Lifeward — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $5.4 million for the quarter ended September 30, 2026, a 12% decrease from $6.2 million in the same period in 2025.
• AlterG revenue increased 18% year-over-year to $3.6 million, driven by higher U.S. unit shipments, increased service revenue, and improved average selling prices.
• ReWalk Personal exoskeleton revenue was $1.7 million, down from $3.0 million in the prior-year quarter, due to lower U.S. sales during the transition to a channel-partner model and lower revenues in Europe.
• Gross margin was 27.4% in Q3 2026 compared to 43.7% in Q3 2025; the decline was attributed to adverse foreign exchange fluctuations, higher freight costs, tariffs, and revenue sharing expenses from the Oratech acquisition.
• Adjusted gross margin was 27.5% in Q3 2026 compared to 43.7% in Q3 2025.
• Total operating expenses were $7.5 million in Q3 2026, up from $5.9 million in Q3 2025, driven by Oratech clinical trial costs, product development spending, marketing, and restructuring.
• Adjusted operating expenses were $7.0 million in Q3 2026 compared to $5.7 million in Q3 2025.
• Operating loss was $6.0 million in Q3 2026 compared to $3.1 million in Q3 2025; adjusted operating loss was $5.5 million compared to $3.0 million.
• Net loss was $5.1 million ($1.32 per share) in Q3 2026 compared to $3.2 million ($2.37 per share) in Q3 2025; adjusted net loss was $5.5 million ($1.44 per share) compared to $3.0 million ($2.24 per share).
• Net financial income was $0.9 million in Q3 2026, including non-cash fair value changes in warrant and derivative liabilities and interest expense on convertible notes.
• Unrestricted cash and cash equivalents were $4.5 million as of September 30, 2026, compared to $2.2 million as of December 31, 2025.
• Trade receivables were $7.6 million as of September 30, 2026, compared to $6.1 million as of December 31, 2025.
• Convertible promissory notes, net, were $7.1 million as of September 30, 2026, with no current maturities, compared to $2.8 million in current maturities and no non-current portion as of December 31, 2025.

Guidance and Future Outlook:

• The Company anticipates that the channel-partner distribution model for ReWalk will significantly increase revenue over the long term, despite near-term timing gaps.
• Management expects the channel-partner model to reduce operating expenses and accelerate cash collection compared to direct sales.
• The Company is focused on expanding its partner network to bring ReWalk Personal Exoskeletons to patients across the United States.
• Lifeward is positioned to bring AI-enabled rehabilitation technologies to patients, leveraging its FDA-cleared robotic products, reimbursement infrastructure, and installed base.
• The Company is exploring the addition of other AI-enabled capabilities into its product development pipeline alongside the continued development of its upper-body exoskeleton.

Business Segments and Product Lines:

• AlterG continues to show double-digit year-over-year revenue growth, marking the second consecutive quarter of such growth.
• ReWalk is transitioning from direct sales to a channel-partner distribution model involving established home and durable medical equipment providers and patient care organizations.
• Existing ReWalk channels include CorLife (exclusive distributor for workers' compensation claims) and a pilot program with Ottobock Care launched in August 2026.
• ReWalk is covered by Medicare Fee-for-Service and the three largest Medicare Advantage insurers (Aetna, Humana, UnitedHealthcare).
• Two peer-reviewed real-world studies published in September and October 2026 reported improved daily activity performance, higher satisfaction, lower pain, and sustained home use over a median of 33 months with no falls or fractures.
• The Company is advancing its Protein Oral Delivery (POD™) platform, with lead candidate ORMD-0801 (oral insulin) targeting the diabetes market.
• Research and development expenses increased to $1.9 million in Q3 2026 from $0.7 million in Q3 2025, driven by AlterG product improvements and upper-body exoskeleton technology.

Market and Competitive Landscape:

• The Company believes its reimbursement infrastructure positions channel partners to reach more eligible patients for ReWalk.
• The transition to wholesale terms with partners is designed to reduce operating expenses.
• The Company operates in the United States, Israel, and Germany.

Risks and Challenges:

• The transition of ReWalk to a channel-partner model has affected the timing of sales in the near term.
• Risks include the integration of Oratech, realization of acquisition benefits, regulatory approval of ORMD-0801, and sufficiency of capital resources.
• Potential dilution from outstanding convertible securities and warrants remains a risk.
• Commercialization, market acceptance, and reimbursement growth for products are subject to uncertainty.
• The Company relies on third-party payors, manufacturers, suppliers, and distributors.
• Recent management and Board transitions present potential risks.
• Forward-looking statements are subject to risks including regulatory compliance, product defects, intellectual property protection, and cybersecurity.

Management Commentary and Tone:

• Josh Hexter, Interim CEO, described the quarter as transitional, marked by continued AlterG growth and the advanced stages of the ReWalk distribution transition.
• Management stated that moving away from direct sales creates near-term timing gaps but believes partnering with established providers is the right path to expand access and accelerate long-term revenue growth.
• The tone reflects confidence in the long-term potential of the channel-partner model and AI-enabled technologies despite current losses.

Other Key Points:

• The Company completed the acquisition of Oratech Pharmaceuticals Ltd. from Oramed Pharmaceuticals Inc. in March 2026, agreeing to quarterly payments based on ReWalk sales and extended warranties.
• A 1-for-12 reverse share split was effected on February 24, 2026.
• The Company reported a non-cash fair value change in warrant and derivative liabilities as part of its financial income.
• Restructuring expenses were incurred in the quarter.
• The Company is executing a strategic evolution into a diversified biomedical company expanding beyond rehabilitation into high-value therapeutic platforms.