DIH Announces Fiscal 2025 Fourth Quarter and Fiscal Year End Financial Results
Rhea-AI Summary
DIH (NASDAQ:DHAI) reported fiscal 2025 results for year ended March 31, 2025: revenue $62.9M (down 2.5% YoY), device revenue $49.7M, service revenue $12.0M (service +8.4%), and gross profit $32.2M (up 8.2%). Operating cash flow was negative $4.1M and cash on hand was $1.9M at March 31, 2025. Q4 revenue was $12.6M (down 34.7%), with EMEA distributor headwinds cited.
Key corporate actions after year end include issuing senior secured convertible debentures ($2.2M principal, $1.9M expected net proceeds), warrants for 8,888,888 shares at $0.25, a 1-for-25 reverse stock split effective October 17, 2025 (outstanding shares reduced to ~2.1M), and an equity line up to $22M with upfront fees of 2,500,000 shares plus a 2,500,000 pre-funded warrant.
Positive
- Issued senior secured convertible debentures raising expected $1.9M net proceeds
- Gross profit increased by 8.2% to $32.2M year-over-year
- Service revenue growth of 8.4% to $12.0M for fiscal 2025
- Completed 1-for-25 reverse split, reducing outstanding shares to ~2.1M
Negative
- Selling, general & administrative expense rose 16.3% (+$4.2M)
- Negative operating cash flow of $4.1M for fiscal 2025
- Cash and cash equivalents of only $1.9M at March 31, 2025
- Q4 revenue down 34.7% to $12.6M, driven by EMEA distributor weakness
- Issued convertible debentures and warrants create material dilution risk
News Market Reaction 9 Alerts
On the day this news was published, DHAI gained 13.55%, reflecting a significant positive market reaction. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $928K to the company's valuation, bringing the market cap to $8M at that time. Trading volume was above average at 1.7x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
NORWELL, Mass., Oct. 20, 2025 (GLOBE NEWSWIRE) -- DIH Holding US, Inc. (“DIH” or the “Company”) (NASDAQ:DHAI), a global provider of advanced robotic devices used in physical rehabilitation, which incorporate visual stimulation in an interactive manner to enable clinical research and intensive functional rehabilitation and training in patients with walking impairments, reduced balance and/or impaired arm and hand functions, today announced financial results for the fiscal 2025 fourth quarter and fiscal year ended March 31, 2025.
Recent Highlights
- Revenue of
$62.9 million for the fiscal year ended March 31, 2025, representing a decrease of2.5% over the prior year
- Device revenue of
$49.7 million and service revenue of$12.0 million for the fiscal year ended March 31, 2025, representing a decrease of2.8% and an increase of8.4% , respectively over the prior year
- Negative operating cash flow of
$4.1 million for the year ended March 31, 2025
“DIH remains committed to driving innovation and delivering value for patients and healthcare providers,” said Jason Chen, Chairman and CEO of DIH. “During this year, we made meaningful progress across our key strategic initiatives while maintaining our focus on operational discipline. As we look forward to the results of the NASDAQ hearing panel regarding our listing status held on October 16, 2025, our team is committed to positioning DIH for long-term success.”
Financial Results for the Fiscal Year Ended March 31, 2025
The overall decrease in revenue was primarily due to a change in product mix, where many customers purchased a similar number of devices but with a lower average sales price than the prior year mix. This change in mix was offset by a price increase implemented during fiscal year 2024, and effective for devices sold in fiscal year 2025. Services revenues increased slightly during the year, as the Company continues to focus on expanding its service department in established regions. Overall, as the product mix shifted to smaller and lower priced products, the revenues decreased slightly, year over year.
Changes in foreign currency exchange rates had an unfavorable impact on our net sales for the year ended March 31, 2025, resulting in a decrease of approximately
Gross profit for the fiscal year ended March 31, 2025, was
Selling, general and administrative expense for the year ended March 31, 2025 increased by
Research and development costs for the year ended March 31, 2025 increased by
During the fourth quarter of fiscal year 2025, we discontinued the development and commercialization of the SafeGait product, resulting in an impairment loss of
Cash and cash equivalents at March 31, 2025 totaled
Financial Results for the Fourth Quarter Ended March 31, 2025
Revenue for the three months ended March 31, 2025 was
Changes in foreign currency exchange rates had a minor unfavorable impact on our net sales in the three months ended March 31, 2025, resulting in a decrease of approximately
Gross profit for the three months ended March 31, 2025 was
Selling, general and administrative expenses were
Research and development expenses were
During the fourth quarter of fiscal year 2025, we discontinued the development and commercialization of the SafeGait product, resulting in an impairment loss of
Subsequent Events
After March 31, 2025, the Company paid the April 2025 scheduled redemption of the Original Debentures. On May 29, 2025, the Company and Five Narrow Lane amended the Securities Purchase Agreement. Under the amendment, the deferred May 1, 2025 redemption was settled through the issuance of 1,540,277 shares of Class A common stock, and the June 2025 redemption was settled in shares as provided in the Original Debentures. The amendment permits future monthly redemptions and interest to be settled in cash or in shares, and the holder waived the default related to the deferred May payment. Separately, the Company made a partial redemption in July 2025 and deferred later scheduled redemptions while finalizing its Annual Report on Form 10-K.
On August 7, 2025, the Company entered into a Securities Purchase Agreement pursuant to which it issued, in a private placement, senior secured convertible debentures with an aggregate principal amount of
The debentures mature on September 21, 2026. No interest accrues during the first year; beginning the first day of the month after the first anniversary, interest is
The agreements include a resale registration undertaking with filing and effectiveness timelines and liquidated damages if missed; a 90-day limitation on new issuances or registration filings after the resale registration becomes effective; a prohibition on variable-rate transactions while the debentures remain outstanding; an obligation to seek shareholder approval under Nasdaq rules to permit additional share issuances in connection with the debentures and warrants; and a commitment to include in the proxy proposals authorizing a reverse stock split to support listing compliance and amending certain June 6, 2024 and March 20, 2025 debentures to align their minimum base conversion price with the new debentures.
A 1-for-25 reverse stock split of the Company’s Class A common stock was approved by stockholders at a Special Meeting held on September 25, 2025. The final ratio was determined by the Board on September 26, 2025. The Company legally effected by filing a certificate of amendment with the Delaware Secretary of State on October 17, 2025. The Common Stock began trading on a split-adjusted basis on the Nasdaq Stock Market at market open on October 20, 2025. As a result, every twenty-five shares of Common Stock were converted into one share, decreasing issued and outstanding shares from approximately 52.3 million to 2.1 million as of the effective date. The par value and authorized shares remained unchanged.
On October 15, 2025 the Company entered into an equity line of credit agreement with Five Narrow Lane, L.P. (the “investor”) whereby the Company can issue and sell up to up to the lesser of (i)
About DIH Holding US, Inc.
DIH stands for the vision to “Deliver Inspiration & Health” to improve the daily lives of millions of people with disabilities and functional impairments through providing devices and solutions enabling intensive rehabilitation. DIH is a global provider of advanced robotic devices used in physical rehabilitation, which incorporate visual stimulation in an interactive manner to enable clinical research and intensive functional rehabilitation and training in patients with walking impairments, reduced balance and/or impaired arm and hand functions. Built through the mergers of global-leading niche technology providers, DIH is a transformative rehabilitation solutions provider and consolidator of a largely fragmented and manual-labor-driven industry.
Caution Regarding Forward-Looking Statements
This press release contains certain statements which are not historical facts, which are forward-looking statements within the meaning of the federal securities laws, for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These forward-looking statements include certain statements made with respect to the business combination, the services offered by DIH and the markets in which it operates, and DIH’s projected future results. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions provided for illustrative purposes only, and projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that could cause the actual results to differ materially from the expected results. These risks and uncertainties include, but are not limited to: general economic, political and business conditions; the ability of DIH to achieve its projected revenue, the failure of DIH realize the anticipated benefits of the recently-completed business combination and access to sources of additional debt or equity capital if needed. While DIH may elect to update these forward-looking statements at some point in the future, DIH specifically disclaims any obligation to do so.
Investor Contact
Greg Chodaczek
332-895-3230
Investor.relations@dih.com
DIH HOLDING US, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data, unaudited) | ||||||||
| As of March 31, | ||||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,939 | $ | 3,225 | ||||
| Accounts receivable, net of allowances of | 3,249 | 5,197 | ||||||
| Inventories | 7,048 | 7,830 | ||||||
| Due from related party | 3,468 | 5,688 | ||||||
| Other current assets | 5,461 | 5,116 | ||||||
| Total current assets | 21,165 | 27,056 | ||||||
| Property, and equipment, net | 553 | 530 | ||||||
| Capitalized software, net | — | 2,131 | ||||||
| Other intangible assets, net | — | 380 | ||||||
| Operating lease, right-of-use assets, net | 3,802 | 4,466 | ||||||
| Other tax assets | 131 | 267 | ||||||
| Other assets | 1,101 | 905 | ||||||
| Total assets | $ | 26,752 | $ | 35,735 | ||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,356 | $ | 4,305 | ||||
| Due to related party | 7,919 | 10,192 | ||||||
| Advance payments from customers | 6,814 | 10,562 | ||||||
| Current portion of deferred revenue | 8,045 | 5,211 | ||||||
| Employee compensation | 3,341 | 2,664 | ||||||
| Current maturities of convertible debt, at fair value | 2,214 | — | ||||||
| Current portion of operating lease | 904 | 1,572 | ||||||
| Manufacturing warranty obligation | 544 | 513 | ||||||
| Accrued expenses and other current liabilities ( | 9,720 | 9,935 | ||||||
| Total current liabilities | 42,857 | 44,954 | ||||||
| Notes payable – related party | 8,601 | 11,457 | ||||||
| Non-current deferred revenue | 4,781 | 4,670 | ||||||
| Long-term operating lease | 2,931 | 2,917 | ||||||
| Convertible debt, net of current maturities, at fair value | 241 | — | ||||||
| Deferred tax liabilities | 221 | 112 | ||||||
| Other non-current liabilities | 4,255 | 4,171 | ||||||
| Total liabilities | 63,887 | 68,281 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Deficit: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | — | — | ||||||
| Additional paid-in-capital | 5,274 | 2,616 | ||||||
| Accumulated deficit | (43,888 | ) | (35,212 | ) | ||||
| Accumulated other comprehensive income | 1,479 | 50 | ||||||
| Total stockholders’ deficit | (37,135 | ) | (32,546 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 26,752 | $ | 35,735 | ||||
| DIH HOLDING US, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data, unaudited) | ||||||||||||||||
| Three Months Ended March 31, | Years Ended March 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | $ | 12,648 | $ | 19,357 | $ | 62,864 | $ | 64,473 | ||||||||
| Cost of sales | 6,682 | 10,791 | 30,650 | 34,702 | ||||||||||||
| Gross profit | 5,966 | 8,566 | 32,214 | 29,771 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general, and administrative expense | 7,418 | 8,124 | 29,982 | 25,776 | ||||||||||||
| Research and development | 1,755 | 1,928 | 7,096 | 6,609 | ||||||||||||
| Impairment of long-lived assets | 2,160 | — | 2,160 | — | ||||||||||||
| Total operating expenses | 11,333 | 10,052 | 39,238 | 32,385 | ||||||||||||
| Operating loss | (5,367 | ) | (1,486 | ) | (7,024 | ) | (2,614 | ) | ||||||||
| Other income (expense), net: | ||||||||||||||||
| Interest expense | (131 | ) | (233 | ) | (317 | ) | (693 | ) | ||||||||
| Other income (expense), net | 79 | (3,709 | ) | (925 | ) | (3,890 | ) | |||||||||
| Total other income (expense), net | (52 | ) | (3,942 | ) | (1,242 | ) | (4,583 | ) | ||||||||
| Loss before income taxes | (5,419 | ) | (5,428 | ) | (8,266 | ) | (7,197 | ) | ||||||||
| Income tax expense (benefit) | (1,015 | ) | 587 | 410 | 1,246 | |||||||||||
| Net loss | $ | (4,404 | ) | $ | (6,015 | ) | $ | (8,676 | ) | $ | (8,443 | ) | ||||
| Net loss per share, basic and diluted | $ | (2.80 | ) | $ | (4.92 | ) | $ | (6.07 | ) | $ | (8.00 | ) | ||||
| Weighted-average shares outstanding, basic and diluted | 1,584,140 | 1,222,366 | 1,430,197 | 1,055,288 | ||||||||||||
| DIH HOLDING US, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands, unaudited) | ||||||||||||||||
| Three Months Ended March 31, | Years Ended March 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net loss | $ | (4,404 | ) | $ | (6,015 | ) | $ | (8,676 | ) | $ | (8,443 | ) | ||||
| Other comprehensive income (loss) | ||||||||||||||||
| Foreign currency translation adjustments | (221 | ) | 579 | (1,300 | ) | 1,455 | ||||||||||
| Pension liability adjustments | 658 | (52 | ) | (487 | ) | (1,116 | ) | |||||||||
| Other comprehensive income (loss) | 437 | 527 | (1,787 | ) | 339 | |||||||||||
| Comprehensive loss | $ | (3,967 | ) | $ | (5,488 | ) | $ | (10,463 | ) | $ | (8,104 | ) | ||||
| DIH HOLDING US, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands, unaudited) | ||||||||||||||||||||||||
| Years Ended March 31, | ||||||||||||||||||||||||
| Common Stock | Accumulated | |||||||||||||||||||||||
| Shares(1) | Amount | Additional Paid-In Capital | Accumulated Deficit | Other Comprehensive Income (Loss) | Total Equity (Deficit) | |||||||||||||||||||
| Balance, March 31, 2023 | 1,000,000 | $ | — | $ | (1,896 | ) | $ | (26,769 | ) | $ | (289 | ) | $ | (28,954 | ) | |||||||||
| Net loss | — | — | — | (8,443 | ) | — | (8,443 | ) | ||||||||||||||||
| Issuance of common stock upon reverse capitalization | 381,797 | — | 4,512 | — | — | 4,512 | ||||||||||||||||||
| Other comprehensive income | — | — | — | — | 339 | 339 | ||||||||||||||||||
| Balance, March 31, 2024 | 1,381,797 | $ | — | $ | 2,616 | $ | (35,212 | ) | $ | 50 | $ | (32,546 | ) | |||||||||||
| Net loss | — | — | — | (8,676 | ) | — | (8,676 | ) | ||||||||||||||||
| Issuance of common stock and warrants, net of issuance costs | 58,399 | — | 3,911 | — | — | 3,911 | ||||||||||||||||||
| Issuance of common stock upon redemption of convertible note | 12,676 | — | 803 | — | — | 803 | ||||||||||||||||||
| Stock Compensation | — | — | 450 | — | — | 450 | ||||||||||||||||||
| Reclassification of prior-period equity classification error | — | — | (3,216 | ) | — | 3,216 | — | |||||||||||||||||
| Out of period adjustment related to reverse recapitalization | — | — | 710 | — | — | 710 | ||||||||||||||||||
| Other comprehensive loss | — | — | — | (1,787 | ) | (1,787 | ) | |||||||||||||||||
| Balance, March 31, 2025 | 1,690,356 | $ | — | $ | 5,274 | $ | (43,888 | ) | $ | 1,479 | $ | (37,135 | ) | |||||||||||
| DIH HOLDING US, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) | ||||||||
| Years Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (8,676 | ) | $ | (8,443 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization | 842 | 302 | ||||||
| Provision for credit losses on accounts receivable | (264 | ) | (1,016 | ) | ||||
| Impairment of related-party receivables | 1,111 | — | ||||||
| Impairment of long-lived assets | 2,160 | — | ||||||
| Inventory write-offs and adjustments | 973 | 617 | ||||||
| Noncash business combination expense | — | 3,514 | ||||||
| Stock compensation | 450 | — | ||||||
| Pension contribution | (653 | ) | (530 | ) | ||||
| Pension expense | (69 | ) | (75 | ) | ||||
| Change in fair value of convertible debt and warrant liability | 1,478 | — | ||||||
| Foreign exchange (gain) loss | (604 | ) | 376 | |||||
| Noncash lease expense | 1,747 | 1,590 | ||||||
| Noncash interest expense | 17 | 28 | ||||||
| Change in manufacturing warranty obligation estimate | — | (626 | ) | |||||
| Deferred and other noncash income tax expense (income) | 261 | (304 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 2,204 | 1,853 | ||||||
| Inventories | (242 | ) | (3,259 | ) | ||||
| Due from related party | (768 | ) | 1,018 | |||||
| Due to related party | (849 | ) | 3,337 | |||||
| Other assets | (665 | ) | (229 | ) | ||||
| Operating lease liabilities | (1,738 | ) | (1,782 | ) | ||||
| Accounts payable | (920 | ) | 2,920 | |||||
| Employee compensation | 701 | (551 | ) | |||||
| Other liabilities | 362 | 970 | ||||||
| Deferred revenue | 3,005 | (90 | ) | |||||
| Manufacturing warranty obligation | 34 | 163 | ||||||
| Advance payments from customers | (3,767 | ) | 4,338 | |||||
| Accrued expense and other current liabilities | (274 | ) | 1,071 | |||||
| Net cash (used in) provided by operating activities | (4,144 | ) | 5,192 | |||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (536 | ) | (202 | ) | ||||
| Net cash used in investing activities | (536 | ) | (202 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from reverse recapitalization | — | 899 | ||||||
| Proceeds from issuance of common stock and warrants, net of issuance costs | 3,911 | — | ||||||
| Proceeds from issuance of convertible debt, net of issuance costs | 3,109 | — | ||||||
| Payments on convertible debt | (471 | ) | — | |||||
| Payments on related party notes payable | (3,156 | ) | (5,844 | ) | ||||
| Net cash provided by (used in) financing activities | 3,393 | (4,945 | ) | |||||
| Effect of currency translation on cash and cash equivalents | 1 | 5 | ||||||
| Net (decrease) increase in cash and cash equivalents | (1,314 | ) | 50 | |||||
| Cash and cash equivalents – beginning of period | 3,225 | 3,175 | ||||||
| Cash and cash equivalents – end of period | $ | 1,939 | $ | 3,225 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Interest paid | $ | 298 | $ | 665 | ||||
| Income tax paid | $ | 25 | $ | — | ||||
| Supplemental disclosure of non-cash activity: | ||||||||
| Redemption of convertible note in common stock | $ | 803 | $ | — | ||||
| Settlement of related party receivables and payables | $ | 1,455 | $ | — | ||||
| Out of period adjustment related to reverse recapitalization (Note 2) | $ | 710 | $ | — | ||||
| Accounts payable settled through escrow account upon reverse recapitalization | $ | — | $ | 1,439 | ||||
FAQ
What were DIH (DHAI) fiscal 2025 full-year revenue and gross profit figures?
How much cash did DIH (DHAI) have at March 31, 2025 and what was operating cash flow?
What corporate financings did DIH (DHAI) complete after March 31, 2025?
What was the impact of the 1-for-25 reverse stock split on DIH (DHAI) shares?
Why did DIH (DHAI) report a large Q4 revenue decline in fiscal 2025?
How could DIH (DHAI) shareholders be diluted by recent financings?
