Lifeward Ltd (NASDAQ:LFWD) Reports Mixed Q3 2025 Results

Lifeward Ltd (NASDAQ:LFWD) reported its third quarter 2025 financial results, delivering a mixed performance against analyst expectations while demonstrating significant operational improvements. The medical technology company, which develops wearable robotic exoskeletons for individuals with mobility impairments, fell short of revenue estimates but exceeded earnings projections.

Quarterly Financial Performance Versus Estimates

The company reported revenue of $6.2 million for the third quarter of 2025, representing a modest 1% increase compared to the same period last year. However, this figure came in below analyst expectations of $6.44 million. Despite the revenue miss, Lifeward showed improvement in its bottom-line performance.

Key financial metrics compared to estimates include:

• Revenue: $6.2 million reported versus $6.44 million estimated
• Non-GAAP EPS: -$0.20 per share reported versus -$0.22 estimated
• Quarterly cash burn: Reduced to $3.8 million, down 16% year-over-year
• Non-GAAP operating loss: $3.0 million, representing a 27% improvement from Q3 2024

Market Reaction and Price Action

The market response to these results has been negative in the near term. The stock has declined approximately 1.9% in pre-market trading following the earnings release. This negative sentiment extends across longer timeframes as well, with the stock down 2.2% over the past week and 26.7% over the past month. The market appears to be focusing on the revenue miss despite the company's progress in reducing losses and improving operational efficiency.

Operational Highlights and Strategic Developments

Beyond the headline financial figures, Lifeward achieved several significant operational milestones during the quarter. The company reported its second consecutive record quarter for ReWalk system placements among Medicare beneficiaries, marking the highest placement volume since Medicare established its formal fee schedule in April 2024. This achievement underscores the company's improving commercial execution in a critical reimbursement channel.

The quarter also featured important regulatory and commercial developments:

• Received CE mark approval for the ReWalk 7 Personal Exoskeleton, enabling commercial sales in Europe
• Secured the first commercial revenue under a Medicare Advantage plan for a ReWalk 7 system
• Entered into a $3.0 million loan agreement with Oramed Ltd. to strengthen liquidity
• Maintained full-year 2025 guidance of $24 to $26 million in revenue

Forward Outlook and Analyst Expectations

Looking ahead, Lifeward reaffirmed its full-year 2025 revenue guidance range of $24 to $26 million. This projection appears conservative compared to analyst consensus estimates of approximately $25.6 million for full-year sales. For the upcoming fourth quarter of 2025, analysts are projecting revenue of $8.02 million, which would require significant sequential growth from the $6.2 million reported in Q3.

The company's operational efficiency initiatives appear to be gaining traction, with management citing improved reimbursement activities, more productive marketing and sales operations, and lower research and development spending following the completion of major development programs. These improvements contributed to the substantial reduction in both cash burn and operating losses during the quarter.

For more detailed earnings information and analyst estimates, visit the Lifeward earnings and estimates page.

Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with financial advisors before making investment decisions.