DarioHealth Reports Third Quarter 2025 Financial and Operating Results

Rhea-AI Summary

DarioHealth (NASDAQ: DRIO) reported third-quarter 2025 results: Q3 revenue $5.0M versus $7.4M a year earlier and $5.4M in Q2 2025. The company cites a strategic shift from one-time sales to high-margin ARR, reporting 60% GAAP gross margin and ~80% non-GAAP gross margin on its B2B2C channel. Dario added 45 new ARR clients year-to-date, exceeded its 2025 goal, and holds a $69M 2026 pipeline while targeting $12.4M in new business. Cash on hand was $31.9M after a $17.5M private placement; management expects cashflow breakeven in late 2026–early 2027.

Positive

• GAAP gross margin expanded to 60% in Q3 2025
• 45 new ARR clients in 2025, surpassing target of 40
• $69M commercial pipeline for 2026
• $31.9M cash balance after a $17.5M private placement
• Operating expenses reduced by $17.1M (31%) year-to-date

Negative

• Q3 revenue declined to $5.0M from $7.4M YoY (≈32% decline)
• Net loss of $10.5M in Q3 2025 and $32.7M for nine months
• Significant scope change with a large national health plan not renewed in early 2025

Insights

Financial and Commercial Analyst

Q3 shows margin and cost improvements amid declining revenue; cash runway and ARR growth target make the update strategically mixed.

Dario is shifting from one-time revenue to a recurring, higher‑margin model and reports Q3 revenue of $5.0 million versus $7.4 million year‑ago, with GAAP gross margin rising to 60% and sustained ~80% non‑GAAP gross margins on the core B2B2C channel. Management highlights $31.9 million in cash, an oversubscribed $17.5 million private placement, a 31% reduction in operating expenses year‑to‑date, and a pipeline of $69 million for 2026.

The business mechanism is clearer unit economics and lower burn: higher gross margins plus a 31% reduction in operating expenses narrow operating losses and improve runway. Key dependencies remain the pace of converting the $69 million pipeline into signed, recurring contracts, retention of the larger new clients, and realization of the claimed AI efficiencies (an additional 10-15% cost improvement expected over 12–15 months).

Watch near‑term items: progress turning the targeted $12.4 million of new business into contracted ARR, actual quarterly ARR growth and churn metrics, and quarterly cash burn versus the stated path to cashflow breakeven in late 2026 to early 2027. These metrics over the next 4–8 quarters will determine whether margin gains and lower expenses offset lower top‑line in the transition; absent those confirmations, the update is strategically positive on unit economics but neutral on overall investor impact.

• Third quarter 2025 revenue was $5.0 million, compared to $7.4 million in the third quarter of 2024, and $5.4 million in the second quarter of 2025
• Targeting $12.4 million in new business, reflecting both committed annual recurring revenue ("CARR") and late-stage opportunities nearing completion; 2026 pipeline expanded to $69 million
• Exceeded 2025 goal of 40 new signed accounts for 2026 revenue, with 45 new signed accounts to date—several already contributing to 2025 results; average employer customer size nearly doubled what was projected
• Strong business fundamentals in the third quarter including GAAP gross margin increase to 60%, 7 consecutive quarters of 80%+ non-GAAP gross margins on core B2B2C business, and $17.2 million, or 31%, reduction in operating expenses for the first nine months of 2025 compared to the same period in 2024
• Dario's integrated whole-person digital health platform is driving adoption as more than 50% of Company's new clients are choosing the multi-condition offering—combining AI-driven personalization across diabetes, hypertension, weight management, musculoskeletal, and mental health
• Backed by $31.9 million in cash and cash equivalents on the balance sheet as of September 30, 2025, and accelerating commercial momentum, Dario expects to reach cashflow breakeven by late 2026 to early 2027
• Dario will host an investor conference call and webcast at 8:30 a.m. ET today

NEW YORK, Nov. 13, 2025 /PRNewswire/ -- DarioHealth Corp. (NASDAQ: DRIO) ("Dario" or the "Company"), a leader in the global digital health market, today announced financial results for the third quarter ended September 30, 2025, along with strategic and commercial updates.

"As we execute a powerful transition to a high-margin recurring revenue model built on high-quality, long-term contracts generating 60% GAAP and 80%-plus non-GAAP gross margins, Dario's financials are significantly improving as evidenced by continued gross margin expansion, declines in operating expenses, and a robust balance sheet. We believe we are on a solid path to profitability," stated Erez Raphael, Chief Executive Officer of Dario. "While revenue declined during this transition, mainly due to our focus on a high-margin, annual recurring revenue model, our multi-condition platform is garnering strong traction with large insurers and with employers that are two to ten-times larger than our historical client size." 

"We have 45 new clients in 2025 thus far and are targeting $12.4 million in new business including committed annual recurring revenues and a portion of our late-stage pipeline that is in the contracting process. Our commercial pipeline now stands at $69 million for 2026 reflecting the success of our channel strategy and robust momentum which we believe positions us for strong revenue acceleration in 2026 as we sign and onboard new clients. Our diversified customer base numbers over 125 clients, including four national and seven major regional health plans, 112 employers, and seven channel partners representing 116 million lives. With more than 50% of new contracts now multi-condition, we aim to lead healthcare's shift toward integrated, clinically proven, outcomes-driven digital solutions. We believe we have created tremendous value both in our technology platform and our business, and this is being recognized by other companies in the rapidly evolving digital health ecosystem," Raphael concluded.

In September 2025, in response to multiple unsolicited inbound expressions of interest, Dario engaged Perella Weinberg Partners and established a Special Committee of its Board of Directors. We will not be commenting further on this matter unless or until there is a material update.

Commercial Momentum Accelerates: Dario is a Multi-Condition Leader in Digital Health

• 45 New Annual Recurring Revenues ("ARR") Clients year-to-date, surpassing stated goal of signing 40 new accounts in 2025
• Signing Larger Clients that are increasingly looking for multi-condition solutions, doubling expected client size and doubling win rate for sustained revenue ramp
• Value-Based Pricing Model Enables Faster Expansion as an increasing number of new accounts are opting for Dario's innovative new performance-based pricing model
• Expansion into Fall-Risk Assessment through strategic collaboration with OneStep to further drive measurable return on investment ("ROI") for health plans by reducing falls, the leading cause of injury of older adults in the U.S. generating more than $50 billion in annual direct medical costs
• Channel Partners Representing 116 million Lives are accelerating market penetration

"We believe that Dario's multi-condition platform, among the few in the market addressing over five conditions, is resonating strongly with blue-chip employers and insurers," said Steven Nelson, Dario's President and Chief Commercial Officer. "In addition to surpassing our new business goal, we have built a 2026 commercial pipeline that is extremely healthy and still has early 2026 and mid 2026 opportunities on the table due to diversifying our product market fit to new employers and health plans, including government opportunities. Impressively, more than 50% of our new clients choose our multi-condition option. We now serve over 125 clients, including Fortune 100 companies, and our diversified approach across employers, health plans, and pharma creates multiple revenue streams with low customer concentration risk. Our growth is further amplified by top-tier channel partnerships, collectively reaching over 116 million lives."

Solid Financial Foundation for Growth

• Cash Balance of $31.9 million following a $17.5 million oversubscribed private placement during the third quarter of 2025
• Runway to Cashflow Positive based on growing ARR, robust commercial pipeline, continued reductions in operating expenses, and strong cash position
• Optimized Cap Table in September 2025, as all outstanding preferred shares converted into shares of common stock and common stock equivalents, creating a clearer equity structure
• Expanded Gross Margins in the third quarter of 2025 to 60% with the core B2B2C channel sustaining approximately 80% non-GAAP gross margins since the first quarter of 2024
• Decreased Operating Expenses by $17 million, or 31%, in the first nine months of 2025 compared to the year-ago period and decreased by $3.4 million, or 21%, in the third quarter compared to the year-ago period, reflecting strong operational discipline, efficiencies and continued impact of the Company's artificial intelligence ("AI") transformation; Further 10-15% improvements expected from additional AI implementations and efficiencies over the next 12-15 months
• Narrowed Operating Loss in the third quarter of 2025 by 21% and by 39% for the nine-month period compared to the same periods in 2024
• Credit Agreement amended to reset covenants, creating greater flexibility

"During the third quarter of 2025, Dario significantly strengthened its financial position, highlighted by an oversubscribed $17.5 million private placement, reflecting strong investor confidence in our ability to capture a massive digital health opportunity," stated Chen Franco Yehuda, Dario's Chief Financial Officer. "Our disciplined approach to operations resulted in further substantial reductions in operating expenses and corresponding operating loss on a year-over-year basis both for the third quarter of 2025 and the first nine months of 2025. High-quality accounts are translating into 60% GAAP gross margins and sustained 80% gross margins on our B2B2C business on a non-GAAP basis, setting Dario on a clear path to cashflow breakeven by late 2026 to early 2027."

Financial Results for the Three Months Ended September 30, 2025

Revenue for the three months ended September 30, 2025 was $5.0 million, compared to $7.4 million, for the three months ended September 30, 2024, and $5.4 million for the three months ended June 30, 2025. The quarter-over-quarter and year-over-year decrease was primarily due to Dario's transition away from one-time and non-recurring revenues to its focus on building ARR revenues from its core B2B2C business and a significant scope change with a large national health plan client that was not renewed in the beginning of 2025.

Gross profit for the three months ended September 30, 2025 was $3.0 million, compared to gross profit of $3.9 million for the three months ended September 30, 2024, and gross profit of $3.0 million for the three months ended June 30, 2025. The reason for the increase as compared to the three months ended September 30, 2024 resulted mainly from change in revenue mix and lower amortization of technology expenses recorded in the cost of revenues. Gross profit as a percentage of revenues increased year-over-year to 60% in the three months ended September, 2025, from 52% in the three months ended September 30, 2024, and increased from 55% in the three months ended June 30, 2025.

Non-GAAP gross profit, excluding $0.2 million of amortization expenses related to the acquisition of technology, stock-based compensation, and depreciation was $3.2 million, or 64% of revenues, for the three months ended September 30, 2025, compared to non-GAAP gross profit of $5.2 million, or 70% of revenues, for the three months ended September 30, 2024, and a non-GAAP gross profit of $3.4 million, or 64% of revenues, for the three months ended June 30, 2025. 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."

Total operating expenses for the three months ended September 30, 2025, were $12.5 million compared to $15.9 million for the three months ended September 30, 2024, and $12.2 million for the three months ended June 30, 2025 a decrease of $3.4 million, or 21%, compared to the three months ended September 30, 2024, and an increase of $0.3 million, or 3%, compared to the three months ended June 30, 2025. The year-over-year decrease in operating expenses resulted mainly from increased operational efficiency and post-merger integration activities.

Non-GAAP operating expenses (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended September 30, 2025, were $9.2 million compared to $12.3 million for the three months ended September 30, 2024, and $9.8 million for the three months ended June 30, 2025, representing a decrease of 25% and 6%, respectively.

Operating loss for the three months ended September 30, 2025, was $9.5 million, a decrease of $2.5 million, or 21%, compared to $12.0 million for the three months ended September 30, 2024, and remained relatively the same compared to $9.2 million for the three months ended June 30, 2025. The decrease in operating loss compared to the three months ended June 30, 2024, was mainly due to an increase in operational efficiencies and post-merger integration activities.

Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended September 30, 2025 was $6.0 million representing a decrease of 16% and an decrease of 6% respectively, compared to a Non-GAAP operating loss of $7.1 million in the three months ended September 30, 2024, and Non-GAAP operating loss of $6.4 million in the three months ended June 30, 2025.

Net loss was $10.5 million for the three months ended September 30, 2025, compared to a net loss of $12.3 million for the three months ended September 30, 2024, and $13.0 million for three months ended June 30, 2025.

Non-GAAP net loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended September 30, 2025 was $7.0 million compared to a Non-GAAP net loss of $7.4 million for the three months ended September 30, 2024, and a Non-GAAP net loss of $10.2 million in the three months ended June 30, 2025.

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 Nine Months Ended September 30, 2025

Revenues for the nine months ended September 30, 2025 were $17.1 million, compared to $19.4 million for the nine months ended September 30, 2024. The reason for the decrease as compared to the nine months ended September 30, 2024 was primarily due to Dario's transition away from one-time and non-recurring revenues to its focus on building ARR revenues from its core B2B2C business and a significant scope change with a large national health plan client that was not renewed in the beginning of 2025, partially offset by new ARR.

Gross profit for the nine months ended September 30, 2025, was $9.9 million, an increase of $0.8 million or 9%, compared to gross profit of $9.1 million for the nine months ended September 30, 2024. The reason for the increase as compared to the nine months ended September 30, 2024 resulted mainly from the change in revenue mix and lower amortization of technology expenses recorded in the cost of revenues. Gross profit as a percentage of revenues increased year-over-year to 58% in the nine months ended September 30, 2025, from 47% in the nine months ended September 30, 2024.

Non-GAAP gross profit, excluding $1.6 million of amortization expenses related to the acquisition of technology, stock-based compensation and depreciation, was $11.4 million, or 67% of revenues, for the nine months ended September 30, 2025, compared to non-GAAP gross profit of $12.9 million, or 66% of revenues, for the nine months ended September 30, 2024. 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."

Total operating expenses for the nine months ended September 30, 2025, were $38.0 million compared to $55.1 million for the nine months ended September 30, 2024, a decrease of $17.1 million, or 31%. The decrease in operating expenses compared to the nine months ended September 30, 2024, resulted mainly from increased operational efficiencies and post merger integration activities.

Non-GAAP operating expenses (excluding stock-based compensation, acquisition-related expenses, depreciation and amortization expenses) for the nine months ended September 30, 2025, were $29.6 million compared to $39.7 million for the nine months ended September 30, 2024, representing a decrease of $10.1 million.

Operating loss for the nine months ended September 30, 2025, was $28.1 million, a decrease of $17.9 million, or 39%, compared to $46.1 million for the nine months ended September 30, 2024. The decrease in operating loss compared to the nine months ended September 30, 2024, was mainly due to an increase in operational efficiencies and post merger integration activities.

Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the nine months ended September 30, 2025 was $18.2 million representing a decrease of 32%, compared to a non-GAAP operating loss of $26.9 million in the nine months ended September 30, 2024.

Net loss was $32.7 million for the nine months ended September 30, 2025, compared to a net loss of $33.1 million for the nine months ended September 30, 2024.

Non-GAAP net loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the nine months ended September 30, 2025 was $22.8 million compared to a Non-GAAP net loss of $13.9 million for the nine months ended September 30, 2024.

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: Thursday November 13, 8:30am ET  

Dial-in Number: 1-800-717-1738 (domestic) or 1-646-307-1865 (international)

Call me™: https://emportal.ink/4mObSmB

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=1732064&tp_key=b74033256e

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 Thursday, November 27th, 2025. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 1196613.

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. Dario's 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.

Dario's 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. 

Cautionary Note Regarding Forward-Looking Statements

This news release and the statements of representatives and partners of DarioHealth Corp. 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. For example, the Company is using forward-looking statements in this press release when it discusses the amount of its targeted new business, its 2026 pipeline and expected strong revenue acceleration in 2026, that it expects to reach cashflow breakeven by late 2026 to early 2027, that it expects to transition to a high-margin recurring revenue model; that it is on a solid path to profitability; the number of new accounts it expects to sign in 2025, its potential future business opportunities, and that it expects to further cut its operating expenses over the next 12-15 months. 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. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Factors that may affect the Company's results include, but are not limited to, regulatory approvals, product demand, market acceptance, impact of competitive products and prices, product development, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks, and the risks associated with the adequacy of existing cash resources. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements include, but are not limited to, those risks discussed in the Company's filings with the U.S. Securities and Exchange Commission. Readers are cautioned that actual results (including, without limitation, the timing for and results of the Company's commercial and regulatory plans for Dario™ as described herein) may differ significantly from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

DarioHealth Corporate Contacts

Michael Lipari
SVP Corporate Development
irteam@dariohealth.com
+1-201-785-6310

Zoe Harrison
VP, Accounting and Corporate Development
irteam@dariohealth.com

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)
U.S. dollars in thousands

		September 30,			December 31,
		2025			2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	31,907		$	27,764
Short-term bank deposits			-			697
Short-term restricted bank deposits			222			175
Trade receivables, net			2,375			4,804
Inventories			4,869			4,753
Other accounts receivable and prepaid expenses			2,812			2,336
Total current assets			42,185			40,529
NON-CURRENT ASSETS:
Deposits			79			79
Operating lease right of use assets			746			1,065
Long-term assets			307			313
Property and equipment, net			578			709
Intangible assets, net			16,405			18,762
Goodwill			57,427			57,427
Total non-current assets			75,542			78,355
Total assets		$	117,727		$	118,884
The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.

 

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)
U.S. dollars in thousands (except stock and per share data)

		September 30,			December 31,
		2025			2024
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	3,469		$	3,045
Deferred revenues			860			1,583
Operating lease liabilities			442			504
Other accounts payable and accrued expenses			4,508			6,052
Current maturity of long-term loan			—			5,451
Total current liabilities			9,279			16,635
NON-CURRENT LIABILITIES
Operating lease liabilities			579			765
Long-term loan			30,617			23,472
Warrant liability			2,244			5,968
Other long-term liabilities			74			25
Total non-current liabilities			33,514			30,230
STOCKHOLDERS' EQUITY **
Common stock of $0.0001 par value - authorized: 400,000,000 shares; issued and outstanding: 6,768,184 and 1,919,422 shares on September 30, 2025 and December 31, 2024, respectively			4			4
Preferred stock of $0.0001 par value - authorized: 5,000,000 shares; issued and outstanding: 0 and 49,585 shares on September 30, 2025 and December 31, 2024, respectively			*) -			*) -
Additional paid-in capital			516,756			462,358
Accumulated deficit			(441,826)			(390,343)
Total stockholders' equity			74,934			72,019
Total liabilities and stockholders' equity		$	117,727		$	118,884
*) Represents an amount lower than $1. (**) See note 1e regarding reverse share split. The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.

 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
U.S. dollars in thousands (except stock and per share data)

		Three months ended						Nine months ended
		September 30,						September 30,
		2025			2024			2025			2024
Revenues:
Services		$	3,209		$	5,604		$	11,745		$	14,424
Consumer hardware			1,798			1,819			5,383			5,012
Total revenues			5,007			7,423			17,128			19,436
Cost of revenues:
Services			613			920			2,299			2,845
Consumer hardware			1,198			1,282			3,479			3,786
Amortization of acquired intangible assets			181			1,344			1,489			3,740
Total cost of revenues			1,992			3,546			7,267			10,371
Gross profit			3,015			3,877			9,861			9,065
Operating expenses:
Research and development		$	3,328		$	5,446		$	11,157		$	18,898
Sales and marketing			4,604			6,733			15,708			20,775
General and administrative			4,567			3,728			11,089			15,468
Total operating expenses			12,499			15,907			37,954			55,141
Operating loss			9,484			12,030			28,093			46,076
Interest expenses			1,157			—			1,923			—
Other financial expenses (income), net			(175)			313			2,645			(10,954)
Total financial expenses (income), net			982			313			4,568			(10,954)
Loss before taxes			10,466			12,343			32,661			35,122
Income tax (benefit)			—			(13)			22			(2,007)
Net loss		$	10,466		$	12,330		$	32,683		$	33,115
Deemed dividend (contribution)		$	8,389		$	2,278		$	18,800		$	(4,394)
Net loss attributable to common shareholders		$	18,855		$	14,608		$	51,483		$	28,721
Net loss per share:
Basic and diluted loss per share of common stock		$	2.96		$	4.91		$	9.05		$	10.38
Weighted average number of common stock used in computing basic and diluted net loss per share**			3,138,106			2,020,872			2,673,794			1,954,679
(**) See note 1e regarding reverse share split. The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.

 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)
U.S. dollars in thousands

		Nine months ended
		September 30,
		2025			2024
Cash flows from operating activities:
Net loss		$	(32,683)		$	(33,115)
Adjustments required to reconcile net loss to net cash used in operating activities:
Stock-based compensation			7,327			13,206
Depreciation and impairment			247			773
Disposal of property and equipment			-			7
Change in operating lease right of use assets			319			666
Amortization of acquired intangible assets			2,357			4,519
Decrease in trade receivables, net			2,429			1,536
Increase in other accounts receivable, prepaid expense and long-term assets			(470)			(894)
Decrease (increase) in inventories			(117)			320
Increase (decrease) in trade payables			424			(886)
Decrease in other accounts payable and accrued expenses			(1,495)			(3,704)
Decrease in deferred revenues			(723)			(621)
Change in operating lease liabilities			(248)			(791)
Change in fair value of warrant liability			(903)			(13,370)
Non-cash financial expenses			2,832			432
Other			650			92
Net cash used in operating activities			(20,054)			(31,830)
Cash flows from investing activities:
Purchase of property and equipment			(116)			(117)
Payments for business acquisitions, net of cash acquired			—			(8,796)
Net cash used in investing activities			(116)			(8,913)
Cash flows from financing activities:
Proceeds from issuance of common stock and prefunded warrants, net of issuance costs			17,393			—
Proceeds from issuance of preferred stock, net of issuance costs			6,754			20,206
Proceeds from borrowings on credit agreement, net			31,700			—
Repayment of long-term loan			(31,515)			—
Net cash provided by financing activities			24,332			20,206
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents			4,162			(20,537)
Effect of exchange rate differences on cash, cash equivalents and restricted cash and cash equivalents			(19)			(50)
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		$	31,907		$	16,210
Supplemental disclosure of cash flow information:
Cash paid during the period for interest on long-term loan		$	2,260		$	2,968
Non-cash activities:
Right-of-use assets obtained in exchange for lease liabilities		$	—		$	428
Exercise of pre-funded warrants to common stock upon acquisition		$	2,821		$	—
The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.

 

Reconciliation of Operating Loss, Net Loss  and Operating Expenses to Adjusted
Operating Loss, Net Loss  and Operating Expenses (Non-GAAP)
U.S. dollars in thousands
Three months ended September 30, 2025
	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
Cost of Revenues	$	1,992		(6)		(192)		1,794
Gross Profit		3,015		6		192		3,213
Research and development		3,328		(389)		(30)		2,909
Sales and Marketing		4,604		(555)		(308)		3,741
General and Administrative		4,567		(2,000)		(17)		2,550
Total Operating Expenses		12,499		(2,944)		(355)		9,200
Operating Loss	$	(9,484)		2,950		547		(5,987)
Financing expenses		928		-		-		982
Net Loss	$	(10,466)		2,950		547		(6,969)

 

Reconciliation of Operating Loss, Net Loss  and Operating Expenses to Adjusted
Operating Loss, Net Loss  and Operating Expenses (Non-GAAP)
U.S. dollars in thousands
Three months ended September 30, 2024
	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
Cost of Revenues	$	3,546		7		(1,359)		2,194
Gross Profit		3,877		(7)		1,359		5,229
Research and development		5,446		(748)		(63)		4,635
Sales and Marketing		6,733		(948)		(689)		5,096
General and Administrative		3,728		(1,097)		(17)		2,614
Total Operating Expenses		15,907		(2,793)		(769)		12,345
Operating Loss	$	(12,030)		2,786		2,128		(7,116)
Financing expenses		313		-				313
Income Tax		(13)						(13)
Net Loss	$	(12,330)		2,786		2,128		(7,416)

 

Reconciliation of Operating Loss, Net Loss  and Operating Expenses to Adjusted
Operating Loss, Net Loss  and Operating Expenses (Non-GAAP)
U.S. dollars in thousands
Nine months ended September 30, 2025
	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
Cost of Revenues	$	7,267		(22)		(1,529)		5,716
Gross Profit		9,861		22		1,529		11,412
Research and development		11,157		(1,356)		(104)		9,697
Sales and Marketing		15,708		(1,953)		(926)		12,829
General and Administrative		11,089		(3,996)		(46)		7,047
Total Operating Expenses		37,954		(7,305)		(1,076)		29,573
Operating Loss	$	(28,093)		7,327		2,605		(18,161)
Financing expenses		4,568		-		-		4,568
Income Tax		22						22
Net Loss	$	(32,683)		7,327		2,605		(22,751)

 

Reconciliation of Operating Loss, Net Loss  and Operating Expenses to Adjusted
Operating Loss, Net Loss  and Operating Expenses (Non-GAAP)
U.S. dollars in thousands
Nine months ended September 30, 2024
	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non -GAAP
Cost of Revenues	$	10,371		(5)		(3,784)		6,582
Gross Profit		9,065		5		3,784		12,854
Research and development		18,898		(2,311)		(187)		16,400
Sales and Marketing		20,775		(4,354)		(859)		15,562
General and Administrative		15,468		(6,536)		(1,175)		7,757
Total Operating Expenses		55,141		(13,201)		(2,221)		39,719
Operating Loss	$	(46,076)		13,206		6,005		(26,865)
Financing expenses		(10,954)		-		-		(10,954)
Income Tax		(2,007)						(2,007)
Net Loss	$	(33,115)		13,206		6,005		(13,904)

Logo: https://mma.prnewswire.com/media/1920436/DarioHealth_Logo.jpg

 

View original content:https://www.prnewswire.com/news-releases/dariohealth-reports-third-quarter-2025-financial-and-operating-results-302614336.html

SOURCE DarioHealth Corp.

FAQ

What were DarioHealth (DRIO) Q3 2025 revenue and gross margin?

Dario reported Q3 2025 revenue of $5.0M and a 60% GAAP gross margin.

How many new ARR clients did DRIO sign in 2025 and did it meet guidance?

Dario signed 45 new ARR clients year-to-date in 2025, exceeding its target of 40.

What is DRIO's cash position and recent financing as of Sept 30, 2025?

Cash and cash equivalents were $31.9M following an oversubscribed $17.5M private placement.

What commercial pipeline and new business does DarioHealth report for 2026?

Dario reports a $69M pipeline for 2026 and is targeting $12.4M in new business including committed ARR.

When does DarioHealth expect to reach cashflow breakeven (DRIO)?

Management expects to reach cashflow breakeven in late 2026 to early 2027.

Why did DRIO revenue decline year-over-year in Q3 2025?

Revenue declined due to a strategic shift to ARR and a scope change where a large national health plan contract was not renewed.