Lifeward (LFWD -10.95%), a developer of mobility and rehabilitation medical devices, released its second quarter 2025 earnings results on August 14, 2025. The company reported non-GAAP earnings per share of ($0.31), missing expectations of ($0.29), with revenue (GAAP) at $5.7 million, below the anticipated $6.69 million and the prior-year figure of $6.7 million. The revenue decline reflects the absence of $0.7 million in one-time Medicare-related catch-up revenue present in Q2 2024. Lifeward’s gross margin (non-GAAP) was 44.0%, slightly below last year’s 46.9%. Operating and net losses narrowed modestly, driven by cost controls, but the company remains significantly loss-making. Overall, the quarter showed operational improvements, particularly in pipeline expansion and regulatory progress, but persistent non-GAAP losses and the GAAP revenue miss weighed on results. Management revised full-year 2025 guidance to $24–$26 million in revenue and a non-GAAP net loss of $12–$14 million.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | ($0.31) | ($0.29) | ($0.42) | N/A |
| Revenue (GAAP) | $5.7 million | $6.69 million | $6.7 million | (15%) |
| Gross Margin (Non-GAAP) | 44.0% | 46.9% | (2.9 pp) | |
| Operating Loss (Non-GAAP) | ($3.5 million) | ($3.7 million) | N/A | |
| Net Loss (Non-GAAP) | ($3.5 million) | ($3.6 million) | N/A |
Source: Lifeward. Note: Analyst estimates provided by FactSet.
Business overview and strategic focus
Lifeward develops, manufactures, and markets medical devices aimed at improving mobility for people with physical disabilities, particularly those with spinal cord injuries or neurological conditions. Its product lineup includes the ReWalk Personal Exoskeleton, a wearable robotic device that allows those with lower-limb disabilities to walk, the MyoCycle Therapy System for functional electrical stimulation (FES) cycling, and the AlterG Anti-Gravity system, which is used in rehabilitation to reduce effective body weight during walking or running.
The company’s recent strategic focus areas include gaining regulatory clearances for new technologies, expanding reimbursement pathways in the U.S. and Europe, driving product innovation, forming strategic partnerships, and broadening market presence. Key success factors revolve around securing regulatory approvals, establishing favorable insurance reimbursement, growing the pipeline of qualified sales leads, and controlling operating expenses to improve cash flow. Lifeward’s growth also depends on the successful integration of acquisitions and strategic relationships with healthcare institutions and payers.
Quarterly performance and operational updates
During the quarter, Lifeward received clearance from the U.S. Food & Drug Administration (FDA) and launched the ReWalk 7, its latest generation personal exoskeleton. The company shipped over 20 ReWalk 7 units since the April 2025 launch, and management cited positive customer feedback. These early shipments mark progress in product development and market validation, although the installed base remains modest relative to Lifeward’s total opportunity in the market.
Reimbursement advancements played a significant role in period developments. Lifeward achieved a record number of ReWalk units placed for Medicare beneficiaries since the establishment of a fee schedule in April 2024. A notable legal decision affirmed that the ReWalk Personal Exoskeleton is considered "reasonable and necessary" for a Medicare beneficiary, supporting the company’s case for broader insurance coverage. The partnership with CorLife, which specializes in workers’ compensation claims, resulted in the first successful workers’ compensation claim for a ReWalk installation. The pipeline of qualified U.S. leads increased, with more than 130 cases in process, marking the third straight quarter of pipeline growth.
Lifeward continued to innovate with its product lineup. It completed a transition to in-house manufacturing for the ReWalk Personal Exoskeleton, which is expected to bring cost savings and improved quality control over time. The company has expanded its partnership with MYOLYN to distribute the MyoCycle FES Cycling Therapy System, targeting growth in home-use applications. The launch and early commercial acceptance of ReWalk 7, along with improved processes and new channel partnerships, have the potential to support future margin and revenue growth, though benefits may take time to materialize.
Segment performance revealed mixed results by geography and product. U.S. revenue remained the largest at $3.06 million (GAAP), followed by Europe at $2.10 million (GAAP) and the rest of world at $0.44 million (GAAP). Traditional products (ReWalk exoskeletons, MyoCycle, and ReStore) generated $2.5 million in revenue, down 19%, though when adjusted for last year’s Medicare-related catch-up revenue, management reported year-over-year growth. The AlterG segment posted $3.2 million in GAAP revenue, down 11% as delivery timing to international distributors shifted sales into future periods. Gross margin, which measures how much of each dollar of sales is retained after paying for manufacturing costs, stood at 44.0% on a non-GAAP basis, reflecting a year-over-year decrease in non-GAAP profitability due to the absence of one-time revenue.
A one-time $2.8 million goodwill impairment related to a share price decline was recorded in operating expenses. Excluding this, non-GAAP operating expenses dropped to $6.0 million from $6.9 million the previous year. Cash burn improved, declining to $3.9 million, compared to $5.6 million for Q2 2024, driven in part by operational efficiencies and cost reductions following facility consolidations and streamlined production. At the end of Q2 2025, Lifeward held $5.1 million in cash and equivalents with no debt. The company remains substantially loss-making, reporting a GAAP net loss of $6.6 million. There was significant improvement in cash usage, but the path to profitability at current scale remains unresolved.
Looking ahead: Guidance and considerations
Lifeward updated its financial guidance for fiscal 2025, lowering expected revenue to $24–$26 million from the earlier projection of $28–$30 million. It now expects a non-GAAP net loss of $12–$14 million for full-year 2025, emphasizing the need for ongoing focus on efficient execution and commercial momentum.
Investors should monitor the pace of pipeline conversion, continued expansion of reimbursement channels, and the impact of operational efficiency initiatives on cash flow and margin trends. Lifeward remains in a transitional phase, with new leadership in place and a reshaped operating model. No dividend is expected in the near future as losses persist and the company allocates resources toward growth and operational improvements.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
