Lifeward (LFWD) investor relations material

Executive summary

• Q2 2025 revenue was $5.7M, up 14% sequentially but down 15% year-over-year due to a prior one-time Medicare revenue recognition; over 20 ReWalk 7 units installed in the US since FDA clearance in March/April 2025.

• Achieved record quarterly ReWalk Medicare placements since the fee schedule was established in April 2024, with expanded U.S. payer base and a favorable Medicare ruling affirming medical necessity.

• Transitioned to in-house manufacturing, ending the Sanmina agreement, closing the Fremont facility, and improving operational efficiency and quality control.

• Appointed new CEO and CFO with deep industry and company experience to drive strategic change and growth.

• Improved quarterly cash burn to $3.9M, down from $5.6M in Q2 2024 and $5.5M in Q1 2025, due to operational efficiencies and cost reductions.

Financial highlights

• Q2 2025 revenue: $5.7M, down 15% year-over-year but up 14% sequentially; Q1 2025: $5.0M.

• Gross profit margin: 43.9% GAAP, up from 41.1% last year; adjusted gross margin 44% vs. 46.9% prior year.

• Net loss: $6.6M ($0.58/share) vs. $4.3M ($0.50/share) in Q2 2024; adjusted net loss: $3.5M ($0.31/share) vs. $3.6M ($0.42/share) year-over-year.

• Cash and equivalents: $5.1M as of June 30, 2025, with no debt.

• Operating cash burn improved to $3.9M in Q2 2025 from $5.6M in Q2 2024; net cash used in operations for H1 2025 was $9.4M, down from $13.3M prior year.

Outlook and guidance

• 2025 guidance: revenue of $24M–$26M and non-GAAP net loss of $12M–$14M; growth expected to be gradual with acceleration in the latter half of the strategic plan.

• Management expects continued operating losses and negative cash flows, with current cash projected to fund operations into Q4 2025; additional funding will be required.

• Focus on revenue and non-GAAP net loss as key performance indicators, with efficiency measures and cost controls expected to benefit results.