Lifeward Ltd., (Nasdaq: LFWD), a global leader in innovative medical technology to transform the lives of people with physical limitations or disabilities, today announced its financial results for the three months and full year ended December 31, 2024.
Recent Highlights and Accomplishments for Lifeward
- Strong conclusion to 2024 with Lifeward annual revenue of $25.7 million, up 85% from 2023.
- ReWalk Personal Exoskeleton sales up 130% in 2024 fueled by recently established Medicare coverage.
- Launch of Lifeward 2025 Sustainable Growth Plan which balances investments to drive revenue growth with aggressive expense reduction to significantly reduce the non-GAAP operating loss in 2025.
- New partnership with CorLife, a healthcare services provider and benefits coordinator, to exclusively distribute the ReWalk Personal Exoskeleton for individuals with workers’ compensation claims expected to achieve greater growth and penetration into the workers’ compensation market for exoskeletons.
- Expanded partnership with MYOLYN to broaden Lifeward’s distribution rights of the MyoCycle FES Cycling Therapy System to include referral sales for home use applications, the largest market segment for functional electrical stimulation (“FES”) cycles.
- Completion of previously announced actions to further streamline the Company’s U.S. operations, including the closure of two U.S. facilities and reducing overall headcount by a cumulative 35% since the AlterG acquisition.
- Completion of a registered direct offering priced at $2.75 per share for gross proceeds of approximately $5.0 million to fund continuing commercial efforts, working capital, and general corporate purposes.
“This past year, we made significant strides in sales driven by the major milestone of achieving Medicare coverage of the ReWalk exoskeleton and we expect private insurance to follow,” said Larry Jasinski, Chief Executive Officer. “We continue to build a robust pipeline of ReWalk cases, which we believe will drive sustained growth in the coming quarters. We are focused on achieving balanced growth while strategically working towards profitability. We are fully committed to implementing cost-efficient measures that not only enhance our operational effectiveness but also drive sustainable success. We are confident that these efforts will empower us to build a stronger foundation for the future of Lifeward.”
Revenue was $7.5million in the fourth quarter of 2024, compared to $6.9million during the fourth quarter of 2023, up $0.6 million, or 10%. Revenue related to the sale of ReWalk exoskeletons, MyoCycles, and ReStore Exo-Suits was $2.0million, down $0.1 million, or 6% compared to the prior year. This performance was primarily driven by a shortfall in ReWalk system sales due to scheduling challenges and delays for initial training sessions at local clinics. Revenue from the sale of AlterG products and services was $5.5 million, a $0.8 million, or 17%, increase from the fourth quarter of 2023. The growth in AlterG resulted from strong demand from international customers.
Gross margin was 24.4% during the fourth quarter of 2024, compared to 35.5% in the fourth quarter of 2023, with the restructuring charge explained below as the primary cause of the variance. On a non-GAAP basis, which excludes the items listed in the attached non-GAAP reconciliation table, adjusted gross margin was 45.4% in the fourth quarter of 2024, compared to 46.9% in the fourth quarter of 2023. This decline was primarily attributable to the mix of products sold in the quarter.
Total operating expenses in the fourth quarter of 2024 were $17.1 million, compared to $8.6 million in the fourth quarter of 2023, with the impairment charge explained below as the primary cause of the variance. On a non-GAAP basis, which excludes the items listed in the attached non-GAAP reconciliation table, adjusted operating expenses were $6.7 million in the fourth quarter of 2024, compared to $7.0 million in the fourth quarter of 2023. This decline is primarily due to reduced marketing, general and administrative expenses resulting from prior expense reduction actions.
Operating loss in the fourth quarter of 2024 was $15.2 million, compared to $6.1 million in the fourth quarter of 2023. On a non-GAAP basis, which excludes the items in the non-GAAP reconciliation table below, adjusted operating loss was $3.3 million in the fourth quarter of 2024, compared to a loss of $3.8 million in the fourth quarter of 2023.
Net loss was $15.3 million, or $1.73 per share, for the fourth quarter of 2024, compared to a net loss of $5.6 million, or $0.66 per share, in the fourth quarter of 2023. On a non-GAAP basis, which excludes the items in the attached non-GAAP reconciliation table, adjusted net loss was $3.3 million, or $0.38 per share, in the fourth quarter of 2024, compared to $3.3 million, or $0.38 per share, during the fourth quarter of 2023.
Liquidity
As of December 31, 2024, Lifeward had $6.7 million in unrestricted cash and cash equivalents on its balance sheet with no debt. During the fourth quarter of 2024, cash used in operations was $4.0 million. On January 8, 2025, Lifeward completed a registered direct offering of common shares which raised gross proceeds of approximately $5.0 million to add to its cash position.
2025 Financial Guidance
For 2025, Lifeward expects full year revenue in the range of $28 million to $30 million, with adjusted gross margins between 47% and 49%. As a result of the recent actions by the Company to streamline its operations, Lifeward expects non-GAAP operating expenses of between $22 million to $23 million, which results in anon-GAAP operating loss of $7 million to $9 million.
On a quarterly basis, Lifeward expects revenue in the first quarter of 2025 to be the lowest of the year due to seasonal trends, followed by sequential revenue growth through the rest of 2025.The full benefits of operating expense reductions are expected to phase in throughout the second half of 2025. As a result of the progress of these factors, Lifeward anticipates a quarterly adjusted operating loss of approximately $1 million by the fourth quarter of 2025.