Lifeward Announces CEO Transition

Rhea-AI Summary

Lifeward (NASDAQ: LFWD) announced CEO Larry Jasinski's retirement after 13 years of service, with his departure planned for Q2 2025. The board has formed a special committee to search for a successor, considering both internal and external candidates.

The company provided preliminary financial results for 2024, expecting revenue of $25.7 million, within their guidance of $25-26 million. Annual GAAP operating expenses are anticipated at $33.4 million, including $5.7 million in restructuring and impairment expenses. These figures are unaudited and subject to adjustment.

Due to the CEO transition, Lifeward has postponed its February 20th virtual investor event until later in 2025. The company will announce its 2025 financial outlook during its Q4 and full-year 2024 results call, scheduled for the week of March 10, 2025.

Positive

• Revenue of $25.7M aligned with guidance range
• Established payment coverage through Medicare and German insurers
• Diversified product portfolio including ReWalk, AlterG, ReStore, and MyoCycle systems

Negative

• CEO departure creates leadership uncertainty
• Operating expenses of $33.4M exceed revenue by 30%
• Significant restructuring and impairment expenses of $5.7M
• Postponement of investor event signals potential strategic delays

Insights

Financial Analyst

The announced CEO transition at Lifeward reveals a complex financial situation that requires careful analysis. The preliminary 2024 revenue of $25.7 million aligns with guidance, but the $33.4 million in GAAP operating expenses, including $5.7 million in restructuring and impairment costs, signals significant operational challenges. The 30% operating expense-to-revenue ratio (excluding restructuring costs) suggests inefficient cost structure and potential profitability concerns.

The timing of Larry Jasinski's departure, coupled with substantial restructuring expenses, indicates the company may be at a critical inflection point. Under his leadership, Lifeward achieved important milestones in regulatory approvals and insurance coverage, particularly Medicare reimbursement, which creates a foundation for future revenue growth. However, the postponement of the investor event and delay in providing 2025 guidance until after the new CEO appointment suggests potential strategic shifts ahead.

The company's product portfolio, including ReWalk, AlterG Anti-Gravity systems, and MyoCycle FES system, represents valuable assets in the medical mobility market. The established Medicare and German insurance coverage provides a competitive advantage and recurring revenue potential. However, the high operating expenses and restructuring costs indicate a need for operational optimization to achieve profitability.

For investors, this transition period presents both risks and opportunities. The search for a new CEO, combined with ongoing restructuring efforts, could lead to strategic changes that may impact short-term performance. The delay in providing 2025 guidance creates uncertainty but also allows the incoming CEO flexibility to implement new strategies. The key focus should be on whether the new leadership can leverage the company's established market position and regulatory achievements to improve operational efficiency and drive profitable growth.

CEO Larry Jasinski to Retire

Company Begins Search for New Leader to Drive Next Phase of Growth

Company Provides Preliminary Full-Year 2024 Revenue

Reschedules Virtual Investor Event Until Later in 2025 After Hiring of New CEO

MARLBOROUGH, Mass. and YOKNEAM ILLIT, Israel, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Lifeward Ltd. (Nasdaq: LFWD) (“Lifeward” or the “Company”), a global leader in innovative medical technology to transform the lives of people with physical limitations or disabilities, today announced that Larry Jasinski, the Company’s Chief Executive Officer, will step down after a distinguished 13-year career at the Company. Mr. Jasinski will continue to serve in his existing roles through the second quarter of 2025 to assist with a transition to a successor.

The Lifeward Board has appointed a special committee to direct the search for the Company’s next CEO and will consider external and internal candidates, in partnership with a nationally recognized firm.

Due to the CEO transition, Lifeward will reschedule its planned February 20^th virtual investor event until later in 2025 after the hiring of the new CEO. The Company expects to report revenue for the year ended December 31, 2024 of approximately $25.7 million, aligning with its guidance range of $25 million to $26 million. Additionally, the Company expects annual GAAP operating expenses to be approximately $33.4 million, including about $5.7 million in restructuring and impairment expenses. These preliminary financial results have not been audited and are subject to adjustment based on the Company’s completion of year-end financial close processes. The Company plans to provide its financial outlook for 2025 on its fourth-quarter and full-year 2024 financial results conference call to be scheduled during the week of March 10, 2025.

“On behalf of the entire board of directors, we sincerely thank Larry for his unwavering dedication to the Company and the people we serve,” said Joseph Turk, Chairman of the Lifeward Board of Directors. “Larry has been a true champion in the pursuit of our mission to provide access to technology that changes lives of people with physical limitations or disabilities. We look forward to collaborating with him in the months ahead to ensure a smooth transition and wish him the very best.”

Mr. Jasinski said, “I have been thrilled and honored to have led a remarkable team in creating a new industry that allowed the paralyzed community the ability to walk in everyday life. I am grateful and thank all the individuals I worked with on this journey. The ReWalk team shepherded a concept to a working device, compiled extensive scientific data, secured regulatory approvals, established capacity to supply, and importantly – delivered patients access to technology through payment coverage by Medicare, German insurers and others. Simply put, we changed lives. We added the unique AlterG Anti-Gravity systems, Soft Exo-Suit technology with the ReStore stroke system and the MyoCycle FES system to the portfolio which form a solid foundation for Lifeward’s financial future.”

About Lifeward
Lifeward designs, develops, and commercializes life-changing solutions that span the continuum of care in physical rehabilitation and recovery, delivering proven functional and health benefits in clinical settings as well as in the home and community. Our mission at Lifeward is to relentlessly drive innovation to change the lives of individuals with physical limitations or disabilities. We are committed to delivering groundbreaking solutions that empower individuals to do what they love. The Lifeward portfolio features innovative products including the ReWalk Exoskeleton, the AlterG Anti-Gravity System, the MyoCycle FES System, and the ReStore Exo-Suit. Founded in 2001, Lifeward has operations in the United States, Israel, and Germany. For more information on the Lifeward product portfolio, please visit GoLifeward.com.

Lifeward^®, ReWalk^®, ReStore^® and Alter G^® are registered trademarks of Lifeward Ltd. and/or its affiliates.

Forward-Looking Statements
The preliminary financial results for the year ended December 31, 2024 included in this press release are preliminary, unaudited and subject to completion. Such preliminary results are subject to the finalization of year-end financial and accounting procedures, and actual results may vary from the preliminary results presented herein. The preliminary financial results represent management estimates that constitute forward-looking statements subject to risks and uncertainties. These preliminary estimates have not been audited by Lifeward’s independent registered public accounting firm.

In addition to historical information, this press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements may include Lifeward’s preliminary financial results, projections regarding Lifeward's future performance and future regulatory interactions and other statements that are not statements of historical fact and, in some cases, may be identified by words like “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “should,” “would,” “seek” and similar terms or phrases. The forward-looking statements contained in this press release are based on management's current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of Lifeward’s control. Important factors that could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements are more fully discussed in the Company’s periodic filings with the Securities and Exchange Commission (“SEC”), including the risk factors described under the heading “Risk Factors” in the Company’s annual report on Form 10-K and 10-K/A for the year ended December 31, 2023 filed with the SEC and other documents subsequently filed with or furnished to the SEC. Any forward-looking statement made in this press release speaks only as of the date hereof. Factors or events that could cause the Company’s actual results to differ from the statements contained herein may emerge from time to time, and it is not possible for the Company to predict all of them. Except as required by law, Lifeward undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

Lifeward Media Relations:
Kathleen O’Donnell
VP Marketing & New Business Development
Lifeward Ltd.
E: media@golifeward.com

Lifeward Investor Contact:
Mike Lawless
Chief Financial Officer
Lifeward Ltd.
E: ir@golifeward.com

FAQ

What is Lifeward's (LFWD) expected revenue for 2024?

Lifeward expects to report revenue of approximately $25.7 million for the year ended December 31, 2024, within their guidance range of $25-26 million.

When will Larry Jasinski step down as LFWD CEO?

Larry Jasinski will step down as CEO during the second quarter of 2025, after serving the company for 13 years.

What are LFWD's expected operating expenses for 2024?

Lifeward expects annual GAAP operating expenses of approximately $33.4 million, including $5.7 million in restructuring and impairment expenses.

When will Lifeward (LFWD) announce its 2025 financial outlook?

Lifeward will provide its 2025 financial outlook during its Q4 and full-year 2024 results conference call, scheduled for the week of March 10, 2025.

Why did Lifeward (LFWD) postpone its February 2025 virtual investor event?

Lifeward postponed the event due to the CEO transition, rescheduling it for later in 2025 after the hiring of the new CEO.