopedic/sports medicine, enhancing customer lifetime value and repeat purchase potential [10][9]