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DarioHealth Reports Q2 2025 Financial and Operational Results

On August 12, 2025, DarioHealth Corp. (NASDAQ: DRIO) shared its financial performance for the second quarter of 2025, revealing a revenue of $5.4 million. This marks a decline compared to $6.3 million in the same quarter last year and a decrease from $6.8 million in Q1 2025. Despite these figures, DarioHealth's leadership remains optimistic about the company's future, citing strong client acquisition momentum and strategic contract wins that are expected to bridge the revenue gap.

While the recent results were below internal goals, DarioHealth's management expressed confidence that new contracts and ongoing client signings will enhance future revenues. Key highlights from the quarter include approximately $5 million in new committed annual recurring revenues (CARR) and a strong pipeline worth $53 million in commercial opportunities, with over $5 million nearing finalization for CARR. The company is on track to attract a total of 40 new clients by the end of the year. Among these, two new health plan clients are anticipated to yield multi-million-dollar revenue opportunities over time, with a significant national health plan scheduled to launch in the latter half of 2025.

The gross margin for Q2 2025 rose to 55%, an increase from 44% in the same quarter a year earlier, suggesting improved operational efficiency. The core B2B2C segment has maintained a robust gross margin of approximately 80% on a non-GAAP basis since the beginning of 2024. Operating losses were reduced by 43% compared to the same period last year, and overall operating expenses decreased by 36% year-over-year, indicating ongoing efficiency improvements driven by AI-generated operational optimization.

Erez Raphael, Dario’s CEO, acknowledged that the revenue dip was disappointing but emphasized that the increasing quality of new contracts and the strengthening of client channels offer a promising outlook. He reiterated the company’s commitment to focusing on signing and onboarding new B2B2C clients to cultivate sustainable revenue growth. Furthermore, improvements in client acquisition and a strong health plan launch are expected indicators of DarioHealth's potential recovery and future growth.

The company's efforts have extended into new markets, such as the $150 billion sleep apnea sector, following a partnership with GreenKey Health, and a new GLP-1 cardiovascular solution is now live with a national benefit administrator. DarioHealth's leadership in artificial intelligence within the medical industry continues to drive significant operational efficiencies. With expectations of increasing operational efficiencies and improved patient engagement driven by AI, Dario anticipates an additional 15% reduction in operating expenses over the next 12 to 15 months.

Financial Results

DarioHealth’s revenues for the three months ended June 30, 2025, saw a decrease of 14% from the same quarter in 2024 and a 20% decline from Q1 2025. Although Dario faced challenges during the transition away from one-time revenues toward a more sustainable ARR model, strategic changes and new client acquisitions have helped maintain the company's solid gross profit margins. For the first half of 2025, revenues reached $12.12 million, slightly above the $12.01 million reported in the prior year.

The company's operational expenses from Q2 2025 reflected a significant year-over-year reduction, amounting to $12.2 million compared to $18.9 million in Q2 2024. This positive trend is largely attributed to strong operational discipline and integration efforts post-merger, allowing the company to reduce overall losses and position itself for future growth. The net loss for the three months ended June 30, 2025, was reported at $12.99 million, which shows progress from last year’s net loss of $13.61 million for the same period.

Despite temporary challenges, DarioHealth remains poised for growth, focusing on enhancing its digital health platform and expanding its reach across a variety of chronic conditions. The company is dedicated to refining its product offerings and exploring new technological advancements that can drive consumer engagement and satisfaction. DarioHealth continues to assert its role as a leader in digital healthcare, emphasizing the value of data-driven insights and personalized interventions in chronic condition management.

In conclusion, DarioHealth's second quarter results reflect a pivotal moment of transition, as the company steers towards a more sustainable and profitable model. With robust client momentum, strategic contract growth, and a focus on operational efficiency, DarioHealth is well-positioned for long-term success in the digital health marketplace.