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]

Core Viewpoint - DarioHealth Corp. is implementing a 20-for-1 reverse stock split of its common stock, effective August 28, 2025, to enhance its stock price and maintain compliance with Nasdaq listing requirements [1][2]. Group 1: Reverse Stock Split Details - The reverse stock split will reduce the number of outstanding shares from approximately 47,996,572 to about 2,399,829 [2]. - The total number of authorized shares remains unchanged at 400,000,000 [2][5]. - No fractional shares will be issued; any resulting fractions will be rounded up to the nearest whole share [2][3]. Group 2: Approval and Impact - The reverse stock split was approved by the board of directors with stockholder authority at the 2025 Annual Meeting held on July 23, 2025 [3]. - The split will not affect stockholders' percentage ownership or voting power, aside from minor adjustments for fractional shares [3]. Group 3: Adjustments to Securities - All outstanding options, convertible securities, and other equity instruments will be adjusted accordingly to reflect the reverse stock split [4]. Group 4: Company Overview - DarioHealth Corp. is a leader in the digital health market, focusing on chronic condition management through a user-centric digital therapeutics platform [6][7]. - The platform provides personalized interventions driven by data analytics for conditions such as diabetes, hypertension, and behavioral health [6][7]. Group 5: Market Position - DarioHealth offers its solutions globally to health plans, self-insured employers, and consumers, aiming to disrupt traditional healthcare approaches [8].