Lifeward (NASDAQ:LFWD) executives used the company’s fourth-quarter 2025 earnings call to outline a strategy that extends beyond its established neurorehabilitation business, while also acknowledging a softer revenue year driven by commercial and distributor transitions. President and CEO Mark Grant said the company is “executing against a strategy to build a leading diversified biomedical innovation company” with a focus on scaling through reimbursement progress, commercial execution, and product innovation.
Chief Financial Officer Almog Adar reviewed full-year financial results and liquidity, while management also discussed two recent strategic moves: a pending transaction with Oramed and an intellectual property and technology acquisition from Skelable.
Oramed partnership: capital access and an oral insulin program
Grant spent part of his prepared remarks discussing ORMD-0801, which he described as “an advanced clinical stage oral insulin candidate.” He said oral delivery through the gut sends insulin through the liver first, “mimicking the path of natural insulin for the pancreas,” which he said could translate into better regulation of liver glucose production and less circulating insulin, potentially reducing weight gain and hypoglycemia risk. He added that multiple studies have shown no increased risk of hypoglycemia compared with placebo.
Management said the “current plan is to move forward with the new U.S. study,” and emphasized that the funding structure is designed to allow Lifeward to remain focused on profitability and cash generation from its existing portfolio while maintaining exposure to what Grant called the upside of a “large-scale biotech opportunity.” In response to investor questions about commercial alignment, Grant said details would be clearer after closing, but characterized the move as a way to create synergies across med tech and biotech and to evolve toward more decentralized commercial models.
Skelable acquisition: upper-extremity orthotic platform
Grant also described the acquisition of intellectual property and technology from Skelable as “very capital efficient” and potentially “highly accretive” as it advances to market. The acquired technology supports development of a powered upper-extremity orthotic system with AI capabilities intended to assist functional movement for individuals with weakened or paralyzed arms and hands, particularly following stroke.
Grant said the device is intended to help patients perform activities of daily living while supporting therapeutic goals like muscle re-education and improved range of motion. He cited an estimate of 245,000 newly diagnosed stroke survivors annually in the U.S. and an additional 4.6 million stroke survivors who remain disabled.
Lifeward also plans to bring on Skelable’s engineering group, which Grant said has more than 60 years of combined experience across electrical, software, mechanical, and industrial design. He said the platform is complementary to Lifeward’s existing ReWalk ecosystem and that the company intends to leverage existing clinical relationships, distribution, and reimbursement channels when it commercializes.
On timing and regulatory path, Grant told an analyst the company believes it can bring the upper-extremity product to market in 18 to 24 months and said that, if it remains in the expected coding category, it would be a 510(k)-exempt product. He said Lifeward has not yet outlined an exact clinical study, but expects any work to be more oriented toward safety or bench testing, with low hurdles and without a large-number clinical bar.
Core neurorehab business: reimbursement gains, distribution expansion, and revenue headwinds
Despite progress in reimbursement and distribution, Grant said revenue for the quarter and full year came in lower than estimated, citing two primary drivers:
- U.S. commercial transition: Lifeward implemented a major change to sales and distribution infrastructure, shifting toward a hybrid model combining direct sales with external channel partnerships. Grant said partnerships take time to translate into revenue.
- AlterG distributor dynamic: AlterG sales were pressured by a year-over-year comparison after a distributor made a large inventory purchase in 2024 that did not repeat in 2025. Grant said the company expects purchasing to normalize in 2026 based on discussions with the distributor.
Grant said Lifeward’s commercial organization now operates across three focus areas: direct-to-patient efforts for individuals pursuing a personal ReWalk system through reimbursement; a capital equipment sales team focused on institutional customers for AlterG; and a dedicated reimbursement and payer engagement function supporting all payers and channels.
On reimbursement, Grant said Lifeward achieved coverage for ReWalk with the three largest Medicare Advantage insurers in the U.S.—Aetna, Humana, and UnitedHealthcare—representing more than 16 million covered lives. Internationally, he said the company is accelerating Europe efforts following receipt of the CE mark in September of the prior year, with Germany serving as a primary test market for reimbursement pathways and clinical adoption. He also cited expansion into Mexico, Thailand, and the United Arab Emirates through an agreement with Verita Neuro and a partner-led structure.
2025 financial results: lower revenue, higher gross margin, reduced losses
Adar reported full-year 2025 revenue of $22.0 million, down from $25.7 million in 2024. ReWalk Personal Exoskeleton revenue was $8.5 million versus $8.9 million, which Adar described as relatively flat. However, he said unit sales increased 22% year over year, reflecting growing adoption and reimbursement-driven demand.
Other revenue trends included a 50% decline in MyoCycle FES bike revenue to $0.6 million, which management attributed primarily to transitioning away from an exclusive distribution arrangement and focusing on core products. AlterG products and services revenue was $12.9 million, down 18% from 2024, primarily due to lower international sales and timing related to an international distributor that placed larger orders in the fourth quarter of 2024.
Adar said the company ended the year with a pipeline of more than 104 qualified ReWalk leads in process in the U.S. In Germany, Lifeward had 49 leads in process at year-end, including 22 active rentals that historically convert to sales within three to six months. For AlterG, the company ended the quarter with 26 systems in backlog.
Gross profit rose to $8.4 million, or 38.2% of revenue, compared with $8.2 million, or 32% of revenue, in 2024. On a non-GAAP basis, gross profit was $9.0 million (41% of revenue) versus $11.0 million (43% of revenue) in 2024; Adar said the adjusted gross margin decline reflected lower sales volume reducing fixed manufacturing overhead absorption, as well as higher tariffs and freight expenses.
Operating expenses fell 25% to $28.1 million from $37.6 million, driven primarily by differences in impairment charges year over year. Lifeward recorded a $2.8 million goodwill impairment charge in 2025, compared with a larger impairment charge in the fourth quarter of 2024 related to certain acquired intangible assets. On a non-GAAP basis, adjusted operating expenses declined 12% to $24.1 million, which Adar attributed to improved marketing and sales productivity, greater reimbursement efficiency, and lower R&D spending after completion of major development programs. He said the company expects marketing and sales efficiencies to continue into 2026, while planning to increase R&D investment to advance new products, including the upper-body exoskeleton platform.
Operating loss narrowed to $19.7 million from $29.3 million, and net loss narrowed to $19.9 million from $28.9 million. On a non-GAAP basis, operating loss was $15.1 million versus $16.6 million, and adjusted net loss was $15.3 million versus $16.2 million.
Liquidity and outlook: no guidance, focus on cash flow improvement
Adar said operating cash usage improved 23% to $16.8 million from $21.7 million, driven by better working capital management, including stronger receivables collections and lower inventory levels, partially offset by lower revenue relative to operating expenses.
As of December 31, 2025, Lifeward had $2.2 million in unrestricted cash and cash equivalents. Adar noted that during the fourth quarter the company entered into a $3 million loan agreement with Oramed. He added that upon closing the broader strategic transaction, Lifeward expects to receive $10 million in a convertible note financing from Oramed and another investor, as described in a January 13, 2026 press release.
Management said it is not providing guidance due to the company’s transformation and the pending close of the Oramed agreement. Grant said he is “cautiously optimistic” that growth in the core med tech business and continued operating expense improvements can help drive the company toward positive cash flow “in the near future,” while Lifeward continues investing in innovation across neurorehabilitation, robotics, and metabolic therapeutics.
About Lifeward (NASDAQ:LFWD)
ReWalk Robotics Ltd., a medical device company, designs, develops, and commercializes technologies that enable mobility and wellness in rehabilitation and daily life for individuals with physical and neurological conditions in the United States, Europe, the Asia-Pacific, and internationally. It offers ReWalk personal exoskeleton and rehabilitation exoskeleton devices; ReStore, a soft exo-suit intended for use in the rehabilitation of individuals with lower limb disability due to stroke; AlterG Anti-Gravity System for use in physical and neurological rehabilitation and athletic training; MyoCycle devices; and ReBoot, a personal soft exo-suit for home and community use by individuals post-stroke.
