DarioHealth Reports Second Quarter 2025 Financial and Operating Results
DarioHealth (NASDAQ: DRIO) reported Q2 2025 financial results with revenue of $5.4 million, down from $6.3 million in Q2 2024 and $6.8 million in Q1 2025. Despite the revenue decline, the company showed significant operational improvements with a 43% reduction in operating loss and a 36% decrease in operating expenses year-over-year.
The company secured 21 new clients year-to-date and reported approximately $5 million in new committed annual recurring revenues (CARR), with a robust pipeline of $53 million in commercial opportunities. Gross margin improved to 55% compared to 44% in Q2 2024, with B2B2C operations maintaining approximately 80% non-GAAP gross margins.
Due to implementation delays, Dario has adjusted its cashflow breakeven timeline by 12-15 months, now expected between late 2026 and early 2027.
DarioHealth (NASDAQ: DRIO) ha comunicato i risultati finanziari del secondo trimestre 2025 con ricavi di $5,4 milioni, in calo rispetto ai $6,3 milioni del Q2 2024 e ai $6,8 milioni del Q1 2025. Nonostante il calo dei ricavi, l'azienda ha registrato miglioramenti operativi significativi con una riduzione del 43% della perdita operativa e una diminuzione del 36% delle spese operative su base annua.
La società ha acquisito 21 nuovi clienti da inizio anno e ha riportato circa $5 milioni di nuovo CARR impegnato, con un solido portafoglio di opportunità commerciali pari a $53 milioni. Il margine lordo è salito al 55% rispetto al 44% del Q2 2024, mentre le attività B2B2C mantengono margini lordi non-GAAP intorno all'80%.
A causa di ritardi nelle implementazioni, Dario ha posticipato il raggiungimento del pareggio di cassa di 12-15 mesi, ora atteso tra la fine del 2026 e l'inizio del 2027.
DarioHealth (NASDAQ: DRIO) anunció los resultados financieros del segundo trimestre de 2025 con ingresos de $5.4 millones, por debajo de $6.3 millones en el Q2 de 2024 y de $6.8 millones en el Q1 de 2025. A pesar de la caída de ingresos, la compañía mostró mejoras operativas significativas con una reducción del 43% en la pérdida operativa y una disminución del 36% en los gastos operativos interanual.
La empresa ha conseguido 21 nuevos clientes en lo que va de año y reportó aproximadamente $5 millones en nuevo CARR comprometido, con una sólida cartera de $53 millones en oportunidades comerciales. El margen bruto mejoró hasta el 55% frente al 44% del Q2 de 2024, y las operaciones B2B2C mantienen márgenes brutos no-GAAP de aproximadamente el 80%.
Debido a retrasos en las implementaciones, Dario ha ajustado su horizonte para alcanzar el punto de equilibrio de flujo de caja en 12-15 meses, ahora previsto entre finales de 2026 y principios de 2027.
DarioHealth (NASDAQ: DRIO)는 2025년 2분기 실적을 발표했으며 매출은 $5.4 million으로 2024년 2분기 $6.3 million 및 2025년 1분기 $6.8 million보다 감소했습니다. 매출 감소에도 불구하고 회사는 영업 손실을 43% 축소하고 영업비용을 36% 감축하는 등 운영 측면에서 큰 개선을 보였습니다.
회사는 연초 이후 21개의 신규 고객을 확보했으며 약 $5 million의 신규 확정 연간 반복수익(CARR)을 보고했으며, $53 million의 탄탄한 상업 기회 파이프라인을 보유하고 있습니다. 총이익률은 2024년 2분기의 44%에서 55%로 개선되었고, B2B2C 운영은 비GAAP 기준 약 80%의 총이익률을 유지하고 있습니다.
도입 지연으로 인해 Dario는 현금흐름 손익분기점(Break-even) 달성 시점을 12~15개월 연기했으며, 현재는 2026년 말에서 2027년 초 사이로 예상됩니다.
DarioHealth (NASDAQ: DRIO) a publié ses résultats du deuxième trimestre 2025 avec un chiffre d'affaires de 5,4 M$, en baisse par rapport à 6,3 M$ au T2 2024 et 6,8 M$ au T1 2025. Malgré la baisse du chiffre d'affaires, la société a affiché des améliorations opérationnelles significatives avec une réduction de 43 % de la perte d'exploitation et une baisse de 36 % des charges d'exploitation sur un an.
La société a acquis 21 nouveaux clients depuis le début de l'année et a déclaré environ 5 M$ de nouveau CARR engagé, avec un pipeline commercial solide de 53 M$. La marge brute s'est améliorée à 55 % contre 44 % au T2 2024, les activités B2B2C maintenant des marges brutes non-GAAP d'environ 80 %.
En raison de retards de mise en œuvre, Dario a révisé sa trajectoire d'équilibre de trésorerie de 12 à 15 mois, désormais prévue entre fin 2026 et début 2027.
DarioHealth (NASDAQ: DRIO) meldete die Finanzergebnisse für das zweite Quartal 2025 mit einem Umsatz von $5,4 Millionen, gegenüber $6,3 Millionen im Q2 2024 und $6,8 Millionen im Q1 2025. Trotz des Umsatzrückgangs zeigte das Unternehmen deutliche operative Verbesserungen mit einer Reduzierung des operativen Verlusts um 43% und einer Verringerung der Betriebskosten um 36% im Jahresvergleich.
Das Unternehmen gewann bisher 21 neue Kunden und meldete rund $5 Millionen an neuem zugesichertem jährlich wiederkehrendem Umsatz (CARR), bei einer robusten Pipeline von $53 Millionen an kommerziellen Chancen. Die Bruttomarge verbesserte sich auf 55% gegenüber 44% im Q2 2024, wobei das B2B2C-Geschäft etwa 80% Non-GAAP-Bruttomargen beibehält.
Aufgrund von Implementierungsverzögerungen hat Dario den Zeitplan für den Cashflow-Break-even um 12–15 Monate nach hinten verschoben; dieser wird nun zwischen Ende 2026 und Anfang 2027 erwartet.
- Gross margin increased to 55% from 44% year-over-year, with B2B2C segment at 80% non-GAAP margins
- Operating loss narrowed by 43% compared to Q2 2024
- Operating expenses decreased by 36% year-over-year to $12.2 million
- $53 million pipeline of commercial opportunities with $5 million in advanced stages
- Secured 21 new clients year-to-date, including major healthcare institutions and health plans
- Successfully refinanced debt, deferring amortization from 2025 to 2028
- Revenue declined 14% year-over-year to $5.4 million in Q2 2025
- Revenue dropped 20% quarter-over-quarter from $6.8 million in Q1 2025
- Delayed implementation timelines with several new clients affecting revenue recognition
- Cashflow breakeven timeline pushed back by 12-15 months to late 2026/early 2027
- Loss of major national health plan client impacting year-over-year comparisons
- Net loss increased to $12.99 million from $9.23 million in Q1 2025
Insights
DarioHealth reported declining revenues but improved margins and reduced losses amid B2B2C transition and client onboarding delays.
DarioHealth's Q2 2025 financials reveal a mixed performance with some concerning revenue trends offset by operational improvements. Revenue declined to
Despite revenue challenges, the company showed notable operational improvements. Gross margin increased to
The business transition from one-time to recurring revenue is causing short-term pain but potentially building a more sustainable foundation. The company has signed 21 new clients year-to-date, added approximately
The slower client onboarding and extended implementation timelines with benefit administrator-led contracts present execution risks. While management expresses confidence that strategic wins and new health plan clients will eventually offset revenue declines, investors should monitor whether the company can successfully convert its pipeline into revenue growth in upcoming quarters.
DarioHealth's Q2 results highlight a company in transition with strategic tradeoffs between short-term revenue and long-term sustainability. The company is deliberately sacrificing immediate revenue to build a more predictable annual recurring revenue (ARR) model focused on B2B2C channels. This strategy makes sense theoretically but introduces execution risk.
The company's client acquisition momentum is encouraging, with 21 new clients year-to-date and targets for 40 by year-end. More importantly, the quality of these contracts appears to be improving, with two new health plan clients expected to become multi-million dollar opportunities. This suggests the company is gaining traction with larger, more stable enterprise customers rather than relying on smaller, potentially less reliable revenue sources.
The implementation delays causing the revenue shortfall reveal challenges in scalability. Longer onboarding timelines with benefit administrators indicate potential process inefficiencies that could continue to create gaps between contract signing and revenue recognition. However, the company's AI investments may help address these challenges, with management projecting an additional
The refinanced debt structure, which defers amortization from late 2025 to 2028, provides financial flexibility but also increases long-term obligations. This move buys time for the company's strategic shift to take hold but increases pressure to deliver on growth promises before those obligations come due. The expanded market entry into sleep apnea and GLP-1 solutions demonstrates efforts to diversify revenue streams, though success will depend on execution in these new verticals.
- Second quarter 2025 revenue was
$5.4 million $6.3 million $6.8 million - Approximately
$5 million $53 million $5 million - Two new health plan clients are expected to represent multi-million-dollar opportunities for Dario over time, including a full-suite national health plan scheduled to launch in the second half of 2025
- Gross margin increased to
55% compared to44% in the second quarter of 2024 - The core Business-to-Business-to-Consumer ("B2B2C") has been operating at approximately
80% gross margins on a non-GAAP basis since the first quarter of 2024 - Operating loss in the second quarter of 2025 narrowed by
43% compared to the second quarter of 2024 - Operating expenses for the second quarter of 2025 decreased by
$6.8 million 36% , from the second quarter of 2024 with additional efficiencies anticipated through ongoing AI-driven process optimization - Dario will host an investor conference call and webcast at 8:30 a.m. ET today
As previously disclosed, a shift in scope with a large national health plan client that was not renewed in the beginning of 2025 impacted year-over-year comparisons. Dario remains focused on signing and onboarding new B2B2C clients to drive high-quality, sustainable ARR growth, rather than relying on one-time or non-recurring revenues, which contributed to the revenue decline from the first quarter to the second quarter of 2025. While the Company expected that new account ramp-up would offset the revenue gap from that contract, the pace of onboarding and revenue recognition from new deals proved slower than anticipated. This delay was primarily due to longer implementation timelines with several new clients, including benefit administrator-led contracts that are expected to begin generating revenue in the second half of 2025 and into 2026. As a result, the Company has adjusted its estimates for reaching cashflow breakeven by approximately twelve (12) to fifteen (15) months, which is now expected into the end of 2026 to the beginning of 2027.
"Our 2025 second quarter topline results fell short of our internal goals," said Erez Raphael, Chief Executive Officer of Dario. "However, the underlying momentum in client signings, the strategic quality of new contracts, and growing channel strength give us confidence that the temporary revenue dip will be offset by accelerated growth going forward. We remain focused on signing and onboarding new B2B2C clients, yielding high-quality, sustainable annual recurring revenue growth. Despite these short-term headwinds, I believe that we will continue to show strength in strategic execution as two new health plan clients are expected to represent multi-million-dollar opportunities for Dario over time, including a full-suite national health plan scheduled to launch in the second half of 2025."
Momentum in High-Quality, Long-Term Growth
- 21 new clients signed year-to-date – Including a top
U.S. healthcare institution, two regional health plans, 18 employer clients, and on track to achieve 40 new accounts by the end of 2025 - Quality of new contracts improving – Two new health plan clients are expected to represent multi-million-dollar opportunities for Dario over time including a full-suite national health plan scheduled to launch in the second half of 2025
- Strengthening channels – Relationships with benefit consultants and national benefit administrators are maturing and expected to be key revenue drivers in the second half of 2025 and moving into 2026
"We are building a recurring revenue business driven by high-margin, multi-condition platform contracts," said Steven Nelson, Dario's President and Chief Commercial Officer. "With over
"Dario continues to deliver substantial operating efficiencies with year over year improvements in operating expenses of
Sustained Margin Strength and Strategic Focus
- Gross margin for the second quarter of 2025 was
55% and64% (non-GAAP) with the core B2B2C channel sustaining approximately80% non-GAAP gross margins since the first quarter of 2024 - Operating expenses decreased by
36% and33% (non-GAAP) year-over-year, reflecting strong operational discipline, efficiencies and continued impact of the Company's artificial intelligence ("AI") transformation - Operating loss narrowed by
43% and40% (non-GAAP) in the second quarter of 2025 compared to the same period in 2024 - Created operational runway for growth – Refinanced debt, deferring amortization from the end of 2025 to 2028, providing flexibility to support growth initiatives
New Market Expansion and Platform Highlights
- Entered the
$150B - Signed a GLP-1 + cardiometabolic solution deal with a national benefit administrator—now live and generating ARR
- Peer-reviewed evidence base reached 90 studies, including 25 presentations at American Diabetes Association conference and new flu vaccination research with more than 65,000 users
Leadership in AI Delivers Results
Solidifying its leadership, Dario continues to advance and implement its AI engine, which is delivering significant operational efficiencies while enhancing customer value. Over the next twelve (12) to fifteen (15) months, Dario expects AI-driven improvements to support approximately an additional
Financial Results for the Three Months Ended June 30, 2025
Revenues for the three months ended June 30, 2025 were
Gross profit for the three months ended June 30, 2025, was
Non-GAAP gross profit, excluding
Total operating expenses for the three months ended June 30, 2025, were
Non-GAAP operating expenses (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended June 30, 2025, were
Operating loss for the three months ended June 30, 2025, was
Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended June 30, 2025 was
Net loss was
Non-GAAP net loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended June 30, 2025 was
A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Financial Results for the Six Months Ended June 30, 2025
Revenues for the six months ended June 30, 2025 were
Gross profit for the six months ended June 30, 2025, was
Non-GAAP gross profit, excluding
Total operating expenses for the six months ended June 30, 2025, were
Non-GAAP operating expenses (excluding stock-based compensation, acquisition-related expenses, depreciation and amortization expenses) for the six months ended June 30, 2025, were
Operating loss for the six months ended June 30, 2025, was
Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the six months ended June 30, 2025 was
Net loss was
Non-GAAP net loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the six months ended June 30, 2025 was
A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Conference Call Details: Tuesday, August 12, 8:30am ET
Dial-in Number: 1-800-717-1738 (domestic) or 1-646-307-1865 (international)
Call me™: https://emportal.ink/4kguOcU
Participants can use the dial-in numbers above and be answered by an operator OR click the Call me™ link for instant telephone access to the event. This link will be made active 15 minutes prior to the scheduled start time.
Webcast link: https://viavid.webcasts.com/starthere.jsp?ei=1722877&tp_key=c557a85d17
Participants are asked to dial in approximately 10 minutes prior to the start of the event. A replay of the call will be available approximately three hours after completion of the conference call through Tuesday, August 26th, 2025. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 1195394.
About DarioHealth Corp.
DarioHealth Corp. (Nasdaq: DRIO) is a leading digital health company revolutionizing how people with chronic conditions manage their health through a user-centric, multi-chronic condition digital therapeutics platform. Our platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain and behavioral health.
Our user-centric platform offers people continuous and customized care for their health, disrupting the traditional episodic approach to healthcare. This approach empowers people to holistically adapt their lifestyles for sustainable behavior change, driving exceptional user satisfaction, retention and results and making the right thing to do the easy thing to do.
Dario provides its highly user-rated solutions globally to health plans and other payers, self-insured employers, providers of care and consumers. To learn more about Dario and its digital health solutions, or for more information, visit http://dariohealth.com.
DarioHealth Corporate Contacts:
DarioHealth Investor Relations Contact
Michael Lipari
SVP Corporate Development
irteam@dariohealth.com
+1-203-785-6310
Zoe Harrison
VP, Accounting and Corporate Development
irteam@dariohealth.com
Cautionary Note Regarding Forward-Looking Statements
This news release and the statements of representatives and partners of the Company related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "plan," "project," "potential," "seek," "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses its estimate that client momentum and strategic wins can offset decrease in revenues; that the it is on track to secure 40 new clients by the end of 2025; that two new health plan clients are expected to represent multi-million-dollar opportunities; that a full-suite national health plan is scheduled to launch in the second half of 2025; the timing for benefit administrator-led contracts to generate revenue; that it expects to reach cashflow breakeven at the end of 2026 to early 2027; its expected future growth, ROI opportunities and expected, and timing of, revenues; its pipeline of commercial opportunities; the expectancy for reducing operating expenses by
Non-GAAP Financial Measures
We have provided in this release financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.
Operating expenses (non-GAAP). Our presentation of non-GAAP operating expenses excludes stock-based compensation expenses, amortization of acquisition related expenses and depreciation of fixed assets. Due to varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company's non-cash operating expenses, we believe that providing non-GAAP financial measures that exclude non-cash expenses provides us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.
Net loss (non-GAAP). Our presentation of adjusted net loss excludes the effect of certain items that are non-GAAP financial measures. Adjusted net loss represents net loss determined under GAAP without regard to stock-based compensation expenses, deferred inventory, depreciation of fixed assets, earn-out remeasurement and acquisition related expenses and amortization. We believe these measures provide useful information to management and investors for analysis of our operating results.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) | ||||||
June 30, | December 31, | |||||
2025 | 2024 | |||||
ASSETS | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ | 21,954 | $ | 27,764 | ||
Short-term bank deposits | - | 697 | ||||
Short-term restricted bank deposits | 218 | 175 | ||||
Trade receivables, net | 2,556 | 4,804 | ||||
Inventories | 4,609 | 4,753 | ||||
Other accounts receivable and prepaid expenses | 2,833 | 2,336 | ||||
Total current assets | 32,170 | 40,529 | ||||
NON-CURRENT ASSETS: | ||||||
Deposits | 79 | 79 | ||||
Operating lease right of use assets | 861 | 1,065 | ||||
Long-term assets | 300 | 313 | ||||
Property and equipment, net | 610 | 709 | ||||
Intangible assets, net | 16,878 | 18,762 | ||||
Goodwill | 57,427 | 57,427 | ||||
Total non-current assets | 76,155 | 78,355 | ||||
Total assets | $ | 108,325 | $ | 118,884 | ||
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) | ||||||
June 30, | December 31, | |||||
2025 | 2024 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Trade payables | $ | 3,379 | $ | 3,045 | ||
Deferred revenues | 727 | 1,583 | ||||
Operating lease liabilities | 510 | 504 | ||||
Other accounts payable and accrued expenses | 5,138 | 6,052 | ||||
Current maturity of long-term loan | — | 5,451 | ||||
Total current liabilities | 9,754 | 16,635 | ||||
NON-CURRENT LIABILITIES | ||||||
Operating lease liabilities | 612 | 765 | ||||
Long-term loan | 30,499 | 23,472 | ||||
Warrant liability | 3,393 | 5,968 | ||||
Other long-term liabilities | 81 | 25 | ||||
Total non-current liabilities | 34,585 | 30,230 | ||||
STOCKHOLDERS' EQUITY | ||||||
Common stock of | 4 | 4 | ||||
Preferred stock of | *) - | *) - | ||||
Additional paid-in capital | 486,953 | 462,358 | ||||
Accumulated deficit | (422,971) | (390,343) | ||||
Total stockholders' equity | 63,986 | 72,019 | ||||
Total liabilities and stockholders' equity | $ | 108,325 | $ | 118,884 | ||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) | ||||||||||||
Three months ended | Six months ended | |||||||||||
June 30, | June 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
Revenues: | ||||||||||||
Services | $ | 3,661 | $ | 4,660 | $ | 8,536 | $ | 8,820 | ||||
Consumer hardware | 1,708 | 1,595 | 3,585 | 3,193 | ||||||||
Total revenues | 5,369 | 6,255 | 12,121 | 12,013 | ||||||||
Cost of revenues: | ||||||||||||
Services | 821 | 960 | 1,686 | 1,925 | ||||||||
Consumer hardware | 1,151 | 1,306 | 2,281 | 2,504 | ||||||||
Amortization of acquired intangible assets | 433 | 1,233 | 1,308 | 2,396 | ||||||||
Total cost of revenues | 2,405 | 3,499 | 5,275 | 6,825 | ||||||||
Gross profit | 2,964 | 2,756 | 6,846 | 5,188 | ||||||||
Operating expenses: | ||||||||||||
Research and development | $ | 3,721 | $ | 6,810 | $ | 7,829 | $ | 13,452 | ||||
Sales and marketing | 5,231 | 7,132 | 11,104 | 14,042 | ||||||||
General and administrative | 3,212 | 5,005 | 6,522 | 11,740 | ||||||||
Total operating expenses | 12,164 | 18,947 | 25,455 | 39,234 | ||||||||
Operating loss | 9,200 | 16,191 | 18,609 | 34,046 | ||||||||
Total financial expenses (income), net | 3,790 | (2,581) | 3,586 | (11,267) | ||||||||
Loss before taxes | 12,990 | 13,610 | 22,195 | 22,779 | ||||||||
Income tax (benefit) | — | — | 22 | (1,994) | ||||||||
Net loss | $ | 12,990 | $ | 13,610 | $ | 22,217 | $ | 20,785 | ||||
Deemed dividend (contribution) | $ | 5,572 | $ | (8,706) | $ | 10,411 | $ | (6,672) | ||||
Net loss attributable to common shareholders | $ | 18,562 | $ | 4,904 | $ | 32,628 | $ | 14,113 | ||||
Net loss per share: | ||||||||||||
Basic and diluted loss per share of common stock | $ | 0.18 | $ | 0.08 | $ | 0.33 | $ | 0.27 | ||||
Weighted average number of common stock used in computing basic and diluted net loss per share | 49,630,949 | 39,830,793 | 48,500,775 | 37,778,087 | ||||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||||||||||
Six months ended | ||||||||||||||||
June 30, | ||||||||||||||||
2025 | 2024 | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | $ | (22,217) | $ | (20,785) | ||||||||||||
Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Stock-based compensation | 4,377 | 10,420 | ||||||||||||||
Depreciation and impairment | 174 | 648 | ||||||||||||||
Change in operating lease right of use assets | 204 | 425 | ||||||||||||||
Amortization of acquired intangible assets | 1,884 | 2,516 | ||||||||||||||
Decrease (increase) in trade receivables, net | 2,248 | (247) | ||||||||||||||
Increase in other accounts receivable, prepaid expense and long-term assets | (484) | (1,171) | ||||||||||||||
Decrease (increase) in inventories | 143 | (71) | ||||||||||||||
Increase (decrease) in trade payables | 334 | (190) | ||||||||||||||
Decrease in other accounts payable and accrued expenses | (858) | (3,034) | ||||||||||||||
Decrease in deferred revenues | (856) | (224) | ||||||||||||||
Change in operating lease liabilities | (147) | (417) | ||||||||||||||
Change in fair value of warrant liability | (825) | (12,643) | ||||||||||||||
Non-cash financial expenses | 2,665 | 204 | ||||||||||||||
Other | 654 | 96 | ||||||||||||||
Net cash used in operating activities | (12,704) | (24,473) | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property and equipment | (75) | (85) | ||||||||||||||
Payments for business acquisitions, net of cash acquired | — | (8,796) | ||||||||||||||
Net cash used in investing activities | (75) | (8,881) | ||||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of preferred stock, net of issuance costs | 6,754 | 20,206 | ||||||||||||||
Proceeds from borrowings on credit agreement | 31,700 | - | ||||||||||||||
Repayment of long-term loan | (31,515) | — | ||||||||||||||
Net cash provided by financing activities | 6,939 | 20,206 | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | (5,840) | (13,148) | ||||||||||||||
Effect of exchange rate differences on cash, cash equivalents and restricted cash and cash equivalents | 30 | (48) | ||||||||||||||
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 27,764 | 36,797 | ||||||||||||||
Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ | 21,954 | $ | 23,601 | ||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||
Cash paid during the period for interest on long-term loan | $ | 1,250 | $ | 1,972 | ||||||||||||
Non-cash activities: | ||||||||||||||||
Right-of-use assets obtained in exchange for lease liabilities | $ | — | $ | 428 | ||||||||||||
Exercise of pre-funded warrants to common stock upon acquisition | $ | 1,750 | $ | — | ||||||||||||
Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted | ||||||||||||
Operating Loss, Net Loss and Operating Expenses (Non-GAAP) | ||||||||||||
Three months ended June 30, 2025 | ||||||||||||
GAAP | Stock-Based | Amortization of | Non-GAAP | |||||||||
Cost of Revenues | $ | 2,405 | (6) | (447) | 1,952 | |||||||
Gross Profit | 2,964 | 6 | 447 | 3,417 | ||||||||
Research and development | 3,721 | (441) | (34) | 3,246 | ||||||||
Sales and Marketing | 5,231 | (583) | (307) | 4,341 | ||||||||
General and Administrative | 3,212 | (1,005) | (14) | 2,193 | ||||||||
Total Operating Expenses | 12,164 | (2,029) | (355) | 9,780 | ||||||||
Operating Loss | $ | (9,200) | 2,035 | 802 | (6,363) | |||||||
Financing expenses | 3,790 | - | - | 3,790 | ||||||||
Net Loss | $ | (12,990) | 2,035 | 802 | (10,153) | |||||||
Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted | ||||||||
Operating Loss, Net Loss and Operating Expenses (Non-GAAP) | ||||||||
Three months ended June 30, 2024 | ||||||||
GAAP | Stock-Based | Acquisition costs, | Non-GAAP | |||||
Cost of Revenues | $ | 3,499 | (5) | (1,248) | 2,246 | |||
Gross Profit | 2,756 | 5 | 1,248 | 4,009 | ||||
Research and development | 6,810 | (448) | (63) | 6,299 | ||||
Sales and Marketing | 7,132 | (1,650) | (93) | 5,389 | ||||
General and Administrative | 5,005 | (1,459) | (553) | 2,993 | ||||
Total Operating Expenses | 18,947 | (3,557) | (709) | 14,681 | ||||
Operating Loss | $ | (16,191) | 3,562 | 1,957 | (10,672) | |||
Financing expenses | (2,581) | - | (2,581) | |||||
Net Loss | $ | (13,610) | 3,562 | 1,957 | (8,091) | |||
Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted | ||||||||
Operating Loss, Net Loss and Operating Expenses (Non-GAAP) | ||||||||
Six months ended June 30, 2025 | ||||||||
GAAP | Stock-Based | Amortization of | Non-GAAP | |||||
Cost of Revenues | $ | 5,275 | (16) | (1,337) | 3,922 | |||
Gross Profit | 6,846 | 16 | 1,337 | 8,199 | ||||
Research and development | 7,829 | (967) | (74) | 6,788 | ||||
Sales and Marketing | 11,104 | (1,398) | (618) | 9,088 | ||||
General and Administrative | 6,522 | (1,996) | (29) | 4,497 | ||||
Total Operating Expenses | 25,455 | (4,361) | (721) | 20,373 | ||||
Operating Loss | $ | (18,609) | 4,377 | 2,058 | (12,174) | |||
Financing expenses | 3,586 | - | - | 3,586 | ||||
Income Tax | 22 | - | - | 22 | ||||
Net Loss | $ | (22,217) | 4,377 | 2,058 | (15,782) | |||
Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted | ||||||||
Operating Loss, Net Loss and Operating Expenses (Non-GAAP) | ||||||||
Six months ended June 30, 2024 | ||||||||
GAAP | Stock-Based | Acquisition costs, | Non-GAAP | |||||
Cost of Revenues | $ | 6,825 | (12) | (2,425) | 4,388 | |||
Gross Profit | 5,188 | 12 | 2,425 | 7,625 | ||||
Research and development | 13,452 | (1,563) | (124) | 11,765 | ||||
Sales and Marketing | 14,042 | (3,406) | (169) | 10,467 | ||||
General and Administrative | 11,740 | (5,439) | (1,158) | 5,143 | ||||
Total Operating Expenses | 39,234 | (10,408) | (1,451) | 27,375 | ||||
Operating Loss | $ | (34,046) | 10,420 | 3,876 | (19,750) | |||
Financing expenses | (11,267) | - | - | (11,267) | ||||
Income Tax | (1,994) | - | - | (1,994) | ||||
Net Loss | $ | (20,785) | 10,420 | 3,876 | (6,489) | |||
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SOURCE DarioHealth Corp.
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