<span item_type="fundamental" item_id="e548e5dad97421a70059c1dae9d1000f" counter_id="ST/US/LFWD" env="prod"></span><span item_type="announcement" item_id="650553046283585025" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 3.923 M, missing the estimate of USD 5.775 M.</p><p>EPS: As of FY2026 Q1, the actual value is USD -6.7, missing the estimate of USD -0.34.</p><p>EBIT: As of FY2026 Q1, the actual value is USD -9.405 M.</p><p></p><h3>Financial and Operational Metrics</h3><h4>Revenue</h4><ul><li>Total revenue for the three months ended March 31, 2026, was $3,923 thousand, a decrease of $1,111 thousand or 22% compared to $5,034 thousand for the same period in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Revenue breakdown for Q1 2026 vs Q1 2025 (in thousands): Sale of products: $2,967 vs $3,726; Lease of products: $409 vs $460; Service and warranties: $547 vs $848.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Geographic revenue for Q1 2026 vs Q1 2025 (in thousands): United States: $2,361 vs $3,209; Germany: $704 vs $780; Europe: $697 vs $555; Asia-Pacific: $52 vs $42; Rest of the world: $109 vs $448.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>The decrease in revenue was primarily due to a $1.3 million decrease in AlterG revenue, mainly from lower unit shipments in the U.S. and internationally due to working capital constraints impacting sourcing and supply chain activities, partially offset by increased ReWalk revenue.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Customer A represented 13.6% of total revenues in Q1 2026, compared to 15.4% in Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li></ul><h4>Gross Profit</h4><ul><li>Gross profit for Q1 2026 was $1,342 thousand, or 34.2% of revenue, down from $2,122 thousand, or 42.2% of revenue, in Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>The decline in gross margin was mainly attributed to lower sales volumes, reduced absorption of fixed manufacturing overhead, and higher tariffs and foreign exchange rate fluctuations.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li></ul><h4>Operating Expenses</h4><ul><li>Total operating expenses for Q1 2026 were $11,681 thousand, compared to $6,975 thousand in Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Research and Development (R&amp;D), net: $5,845 thousand in Q1 2026, a significant increase from $918 thousand in Q1 2025, primarily due to a one-time acquired In-Process Research and Development (IPR&amp;D) charge of approximately $4.9 million related to the Oratech acquisition.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Sales and Marketing: $3,271 thousand in Q1 2026, a decrease of $0.6 million or 15% from $3,837 thousand in Q1 2025, reflecting improved productivity and efficiency, and lower reimbursement and marketing consultant expenses.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>General and Administrative: $2,565 thousand in Q1 2026, an increase of $0.3 million or 16% from $2,220 thousand in Q1 2025, mainly due to approximately $0.6 million in one-time professional and legal expenses related to the strategic transaction and financing activities.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li></ul><h4>Operating Loss</h4><ul><li>Operating loss for Q1 2026 was - $10,339 thousand, compared to - $4,853 thousand in Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li></ul><h4>Financial Expense (Income), Net</h4><ul><li>Financial expense (income), net, was $448 thousand in Q1 2026, an increase of $0.5 million from - $30 thousand in Q1 2025, primarily due to interest expense from the convertible note transaction, partially offset by the fair value change of a derivative component, and lower interest income due to reduced cash balances and unfavorable foreign currency exchange rate fluctuations.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li></ul><h4>Net Loss</h4><ul><li>Net loss for Q1 2026 was - $10,793 thousand, compared to - $4,834 thousand in Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li></ul><h4>Cash Flow</h4><ul><li>Net cash used in operating activities for Q1 2026 was - $3,675 thousand, an improvement of $1.8 million or 33% from - $5,493 thousand in Q1 2025, due to improved working capital management and higher cash collections, partially offset by increased inventory levels.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Net cash provided by investing activities for Q1 2026 was $6,500 thousand, primarily due to cash acquired in connection with the Oratech acquisition, compared to net cash used of - $5 thousand in Q1 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Net cash provided by financing activities for Q1 2026 was $6,422 thousand, an increase of $2.0 million from $4,471 thousand in Q1 2025, primarily reflecting proceeds from the Oramed convertible note transaction.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Cash, cash equivalents, and restricted cash at the end of Q1 2026 totaled $11,829 thousand, an increase of $9,250 thousand from the beginning of the period.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li></ul><h4>Balance Sheet Highlights</h4><ul><li>Cash and cash equivalents as of March 31, 2026, were $11,422 thousand, up from $2,169 thousand as of December 31, 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Accumulated deficit as of March 31, 2026, was - $295.5 million.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Total current assets increased to $25,557 thousand as of March 31, 2026, from $15,807 thousand as of December 31, 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Total current liabilities decreased to $10,635 thousand as of March 31, 2026, from $12,039 thousand as of December 31, 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Total long-term liabilities significantly increased to $16,493 thousand as of March 31, 2026, from $2,453 thousand as of December 31, 2025, primarily due to convertible promissory notes ($7,276 thousand) and warrant liabilities ($6,842 thousand).<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Convertible promissory notes (net) attributable to Oramed Pharmaceuticals Inc., a related party, were $6,542 thousand as of March 31, 2026.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Warrant liabilities attributable to Oramed Pharmaceuticals Inc., a related party, were $6,557 thousand as of March 31, 2026.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>A goodwill impairment charge of $2.8 million was recorded during the year ended December 31, 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li><li>Lifeward Ltd. completed the acquisition of Oratech on March 25, 2026, for a total consideration of $12.4 million, which included $6.5 million in cash acquired, $975 thousand for a prepaid clinical trial services asset, and $4,947 thousand for IPR&amp;D, with the IPR&amp;D immediately recognized as an expense.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></li></ul><h3>Future Outlook and Strategy</h3><p>Lifeward Ltd. expects future growth to be primarily driven by sales of its ReWalk Personal device through expanded coverage and reimbursement and through channel partnerships, alongside increased shipments of AlterG Anti-Gravity systems as it expands penetration into rehabilitation clinics.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span> The company plans to focus R&amp;D efforts on product improvements, ongoing enhancements, initiatives to reduce material costs for ReWalk and AlterG product lines, and continued investment in technologies acquired from the Skelable transaction, while expecting gross profit and gross margin to improve over time with increased revenue volumes and operational efficiencies.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span> Lifeward Ltd. anticipates incurring future net losses and negative operating cash flows, requiring additional funding to support planned operations, and intends to finance operating costs through existing cash, potential reductions in operating cash burn, and future issuances of equity and debt securities, or a combination thereof, while also seeking additional financing if needed.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1607962/000117891326002862/zk2635356.htm"></span></p>

Lifeward | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 3.923 M