Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $5 million, down from $5.4 million in Q2 2025 and $7.4 million in Q3 2024, reflecting a shift from one-time revenue streams to long-term annual recurring revenue [23][24] - GAAP gross margin improved to 60%, up from 55% in Q2 2025 and 52% in Q3 2024, while non-GAAP gross margin remained above 80% since early 2024 [24] - Operating expenses decreased by $17.2 million, or 31%, in the first nine months of 2025, and by $3.4 million, or 21%, in Q3 compared to the prior year [24] Business Line Data and Key Metrics Changes - The company serves over 125 clients, with 45 new accounts signed year-to-date in 2025, surpassing the goal of 40 new accounts [8][12] - More than 50% of new clients have chosen the multi-condition solution, indicating a strong market preference for integrated offerings [11][12] - The average employer account size has nearly doubled compared to last year, contributing to revenue momentum [12] Market Data and Key Metrics Changes - The 2026 pipeline has grown to $69 million, with a target of $12.4 million in new business for implementation in 2026 [11][12] - The company has established partnerships with major health plans and channel partners, reaching over 116 million covered lives [13][14] Company Strategy and Development Direction - DarioHealth aims to transition to a high-margin recurring revenue model, focusing on integrated multi-condition platforms that deliver measurable outcomes [10][27] - The company is expanding its capabilities through strategic collaborations, such as partnerships with OneStep and GreenKey Health, to enhance its service offerings [18][19] - The company is also targeting opportunities in the public sector, driven by policy tailwinds favoring digital health solutions [16][49] Management's Comments on Operating Environment and Future Outlook - Management expects to reach cash flow breakeven by late 2026 to early 2027, supported by a healthy pipeline and operational efficiencies [25][27] - The company is experiencing stronger demand than ever, particularly from blue-chip employers and national insurers [11][12] - Management highlighted the importance of their technology platform as a strategic asset that supports high-margin recurring revenues [27] Other Important Information - The company completed a $17.5 million private placement, enhancing its financial position and signaling investor confidence [22] - DarioHealth is in the process of simplifying its capital structure and enhancing financial resilience through amendments to its credit agreement [22] Q&A Session Summary Question: What is the expected contribution from UnitedHealth's national rollout in 2026? - Management indicated that the rollout is innovative and will be implemented in chunks, but specific revenue contributions from this client were not disclosed [30][31] Question: What is driving the sequential declines in B2B2C revenue? - The decline is primarily attributed to the non-renewal of a large contract with a national health plan and the transition of the pharma business to a recurring revenue model [36][37] Question: Can you provide an update on the pharma services pipeline? - The company is focusing on a recurring revenue model in pharma services and expects to sign two to four accounts that will contribute to revenue next year [39][41] Question: How has the product-market fit and pricing model changed? - The company has adjusted its offerings based on claims-based analytics and engaged new partners to enhance its product solutions, which has improved market fit [44][45]

DarioHealth (NasdaqCM:DRIO) Q3 2025 Earnings Call November 13, 2025 08:30 AM ET Speaker2Good morning, ladies and gentlemen, and welcome to the DarioHealth Third Quarter 2025 Results Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If you require immediate assistance during this call, please press star zero at any time for the operator. This call is being recorded on Thursday, November 13th, 2025. I would now like t ...

Core Insights - DarioHealth Corp. reported a quarterly loss of $1.85 per share, which was better than the Zacks Consensus Estimate of a loss of $2.63, representing an earnings surprise of +29.66% [1] - The company posted revenues of $5.01 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 12.47%, and down from $7.42 million a year ago [2] - DarioHealth shares have declined approximately 25.3% year-to-date, contrasting with the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$1.54 on revenues of $6.41 million, and for the current fiscal year, it is -$9.83 on revenues of $24.25 million [7] - The estimate revisions trend for DarioHealth was favorable prior to the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Medical - Instruments industry, to which DarioHealth belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

DarioHealth Corp. The innovative, scalable platform for cost efficient, whole-body health November 2025 Forward-Looking Statement This presentation of DarioHealth Corp. ("Dario", the "Company", "we" and "our") and statements of our management or agents related thereto contain or may contain forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Statements which are not historical reflect our current expectations and projections about our future re ...

Core Insights - DarioHealth Corp. is transitioning to a high-margin recurring revenue model, which has led to improved financials despite a decline in revenue during this transition [2][10][19] - The company has signed 45 new clients in 2025, exceeding its goal of 40, and is targeting $12.4 million in new business [5][6] - DarioHealth's commercial pipeline for 2026 stands at $69 million, indicating strong momentum and potential for revenue acceleration [2][5] Financial Performance - Revenue for Q3 2025 was $5.0 million, down from $7.4 million in Q3 2024 and $5.4 million in Q2 2025 [10][17] - Gross profit for Q3 2025 was $3.0 million, with a gross margin of 60%, up from 52% in Q3 2024 [11][20] - Operating expenses decreased by $17.2 million, or 31%, in the first nine months of 2025 compared to the same period in 2024 [9][22] Client and Market Expansion - DarioHealth's diversified customer base includes over 125 clients, with more than 50% of new contracts being multi-condition offerings [2][7] - The company is focusing on larger clients, which has nearly doubled the average employer customer size [6][7] - Strategic collaborations, such as with OneStep for fall-risk assessment, are expected to enhance ROI for health plans [6] Cash Position and Future Outlook - As of September 30, 2025, DarioHealth had $31.9 million in cash and cash equivalents, following a $17.5 million oversubscribed private placement [9][12] - The company anticipates reaching cash flow breakeven by late 2026 to early 2027 [9][12] - Continued reductions in operating expenses and a robust commercial pipeline are expected to support future growth [9][12]

Financial Performance - Total revenues for Q3 2025 were $5,007,000, a decrease of 32.5% compared to $7,423,000 in Q3 2024[24] - Operating loss for Q3 2025 was $9,484,000, down from $12,030,000 in Q3 2024, indicating a 21% improvement[24] - Net loss attributable to common shareholders for Q3 2025 was $18,855,000, compared to $14,608,000 in Q3 2024, representing a 28.5% increase[24] - The company reported a net loss of $10,466,000 for the three months ended September 30, 2025, compared to a net loss of $12,330,000 for the same period in 2024, indicating a reduction in losses[30] - For the nine months ended September 30, 2025, the company reported a net loss of $32,683,000, compared to a net loss of $33,115,000 for the same period in 2024, showing a slight improvement[30] - The company experienced a decrease in net loss year-over-year, reflecting improved financial performance[154] - The overall financial metrics indicate a trend towards reduced losses, which may signal potential for future profitability[154] Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were $31,907,000, up from $27,764,000 at the end of 2024, showing a 15.4% increase[18] - The company used approximately $20,054 in cash for operating activities during the nine months ended September 30, 2025, a decrease from $31,830 used in the same period of 2024[33] - DarioHealth's cash, cash equivalents, and restricted cash increased to $31,907 as of September 30, 2025, from $16,210 at the end of the same period in 2024, reflecting a significant improvement in liquidity[33] Assets and Liabilities - Total current liabilities decreased to $9,279,000 as of September 30, 2025, from $16,635,000 at the end of 2024, a reduction of 44.4%[21] - Long-term loan increased to $30,617,000 as of September 30, 2025, compared to $23,472,000 at the end of 2024, reflecting a 30.5% rise[21] - Total assets as of September 30, 2025, were $117,727,000, slightly down from $118,884,000 at the end of 2024, a decrease of 1%[18] - As of September 30, 2025, the total stockholders' equity was $74,934,000, an increase from $63,986,000 as of June 30, 2025, reflecting a growth of approximately 17.5%[27] Stock and Equity - The total number of common shares outstanding increased to 6,768,184 as of September 30, 2025, up from 2,273,747 as of June 30, 2025, due to the conversion of preferred stock and issuance of common stock[27] - The company issued common stock and prefunded warrants, net of issuance costs, totaling $1,154,420, which contributed to the increase in additional paid-in capital by $17,393,000[27] - The total additional paid-in capital as of September 30, 2025, was $516,756,000, reflecting an increase from $486,953,000 as of June 30, 2025[27] - The company executed a reverse share split on August 28, 2025, which resulted in a round-up of shares totaling 53,518[27] - The company raised approximately $17,500 in gross proceeds from the sale of 1,154,420 shares of Common Stock and pre-funded warrants at a price of $6.45 per share on September 22, 2025[134] Expenses - Research and development expenses for Q3 2025 were $3,328,000, down from $5,446,000 in Q3 2024, a decrease of 38.9%[24] - Stock-based compensation for the three months ended September 30, 2025, amounted to $2,950,000, compared to $2,575,000 for the same period in 2024, reflecting an increase of approximately 14.6%[30] - The company recorded share-based compensation expenses of $35,000 and $135,000 for the three and nine-month periods ended September 30, 2025, respectively[107] Customer and Revenue Diversification - DarioHealth's major customer accounted for 11.5% of accounts receivable as of September 30, 2025, down from 41.6% at the end of 2024, indicating a diversification in customer base[49] - The company generated revenues from B2B2C contracts and direct consumer offerings, with total revenues for the nine months ended September 30, 2025, at $17,128[60] Future Outlook - The company expects to continue incurring net losses and will depend on raising additional funds to support operations until it achieves profitability[39] - The company expects to recognize approximately $860 in deferred revenue over the next 12 months[61] Corporate Actions - The company completed the acquisition of Twill, Inc. on February 15, 2024, enhancing its capabilities in personalized digital therapeutics and care solutions[38] - The company appointed a new Chief Financial Officer, effective May 15, 2025, and agreed to issue 25,000 restricted shares to her[108]

Core Insights - DarioHealth Corp. presented research at ISPOR Europe 2025 demonstrating significant medical cost reductions associated with its digital health platform, particularly among high-risk populations [1][2][3] - The study provides real-world evidence linking behavior change facilitated by Dario's platform to measurable economic impacts, marking a critical milestone for the company [1][3] - Dario's platform integrates connected devices, AI-driven insights, and human coaching to improve health outcomes and reduce overall medical expenditures [1][2] Company Overview - DarioHealth Corp. is a leading digital health company focused on managing chronic conditions through a user-centric digital therapeutics platform [2][3] - The platform offers personalized interventions driven by data analytics and one-on-one coaching for conditions such as diabetes, hypertension, and behavioral health [2][3] Market Impact - Chronic diseases are a major contributor to the $4.9 trillion annual healthcare costs in the U.S., highlighting the importance of Dario's solutions in addressing these challenges [1] - Dario's platform is currently utilized by employers, health plans, and partners across the U.S. to support members with various chronic health needs [1][2]

Core Points - DarioHealth Corp. will release its financial results for Q3 2025 on November 13, 2025, at 8:30 a.m. Eastern Time [1] - The conference call will be hosted by key executives including the CEO, President, and CFO [2] Conference Call Details - Date and Time: November 13, 2025, at 8:30 a.m. Eastern Time [3] - Dial-in Numbers: 1-800-717-1738 (domestic) or 1-646-307-1865 (international) [3] - Webcast Link: https://viavid.webcasts.com/starthere.jsp?ei=1732064&tp_key=b74033256e [3] - Replay Availability: Approximately three hours after the call until November 27, 2025 [3] Company Overview - DarioHealth Corp. is a leader in the digital health market, focusing on chronic condition management through a user-centric digital therapeutics platform [4] - The platform provides personalized interventions for conditions such as diabetes, hypertension, and behavioral health, promoting sustainable lifestyle changes [4] - DarioHealth's solutions are offered globally to health plans, self-insured employers, and consumers [5]

Core Viewpoint - Purcell & Lefkowitz LLP is investigating DarioHealth Corp. to determine if the company's directors breached their fiduciary duties related to recent corporate actions [1]. Group 1 - The investigation is being conducted on behalf of DarioHealth's shareholders [1]. - Shareholders interested in more information about their rights and options can contact Purcell & Lefkowitz LLP [2]. - The law firm specializes in representing shareholders affected by securities fraud and breaches of fiduciary duty [3].

Core Insights - Personalis, Inc. (NASDAQ:PSNL) specializes in advanced genomic sequencing and analytics, focusing on personalized cancer therapies and precision medicine applications [1] - The stock is currently trading at $8.53, with a target price of $5.37, indicating a potential downside of approximately 37.03% [1][5] - The exclusion of Personalis from analyst coverage suggests a lack of confidence in its future performance [2][5] - DarioHealth Corp. (NASDAQ:DRIO), a peer of Personalis, is trading at $13.93 with a target price of $7.31, representing a potential downside of approximately 47.48% [3][5] - Both companies exhibit negative growth potential based on their target prices, indicating broader market challenges [4][5] Company Analysis - Personalis is focused on providing comprehensive genomic solutions, yet faces significant market skepticism reflected in its stock performance [1][2] - The substantial gap between the current stock price and target price for Personalis indicates potential risks for investors [2][5] - DarioHealth, while a peer in the health sector, is experiencing even greater challenges with a larger potential downside compared to Personalis [3][4] Market Context - The negative outlook for both Personalis and DarioHealth highlights the importance of thorough research and risk assessment in the genomic and digital health sectors [4]