Executive Summary

Q4 2024 set a quarterly revenue record at $7.545M, up 10% year over year and 23% sequentially; GAAP gross margin compressed to 24.4% (non-GAAP 45.4%) due to restructuring charges and product mix .
Non-GAAP results showed improvement: adjusted operating loss narrowed to $3.3M vs $3.8M in Q4 2023; adjusted OpEx fell to $6.7M from $7.0M, reflecting cost actions .
2025 guidance targets $28–$30M revenue, 47–49% adjusted gross margin, non-GAAP OpEx of $22–$23M, and non-GAAP operating loss of $7–$9M; management aims to reach ~$(1)M adjusted operating loss by Q4 2025 through mix/efficiency and new partnerships (CorLife, MYOLYN) .
Strategic catalysts: expanding Medicare and workers’ compensation coverage for ReWalk, MYOLYN home-use distribution (80% of FES market), AlterG international demand, and expected FDA clearance for ReWalk 7.0 in 1H 2025 .
Audit issued a going concern qualification; company raised $5.0M in January and is establishing an ATM facility while executing a sustainable growth plan to reduce cash burn and loss trajectory—key stock narrative drivers near term .

What Went Well and What Went Wrong

What Went Well

Record quarterly revenue with strong AlterG contribution ($5.5M), supported by robust international demand; non-GAAP operating loss improved vs prior year .
Pipeline strengthening: >110 qualified U.S. ReWalk cases, 44 in Germany; 27 active rentals (24 Germany, 3 U.S. VHA) that typically convert in 3–6 months .
Cost actions: adjusted OpEx reduced to $6.7M (vs $7.0M YoY) and a plan to reach ~$(1)M adjusted operating loss by Q4 2025; management emphasized “balanced growth and spending discipline” .
Quote: “We are focused on achieving balanced growth while strategically working towards profitability…implementing cost‑efficient measures…drive sustainable success” — CEO Larry Jasinski .
Quote: “By the fourth quarter of 2025, Lifeward anticipates…adjusted operating loss of approximately $1 million” — CFO Mike Lawless .
Quote: “CoreLife…processes these very efficiently…30–45 day payer…a much larger conduit into workers’ compensation” — CEO Larry Jasinski .

What Went Wrong

ReWalk system sales underperformed expectations due to scheduling/training delays and seasonal attrition in Q4; product mix (higher international AlterG) weighed on adjusted gross margin vs expectations .
GAAP results were impacted by a $9.8M impairment charge on intangibles and restructuring, compressing GAAP margins and inflating GAAP OpEx .
Medicare payment cycle remains longer than anticipated, delaying cash collections; auditors issued a going concern qualification, elevating financing sensitivity .
Data point: GAAP gross margin fell to 24.4% (vs 35.5% YoY); adjusted gross margin 45.4% (vs 46.9% YoY), reflecting mix and restructuring .
Data point: Q4 GAAP OpEx surged to $17.1M (vs $8.6M YoY) primarily on impairment; cash used in operations was $4.0M in Q4 .
Analyst concern: Q&A focused on sustainability, cash burn, and timing of Medicare/secondary payments; management highlighted ATM contingency and working capital benefits from contract manufacturing transition .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($USD Millions)	$6.884	$6.128	$7.545
GAAP Gross Margin (%)	35.5%	36.2%	24.4%
Non-GAAP Gross Margin (%)	46.9%	42.5%	45.4%
GAAP Operating Loss ($USD Millions)	$(6.137)	$(3.174)	$(15.228)
Adjusted Operating Loss ($USD Millions)	$(3.796)	$(4.050)	$(3.282)
GAAP Net Loss ($USD Millions)	$(5.639)	$(3.084)	$(15.278)
GAAP Net Loss per Share ($)	$(0.66)	$(0.35)	$(1.73)
Non-GAAP Net Loss per Share ($)	$(0.38)	$(0.45)	$(0.38)
Cash & Equivalents ($USD Millions)	$28.083 (12/31/2023)	$10.653 (9/30/2024)	$6.746 (12/31/2024)

Segment/Product Mix (Quarter):

Segment Revenue ($USD Millions)	Q4 2023	Q4 2024
AlterG Products & Services	$4.7 (implied: $6.9–$2.2)	$5.5
ReWalk, MyoCycle, ReStore	$2.1 (implied: $6.9–$4.8)	$2.0

Revenue by Region (Q4):

Region ($USD Millions)	Q4 2023	Q4 2024
United States	$3.338	$3.371
Europe	$2.843	$3.650
Asia-Pacific	$0.264	$0.281
Rest of World	$0.439	$0.243
Total	$6.884	$7.545

KPIs and Operating Indicators:

KPI	Q3 2024	Q4 2024
U.S. ReWalk Cases in Process (Qualified Leads)	~70	>110
Germany Cases in Process	45	44
Active ReWalk Rentals (Total)	25 (23 DE, 2 U.S.)	27 (24 DE, 3 U.S. VHA)
AlterG Systems Backlog	74	25 (seasonal decline)

Notes:

GAAP results include impairment charge ($9.794M) and restructuring ($1.260M) in Q4 2024 .
Cash used in operations in Q4 2024: $(4.0)M; no debt; $5.0M capital raised Jan 8, 2025 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	FY 2024	$25–$26 (revised Nov 12, 2024)	Actual: $25.663	Met high end
Revenue ($USD Millions)	FY 2025	N/A	$28–$30	New
Adjusted Gross Margin (%)	FY 2025	N/A	47–49%	New
Non-GAAP Operating Expenses ($USD Millions)	FY 2025	N/A	$22–$23	New
Non-GAAP Operating Loss ($USD Millions)	FY 2025	N/A	$(7)–$(9)	New
Quarterly Revenue Cadence	2025	N/A	Q1 2025 lowest; sequential growth thereafter	New
Adjusted Operating Loss ($USD Millions)	Q4 2025	N/A	~$(1)	New
AlterG Revenue Growth	Q1 2025	N/A	~+20% YoY Q1	New

Earnings Call Themes & Trends

Topic	Q2 2024 (Q-2)	Q3 2024 (Q-1)	Q4 2024 (Current)	Trend
Medicare reimbursement cycle	N/A (transcript unavailable due to database)	~150-day average cycle; working to shorten; backlog AR	Cycle still long; learning curve at MACs; secondary payments depend on Medicare completion	Stabilizing, gradual improvement expected
Workers’ comp expansion (CorLife)	N/A	Not highlighted	Exclusive CorLife partnership; 30–45 day payer; efficient processing	New avenue, accelerates W.C. penetration
MYOLYN/Myocycle home-use distribution	N/A	Not highlighted	Expanded agreement; home-use 80% of FES market; margin benefits	Expansion, higher-margin growth
AlterG NEO adoption & demand	N/A	~40 NEO orders; backlog strengthening; recovery expected	Strong Q4 international demand; Q1 2025 +20% YoY target	Improving
Cost structure and facility consolidation	N/A	Closed two facilities; OpEx down; breakeven path $12–$13M/qtr	Sustainable growth plan; adjusted OpEx path to $22–$23M FY25	Acceleration in cost discipline
FDA ReWalk 7.0 timing	N/A	Anticipated early 2025 clearance; usability studies completed	Submission complete; targeting 1H 2025 clearance	On track
Capital/going concern	N/A	Cash burn sensitivity; cash $10.7M	Going concern qualification; $5M raised; planning ATM facility	Risk mitigants in place

Management Commentary

“We continue to build a robust pipeline of ReWalk cases…We are focused on achieving balanced growth while strategically working towards profitability.” — CEO Larry Jasinski .
“By the fourth quarter of 2025…adjusted operating loss of approximately $1 million.” — CFO Mike Lawless .
“The CorLife program…gives us…a much larger conduit into workers’ compensation…a 30–45 day payer.” — CEO Larry Jasinski .
“The home market is 4x the size of the facility-based market…This gives us…greater penetration of the overall FES bike market.” — CFO Mike Lawless (MyoCycle) .
“GAAP operating expenses…driven by a $9.8M impairment…triggered by market value of our equity compared to our book value…noncash in nature.” — CFO Mike Lawless .
“We finished the year with adjusted gross margin slightly below our expectations, primarily due to…higher mix of international AlterG sales.” — CFO Mike Lawless .

Q&A Highlights

Guidance balance and mix: Growth across ReWalk/AlterG/MyoCycle with emphasis on segments that pay faster and consume fewer resources; MyoCycle to grow the fastest on a percentage basis under expanded distribution .
CorLife impact: Expanded access to workers’ comp, efficient processing, shorter cash cycle; favorable economics over product life .
ReWalk attrition/seasonality: Q4 deliveries impacted by holiday scheduling and patient deferrals; management anticipates seasonality in fourth quarter .
Medicare processing/secondary payers: Documentation-intensive claims with MAC learning curve; secondary (supplemental) payments contingent on Medicare completion .
Capital and going concern: $5M raise in Jan; exploring ATM facility and non/minimally dilutive alternatives; contract manufacturing expected to reduce inventory working capital needs in 2025 .

Estimates Context

Wall Street consensus from S&P Global was unavailable at the time of request due to API daily limit constraints; as a result, we cannot quantify beats/misses vs consensus for Q4 2024 or prior quarters. Values retrieved from S&P Global would normally be presented here; unavailable at time of query.
Implication: With revenue at $7.545M and adjusted metrics improving, sell-side models may need to reflect stronger AlterG international demand, sustainable OpEx reductions, and cadence of ReWalk conversions given Medicare cycle times .

Key Takeaways for Investors

Mix and margin: AlterG strength and MYOLYN home-use expansion support higher-margin growth; watch product mix (international AlterG) given Q4 adjusted GM slightly below expectations .
Coverage-driven scaling: Medicare, VA, and workers’ comp channels expanding; >110 U.S. qualified leads and 27 active rentals indicate conversion potential in 2025 .
Loss trajectory: Non-GAAP OpEx reductions and operating efficiencies underpin a glidepath to ~$(1)M adjusted operating loss in Q4 2025—monitor quarterly progress vs plan .
Liquidity and risk: Going concern qualification elevates financing sensitivity; $5M raise and planned ATM facility provide flexibility; contract manufacturing should ease inventory cash needs .
Regulatory catalyst: ReWalk 7.0 expected clearance in 1H 2025—potential commercial inflection for exoskeleton placements .
Operational focus: Management prioritizes faster-pay segments (workers’ comp) and disciplined spend; expect sequential revenue growth post Q1 seasonally weakest quarter .
Narrative movers: Execution on CorLife/MYOLYN partnerships, Medicare cycle-time shortening, and AlterG national accounts/NEO ramp likely to drive sentiment and stock reaction .

Appendix: Non-GAAP Adjustments (Q4 2024)

Impairment: $9.794M; Restructuring: $1.260M; Amortization of intangibles: $0.842M; Stock-based comp: $0.234M; Earnout remeasurement: $(0.184)M .
Adjusted gross profit: $3.430M (45.4% margin) vs GAAP $1.844M (24.4% margin) .
Adjusted operating loss: $(3.282)M vs GAAP $(15.228)M .

All data and quotes sourced from Lifeward Q4 2024 8-K press release and earnings call materials – – –, and Q3 2024 filings/transcript for prior-quarter comparisons – –.

Lifeward Ltd. (LFWD)·Q4 2024 Earnings Summary