Lifeward (LFWD) Q1 2026 earnings summary

Executive summary

• Completed the acquisition of Oratech, adding a protein oral delivery platform, oral insulin candidate, and $6.5 million in cash, and secured $10 million in convertible note financing.

• Acquired upper body exoskeleton technology for stroke rehabilitation, broadening the neurorehabilitation platform.

• ReWalk exoskeleton sales rose 11% year-over-year, supported by expanded distribution and insurance coverage, offsetting declines in AlterG sales due to supply chain constraints.

• Operating cash burn reduced by 33% year-over-year through improved efficiency and working capital management.

Financial highlights

• Q1 2026 revenue was $3.9 million, down 22% from $5.0 million in Q1 2025, mainly due to lower AlterG shipments from supply chain constraints.

• Gross margin declined to 34.2% from 42.2% year-over-year, impacted by lower production, higher tariffs, and FX effects.

• GAAP operating loss increased to $10.3 million, driven by a $4.9 million one-time non-cash R&D expense from the Oratech acquisition.

• Net loss widened to $10.8 million ($6.70/share) from $4.8 million ($5.53/share), mainly due to the Oratech R&D charge.

• Adjusted operating loss was $4.6 million, flat year-over-year, reflecting cost optimization.

• Cash used in operations declined 33% to $3.7 million year-over-year.

• Ended Q1 with $11.4 million in unrestricted cash and equivalents, up from $2.2 million at year-end 2025.

Outlook and guidance

• Revenue for 2026 expected to be similar to 2025, with catch-up growth in later quarters as supply chain issues resolve.

• Improved shipment execution for AlterG anticipated in Q2 and Q3 as backlog is addressed.

• Expects continued improvements in marketing and sales efficiency, with increased R&D investment to advance new products.

• Management expects ongoing operating losses and negative cash flows, with additional capital raises planned.