Executive Summary

Q1 revenue was $5.3M, up 340% YoY and at the midpoint of guidance; gross margin contracted to 26.4% on low AlterG volumes and mix, driving a $6.3M net loss and $(0.73) EPS .
Medicare is now a structural catalyst: CMS finalized a lump-sum brace benefit category and a final $91,032 payment level for ReWalk Personal; MACs have begun approving claims (14 approvals since the fee schedule was established) .
Management maintained FY24 revenue guidance of $28–$32M and guided Q2 revenue to improve sequentially on Medicare ramp and salesforce productivity post-integration .
Near-term stock catalysts: evidence of sustained MAC approvals and Q2 sequential revenue inflection; risks include AlterG volume normalization and margin absorption until volumes scale .

What Went Well and What Went Wrong

What Went Well

Medicare reimbursement unlocked access and demand: “finalized Medicare payment for ReWalk personal exoskeletons…signifies a significant expansion of access” (Larry Jasinski, CEO). MACs approved 14 claims since the fee schedule was established .
Strong YoY growth: Revenue rose to $5.3M (+340% YoY), with ReWalk-driven strength from Medicare coverage; ReWalk contribution $2.5M (+90% YoY), AlterG $2.8M .
Liquidity intact: $20.7M cash and equivalents; no debt; financial income of $0.23M in the quarter .

What Went Wrong

Gross margin compression: GAAP GM fell to 26.4% (46.4% LY) as AlterG’s low product volumes caused adverse absorption; non-GAAP GM 33.7% vs 46.2% LY .
Operating expense step-up: OpEx rose to $7.9M (from $4.9M) on AlterG headcount and added commercial resources, increasing operating loss to $6.5M (from $4.3M) .
Cash burn elevated: Operating cash outflow was $7.7M due to unfavorable gross margin and working capital timing .

Financial Results

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($M)	$4.403	$6.884	$5.283
Gross Margin % (GAAP)	19.6%	35.5%	26.4%
Operating Loss ($M)	$(7.942)	$(6.137)	$(6.502)
Net Loss ($M)	$(7.531)	$(5.639)	$(6.276)
Diluted EPS ($)	$(0.13)	$(0.13)	$(0.73)
Cash & Equivalents ($M)	$32.590	$28.083	$20.744

Note: EPS comparability is affected by a 1-for-7 reverse share split effective March 15, 2024; Q1 2024 reflects split-adjusted shares, while prior press releases may not be retroactively adjusted .

Non-GAAP margins (company-reported):

Metric	Q3 2023	Q4 2023	Q1 2024
Gross Margin % (Non-GAAP)	45.1%	47.0%	33.7%
Operating Loss ($M, Non-GAAP)	$(4.924)	$(3.794)	$(5.525)

Business contribution (company disclosures):

Revenue Contribution	Q3 2023	Q4 2023	Q1 2024
ReWalk business ($M)	$1.5	$2.2	$2.5
AlterG business ($M)	$2.9	$4.7	$2.8

Disaggregation (Q1 2024):

KPI	Q1 2024
Product Revenue ($M)	$3.739
Rental Revenue ($M)	$0.886
Service & Warranty Revenue ($M)	$0.658
U.S. Revenue ($M)	$3.747
Europe Revenue ($M)	$1.169
Asia-Pacific Revenue ($M)	$0.180
Rest of World Revenue ($M)	$0.187
Operating Cash Flow ($M)	$(7.673)

Drivers and mix:

Management attributed GM decline primarily to low AlterG volumes (absorption) and sales mix .
Q1 AlterG sales productivity was affected by integration/training of combined commercial teams; mgmt expects better productivity in Q2 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	$28–$32M (Feb 27)	$28–$32M (May 15)	Maintained
Non-GAAP Gross Margin	FY 2024	Expand to high-40%s	Not reiterated in Q1 PR	N/A
Non-GAAP OpEx	FY 2024	Decline vs Q4’23 run-rate	Not reiterated in Q1 PR	N/A
Non-GAAP Operating Loss	FY 2024	Low double-digit millions	Not reiterated in Q1 PR	N/A
Revenue Trajectory	Q1/Q2 2024	Q1: $5.0–$5.5M; sequential increases thereafter	Q2: sequential improvement expected	Maintained direction

Additional reimbursement update:

CMS finalized a $91,032 Medicare payment level for ReWalk Personal effective April 1, 2024; MACs have begun approving claims .

Earnings Call Themes & Trends

Note: A full Q1 2024 earnings call transcript was not available in our document set; themes below reflect prepared remarks, 8‑K and 10‑Q.

Topic	Previous Mentions (Q3’23 and Q4’23)	Current Period (Q1’24)	Trend
Medicare reimbursement (coverage, pricing)	Q3: CMS finalized benefit category; proposed rate; active claim submissions . Q4: Final rule effective Jan 1, 2024; rate pending; Q1 guide excluded Medicare .	Final payment level $91,032 effective Apr 1; MAC approvals started (14 claims) .	Positive inflection; execution phase.
AlterG integration & salesforce	Q3: AlterG acquired; integration underway . Q4: Integration complete; $3M annual net savings expected .	Q1 integration/training reduced sales capacity temporarily; productivity expected to improve in Q2 .	Near-term drag; improving into Q2.
Gross margin trajectory	Q3: GAAP GM 19.6% (non-GAAP 45.1%) with mix tailwinds . Q4: GAAP GM 35.5% (non-GAAP 47.0%) .	GAAP GM 26.4% (non-GAAP 33.7%); cited low AlterG volumes and mix .	Mixed; dependent on AlterG volume ramp.
Product portfolio & regulatory	Q3: FDA 510(k) for stairs/curbs on ReWalk Personal (U.S.) .	Continued focus on ReWalk Medicare access; AlterG installed base and rentals; portfolio breadth reiterated .	Strategic reinforcement.
Liquidity & cash burn	Q3: $32.6M cash; ops burn $7.4M in Q3 (incl. M&A costs) . Q4: $28.1M cash; ops burn $4.4M .	$20.7M cash; ops burn $7.7M; sufficient funds >12 months .	Manage burn; hinge on revenue scale/margin.

Management Commentary

“Lifeward has experienced a transformation of the market with the finalized Medicare payment for ReWalk personal exoskeletons… this signifies a significant expansion of access to the ReWalk technology for individuals with spinal cord injury” — Larry Jasinski, CEO .
“Medicare payment for personal exoskeletons is a significant validation… we intend to leverage our efforts to other payor groups to continue to expand access” — Larry Jasinski, CEO .
On Q2 outlook: company expects sequential revenue improvement driven by Medicare access and improving sales traction post-integration .

Q&A Highlights

A full Q1 2024 earnings call transcript was not available in our document library; the company’s 8‑K/10‑Q indicated Q2 revenue should improve sequentially and that integration-related sales capacity constraints in Q1 should abate in Q2 .
Webcast details were provided, but transcript content (including Q&A) was not accessible for citation .

Estimates Context

S&P Global (Capital IQ) consensus for Q1 2024 was unavailable via our estimates tool at the time of analysis; request returned mapping/limit errors. As a result, we cannot present a verified Street consensus comparison for revenue or EPS (S&P Global data unavailable).
Company guidance context: Q1 revenue printed $5.283M, within the previously guided $5.0–$5.5M range, and management maintained FY24 revenue of $28–$32M while pointing to Q2 sequential growth .

Key Takeaways for Investors

Medicare reimbursement is now de-risked: a finalized $91,032 payment level and early MAC approvals create a durable demand catalyst for ReWalk Personal; watch the cadence of approvals and conversions into revenue in Q2–Q4 .
Revenue mix is pivotal: AlterG unit volumes need to normalize to relieve absorption pressure; sustained rental and service growth can also stabilize margins; monitor non-GAAP GM progression through 2H .
Execution checkpoint in Q2: management signaled sequential revenue improvement as salesforce integration/training headwinds abate; this is a key validation for FY24 guidance credibility .
Cash runway adequate (>12 months), but burn remains elevated until margins and volumes scale; discipline on OpEx and working capital will be important in 2024 .
Valuation drivers: pace of Medicare adoption across payors, AlterG trajectory, non-GAAP margin recovery toward the “high-40%s” framework cited in February, and tangible evidence of operating leverage .
Risk factors: timing/consistency of MAC approvals, potential variability in ASPs/mix, integration synergies realization, and inventory/absorption until AlterG volumes scale .

Supporting References

Q1 2024 8‑K press release and financials: .
Q1 2024 10‑Q (details, disaggregation, Medicare update, subsequent events): .
Q4 2023 8‑K (trend analysis, guidance baseline): .
Q3 2023 8‑K (trend analysis): .

ReWalk Robotics Ltd. (RWLK)·Q1 2024 Earnings Summary