DarioHealth Reports Third Quarter 2025 Financial and Operating Results

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]