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DarioHealth Reports Financial Updates for Q3 2025

In the third quarter of 2025, DarioHealth Corp. (NASDAQ DRIO), a prominent player in the digital health landscape, reported total revenues of $5.0 million. This figure is a noticeable decline from the $7.4 million generated during the same period last year and slightly lower than the $5.4 million recorded in the preceding quarter. The report emphasizes the company’s ongoing strategic shift from non-recurring revenue to a focus on annual recurring revenue streams, aimed at establishing a robust financial foundation for sustainable growth.

Despite the revenue drop, DarioHealth has set aggressive targets, eyeing an additional $12.4 million in new business opportunities. This expected revenue is attributable to both committed annual recurring revenues (CARR) and a pipeline of late-stage opportunities that are nearing the closure phase.

Key Financial Highlights

DarioHealth achieved significant progress in its operational endeavors, surpassing its 2025 targets. Notably, the company signed 45 new accounts, exceeding its goal of signing at least 40 new clients for the year. This influx of new accounts has bolstered DarioHealth's average employer customer size, which, at nearly double the anticipated figures, reflects a shift towards larger clients seeking multi-condition health solutions.

The company's fundamentals remain strong, with a GAAP gross margin that increased to 60% during the quarter. DarioHealth has also maintained non-GAAP gross margins above 80% across its core B2B2C offerings for seven consecutive quarters. In terms of operational efficiency, DarioHealth recorded a $17.2 million reduction in operating expenses (31%) year-over-year for the first nine months of 2025. This highlights the company’s commitment to enhancing operational efficiency as part of its business framework.

The integrated digital health platform of DarioHealth has received positive traction, with more than half of its new clients opting for multi-condition offerings. This trend underscores the demand for integrated, AI-driven solutions that cover a range of health conditions including diabetes, hypertension, weight management, musculoskeletal pain, and mental health services.

Financial Position and Outlook

As of September 30, 2025, DarioHealth's cash reserves stood at approximately $31.9 million. The company aims to achieve cashflow breakeven by late 2026 to early 2027, bolstered by increasing commercial momentum and its transition strategy towards high-margin recurring revenue models.

DarioHealth’s commitment to enhancing its service offerings led to strategic partnerships, including a collaboration with OneStep aimed at improving fall-risk assessments, directly addressing a major health concern among older adults. This innovative collaboration is expected to yield measurable returns for health plans, given that falls are a leading cause of injury and result in substantial medical costs in the U.S.

Looking ahead, DarioHealth's President and Chief Commercial Officer, Steven Nelson, remarked on the strength of their commercial pipeline, now valued at $69 million for 2026. With a diversified customer base spanning over 125 clients, the company's approach allows it to mitigate customer concentration risks while capitalizing on varied revenue streams.

In conclusion, while the financial results for Q3 2025 reflect a period of transition for DarioHealth, the strategic initiatives being implemented are laying the groundwork for future growth and profitability within the competitive digital health market.

DarioHealth plans to host an investor conference call and webcast at 8:30 a.m. ET to provide further insights into its financial results and strategic vision moving forward.