ReWalk Robotics Ltd. Aktie

Good morning, and welcome to the First Quarter 2026 Lifeward Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Almog Adar, CFO of Lifeward. Please go ahead.

Thank you, Drew, and thanks, everyone, who has joined us on the call today. My name is Almog Adar, I'm Lifeward' Chief Financial Officer. And with me on today's call is our President and Chief Executive Officer, Mark Grant.

Earlier this morning, Lifeward issued a press release detailing the financial results for the first quarter ended March 31, 2026. I would ask you to review the full text of our forward-looking statements from the press release. We anticipate making projections during this call, and actual results could differ materially due to several factors, including those outlined in our latest filings with the SEC.

With that, I will turn the call over to Mark.

Thank you, Almog, and thank you for everybody for joining us today. The first quarter of 2026 marked an important strategic milestone for Lifeward as we successfully completed the acquisition of Oratech. We believe this transaction significantly strengthens Lifeward's position as a diversified biomedical innovation company while reinforcing our focus on neurorehabilitation and our path toward profitability. We believe this was a highly strategic and capital-efficient transaction for Lifeward shareholders.

Through the equity-based acquisition of Oratech, we gained access to the protein oral delivery platform, a potentially transformative technology across many therapeutic indications, including ORMD-0801 oral insulin, which is expected to commence a Phase II study. Importantly, the clinical program management responsibilities remain with Oramed, utilizing funds previously transferred to Oratech as part of the strategic transaction. That means Lifeward and our shareholders by owning the protein orally delivered platform outright effectively receive a meaningful option on the potential success of the promising technology with minimal near-term operational burden, no material increase in operating expenses and limited management bandwidth requirements beyond my own involvement, supporting strategic oversight and development guidance.

As many of you know, my background includes extensive experience in diabetes and metabolic disease, and I believe this platform has meaningful long-term potential. At the same time, Lifeward's core focus remains firmly centered on scaling our neurorehabilitation MedTech business.

The second key takeaway from the quarter is Lifeward is now substantially better positioned on its path to profitability. With the $10 million from our convertible note financing, we have significantly strengthened our balance sheet and improved our operating flexibility. This allows us to stabilize and build upon the fundamental and foundational work we have done over the last several quarters, while maintaining our disciplined focus on operational efficiency, market access and innovation across our neuro rehabilitation platform. We expect continued operational stabilization over the next several quarters as our baseline resets following our manufacturing transition initiatives completed over the last year and the consummation of the important transaction this quarter. This gives us improved visibility as we move toward the end of 2026 and into 2027.

Turning to commercialization. We continue to make progress expanding distribution in the U.S. and internationally as well as broadening reimbursement access for ReWalk, including through Medicare Advantage insurers such as Aetna, Humana and UnitedHealthcare. We believe this positions our entire neurorehabilitation portfolio and ReWalk in particular, for very long-term growth.

On the commercial side, ReWalk's personal exoskeleton sales increased 11% year-over-year, reflecting the continued uptrend we are seeing in international sales, reimbursement and distribution expansion. Total revenue for the quarter was impacted primarily by the AlterG shipment. We experienced temporary timing disruptions associated with working capital constraints late last year that affected sourcing and supply chain execution. Importantly, we have a backlog of secured AlterG orders in place now and have visibility to improve shipment execution during the second and third quarters as we ship against those orders. We are also impacted by tariffs and the financial impacts of our manufacturing transition following the closure of our Fremont, California facility and the shift to contract manufacturing in Massachusetts.

Finally, we continue to evaluate strategic and accretive acquisition opportunities that complement our core rehabilitation and biomedical platform. During the first quarter, we acquired an upper body exoskeleton technology designed to address the substantial unmet need of approximately 4.6 million stroke survivors. This is a great complement to our ReWalk platform. Development work is underway as we work towards commercial launch. Overall, we believe Lifeward is stronger strategically and operationally than it was a year ago. We are building a scalable platform with improving operational leverage and multiple potential drivers for future growth.

With that, I'll turn the call back over to Almog.

Thank you, Mark. Revenue for the first quarter of 2026 was $3.9 million compared to $5 million in the first quarter of 2025. The year-over-year decline was primarily driven by lower AlterG shipments resulting from temporary supply chain and sourcing constraints associated with working capital limitations and the final stage of our manufacturing transition activities. Importantly, ReWalk personal exoskeleton revenue increased 11% year-over-year to $1.6 million, reflecting continued progress in reimbursement coverage, channel expansion and international sales.

Gross margin for the quarter was 34.2% compared to 42.2% in the prior year quarter. The decrease was primarily attributable to lower manufacturing absorption resulting from reduced production volumes, higher freight and tariff expenses as well as unfavorable foreign currency exchange rate movements. Despite lower revenue, we continue to make meaningful progress in improving our operating expenses structure. Total operating expenses were $11.7 million, an increase primarily due to a onetime noncash research and development expense of approximately $4.9 million related to the acquired intellectual property assets in connection with Oratech transaction.

On a non-GAAP basis, adjusted operating expenses declined 12% to $5.9 million compared to $6.8 million in the first quarter of 2025. The reduction was driven primarily by improved productivity across sales and marketing operations, lower reimbursement-related costs and reduced R&D spending following the completion of several major development programs. We believe these actions are creating a more efficient operating platforms capable of generating meaningful leverage as revenue volumes increase.

GAAP operating loss increased for the quarter to $10.3 million, primarily due to the Oratech-related onetime expenses I just described. On a non-GAAP basis, adjusted operating loss was unchanged year-over-year at $4.6 million despite lower revenue, reflecting the benefits of our cost optimization initiatives. Cash used in operating activities declined by 33% to $3.7 million compared to the first quarter of 2025, primarily reflecting improved operational efficiencies and working capital management.

Turning to liquidity. We ended the quarter with $11.4 million in unrestricted cash and cash equivalents compared to $2.2 million at the year-end 2025. The increase reflects the successful closing of our strategic transaction, including the $10 million financing and the additional approximately $6.5 million of cash associated with the Oratech acquisition. As we move through 2026, our focus remains on disciplined cash management, improving operational efficiency and positioning the business for scalable growth and long-term profitability.

With that, we will now open the call for Q&A, followed by closing remarks from Mark.

[Operator Instructions] The first question comes from Dr. Yale Jen with Laidlaw & Company.

My first one is that in terms of AlterG, we understand the first quarter figure was due to the timing of shipments. So should we anticipate for the second and third quarter, you will get back to the level similar to last year and sort of make up for the differences? And then I have a follow-up.

Yale, I think that's a fair assumption. And I think it is going to bridge across the second and third quarter.

So that -- okay. So maybe just on top of that question, on the last earnings call, you guys suggest that the 2026 total revenue will be similar to 2025. And given a little bit lower first quarter figures this year, should we anticipate additional growth in the remaining 3 quarters, again, to match up to the total revenue similar to last year?

I think some of the things that most people don't appreciate, and we probably didn't explain well is we had a manufacturing move from Fremont to Massachusetts. We also had a complete facility move within Massachusetts, and we started a contract manufacturer all at the same time. And so all of these things led, with our cash constraints, to timing issues on everything. I would expect that we have similar to last year. And I would also expect the exit trajectory to be better than it is the entry trajectory.

Okay. Great. That's very helpful. Maybe the last question here is the ReWalk units in Germany -- the leap in Germany, maybe also in the United States. Could you give a little bit color on both of those?

So the revenues in Germany specifically increased almost 25% quarter versus quarter in ReWalk. And in total, the increase is 11% year-over-year or for ReWalk revenues, we ended with $1.6 million compared to $1.3 million in prior year quarter.

The next question comes from Dr. Ram with H.C. Wainwright.

This is RK from H.C. Wainwright. A couple of questions from me, Mark and Almog. Just trying to understand the AlterG supply/working capital issue. What's the nature of that? And do you think you have already resolved it? Or do you feel you can get it resolved soon so that the flow of product into the market during Q2 and Q3 is going to be smooth.

And additionally, I'm not sure you stated this in the call, is there a book of sales that you can give us so that we understand what is expected over the next couple of quarters?

Yes. So I'll address the first part. I'll let Almog pick up the second part. So by and large, we're going to resolve the issues with AlterG as we go through and exit this quarter. Those were -- RK, those are basically and really relegated to the cash constraints and procurement as we pushed into this quarter. And so it's a timing issue for us. As we stated, we have a backlog of AlterG sales that we're working through today, and we expect those sales to gain momentum as we exit the quarter and move into Q3. But I will caution everybody, I don't believe I'm going to resolve everything this quarter. I think that we'll actually probably carry some into next quarter. But during Q3, we could become whole and be in really good shape.

And as far as the outlook -- and again, Almog can give some color on. As far as the outlook, we're going to continue to hold that revenues will be similar to last year, and you could see the trajectory change as we exit the year. But this has been a substantial restructuring of the company, moving to the new strategic partner, changing facilities. And as we get through this lift and start to really mature things, we'll start to give a forward-looking forecast. But right now, we're going to hold. Almog, anything to add?

No, nothing special. At this stage, as Mark mentioned, we are not providing this year guidance, but we're expecting that to be similar to previous year and to do some catch up in Q1.

Okay. Great. And then on the gross margin decline of 800 bps, how much of that is tariff versus FX versus either volume or absorption?

It's a good question, RK. Like -- the fluctuation in the exchange rate together with the tariff, it covered like between 75% to 85% from this gap compared to prior year quarter. The other is mainly the absorption that we mentioned related to the production reduction.

Okay. A couple more questions from me, sorry. On the Medicare Advantage coverage that you have from Aetna, Humana and UnitedHealthcare, is there a way you can give us additional commentary regarding what's the traditional Medicare and what's the conversion rate that you're seeing, especially on submitted claims?

So when I came into the business, I did an assessment of the business and part of that assessment was actually looking at moving products into the payer landscape and what it takes. If I look back over the innovation trail of Lifeward, they did a phenomenal job of innovation, where they actually had some gaps were how they address payers. And you know the story over the last 3 years where they really started working with Medicare to gain coding, to gain pricing and then now we've started to get coverage and payer placement across other payers. We have a team in the background that's been working with us since I joined the company to assess the situation and to build it since now you've seen Aetna, United and Humana come on board, and our pipeline continues to grow. We need to push further into the private placement into the market, the blues of the world, if you will. And so that pipeline continues to build. Part of the structure is that we're moving to our channel partners, which we announced like Verita Neuro, who have deeper transitions into payers.

And so my goal is to get to every patient everywhere in 2 forms, one of which is through their payer and secondarily is to get to them in the community. And so you're asking a great question. This is a piece of the business that has great overlap with my past and that we're building on today.

I don't have a direct answer for the pipeline right now as we continue to shift that pipeline from us to our channel partners and continue to build out the distribution network. But there's a lot more to come on this. It's probably the most exciting piece about the business outside of innovation.

And talking about shifting the pipeline, not only you have the products from Oratech, but now you also have an upper body exoskeleton product, which you brought onto your portfolio. So since there are quite a few moving parts, how are you managing your resources and also navigating through all these changes? And you yourself are kind of getting settled into this. So I'm just trying to understand what's the trajectory of things? How should we think about growth from here? And is this a 2-year plan? Or is this a 5-year plan?

So I think a couple of things, one of which is everybody is going to understand that I've got 3 decades of actually managing these particular revenue cycles. So they're very comfortable to me. Number two, and just to redescribe the Oratech transaction. So there is little to no interaction from our staff with what needs to happen with ORMD-0801 oral insulin. That's going to be handled with Oramed and also is prefunded. And so I'm the only one who actually has overlap with that from a strategic perspective, so it doesn't have any drain on resources. So that's one thing that's really exciting.

As we bring in the new upper body exoskeleton, and I'm glad you mentioned that, and we start to work against commercialization and finalizing MVP and bringing that to market, that -- you're going to find that we're going to be known as an innovator, an aggregator and an exploiter of commercial models, right? And those, in particular, are channel partners. We're looking for partners and have partners secured that have these patients at hand. Going out and finding these patients one by one, the needle in the haystack, is definitely not a good business model, and that's why we've made the conscious shift. We're going to work with channel partners that excel in these areas like the CorLifes of the world. We work with workers' comp, where they have these patients at hand, they can market to them and it's a complementary therapy. You could expect the same for all of our portfolio. That's where the vast amount of my experience was spent, was developing channel partners, driving innovation and execution and then obviously, the payer landscape with my background.

So those shifts are super exciting and needed for the company. But going to areas where we actually can get to patients directly with channel partners is probably one of the most important things to me going forward.

This concludes our question-and-answer session. I would like to turn the conference back over to Mark Grant for any closing remarks.

Drew, thank you. Listen, we believe that Lifeward is entering into a new phase as more diversified biomedical innovation company with improving financial flexibility and a clear path for profitability. We remain focused on executing our operational priorities, scaling our neurorehabilitation platform and advancing strategic partnerships while fostering a unique and potentially very high-value event with our biomedical platform.

Thank you again for joining us today. We look forward to updating you on our progress next quarter. Thank you, everybody.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good day, and welcome to the Lifeward Inc. Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions]. Please note, today's event is being recorded. I would now like to turn the conference over to Almog Adar, Chief Financial Officer. Please go ahead.

Thank you, Aku, and thanks, everyone who joined us on the call today. My name is Almog Adar, I'm Lifeward Chief Financial Officer. And with me on today's call is our President and Chief Executive Officer, Mark Grant.

Earlier this morning, Lifeward issued a press release detailing the financial results for the fourth quarter and the full year ended December 31, 2025. I would ask you to review the full text of our forward-looking statements from the press release. We anticipate making projections during this call, and actual results could differ materially due to several factors, including those outlined in our latest filings with the SEC. And with that, I will turn the call over to Mark.

Good morning, and thanks, everyone, for joining us on the call today. Before we get into the details of the quarter and the year, I want to start with what we believe is fundamental to the Lifeward investment thesis today. We're executing against a strategy to build a leading, diversified, biomedical innovation company with multiple technology platforms and strong clinical foundations.

Importantly, we're establishing a clear line of sight to scale through continued progress in reimbursement, commercial execution and product innovation. Our strategic transaction with Oramed gives us meaningful access to capital to support our growth initiatives, and we remain focused on driving the business toward cash flow positive operations while investing in innovations that will define the future of the company.

An important milestone for Lifeward is a pending close of our strategic agreement with Oramed following the receipt of shareholder approval last week. This partnership significantly strengthens our financial foundation and expands our strategic scope. I want to thank our shareholders for approving the transaction. Your support reflects confidence in the strategy we've laid out and the opportunity ahead of us.

I also want to acknowledge our outstanding team at Oramed. They've been great partners, and I look forward to building a long-term collaboration that creates meaningful value for patients, partners and shareholders. Personally, this opportunity is particularly exciting for me given my background of diabetes at Medtronic and metabolic health at Bristol-Myers Squibb. One of the more compelling assets in this partnership is ORMP-0801 an advanced clinical-stage oral and insulin candidate that has the potential to fundamentally change how insulin therapy is delivered.

Because oral insulin is delivered through the gut, it goes to the liver first mimicking the path of natural insulin for the pancreas. For the patient, this can mean better regulation of glucose production by the liver and less circulating through the body, which will reduce weight gain and the risk of hypoglycemia. Multiple studies have shown no increased risk of hypoglycemia compared with placebo. This is an important distinction in the insulin field and if successfully developed, could meaningfully improve both patient safety and treatment adherence. We're excited about the potential of this program and believe it represents meaningful addition to Lifeward's long-term innovation platform.

The current plan is to move forward with the new U.S. study. The unique funding structure for the clinical program also allows Lifeward to maintain pinpoint operational focus on profitability and cash generation of our portfolio while simultaneously gaining exposure to the potential substantial upside of a large-scale biotech opportunity.

Another major recent step forward for the company is the acquisition of intellectual property and technology from Skelable. This transaction was structured in a very capital-efficient way, and we believe it will prove to be highly accretive as the technology advances to market. The technology we acquired supports development of a powered upper extremity orthotic system with AI capabilities designed to assist functional movement and restore function and individuals with weakened or paralyzed arms at hands, particularly following stroke.

The device is intended to enable patients to perform activities of daily living that would otherwise be very difficult or impossible while supporting therapeutic goals such as muscle reeducation and improved range of motion. In the U.S. alone, this upper body neuro rehab system can help an estimated 245 -- 245,000 newly diagnosed stroke survivors annually and an addition of 4.6 million stroke survivors who remain disabled.

With plans to develop and launch a product, we are eager to get to this patient population. What makes this acquisition particularly valuable, not only the technology itself, but it's a team that comes with it. As you know, you don't have the opportunity for outside in inflection points that often. So the core skeletal engineering group will be joining live for bringing more than 60 years of combined experience across electrical, software, mechanical and industrial design.

That experience is incredibly important as we integrate the technology into our development framework, bring the original engineering team with the platform ensures continuity of knowledge and allows for a disciplined transfer of intellectual property design intent and technical architecture into our broader pipeline. The stellar engineering team will also be a core team working on the advance advancing and the rest of our neuro rehab product portfolio.

We believe this platform expands Lifeward's leadership into whole body robotic rehabilitation and opens a significant market opportunity with neuro rehabilitation. In fact, the new platform is highly complementary to our existing ReWalk ecosystem. We will leverage our established clinical relationships, distribution network and reimbursement channels to accelerate at time of commercialization. And I want to underscore here that Lifeward's focus and robotic rehabilitative technologies is exactly that to rehabilitate and help the human return to full function or return to as much function as humanly possible.

We are committed to continuous innovation, deploying the most advanced robotics and AI technologies to restore full health and quality of life to a broadening patient population. Now turning to our established core neuro rehab business. We continue to make important progress across reimbursement, clinical partnerships and global distribution during the year. At the same time, revenue for the fourth quarter and for the full year came in lower than estimated, and there were two primary drivers behind that. First, in the United States, we implemented a major change in our sales and distribution infrastructure.

As we discussed on our third quarter call, we began a transition toward a hybrid model that combines our internal direct sales efforts with external channel partnerships. Building those partnerships takes time. They don't translate into revenue overnight, so you're not seeing the full impact of those changes in our numbers yet. Within this restructured also our sales organization internally to better align with our business evolving. Today, our commercial efforts operate across three focused areas: First, our direct-to-patient channel, which supports individuals pursuing a personal ReWalk system through the reimbursement process; second, our capital equipment sales team, which focuses on institutional customers, including rehabilitation centers, hospitals and support medicine facilities for AlterG. We believe there are substantial untapped opportunities here that can better be served by our capital equipment sales team; the third is a dedicated reimbursement and payer engagement function that works across all payers to expand coverage and support both our direct and distribution channels.

As you know, reimbursement is a critical driver of our long-term growth strategy and building a stronger payer engagement capability is extensional to expanding patient access, accelerating adoption of our technologies. It's critical for our patients to be able to access our technologies through their health care benefit in their community. We believe this structure will ultimately improve the overall sales process strengthen payer engagement and drive greater adoption. As those changes mature, we expect to see the positive effects begin to show in the coming quarters.

The second factor affecting the revenue was the decline in AlterG sales tied to a specific distributor dynamic. In 2024, one of our distributors made a very large inventory purchase. That distributor had not placed that comparable in 2025. A which created a year-over-year comparison headwind. Based on our discussions with them, we expect that purchasing to normalize again in 2026. Despite those temporary dynamics, the underlying fundamentals of the business remain strong. Reimbursement coverage continues to expand. Clinical demand remains solid, and we're building a growing backlog and qualified pipeline. Recently, we achieved reimbursement for coverage of ReWalk in the three largest Medicare Advantage insurers in the U.S., Aetna, Humana and United Healthcare, which collectively represent over 16 million covered lives in America.

We also made meaningful progress expanding international distribution for ReWalk. Following the receipt of the CE Mark in September of last year, we have been accelerating our efforts across Europe. Germany has become our primary international test market and is proving to be valuable insights to reimbursement pathways, clinical adoption and patient demand. International markets represent a significant long-term opportunity for the ReWalk platform, and we're opportunistic about the trajectory we're seeing so far. Through an agreement with Verita Neuro and a partner-led capital-efficient structure, we expanded distribution into Mexico, Thailand and the United Arab Emirates.

Our core neuro rehabilitation business serves as a powerful innovation engine for Lifeward. We have multiple next-generation technologies in development. A new version of Ultra G should be expected and our next-generation ReWalk is currently targeted. And with the scalable IP and technology acquisition, we expect our upper body exoskeleton platform to reach the market, too. Together, these programs significantly expand our addressable market and strengthen our long-term product pipeline.

I will now turn the call over to Almog to review our financial results and provide additional detail on operating performance and liquidity position. Before doing that, please note, given the significant transformation Lifeward has recently undergone and the pending close of our agreement with Oramed, we will not be providing guidance at this time. We remain excited about the long-term prospects and cautiously optimistic about the growth in our core MedTech business, together with continued improvements in operating expenses will help drive the company towards a positive cash flow in the near future.

Thank you, Mark. Today, as we have a lot to share about the existing transition Lifeward is making into a diversified biomedical company, I will review highlights of our full year 2025 results. You may refer to the detailed report for the quarter and full year in our press release, which was issued earlier today. Please keep in mind that as we review our results, I will discuss both GAAP and non-GAAP figures. The non-GAAP results exclude the items detailed in the reconciliation table in today's earnings release and, in our view, provide a clear picture of the company's underlying operating performance.

I encourage you to refer to the GAAP results in the reconciliation table as we go through the 2025 financials. Revenue for the year ended December 31, 2025, was $22 million compared to $25.7 million in 2024, a decrease of approximately 14%. Revenue from the sales of Free work personal exoskeleton was relatively flat at $8.5 million in 2025 compared to $8.9 million in 2024. Importantly, while revenue remained relatively stable, the number of units sold increased by 22% year-over-year, reflecting growing adoption of the ReWalk personal system and increased reimbursement driven demand.

We believe this trend reflects continued progress in reimbursement coverage and increasing clinical adoption of the ReWalk personal system. Revenue of the MyoCycle FES declined by 50% to $600,000, primarily reflecting the transition away from an exclusive distribution arrangement and the company's strategic focus on its core product portfolio. Revenue from the sales of AlterG products and services was $12.9 million, a decline of 18% from 2024. This decrease was primarily due to lower international sales, including timing factor related to one international distributor that had placed larger orders in the fourth quarter of 2024.

We believe the decline largely reflects the timing of distributor orders, which can vary from period to period. Across both the ReWalk and AlterG product lines, our commercial pipeline remains healthy. For the ReWalk product line, we closed the year with a pipeline of more than 104 qualified leads in process in the United States. Our growing medical-related accounts receivable balance also position us well for future cash inflows. In Germany, with 49 leads in process at year-end included 22 active rentals, which historically convert to test within 3 to 6 months. So AlterG for the quarter with 26 systems in backlog.

Move to gross profit. Gross profit increased in 2025 to $8.4 million or 38.2% of revenue compared to $8.2 million or 32% of revenues in 2024. On a non-class basis, 2025 gross profit was $9 million or 41% of revenue compared to $11 million or 43% of revenue in 2024. The year-over-year decrease in adjusted gross margin was primarily driven by lower sales volume, which reduced absorption of mixed manufacturing overhead as well as higher tariffs and freight expenses. Operating expenses declined by 25% to $28.1 million in 2025 compared to $37.6 million in 2024.

This decrease primarily reflects the impact of larger impairment charge recognized in the fourth quarter of 2024 related to certain acquired intangible assets compared to a $2.8 million goodwill impairment charge record in 2025. On a non-GAAP basis, adjusted operating expenses also declined by 12% to $24.1 million in 2025 compared to $27.5 million $275 million in 2024. This decrease was primarily driven by improved productivity in marketing and sales operations, greater efficiency in reimbursement activities and lower R&D spending following the completion of major development programs. We expect the positive trend in marketing and sales efficiencies to continue into 2026.

At the same time, we plan to increase investment in R&D as we advance new products to market, including our recently acquired power upper body exoskeleton. Operating loss narrowed by 33% in 2025 to $19.7 million compared to $29.3 million in 2024. This was primarily due to a $9.8 million impairment charge recognized in the fourth quarter of 2024. On a non-GAAP basis, operating loss narrowed by 9% to $15.1 million compared to $16.6 million in 2024. Net loss narrowed by 31% to $19.9 million in 2025 compared to $28.9 million in 2024. On a non-GAAP basis, adjusted net loss narrowed by 5% to $15.3 million in 2025 compared to $16.2 million in the prior year. We also reduced operating cash usage by 23% to $16.8 million in 2025 compared to $21.7 million in 2024.

The improvement was primarily driven by better working capital management, including stronger collection of receivable and lower inventory levels. The benefit was partially offset by lower revenues relative to operating expenses. During the fourth quarter, we entered into a $3 million loan agreement with Oramed providing additional capital support to further strengthen our liquidity position as we move towards closing the broader strategic transaction. As of December 31, 2025, Lifeward had in unrestricted cash and cash equivalents on its balance sheet.

We expect to finalize the closing of our strategic transaction with Oramed in the coming days with only a few remaining administrative steps. Upon closing of the transaction, the company expects to receive $10 million in a convertible note A financing from Oramed and another investor as described in January 13, 2026, and press release. With that, I will turn the call back to Mark for closing remarks.

To close, I want to return to the broader picture. Lifeward today is evolving into a diversified biomedical innovation company built on multiple complementary platforms, neuro rehabilitation, robotic, and metabolic therapeutics. Each of these areas offers meaningful growth potential and together, they position us to build a company with scale and impact of $1 billion-plus enterprise over time. With Oramed partnership, we now have access to the funding necessary to execute this strategy, and we will remain disciplined in our approach as we approach as we move the company forward to cash flow positive operations. We're confident in our road map, confident in the strength of our technology platforms and confident in our ability to execute. Thank you, everyone.

[Operator Instructions]. And our first question today comes from Yale Jen at Laidlaw & Company.

Congrats on the transformation. Maybe a few questions related to that. The first one is for the Oramed part technology. How would you think -- I mean, if the focus is on this oral insulin, how was that align with your -- I mean -- first of all, how much work is needed to be done before get approved? And secondly, how would that align with your -- or leverage your commercial infrastructure?

Yes. A lot of that question is going to have to be answered once we actually get through the close. But in short, right, I've got a long history, almost 3 decades in the metabolic space. And so this is really drive synergies across med tech and biotech. When you're looking at a diversified portfolio and a durable company, I think it positions us really well. I also think that if you look at how we're approaching the market and moving from a centralized approach of selling patient to patient to decentralize and excluding commercial models, having a biotechnology like this fits. We become an innovation company that then allows us to actually move into a decentralized approach.

Okay. And maybe just if I may add, in terms of your current commercial infrastructure. How was the product like that to be able to leverage your current availability or you would need to build up a new added more new sales or other to be able to accomplish for success commercialization.

Yes. So I think the beauty of this is in the short term, while we continue to go through clinical trials, this is completely funded through the acquisition and allows us to actually keep completely focused on our core business while we continue to expand the opportunity with Oramed. So the good news is, yes, in the short term, it's actually fully funded in motion.

And secondarily, just to expand on your question of what does it mean for our distribution network. Look, I've got multiple years of experience developing these networks and bringing products to market. So when the commercialization opportunity presents itself, we'll be adept at that as a company. So it's something I'm going to pull through while we're going through the clinical trials.

And maybe just one more question here. In terms of your upper extremity robotic systems. I guess you suggest that it will take 12 to 18 to 24 months will be to complete. Could you give us a little bit specific time line in terms of the study need to be done, the regulatory process. And maybe lastly, how do you see the market of that and how that complements your ReWalk system?

Yes. So if we're able to stay in the current space that we believe we're going to be in encoding, this becomes a 510(k) exempt product. So as we go through innovation and bringing it to commercialization, the barriers to entry are quite low. But we still have more to discover as we go through and making sure we meet the appropriate coding and making sure that we fall into that category, but that's a trajectory that we believe that we see and that we've discovered during diligence. And as far as the 18 to 24 months, as far as 18 to 24 months, yes, we're confident hitting that. We've already started that work.

Would that be some sort of clinical study needed? And any time line you can suggest on that as well as the timeline after that for the regulatory process?

We haven't outlined the exact clinical study yet. What we do know is it won't need to be high in numbers, and it's probably going to be more oriented to a safety or bench study. just show efficacy and safety. So it's not something that takes a large amount of time given the barrier, given the hurdles to entry are low. You don't have to have a high clinical bar.

Okay. Maybe last question here is in terms of this -- the upper extremity, there seems to be other competitor in the space currently. And how do you see your benefits over others to be commercially successful?

Look, that's a great question. And I think that there's so much to come that I'm going to reserve the opportunity to answer that at a later date. As I see it today, we're going to enter the market differently. And while there may be competitors in this space, our job is actually for expansion into new areas. So let me get a little bit under my belt before I actually address that one. But I think you guys are going to be excited about the simplicity and efficacy of this product.

Our next question comes from Swayampakula Ramakanth with H.C. Wainright.

Thank you. This is RK from H.C Wainwright. Good morning, Mark and Almog. A broad high-level question similar to what Yale was just asking. I think about 2 or almost 3 years ago now, the previous management brought in AlterG, to kind of expand on their -- within the med tech mobility space. And then just trying to integrate that total business together when March, you came on board. And now you're kind of pulling another lever into kind of biotech sort of space. Plus on top of that, you added this upper extremity portion of it. So in general, for an investor trying to follow the story. How should he or she think about this at a high level? And is there if they are concerned that you're going in multiple places without kind of strengthening or deepening in one area, is that a fair create assessment or people are not really understanding the strategy?

Okay. Great to hear your voice, and thank you for the question. Look, I think the fundamentals of commercialization weren't as strong or stable as they should have been. I think what everybody should expect is getting products to the market through the right channel with the right coverage are most important. What you're going to see over time is us evolving into an innovation company that understands the channels to go to market. It's not going to matter whether it's a biotech or a med tech product.

I'm going to use the experience that I've based over the last 30 years and also the experience that we're building within the organization through our payer and channel team. to exploit these opportunities. And so I think the expectation is, hey, listen, you've got a very diversified med tech and biotech portfolio, which should be very exciting, durable. It should be able to weather the storms of what comes and goes for us, also give us a lot of different opportunities to move products into the space. what you're going to see is this will become an execution company that understands reimbursement and commercialization better than anybody else.

As you know, but I'll make sure the broader audience does. I've actually authored thousands of payer and commercial contracts across the globe and bringing that discipline here into the business, coupled with the new operational discipline, that's what we should be known for is getting the right products through the right channels at the right time with operational discipline that allows us to scale.

I think the one thing that's probably a little confusing to everybody, so I'll get the elephant in the room, being a core neuro medtech company and then moving into biologics, does it make sense from an investor standpoint, it absolutely makes sense. Who wouldn't want the aspects of having a biologic on the hook inside the organization who also wouldn't want to have it on the hook for somebody who's known for executional discipline and commercial channels. So I think that I'm going to have to work over time on my talk track around what it looks like when you have multiple backgrounds. But if you look across some of the larger organizations in the world, having a biodiverse med tech company is important and having those differentials in the same ecosystem is doable.

Okay. So talking about execution, initially, we were under the impression that your full year revenues would be within the range of $24 million to $26 million. But obviously, it's higher. So what drove this additional execution? And do you think some other things that you brought to the table are helping out. And that's the sort of stuff that we should be looking for in 2026 and 2027.

I'm going to describe this company a little bit because I think it's important to the answer. I view the company as a start-up even though it's actually got a long tenured history. And the reason I do that is because the commercialization and understanding of the reimbursement pathways weren't explicit. And so as we've integrated those into the organization and started to pave the way for a growing the reimbursement, which everybody has seen. Since I've joined, we've started to garner better payer and global coverage, and we'll continue to do that over time.

We're still not there, right? So we still have another 12 to 18 months until we maximize the coverage across our products. And I think that's important. That discipline did not exist. Secondarily, there was a lot of lift and shift of manufacturing that was going on as I entered the business I would love to tell you it was as planful as it should have been, and it wasn't. So the good news is I've done it before. So we actually have cleaned up some of those areas. We're looking for the highest quality products in the market, delivered on time and we've gone through those disciplined executions here inside the company and started to put the framework so we can lift and shift and do this with other products.

So I think really the importance of building the business fundamentally, and I've said this before from a foundation from the bottom up. The good news is there wasn't a lot here when we actually build the bottom from -- I know what good looks like. So when we build it from the bottom up, we'll have the operational procedures in place. to bring in new technologies. We'll also have the reimbursement understanding and a team that's well adept across a multitude of products, whether it's biotech or med tech.

And then lastly, we'll have the channels for distribution already set up and going. But those three areas are core to us as we go forward.

Okay. One last question from me before I get back into the queue. In terms of placements, for Medicare beneficiaries this year, obviously, it was a record? And is there a way for you to quantify the backlog that you currently have as you enter 2026?

RK, there is -- and you guys know that we've been getting to the data as we've expanded our payer coverage, though, we're going back through the qualified leads and pulling more and more into the pipeline. That's new since we've got a lot of reimbursement coverage. I think what's exciting is the 22% growth in units year-over-year. I think you need to stay hyperfocused on that and hold us to that unit number. You're going to see that expand as we move through this quarter and into next. But the pipeline is not solidified right now because the reimbursement is growing. So the line of sight is actually growing, which is good news, but I don't have the exact numbers for you today.

And that concludes our question-and-answer session. I'd like to turn the conference back over to the company for any closing remarks.

Listen, I want to thank everybody for showing up today. I appreciate the support. We're excited about the journey that we're getting ready to head on and can't wait to report out next time. So thanks, everybody. Have a great day.

Thank you, sir. That concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

Good morning, and welcome to the Third Quarter 2025 Lifeward Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Almog Adar, CFO of Lifeward. Please go ahead.

Thank you, operator, and thanks to everyone who has joined us on the call today. My name is Almog Adar, I'm Lifeward Chief Financial Officer. And with me on today's call is our President and Chief Executive Officer, Mark Grant. Earlier this morning, Lifeward issued a press release detailing the financial results for the third quarter, which ended September 30, 2025.

I would like to ask you to review the full text of our forward-looking statements from the press release. We anticipate making projections during this call and actual results could differ materially due to several factors, including those outlined in our latest filings with the SEC. And with that, I will turn the call over to Mark.

Thank you, Almog. Good morning, everyone, and thank you for your time today. Since joining Lifeward in June, I completed a sober and comprehensive assessment of the business, starting with our strategic direction, down to our commercial model and operations. What I found is a company with innovative, powerful technology, deep clinical knowledge and a mission that matters, also a company that needs sharper focus, stronger discipline and rebuilt foundation to unlock its potential.

Over the past few months, we've taken meaningful steps to rebuild those fundamentals. We have simplified how we operate, strengthen the processes that matter most to patients, payers and providers, and begin reshaping our go-to-market approach around the global access, distribution scalability and data-driven commercial model.

The progress we've demonstrated this quarter is encouraging early sign that this work is taking hold. We delivered another record quarter for ReWalk placements for Medicare beneficiaries. This is our second consecutive record since CMS established their fee schedule in April 2024. We implemented meaningful operational efficiencies, manifesting in a 16% reduction in quarterly cash burn and a 27% reduction in non-GAAP operating loss compared with last year.

We also expanded patient access, including receiving our first Medicare Advantage commercial revenue for our ReWalk 7 personal exoskeleton. Now with our CE Mark approval, we have expanded our access to the European market which represents roughly about 40% of our global addressable exoskeleton opportunity. These results are demonstrating that Lifeward is becoming a more focused, more efficient and more patient-centered company.

Earlier today, alongside our earnings release, we also announced the completion of a $3 million loan with [ Ormet. ] This capital enhances our near-term liquidity and supports ongoing execution of our transformation plan. We are still early in a multi-quarter rebuild, understand there is more work ahead. And I have confidence in the commitment and the dedication of our teams across our company to complete this transformation.

We are highly encouraged this soon after implementing these measures, we are already seeing real momentum and a clear direction. We are rebuilding the fundamentals and positioning Lifeward to serve more people scale more efficiently and create durable long-term value.

With that, I'll turn the call over to our CFO, Almog, to review the financial results from this quarter.

Thank you, Mark. As we review our results, I will discuss both GAAP and non-GAAP figures. The non-GAAP results excluded the items detailed in the reconciliation table in today's earnings release and, in our view, provide a clear picture of the company's underlying operating performance.

I encourage you to refer to the GAAP results and their conciliation table as we go through the third quarter 2025 financials. And now let's discuss revenue. Lifeward reported revenue of $6.2 million in the third quarter compared to $6.1 million in the third quarter of 2024, an increase of $0.1 million or approximately 1.1%. On a quarter-over-quarter basis, Q3 revenue increased approximately 8% from $5.7 million in Q2 2025, driven primarily by higher Medicare unit sales in the U.S.

Now let's break it down by product line for a year-over-year basis. Revenue from our traditional products and services, which includes the ReWalk personal exoskeleton, the MyoCycle FCS bike and the [indiscernible] totaled $3.1 million in Q3 2025 compared to $2.5 million in Q3 2024, an increase of about or 24%. This increase is driven by order increase in Medicare-related sales.

During the third quarter of 2025, we delivered 15 ReWalk units compared to 4 ReWalk units delivered in Q3 2024. Revenue for from DG products and services was $3.1 million in Q3 2025 down from $3.6 million in Q3 2024, primarily driven by timing factors and quarterly revenue mix. Across both product lines, our commercial pipeline remains healthy.

For the ReWalk product line, we closed the quarter with a pipeline of more than 117 qualified in process in the United States. In Germany, we had 49 leads in process at a quarter end included 33 active rentals, which historically converted to sales within 3 to 6 months. [indiscernible] we closed the quarter with 23 systems in backlog.

Moving to gross profit. In the third quarter of 2025, our GAAP gross profit was $2.7 million or 43.7% of revenue compared to $2.2 million or 36.2% of revenue in the third quarter of 2024. On a non-GAAP basis, the third quarter of 2025 gross profit was $2.7 million or 43.7% of revenue compared to $2.6 million or 42.5% of revenue in the third quarter of 2024.

The year-over-year increase was primarily driven by lower production costs following the December 2024 closure of our Fremont, California manufacturing facility. Now pivoting to operating expenses. GAAP operating expenses were $5.9 million in the third quarter of 2025 compared to $5.4 million in the third quarter of 2024. The increase was largely driven by $2 million earn-out write-down that we recognized in the prior year quarter.

On a non-GAAP basis, adjusted operating expenses were $5.7 million in the third quarter of 2025 compared to $6.7 million in the third quarter of 2024. The decrease primarily reflects greater efficiency and reimbursement activities, improve efficiencies in marketing and sales operations and lower R&D spending after the completion of major development programs.

We expect this positive trend to continue into the fourth quarter of 2025, supported by the ongoing impact of our efficiency measures. Our GAAP operating loss for the third quarter of 2025 was $3.1 million compared to $3.2 million in the third quarter of 2024. On a non-GAAP basis, operating loss was $3 million compared to $4.1 million in the same period last year.

We expect our quarterly operating loss to further reduce in the fourth quarter of 2025 as sales volume continued to grow and efficiency measures continue to take hold. [indiscernible] balance sheet and cash flow. We ended the third quarter of 2025 with $2 million in cash and cash equivalents and no debt. This amount includes the full growth proceeds raised through our ATM facility which totaled approximately $1.2 million.

Our operating cash usage in the third quarter of 2025 was $3.8 million compared to $4.5 million in the third quarter of 2024. The improvement reflects the benefits of operational efficiencies and the consolidation of our manufacturing facilities. Following the end of the quarter, we entered into a $3 million loan agreement with me providing additional capital support to further strengthen our liquidity position.

Based on our current plan, we remain a going concern with sufficient cash to fund operations into the first quarter and we continue to evaluate all opportunities to support our operations and growth plan while continuing to implement cost management initiatives to preserve resource and maintain focus on our core businesses.

Lastly, financial guidance. Lifeward is reaffirming its full year 2025 guidance included expected revenue in the range of $24 million to $26 million and the projected non-GAAP net loss in the range of $12 million to $14 million. With that, I will turn the call back to Mark.

Thank you, Almog. Since June, we've been focused on rebuilding the fundamentals of life work defining our strategic direction, sharpening our commercial model, improving operational discipline and aligning the organization around a more scalable and data-driven approach. The progress we delivered this quarter shows that the foundation we are putting in place is working.

We are executing with more consistency, more focus and greater alignment across the company. As you heard from Al Mag, part of this transformation is that we're consistently assessing opportunities to enhance our financial position. We've had a number of productive conversations across the landscape, and we'll continue evaluating all options that could support long-term strategy.

We're also not dependent on any single path. Our focus remains on making decisions that position Lifecore for durable value creation. We have meaningful opportunities in front of us across our existing markets and global expansion and through the strategic avenues we're exploring. We are committed to building a stronger, more efficient and more impactful life for the future.

Thank you for joining us for the call today, and your continued support. Operator, let's open up for questions.

[Operator Instructions] The first question comes from Yale Jen with Laidlaw & Company.

And just a little bit sort of detailed things here. First of all, I just want to confirm that you mentioned that it's 23 system in rental, is that correct? If so, what's the breakdown between the United States and Germany.

Can you repeat the question, please, Yale. The breakdown for?

The rental, how many rental systems for the I'm sorry, for the ReWalk of the quarter? And what's the breakdown between the United States and Germany.

So as I mentioned in the call, we have 33 active brand in all of them in Germany.

All in Germany. Okay, great. That would be great. Okay. And my second question is that in the previous quarter, you have a collaboration with the core life. Just curious what kind of impact you may felt in the third quarter or even going forward?

Yes. Yale, thank you for the question and good to hear your voice today. So the partnership with Core Life has been going well. And so we've both been diligently and meticulously working into this partnership and building the pipeline over time.

It's grown each quarter, and we're learning the training processes and what it takes to reach those patients for marketing efforts. So we're excited about that partnership and looking for it to expand in the future.

Okay. Maybe the last question here is that you mentioned that you have the highest percentage of ReWalk from the Medicare, which is a great development. Just curious, do you guys have any color in terms of what percentage I guess, from the dollar sales that from the Medicare versus others.

So is that in this space, approximately 50% of our total revenue. For ReWalk products only. Nothing take into account theater products.

Understood. Understood. And maybe just ask one more. What's the actual sort of rough revenue of rig work within the $3.1 million of the traditional product sales.

$2.9 million is related to the ReWalk product and the other is mainly market [indiscernible] MyoCycle.

[Operator Instructions] The next question comes from Swayampakula Ramakanth with H.C. Wainwright.

And this is RK from H.C. Wainright. Mark and Almog. A few questions from me. Starting off from the top, Mark, as you said, you look down through the in different aspects of the company and did review. What have you learned in that compared to when you did due diligence coming into the company? And what sort of -- what aspects of the operations do you think requires changes so that we get to the -- not only to the inflection point, but also the growth stage of the company.

RK, thank you for the question. So quickly, I think, first and foremost, are the fundamentals of the business really have to be established from ground up, good visibility into KPIs, understanding data and deploying the resources where data supports it. And that's number 1 is kind of the first thing. I saw a little bit of that coming into the role, but not as much as I got into as I got in here a little deeper.

Secondarily is we have the opportunity for some great strategic partnerships and channel management. And that comes into flavors. One is it allows us to gain broader access to patients through all the payers across the U.S. And secondarily, it's a population of patients that are really targeted in our environment.

So I'm excited because I've got roughly 20 years or 25 years of experience in that channel management and also across payer access. And so the channel partnerships coupled with payer access and payer policy development are key for our success going forward.

And then the last piece around operations is, frankly, just scale. We've got a good growth plan in front of us, but we got to make sure we can keep up with it and be reproducible high quality. So I think if I boil it down to 4 different pieces, one of which is establishing true and solid fundamentals.

The second is making sure we're leveraging channel partners as strongly as we can and ensuring access for everybody. The third is access across all payers across the globe. So no patient is left behind and the fourth is ensuring we scale for the future with good COGS.

And then, when you talk about channel management, what triggered the increased sales into the Medicare this quarter, the third quarter. And how much of that could be sustained into the future quarters?

The good news is the channel management is just starting. So as we go into Q1 of next year when you'll see the reflection of that.

So right now, we're just cleaning up the fundamentals. The channel partnerships take a bit to develop. And so you're not seeing a reflection of it at all. What you're seeing right now is a focused sales force where we divided the sales force into 2 pieces, we have one that focuses on capital sales and one that's focused on the payer and access.

But more to come with that..

That is true. So Almog, you reaffirmed the guidance to $24 million to $26 million for 2025 which means you're asking for a 21% growth from Q3 numbers, I think, if my calculations are correct. And you grew based on your own press releases, you grew 8% between Q2 and Q3. So what gives you the confidence that you can get that 21% growth.

First, RK thanks for the question. As you know, Q4 is usually the strongest quarter for us, it's rework for both products, [indiscernible] ReWalk and what gives me the confidence that we will achieve our guidance is the existing backlog for both products and the strong pipeline that we are managing.

Okay. And then on the [indiscernible] what happened there? Because it looks like there was a 15% decline. What needs to be done so that we can kind of just stabilize the ship and did it sail again?

Yes. RK, this is really about the core focus of the sales teams. We have a neuro rehab team that has been selling capital and also selling into neuro rehab space. And frankly, what that does is that loses some of the focus that you really need -- so we've started a couple of beta programs, which will expand out to the broader community as we go into the next year.

But where we have a dedicated capital team that will be selling AltraG, and we'll have a highly focused neuro rehab team that will be selling ReWalk, and this is in particular to the U.S. Just as a comment, Germany continues to be very successful in both efforts. We're really refocusing the strategy here in the U.S.

Okay. And talking about Germany, you were commenting a little bit on ReWalk 7 and Europe could be opportunity could be as much as a 40% of your total sales. So to that end, what -- how is ReWalk 7 being introduced and is it still the workers' comp insurance that you're looking into? Or is it outside of that insurance segment you have any visibility or actually could actually gain some adoption in other segments of the market.

Yes. When you look at Germany, I think the 1 thing the key indicator and I'm going to [ reforce ] actually where we started is there's 33 active patients that are in their rental period now. There's a high percentage of those that actually convert and a high percentage of those that conferred in 3 to 6 months.

And so for me, that's really the health of their pipeline and looking how that business is growing. So it's a solid pipeline. Secondarily, we do have good coverage, about 40% we have coverage directly, but we have 100% access to all patients. So the good news is when you look at Germany in particular, not the total Europeanization but look at Germany, we've got exceptional access.

We have opportunities to expand outside of Germany as the NDD listings and other things come together. So we still have to actually get ReWalk 7 across all the payer entities and countries, but it gives us great access because of the CE mark. So more work to do on the asset, but [indiscernible] we're doing really well.

Okay. The last question from me. I've been watching Lifeward for a long time. And the company did have a few situations where it became the financial overhang became quite a bit to bear. But again, we are in that position now. And from your experience and from how you see it, how comfortable are you to get over this hump and hopefully, this is the last time we do that.

Yes. RK, look, I'm not naive, right? So this is a tough place for any company to be. But as you can tell from my voice and the plan that we put together and also my experience, I'm actually excited to be standing where I'm standing. And so it may feel and look like the bottom, but the reality of it is, those in business actually feel like this is a great place. What I'm excited about is we have a good turnaround story.

The fundamentals of the business are repairable and short order. There wasn't really anything broken. And so I'm excited about that. Secondarily, the innovation is exceptional. And so if you look at the products in the portfolio with the ReWalk 7, how strong the hardware is, how easy it is to iterate against for the software.

Same thing with Ultra G first-in-class name, first-in-class brand, something you can also get after on innovation. And there are other products in this space are available for aggregation at good value discounts. I'm excited about where we are. But again, I want to start off. I'm not naive. This is not going to be an easy path. Hence, why we've been having so many conversations across the landscape to make sure we can find the best partner to suit with and I'm optimistic that we're going to find the right one.

I am very optimistic, too, because I've seen this company go through a lot of things that they've always come out better than the situation that they were at. So good luck.

[Operator Instructions] And we have a follow-up from Yale Jen with Laidlaw & Company.

In terms of [indiscernible] I remember last quarter, you guys talking about expanding to the sports arena versus just in the medical space. Just like to get some updates on that effort.

Yes, you got a great memory, and I'm glad you brought that up. That is part of the broader transformation. So we have 2 beta regions right now within the U.S. where we've actually switched to having a capital sales team and to have a neuro rehab specialist. So the capital sales team focused on Ultra G, the rehab specialists and the other focused on ReWalk.

And so those efforts have just started. So I would expect that you're going to see some stronger results as we turn into the new year. But we've already made those fundamental changes. We do know from our customers and from our pipeline that we're seeing good growth. but we also haven't rolled it out across the entire U.S. So more to come on that as we actually execute against the transformation.

But we were opportunistic as we had changes in the space, we went ahead and put it into play. So we are going to have a team to focus on high school sports, elites and up. And they're also going to be focused on rehab facilities, but they're going to get the support of the neurorehab specialists that call on rework.

So you kind of get the double depth. So we're going to cover the rehab centers explicitly with 2 different people. and then you're going to have a dedication of a capital good sale and then also someone who could work with patients, payer and providers in the neurorehab space. So bifurcating the space, we know from outside the U.S. Also, I know from my history is really important for the end user and for the customer and the buyer.

And so bifurcating the sales force will give us the focus needed to deliver against better fundamentals and also the growth you expect.

Maybe just to add on here, which is in terms of the sports arena, would that be practically all self-pay instead of any other revenue of reimbursement?

For sports, yes, but we do get a tremendous amount of the business from government and grants outside the U.S. So there is a good blend, right? So it's all not just self-pay. So the DoD and others support us very well with all of our products. And then it's likewise outside the U.S. We get tenders for these products on a daily basis.

This concludes our question-and-answer session. I would like to turn the conference back over to Mark Grant for any closing remarks.

Again, I want to thank everybody for joining the call today and just let everybody know that we're at a unique inflection point here at Lifeward, and we're excited to be here. We appreciate the support that we get from you and looking forward to meeting the expectations that you guys set in the market. With that, I'll close the call and appreciate everybody's time. Talk to you soon.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.