Lifeward (LFWD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $6.7M, up over 400% year-over-year, driven by record ReWalk placements, AlterG acquisition, and expanded Medicare coverage.

• Net loss for Q2 2024 was $4.3M ($0.50/share), improved from $4.6M last year; company expects break-even by 2026.

• Infrastructure and commercial scale support growth and efficient Medicare claim processing.

• Launched NEO anti-gravity product line and submitted FDA 510(k) for 7th generation ReWalk exoskeleton.

• CMS Home Health Rule and Medicare pricing are now fully functional, enabling broader access and reimbursement.

Financial highlights

• Q2 2024 revenue was $6.7M, up from $1.3M in Q2 2023; $3.1M from ReWalk/MyoCycle, $3.6M from AlterG.

• GAAP gross profit was $2.8M (41.1% margin); non-GAAP/adjusted gross profit was $3.1M (46.9% margin), both up year-over-year.

• GAAP operating loss was $4.4M, improved from $5.2M last year; adjusted operating loss was $3.7M, down from $3.9M.

• Cash and equivalents at June 30, 2024, were $15.1M; no debt; Q2 cash usage was $5.6M, mainly due to increased receivables and inventory.

• Accumulated deficit reached $246.5M as of June 30, 2024.

Outlook and guidance

• Full-year 2024 revenue expected between $28M–$32M, with sequential growth in Q3 and Q4.

• Adjusted gross margin projected to reach ~50% by Q4; operating expenses to decline, reducing non-GAAP operating loss by nearly half by Q4.

• Company has sufficient funds for more than 12 months but may seek additional capital if revenue growth does not meet cost structure.

• Focus on integrating AlterG, expanding commercial payor coverage, and advancing new product development.

• Path to cash flow break-even and sufficient working capital is anticipated with current cash.