Revenue goal of $24 million to $26 million set for 2025 by Lifeward, alongside progress in internal production and unveiling of ReWalk 7
In the second quarter of 2025, Lifeward Ltd., a pioneering company in personal exoskeleton technology, finds itself at a pivotal juncture. The company, which recently launched its flagship product, the ReWalk 7 Personal Exoskeleton, is focusing more on guidance changes and the timing of pipeline conversion, rather than growth momentum and integration from the previous quarter.
The ReWalk 7, uniquely capable of navigating stairs and curbs, has been commercially launched in the U.S. with over 20 units installed by mid-2025. This innovation positions Lifeward as a leader in personal exoskeleton technology.
A significant achievement for Lifeward was a groundbreaking Medicare coverage ruling in April 2024, with an Administrative Law Judge affirming the ReWalk 7 as a "reasonable and necessary" medical device for individuals with spinal cord injury (SCI). This Medicare reimbursement, coded as K1007, provides an approximate $91,000 reimbursement per unit, significantly unlocking adoption potential for aging populations and SCI patients.
In a strategic move, Lifeward transitioned to in-house manufacturing of the ReWalk 7, ending its prior contract with Sanmina. This vertical integration has cut production costs by about 20%, improved quality control, accelerated time-to-market, and increased profit margins.
On the business side, Lifeward reported higher operating expenses mainly due to a goodwill impairment, but improved cash burn rates and operational efficiencies have been realized. The company has increased its U.S. payer base, leveraging partnerships such as with CorLife to process workers' compensation claims, adding to revenue streams and market penetration.
Looking ahead, Lifeward is focusing heavily on the U.S. market where Medicare coverage unlocks access to a large beneficiary population. They are also aiming to penetrate European markets, although specific European expansion details or regulatory clearances were not given in the latest reports. The exoskeleton market targeted by Lifeward is projected to reach approximately $1.2 billion by 2030, indicating strong growth prospects alongside rising demand for medical mobility devices.
However, Lifeward still faces liquidity risks and roughly 15% of revenues come from one large client, posing concentration risk. To address these challenges, the company is considering debt and equity opportunities as cash is projected to fund operations into Q4 2025.
Lifeward's management is steering the company towards disciplined execution, operational efficiency, and strategic growth, with a focus on accelerating adoption of the ReWalk 7, expanding commercial reach, and driving margin improvements through in-house manufacturing and cost controls. The company reported improved cash burn and record ReWalk Medicare placements in Q2, but also a $2.8 million goodwill impairment following a share price decline.
In summary, Lifeward’s growth hinges on scaling ReWalk 7 adoption within Medicare populations and managing financial sustainability while expanding into Europe. The company remains confident in its long-term opportunities, citing a growing pipeline, positive product feedback, and a commitment to sustainable value creation.
- Lifeward Ltd., with its focus on the ReWalk 7 Personal Exoskeleton and strategic changes in pipeline conversion, is seeking investment opportunities in the health-and-wellness sector that align with its business in science and technology.
- In an effort to drive growth and maximize profits, Lifeward is considering investing in finance and technology to improve operational efficiency, expand commercial reach, and fine-tune the manufacturing process of the ReWalk 7.
- As Lifeward expands into new markets, such as Europe, they will need additional financing to manage liquidity risks and fund their strategic growth initiatives, hence the exploration of debt and equity opportunities in the finance sector.
