Lifeward Ltd.

First-quarter 2026 revenue was $3.9 million, down from $5 million in the first quarter of 2025. ReWalk personal exoskeleton revenue increased 11% year over year to $1.6 million, versus $1.3 million in the prior-year quarter. Gross margin was 34.2%, down from 42.2% last year. Total operating expenses were $11.7 million, including about $4.9 million of one-time noncash R&D expense tied to acquired IP in the Oratech transaction. Adjusted operating expenses fell 12% to $5.9 million from $6.8 million, and adjusted operating loss was $4.6 million, unchanged year over year. Cash used in operating activities declined 33% to $3.7 million. Unrestricted cash and cash equivalents ended at $11.4 million, versus $2.2 million at year-end 2025. Management said it expects 2026 revenue to be similar to 2025, with AlterG shipments improving across Q2 and Q3 and an exit trajectory better than the entry trajectory for the year.

CEO Mark Grant framed the quarter as a strategic reset, saying the Oratech acquisition makes Lifeward more diversified while keeping the core focus on neurorehabilitation and profitability. He emphasized that the Oratech program is largely prefunded and should require little direct operating burden, while the new upper body exoskeleton acquisition and expanding channel-partner model could create additional growth options. His tone was constructive and upbeat, but he repeatedly tied near-term results to the company’s manufacturing transition and commercialization rebuild.

CFO Almog Adar focused on the quarter’s financial cleanup and liquidity improvement. He pointed to $3.9 million in revenue, 34.2% gross margin, $11.7 million of operating expenses, and a $10.3 million GAAP operating loss, while noting adjusted operating expenses fell to $5.9 million and adjusted operating loss held at $4.6 million. He also highlighted a 33% reduction in operating cash burn to $3.7 million and stronger liquidity with $11.4 million of cash at quarter-end, helped by the $10 million financing and approximately $6.5 million of cash from the Oratech deal.

Analysts pressed on whether AlterG shipments would recover in Q2 and Q3, and management said that was a fair assumption, though some disruption could still carry into next quarter and a full normalization might not occur until Q3. They also asked about the path to 2026 revenue similar to 2025, and management reiterated that view while saying they are not providing formal annual guidance yet. On margins, management said tariffs and FX explained roughly 75% to 85% of the gross margin decline, with the rest mainly from lower production absorption. Questions on payer coverage and conversion were answered more qualitatively: management said the pipeline with Medicare Advantage and private payers is still building, with more growth expected through channel partners.