LFWD · Lifeward Ltd.

Lifeward's Q1 2026 results reflect a mixed performance amid strategic transformation. Revenue fell 22% to $3.9 million, primarily from a 38% decline in AlterG sales due to working capital constraints delaying shipments; management expects fulfillment in Q2/Q3 against secured orders. ReWalk Personal exoskeletons grew 11% to $1.6 million, supported by international expansion and coverage from Aetna, Humana, and UnitedHealthcare. MyoCycle remained flat at $0.2 million. Gross margin compressed to 34.2% (non-GAAP 34.3%) from 42.2%, hit by lower volumes reducing overhead absorption, plus tariffs and FX volatility. Operating expenses surged to $11.7 million GAAP due to a $4.9 million non-cash IPR&D charge from the Oratech acquisition; adjusted expenses improved 12% to $5.9 million via sales/marketing efficiencies and lower R&D post-major programs. Adjusted operating and net losses held steady at $4.6 million and $5.1 million, respectively. CEO Mark Grant highlighted strengthened positioning via Oratech's $6.5 million cash and Protein Oral Delivery platform (ORMD-0801 oral insulin Phase 2 imminent, managed by Oramed) plus $10 million financing, boosting cash to $11.4 million from $2.2 million at year-end. Operating cash burn dropped 33% to $3.7 million on efficiencies. The company delayed its 10-Q for accounting finalization on the March transaction. New upper body exoskeleton acquisition targets 4.6 million stroke survivors with AI tech. Investors should note the pivot to biomed alongside neurorehab scaling, with no formal guidance but expectations of continued efficiencies and R&D ramp.