8-K: Lifeward Secures $3M Loan, Reports Q3 Revenue Growth

Lifeward Ltd. announced third-quarter 2025 financial results, including a 1% revenue increase and reduced cash burn, alongside securing a $3.0 million secured promissory note from Oramed Ltd.

Summary

• Lifeward Ltd. entered into a Secured Promissory Note with Oramed Ltd. on November 14, 2025, for a principal amount of $3.0 million, accruing interest at 15% per annum and maturing on May 14, 2026.
• The loan is secured by a lien on the company's cash and is convertible into ordinary shares at $0.45 per share, subject to a 4.99% beneficial ownership limitation.
• Revenue for the third quarter of 2025 was $6.2 million, a 1% increase compared to $6.1 million in Q3 2024, and an 8% increase from Q2 2025.
• Revenue from traditional products (ReWalk, MyoCycle) increased by 24% year-over-year to $3.1 million, driven by Medicare-related sales.
• Revenue from AlterG products decreased by 15% year-over-year to $3.1 million, primarily due to timing factors and quarterly revenue mix sales.
• GAAP gross margin improved to 43.7% in Q3 2025 from 36.2% in Q3 2024, with non-GAAP adjusted gross margin at 43.7% (up from 42.5%), primarily due to lower production costs after the Fremont facility closure in December 2024.
• Non-GAAP operating loss decreased by 27% year-over-year to $3.0 million in Q3 2025, compared to $4.1 million in Q3 2024.
• Net loss for Q3 2025 was $3.2 million, or $0.20 per share (GAAP), and $3.0 million, or $0.19 per share (non-GAAP).
• Cash used in operations decreased by 16% year-over-year to $3.8 million in Q3 2025, compared to $4.5 million in Q3 2024.
• The company had $2.0 million in unrestricted cash and cash equivalents as of September 30, 2025, with no debt prior to the Oramed loan.
• Lifeward reaffirmed its full-year 2025 guidance, expecting revenue in the range of $24 to $26 million and a non-GAAP net loss in the range of $12 to $14 million.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. While the company continues to report losses, it demonstrates significant operational improvements, including reduced cash burn and operating loss, and improved gross margin. Strategic wins like record Medicare placements, Medicare Advantage coverage, and CE Mark approval for a key product indicate strong commercial execution and market access expansion. The new $3.0 million loan provides crucial liquidity, although it comes with a high interest rate and potential dilution. The reaffirmation of guidance suggests stability and confidence in the ongoing transformation.

Positives

• Achieved a record quarter for ReWalk systems placed for Medicare beneficiaries since the fee schedule was established in April 2024.
• Improved quarterly cash burn by 16% year-over-year, reducing it to $3.8 million from $4.5 million in Q3 2024.
• Decreased quarterly Non-GAAP operating loss by 27% year-over-year, from $4.1 million in Q3 2024 to $3.0 million in Q3 2025.
• Secured a $3.0 million loan agreement with Oramed Ltd., providing additional capital support and strengthening liquidity.
• Received the first commercial revenue under a Medicare Advantage plan coverage for a ReWalk 7 Personal Exoskeleton, indicating expanding market access.
• Obtained CE Mark approval for the ReWalk 7 Personal Exoskeleton, enabling commercial sales in Europe, which represents approximately 40% of the company's exoskeleton sales.
• GAAP gross margin significantly improved to 43.7% in Q3 2025 from 36.2% in Q3 2024, driven by lower production costs following facility consolidation.

Negatives

• Overall revenue growth was modest at 1% year-over-year for Q3 2025.
• Revenue from AlterG products and services decreased by 15% year-over-year to $3.1 million in Q3 2025.
• The company continues to operate at a net loss, reporting $3.2 million (GAAP) and $3.0 million (non-GAAP) for Q3 2025.
• Unrestricted cash and cash equivalents were low at $2.0 million as of September 30, 2025, prior to the new loan.
• The new secured promissory note carries a high interest rate of 15% per annum and includes potential dilution through conversion into ordinary shares.

Risks

• Uncertainties associated with the acceptance of the ReWalk 7 Personal Exoskeleton by healthcare professionals and patients.
• Risks related to future clinical trials, the clinical development process, product development, and FDA regulatory submission review and approval.
• The company's ability to have sufficient funds to meet future capital requirements, which could impair efforts to develop and commercialize products.
• Challenges in maintaining and growing its reputation and market acceptance of its products.
• Difficulties in achieving reimbursement from third-party payors, including CMS, for its products.
• Risks associated with the company's limited operating history and its ability to leverage its sales, marketing, and training infrastructure.
• Uncertainties regarding the company's clinical research program and clinical results.
• The company's ability to continue to operate as a going concern.
• Dependence on third-party suppliers for certain components and continued access to product manufacturers.
• Potential difficulties associated with moving production of AlterG Anti-Gravity Systems to a contract manufacturer and transitioning ReWalk product manufacturing in-house.
• Compliance with medical device reporting regulations and the potential impact of adverse events on product marketing and sales.
• Challenges in gaining and maintaining regulatory approvals.
• Risks related to maintaining adequate protection of intellectual property and avoiding infringement of others' intellectual property rights.
• The risk of a cybersecurity attack or breach of the company's IT systems significantly disrupting business operations.
• The company's ability to effectively use the proceeds of its offerings of securities.

Future Outlook

Lifeward reaffirmed its full-year 2025 guidance, projecting revenue between $24 million and $26 million and a non-GAAP net loss ranging from $12 million to $14 million. The company anticipates that ongoing efficiency measures, including those related to reimbursement activities, marketing and sales productivity, and reduced R&D spending, will continue to positively impact results in the fourth quarter of 2025.

Management Comments

• Mark Grant, President and CEO, stated that Lifeward continued to make steady progress across commercial execution, operations, and patient access during the third quarter of 2025.
• Grant noted that the record Medicare placements and meaningful improvements in operating efficiency are early signs that the focused plan to simplify operations, sharpen commercial priorities, and strengthen processes is starting to take hold.
• Grant acknowledged that there is more work to do to complete the company's transformation over the coming quarters, but expressed confidence due to the current momentum.
• Grant emphasized that with CE mark approval, broader Medicare access, and a more disciplined commercial model, Lifeward is becoming a more focused, efficient, and patient-centered company, positioned to serve more people and create durable long-term value.

Industry Context

Lifeward operates in the innovative medical technology sector, specifically focusing on physical rehabilitation and recovery solutions like exoskeletons and anti-gravity systems. The company's progress in securing Medicare Advantage coverage and CE Mark approval for its ReWalk 7 Personal Exoskeleton indicates a positive trend in expanding market access and reimbursement for advanced rehabilitation devices. This aligns with a broader industry push for integrating innovative technologies into standard care, particularly for conditions requiring extensive physical therapy. The focus on operational efficiency and cost-structure optimization reflects a common industry challenge to balance innovation with sustainable financial performance, especially for companies in the growth phase of medical device commercialization.

Related Party Transactions

• Lifeward Ltd. entered into a Secured Promissory Note with Oramed Ltd. for $3.0 million. The note contains covenants limiting transactions with affiliates, among other things.

Stakeholder Impact

• Shareholders: Potential for future dilution due to the convertible nature of the $3.0 million promissory note, but also benefit from improved operational efficiency and strategic market access wins.
• Employees: Operational efficiency initiatives and facility consolidation may impact workforce structure, but overall progress could lead to greater company stability.
• Customers/Patients: Broader access to ReWalk systems through Medicare and Medicare Advantage plans, as well as CE Mark approval for Europe, expands availability of life-changing solutions.
• Creditors: Oramed Ltd. becomes a new creditor with a secured loan at a 15% interest rate, indicating a higher risk profile for the company's debt.

Next Steps

• Lifeward management will host a conference call on November 14, 2025, at 8:30 a.m. E.S.T. to discuss the financial results.
• The full text of the Secured Promissory Note will be filed as an exhibit to the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2025.
• The company expects the positive trend in efficiency measures to continue in the fourth quarter of 2025.
• Management plans to continue its transformation efforts over the coming quarters to become a more focused, efficient, and patient-centered company.

Key Dates

Recommendation

The company is demonstrating clear progress in operational efficiency, evidenced by reduced cash burn and a lower non-GAAP operating loss, alongside strategic wins in market access (Medicare, CE Mark). These are positive indicators for long-term value creation. However, Lifeward remains unprofitable, and its cash position was low prior to the new loan. The $3.0 million loan, while providing necessary liquidity, comes with a high 15% interest rate and potential for shareholder dilution. Given the mixed signals of strong operational improvement and strategic execution against ongoing unprofitability and the cost of new capital, a 'hold' recommendation is appropriate. Investors should monitor the continued execution of efficiency initiatives, further expansion of reimbursement, and progress towards profitability.

Keywords

Lifeward, LFWD, medical technology, exoskeleton, rehabilitation, ReWalk, AlterG, MyoCycle, financial results, Q3 2025, SEC filing, 8-K, promissory note, Oramed, Medicare, CE Mark, cash burn, operating loss