Lifeward continues to burn cash at an unsustainable rate, evidenced by a 2026Q1 free cash flow margin of -93.7% and a cash position that plummeted from $28.1M in 2023Q4 to $11.4M in 2026Q1.
| Cash from Operations | -15.01M | -16.83M | -21.72M | -20.67M | -17.89M | -11.47M | -12.59M | -14.81M | -14.77M | -22.5M | -27.54M |
| Operating CF Margin % | - | -76.36% | -84.63% | -149.18% | -324.64% | -192.24% | -286.57% | -304.02% | -225.73% | -290.18% | -469.19% |
| Operating CF Growth % | 87.29% | 22.53% | -5.09% | -15.52% | -55.99% | 8.9% | 15.03% | -0.28% | 34.33% | 18.3% | - |
| Net Income | -25.87M | -16.23M | -28.94M | -22.13M | -19.57M | -12.74M | -12.98M | -15.55M | -21.68M | -24.72M | -32.5M |
| Depreciation & Amortization | 439K | 333K | 3.84M | 1.85M | 202K | 266K | 285K | 321K | 463K | 642K | 696K |
| Stock-Based Compensation | 978K | 743K | 1.28M | 1.33M | 993K | 833K | 749K | 1.11M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -45K | 316K | -29K | -44K | -57K | -107K | 73K | -5K |
| Other Non-Cash Items | 18.26M | -1.37M | 7.08M | -326K | 79K | 0 | -392K | 0 | 2.3M | 7.42M | 4.53M |
| Working Capital Changes | 2.07M | -298K | -4.97M | -1.34M | 88K | 197K | -211K | -636K | 2.96M | -2.59M | 210K |
| Change in Receivables | -499K | -134K | -2.88M | -311K | -408K | 99K | 110K | -36K | 322K | 151K | 892K |
| Change in Inventory | 358K | 896K | -920K | -277K | -117K | 432K | -469K | -1.22M | 1.4M | -582K | -911K |
| Change in Payables | 1.69M | -347K | -47K | 1.04M | 566K | -884K | -506K | 370K | 492K | -1.61M | 950K |
| Cash from Investing | 6.49M | -16K | 0 | -18.15M | -25K | -47K | -73K | -22K | -13K | -21K | -437K |
| Capital Expenditures | -10K | -16K | 0 | -81K | -25K | -47K | -73K | -22K | -13K | -21K | -452K |
| CapEx % of Revenue | 0.05% | 0.07% | - | 0.58% | 0.45% | 0.79% | 1.66% | 0.45% | 0.2% | 0.27% | 7.7% |
| Acquisitions | 6.5M | 0 | 0 | -18.07M | 0 | 0 | 0 | 0 | 0 | 0 | 15K |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 14.15M | 12.2M | 0 | -992K | -2.5M | 79.51M | 16.72M | 21.48M | 9.71M | 13.41M | 33.78M |
| Debt Issued (Net) | 1.44M | 1.44M | 0 | 0 | 0 | 0 | -6.57M | -1.72M | -3.87M | -3.1M | 19.08M |
| Equity Issued (Net) | 4.73M | 9.2M | 0 | -992K | -2.5M | 64.45M | 19.07M | 11.81M | 13.58M | 16.47M | 15.21M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -992K | -2.5M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 7.99M | 1.56M | 0 | 0 | 0 | 15.06M | 4.22M | 11.39M | 0 | 38K | -501K |
| Net Change in Cash | 5.74M | -4.53M | -21.68M | -39.76M | -20.5M | 68M | 4.06M | 6.64M | -5.02M | -9.11M | 5.81M |
| Free Cash Flow | -15.02M | -16.83M | -21.72M | -20.75M | -17.92M | -11.52M | -12.66M | -14.84M | -14.79M | -22.52M | -27.99M |
| FCF Margin % | -71.78% | -76.36% | -84.63% | -149.76% | -325.1% | -193.03% | -288.23% | -304.47% | -225.93% | -290.46% | -476.9% |
| FCF Growth % | 23.15% | 22.53% | -4.68% | -15.81% | -55.57% | 9.05% | 14.66% | -0.34% | 34.34% | 19.54% | - |
| FCF per Share | -9.32 | -1.45 | -30.00 | -29.20 | -24.14 | -20.19 | -67.49 | -216.33 | -843.87 | -2340.31 | -4462.01 |
| FCF Conversion (FCF/Net Income) | 0.58x | 0.84x | 0.75x | 0.93x | 0.91x | 0.90x | 0.97x | 0.95x | 0.68x | 0.91x | 0.85x |
| Interest Paid | 0 | 0 | 0 | 1.34M | 0 | 0 | 862K | 1.5M | 1.5M | 2.3M | 1.3M |
| Taxes Paid | 0 | 0 | 0 | 126K | 113K | 40K | 13K | 21K | 25K | 21K | 45K |
Imminent liquidity and dilution
According to quarterly financial data, Lifeward's operating cash flow frequently diverges from net income, with the OCF/NI ratio fluctuating wildly between 0.26 and 1.45, suggesting that reported net losses do not fully capture the underlying cash volatility inherent in the company's current business model.
The significant variance in the OCF/NI ratio indicates that non-cash items and working capital swings are heavily influencing the bottom line. Investors should monitor this disconnect, as it suggests that the company's accounting earnings may be a poor proxy for the actual cash required to sustain operations.
As reported in recent financial statements, Lifeward continues to experience consistent negative free cash flow, with margins reaching as low as -145.2% in 2024Q1, highlighting a structural inability to generate self-sustaining cash flow despite the recent integration of the AlterG business segment.
The persistent FCF burn suggests that the company remains in a capital-intensive growth phase where cash outflows are not yet being offset by operational efficiencies. This trajectory implies that the business model is currently dependent on external financing to bridge the gap between high operating costs and limited revenue generation.
Based on the provided cash flow tables, working capital changes have been highly erratic, swinging from a $2.7M outflow in 2024Q1 to a $1.4M inflow in 2026Q1, which indicates significant instability in the company's ability to manage its cash conversion cycle effectively.
These fluctuations suggest that the timing of institutional orders and insurance reimbursements creates unpredictable cash inflows. Such volatility complicates liquidity planning and may force the company to maintain higher cash buffers than would otherwise be necessary.
Data from recent filings indicates that Lifeward's capital deployment is almost exclusively directed toward sustaining operations and funding acquisitions, with no evidence of dividends or share repurchases, reflecting a management strategy prioritized on maintaining the company's existence rather than returning capital to shareholders.
The $6.5M acquisition net outflow in 2026Q1 underscores a reliance on inorganic growth to drive the business forward. Given the current cash position, this deployment strategy appears to be reaching a limit, potentially necessitating a shift toward more conservative capital management.
As evidenced by the quarterly cash flow statements, stock-based compensation remains a recurring non-cash expense, with figures reaching as high as $381K in 2024Q1, which effectively masks the true economic cost of talent retention in a cash-constrained environment.
While these expenses do not impact immediate cash balances, they represent a significant dilution risk for existing shareholders. The reliance on equity-based incentives suggests that the company is attempting to preserve its limited cash reserves by shifting compensation burdens to the equity layer.
Quick answers to the most common questions about buying LFWD stock.
Lifeward Ltd. (LFWD) generated $-16.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lifeward Ltd. (LFWD) reported negative free cash flow of $16.8M in 2025, indicating capital requirements exceeded cash from operations.
Lifeward Ltd. (LFWD) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.