LIFEWARD LTD (NASDAQ:LFWD) Reports Q2 2025 Earnings Miss, Stock Drops 4.5% on Revenue and EPS Shortfall

LIFEWARD LTD (NASDAQ:LFWD) reported its second-quarter 2025 financial results, missing analyst estimates on both revenue and earnings per share (EPS). The company posted revenue of $5.7 million, a 15% decline year-over-year and below the consensus estimate of $6.8 million. Adjusted for one-time Medicare-related revenue in the prior-year quarter, sales from core products showed modest growth. However, the shortfall was primarily attributed to lower AlterG product deliveries to international distributors and reduced traditional product sales.

EPS came in at -$0.58, worse than the anticipated -$0.31. The higher net loss was driven by a $2.8 million goodwill impairment charge related to the company’s declining stock price, along with increased operating expenses. Excluding this non-cash charge and other adjustments, the non-GAAP net loss improved slightly to $3.5 million (-$0.31 per share) compared to $3.6 million (-$0.42 per share) in Q2 2024.

Market Reaction

The stock declined approximately 4.5% in pre-market trading following the earnings release, reflecting investor disappointment over the revenue miss and wider-than-expected loss. Over the past month, shares had already slipped 3.1%, indicating lingering skepticism ahead of the report. Despite some operational improvements—such as reduced cash burn and in-house manufacturing efficiencies—the market appears focused on the near-term top-line weakness.

Key Takeaways from the Earnings Report

• Revenue Decline: Total sales dropped to $5.7 million, missing estimates by $1.1 million.
• EPS Shortfall: Reported EPS of -$0.58 was nearly double the expected -$0.31.
• Cost Controls: Cash burn improved to $3.9 million, down from $5.6 million in Q2 2024.
• Regulatory and Pipeline Progress: Achieved record Medicare placements for ReWalk systems and secured FDA clearance for ReWalk 7.
• Leadership Changes: New CEO and CFO appointments aim to drive strategic growth initiatives.

Outlook vs. Analyst Expectations

Lifeward revised its full-year 2025 guidance, projecting revenue between $24–$26 million and a non-GAAP net loss of $12–$14 million. Analysts had expected full-year sales of $28.75 million, meaning the company’s updated forecast falls short of consensus. For Q3, the Street anticipates $7.5 million in revenue, which Lifeward did not explicitly address in its release.

Conclusion

While Lifeward demonstrated progress in cost management and pipeline expansion, the revenue miss and downward guidance revision have weighed on investor sentiment. The company’s ability to accelerate adoption of its ReWalk systems and stabilize AlterG sales will be critical in the coming quarters.

For more detailed earnings estimates and historical performance, visit Lifeward’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.