Full Press Release Details
Fourth quarter 2025 revenues grew sequentially to $5.2 million as compared to $5.0 million in the third quarter of 2025
2025 full-year revenue was $22.4 million, compared to $27.0 million in 2024, due entirely to a scope change and nonrenewal from a single legacy client that came through the Twill, Inc. ("Twill") acquisition — unrelated to demand — partially offset by organic revenue growth
The 2025 sales season — Dario's strongest on record — generated $12.9 million in contracted and late stage, annual recurring revenue ("ARR") set to contribute revenue in 2026 and 2027 and position the Company for a high-growth trajectory
GAAP gross margins increased to 57% in 2025 from 49% in 2024 and Non-GAAP gross margins have sustained at 80% for 2 years on the core B2B2C business
Fourth quarter 2025 delivered the lowest operating expense run-rate on both a GAAP and Non-GAAP basis since Twill's acquisition, reducing Non-GAAP operating expenses by 28% year-over-year, from $12.4 million to $9.0 million, leading to continued improvements in operating loss for the fourth quarter and full year
Pipeline of commercial opportunities grew to $122 million as of December 31 2025, based on 200+ opportunities that are B2B2C
Increased demand for Dario's musculoskeletal ("MSK") product in the B2C market, with 36% growth in the fourth quarter of 2025 and continued expansion expected in international markets
Dario will host an investor conference call and webcast at 8:30 a.m. ET today
NEW YORK, March 19, 2026 /PRNewswire/ -- DarioHealth Corp. (NASDAQ: DRIO) (the "Company", "DarioHealth" or "Dario"), a leader in global digital health, today announced its financial results for the fourth quarter and full-year 2025, along with strategic and commercial updates.
"2025 was our strongest commercial year on record — 85 new agreements signed and contracted and late stage ARR contracts representing $12.9 million are expected to begin converting to revenue in 2026 and 2027. Reported revenue declined due to a single legacy client loss from the Twill acquisition — a scope change and nonrenewal, but the fourth quarter already returned to sequential growth. With a pipeline of commercial opportunities expanded to $122 million, we enter 2026 with strong near-term visibility and what we believe is a compelling foundation for sustained high growth," stated Dario's CEO, Erez Raphael.
"As for AI, Dario owns the entire vertical value chain down to the clinical data itself – and the value of AI is determined entirely by the quality of data it runs on. Our platform spans proprietary hardware that generates continuous physiological data, intelligent personalized interventions, coaching, and analytics — all built on 13 billion real-world data points across longitudinal member journeys. We do not license our data, rent our AI, or depend on third-party content. We believe that ownership is a structural competitive advantage that strengthens with every new member and every new data point."
Commercial Momentum Continues as Dario Delivers Savings to Payers and Employers & Improved Health Outcomes to Members:
In 2025 Dario signed 85 new contracts, many of which are starting to contribute revenue in 2026, with average client and contract size increasing 2X-10X compared to its historical average, more than doubling its new account target for the year. The majority of new contracts were for Dario's multi-condition platforms — the primary driver behind the 2x–10x expansion in average contract size.
Pipeline of commercial opportunities increased to $122 million. The pipeline is comprised of 230 opportunities, primarily business-to-business-to-consumer ("B2B2C") contracts. More than 70% of pipeline opportunities are multi-condition, reflecting materially higher average contract values per opportunity compared to single-condition point solutions.
Dario delivers more clinical proof of ROI than any other digital health company with 100+ scientific studies including peer-reviewed journal publications and conference abstracts, demonstrating the Company's leadership in delivering rigorously validated outcomes for employers, health plans and their members.
The launch of AI-driven DarioIQ™ reflects years of innovation in data science, engineering and clinical design backed by Dario's proprietary AI models and 13 billion real-world data points, further reinforcing Dario's position as a leader in digital health.
Dario's oral GLP-1 digital health solution is positioned to amplify the positive impacts of GLP-1 medication, improving ROI for employers and health plans in one of the fastest growing expense centers for payers.
"We are seeing strong engagement from large payers and employers across the U.S., all focused on a single priority — reducing healthcare costs while improving member outcomes. As healthcare expenses continue to rise, digital health has become an important strategic lever for driving behavior change and delivering measurable clinical and financial results," said Steven Nelson, Dario's President and Chief Commercial Officer.
"What is driving growth and what makes our model structurally different is that it compounds at two levels simultaneously. At the client level, channel partnerships give us access to millions of covered lives through a single commercial relationship, eliminating the account-by-account selling that we believe limits many competitors and reduces our cost of acquisition. At the member level, our multi-condition platform means a far greater share of each client's population qualifies for Dario — resulting in more members reached, more members enrolled, and potentially more revenue generated within the same account. One expands how many accounts we can reach, while the other expands how many members we can serve within each account. That is the compounding."
"Through channel partnerships with organizations such as Solera, Amwell, and leading national health plans including Aetna, we now have access to approximately 116 million covered lives. As these ecosystems expand, we anticipate that they will allow Dario to reach significantly larger populations without proportional increases in sales infrastructure."
"Quarter-over-Quarter Revenue Growth and Continued Operating Expense (OpEx) Improvement:
Fourth quarter revenues grew quarter-over-quarter to $5.2 million from $5.0 million in the third quarter of 2025.
Gross margin increased year-over-year to 57% in 2025, from 49% in 2024.
Cash and short-term deposit balance of $26 million with reduced operating expenses, growing ARR, and robust B2B2C margins.
Net cash used in operating activities declined from $38.6 million in 2024 to $25.9 million in 2025, representing a 33% reduction.
Operating expenses continue to decrease — fourth quarter 2025 total operating expense declined 28% to $11.4 million year-over-year and declined 9% quarter-over-quarter; full year 2025 total operating expense declined by 31% to $49.3 million compared to 2024.
Continued narrowing in operating loss — fourth quarter total operating loss declined 27% to $8.6 million year-over-year and 10% quarter-over-quarter; full year 2025 operating loss declined by 37% to $36.7 million compared to 2024.
Non–GAAP operating loss is expected to decrease by approximately 30% in 2026, targeting towards cashflow breakeven by mid-2027 based on large scale channel partner contracted and near-closing ARR, increasing commercial pipeline and reductions in operating expenses.
"Our financial trending continues to improve as operating expenses decline and our core B2B2C ARR business is contributing approximately 80% gross margins, on a non-GAAP basis" stated Chen Franco Yehuda, Dario's Chief Financial Officer. "In fact, the fourth quarter of 2025 delivered the lowest operating expense run-rate, on both a GAAP and non-GAAP basis, since the Twill acquisition. With disciplined financial controls, ongoing operating efficiencies and AI utilization, we reduced net cash used in operations, which declined by 33% year over year."
Financial Results for the Three Months Ended December 31, 2025
Revenue for the three months ended December 31, 2025 was $5.2 million, compared to $7.6 million, for the three months ended December 31, 2024, and $5.0 million for the three months ended September 30, 2025. The year-over-year decrease was primarily due to Dario's transition away from one-time and non-recurring revenues to its focus on building ARR revenues from its core B2B2C business and a significant scope change with a large national health plan client that came with the Twill acquisition and was not renewed in the beginning of 2025. The quarter-over-quarter increase in revenues is the result of an acceleration in new ARR revenue contracts from large employers and health plans, in line with Dario's growth strategy.
Gross profit for the three months ended December 31, 2025 was $2.8 million, compared to gross profit of $4.2 million for the three months ended December 31, 2024, and gross profit of $3.0 million for the three months ended September 30, 2025. The reason for the decrease as compared to the three months ended December 31, 2024 resulted mainly from the change in revenue, partially offset by lower amortization of technology expenses record in the cost of revenues. The decrease as compared to the three months ended September 30, 2025 was primarily due to higher costs recorded in the cost of revenues. Gross profit as a percentage of revenue was 54% in the three months ended December 31, 2025, compared to 55% in the three months ended December 31, 2024, and 60% in the three months ended September 30, 2025.
Non-GAAP gross profit, excluding $0.2 million of amortization expenses related to stock-based compensation and depreciation was $3.0 million, or 57% of revenues, for the three months ended December 31, 2025, compared to non-GAAP gross profit of $5.5 million, or 72% of revenues, for the three months ended December 31, 2024, and a non-GAAP gross profit of $3.2 million, or 64% of revenues, for the three months ended September 30, 2025. A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Total operating expenses for the three months ended December 31, 2025, were $11.4 million compared to $15.9 million for the three months ended December 31, 2024, and $12.5 million for the three months ended September 30, 2025 a decrease of $4.5 million, or 28%, compared to the three months ended December 31, 2024, and a decrease of $1.1 million, or 9%, compared to the three months ended September 30, 2025. The year-over-year decrease in operating expenses resulted mainly from post-merger integration activities and increased operational efficiency. The quarter-over-quarter decrease was driven by continued realization of these operational efficiencies and an approximately $0.3 million Coronavirus Aid, Relief, and Economic Security (CARES) Act payment received in the three months ended December 31, 2025 which was offset from operating expenses.
Non-GAAP operating expenses (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended December 31, 2025, were $9.0 million compared to $12.4 million for the three months ended December 31, 2024, and $9.2 million for the three months ended September 30, 2025, representing a decrease of 28% and 2%, respectively.
Operating loss for the three months ended December 31, 2025, was $8.6 million, a decrease of $3.1 million, or 27%, compared to $11.7 million for the three months ended December 31, 2024, and a decrease of $0.9 million or 10% from $9.5 million for the three months ended September 30, 2025. The decrease in operating loss year-over-year and quarter-over-quarter, was mainly due to an increase in operational efficiencies and post-merger integration activities.
Non-GAAP operating loss (excluding stock-based compensation, acquisition-related expenses, and depreciation and amortization) for the three months ended December 31, 2025 was $6.0 million, representing a 14% decrease compared to a non-GAAP operating loss of $6.9 million for the three months ended December 31, 2024, and remained flat compared to a non-GAAP operating loss of $6.0 million for the three months ended September 30, 2025.
Net loss was $9.0 million for the three months ended December 31, 2025, a narrowing of $0.6 million or 6% compared to a net loss of $9.6 million for the three months ended December 31, 2024, and a decline of $1.5 million or 14% from $10.5 million for three months ended September 30, 2025. Net loss narrowed year-over-year, driven by a reduction in total operating expenses, partially offset by a financial income, primarily due to revaluation of warrants recognized in the prior-year quarter. The quarter-over-quarter improvement driven mainly by lower operating expenses.
Non-GAAP net loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended December 31, 2025 increased by 32% to $6.5 million compared to a non-GAAP net loss of $4.9 million for the three months ended December 31, 2024, and narrowed by 7% quarter-over-quarter from a non-GAAP net loss of $7.0 million in the three months ended September 30, 2025.
A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Financial Results for the Year Ended December 31, 2025
Revenues for the year ended December 31, 2025 were $22.4 million, compared to $27.0 million for the year ended December 31, 2024, primarily due to Dario's transition away from one-time and non-recurring revenues to its focus on building ARR revenues from its core B2B2C business and a significant scope change with a large national health plan client that came through the Twill acquisition and was not renewed in the beginning of 2025, partially offset by new ARR.
Gross profit for the year ended December 31, 2025, was $12.7 million, compared to gross profit of $13.3 million for the year ended December 31, 2024. Gross profit as a percentage of revenues increased year-over-year to 57% in the year ended December 31, 2025, from 49% in the year ended December 31, 2024. The decrease in gross profit compared to the year ended December 31, 2024 resulted mainly from the decline in revenues, partially offset by lower technology amortization and other costs included in cost of revenues, which contributed to the improvement in gross profit as a percentage of revenues year-over-year.
Non-GAAP gross profit, excluding $1.7 million of amortization expenses related to stock-based compensation and depreciation, was $14.4million, or 64% of revenues, for the year ended December 31, 2025, compared to non-GAAP gross profit of $18.4 million, or 68% of revenues, for the year ended December 31, 2024. A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Total operating expenses for the year ended December 31, 2025, were $49.3 million compared to $71.0 million for the year ended December 31, 2024, a decrease of $21.7 million, or 31%. The decrease in operating expenses compared to the year ended December 31, 2024, resulted mainly from increased operational efficiencies and post-merger integration activities.
Non-GAAP operating expenses (excluding stock-based compensation, acquisition-related expenses, depreciation and amortization expenses) for the year ended December 31, 2025, were $38.6 million compared to $52.2 million for the year ended December 31, 2024, representing a decrease of $13.6 million.
Operating loss for the year ended December 31, 2025, was $36.7 million, a decrease of $21.0 million, or 37%, compared to $57.7 million for the year ended December 31, 2024. The decrease in operating loss compared to the year ended December 31, 2024, was mainly due to an increase in operational efficiencies and post-merger integration activities.
Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the year ended December 31, 2025 was $24.1 million representing a decrease of 29%, compared to a non-GAAP operating loss of $33.8 million in the year ended December 31, 2024.
Net loss was $41.7 million for the year ended December 31, 2025, a decline of 2% or $1.0 million compared to a net loss of $42.7 million for the year ended December 31, 2024.
Non-GAAP net loss (excluding stock-based compensation, acquisition-related expenses, and depreciation and amortization) for the year ended December 31, 2025 was $29.2 million, compared to $18.8 million for the year ended December 31, 2024. The increase in non-GAAP net loss was primarily due to the revaluation of pre-funded warrants, partially offset by a decrease in operating loss.
A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Conference Call Details
Date: Thursday, March 19th, 2026, 8:30 a.m. Eastern Time
Dial-in Number: 1-800-717-1738 (domestic) or 1-646-307-1865 (international)
Call me™: https://emportal.ink/4sksMwG
Participants can use the dial-in numbers above and be answered by an operator OR click the Call me™ link for instant telephone access to the event. This link will be made active 15 minutes prior to the scheduled start time.
Participants are asked to dial in approximately 10 minutes prior to the start of the event. A replay of the call will be available approximately three hours after completion of the conference call through Thursday, April 2nd, 2026. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 1191893.
About DarioHealth Corp. (NASDAQ: DRIO)
DarioHealth Corp. (NASDAQ: DRIO) is a leading digital health company revolutionizing how people with chronic conditions manage their health through a user-centric, multi-chronic condition digital therapeutics platform. Dario's platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain and behavioral health.
Dario's user-centric platform offers people continuous and customized care for their health, disrupting the traditional episodic approach to healthcare. This approach empowers people to holistically adapt their lifestyles for sustainable behavior change, driving exceptional user satisfaction, retention and results and making the right thing to do the easy thing to do.
Dario provides its highly user-rated solutions globally to health plans and other payers, self-insured employers, providers of care and consumers. To learn more about Dario and its digital health solutions, or for more information, visit http://dariohealth.com.
Cautionary Note Regarding Forward-Looking Statements
This news release and the statements of representatives and partners of DarioHealth Corp. related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, the Company is using forward-looking statements in this press release when it discusses its expectation that agreements entered into in 2025 will provide recurring revenue in 2026 and 2027, positioning the Company for a high-growth trajectory; its belief that increased demand for the Company's MSK product in the B2C market will result in expansion in international markets; its belief that the Company's model will provide compounding growth resulting in an expected increase in account outreach and growth, member enrollment and resulting revenue, increased through client collaborations and member enrollment; its belief that the Company's oral GLP-1 digital health solution is positioned to amplify the positive impacts of GLP-1 medication, improving ROI for employers and health plans; its belief that the Company's channel partnerships will expand and its expectation that such expansion will allow the Company to reach significantly larger populations without proportional increases in sales infrastructure; and its expectation that the Company will reduce its operating loss by 30% and reach cashflow breakeven by mid-2027. Without limiting the generality of the foregoing, words such as "plan," "project," "potential," "seek," "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Factors that may affect the Company's results include, but are not limited to, regulatory approvals, product demand, market acceptance, impact of competitive products and prices, product development, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks, and the risks associated with the adequacy of existing cash resources. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements include, but are not limited to, those risks discussed in the Company's filings with the U.S. Securities and Exchange Commission. Readers are cautioned that actual results (including, without limitation, the timing for and results of the Company's commercial and regulatory plans for Dario™ as described herein) may differ significantly from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Non-GAAP Financial Measures
We have provided financial information in this release that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.
Operating expenses (non-GAAP). Our presentation of non-GAAP operating expenses excludes stock-based compensation expenses, amortization of acquisition-related expenses and depreciation of fixed assets. Due to varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company's non-cash operating expenses, we believe that providing non-GAAP financial measures that exclude non-cash expenses provides us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.
Net loss (non-GAAP). Our presentation of adjusted net loss excludes the effect of certain items that are non-GAAP financial measures. Adjusted net loss represents net loss determined under GAAP without regard to stock-based compensation expenses, depreciation and impairment expense, amortization of acquired technology and brand, financial (income) expenses, net, income tax, and acquisition costs. We believe these measures provide useful information to management and investors for analysis of our operating results.
| DARIOHEALTH CORP. AND ITS SUBSIDIARIES | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| U.S. dollars in thousands | ||||||
| December 31, | December 31, | |||||
| 2025 | 2024 | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 21,803 | $ | 27,764 | ||
| Short-term bank deposits | 4,214 | 697 | ||||
| Short-term restricted bank deposits | 229 | 175 | ||||
| Trade receivables, net | 2,144 | 4,804 | ||||
| Inventories | 4,316 | 4,753 | ||||
| Other accounts receivable and prepaid expenses | 2,361 | 2,336 | ||||
| Total current assets | 35,067 | 40,529 | ||||
| NON-CURRENT ASSETS: | ||||||
| Deposits | 80 | 79 | ||||
| Operating lease right of use assets | 717 | 1,065 | ||||
| Long-term assets | 304 | 313 | ||||
| Property and equipment, net | 549 | 709 | ||||
| Intangible assets, net | 15,931 | 18,762 | ||||
| Goodwill | 57,427 | 57,427 | ||||
| Total non-current assets | 75,008 | 78,355 | ||||
| Total assets | $ | 110,075 | $ | 118,884 |
| DARIOHEALTH CORP. AND ITS SUBSIDIARIES | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| U.S. dollars in thousands (except stock and per share data) | ||||||
| December 31, | December 31, | |||||
| 2025 | 2024 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Trade payables | $ | 2,928 | $ | 3,045 | ||
| Deferred revenues | 714 | 1,583 | ||||
| Operating lease liabilities | 430 | 504 | ||||
| Other accounts payable and accrued expenses | 5,251 | 6,052 | ||||
| Current maturity of long-term loan | — | 5,451 | ||||
| Total current liabilities | 9,323 | 16,635 | ||||
| NON-CURRENT LIABILITIES | ||||||
| Operating lease liabilities | 571 | 765 | ||||
| Long-term loan | 30,747 | 23,472 | ||||
| Warrant liability | 1,466 | 5,968 | ||||
| Other long-term liabilities | 46 | 25 | ||||
| Total non-current liabilities | 32,830 | 30,230 | ||||
| STOCKHOLDERS' EQUITY | ||||||
| Common stock of $0.0001 par value - authorized: 400,000,000 shares; issued and outstanding: 6,905,948 and 1,919,422 shares on December 31, 2025 and December 31, 2024, respectively | 4 | 4 | ||||
| Preferred stock of $0.0001 par value - authorized: 5,000,000 shares; issued and outstanding: 0 and 49,585 shares on December 31, 2025 and December 31, 2024, respectively | *) - | *) - | ||||
| Additional paid-in capital | 519,996 | 462,358 | ||||
| Accumulated deficit | (452,078) | (390,343) | ||||
| Total stockholders' equity | 67,922 | 72,019 | ||||
| Total liabilities and stockholders' equity | $ | 110,075 | $ | 118,884 | ||
| *) Represents an amount lower than $1. |
| DARIOHEALTH CORP. AND ITS SUBSIDIARIES | ||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||
| U.S. dollars in thousands (except stock and per share data) | ||||||
| Year ended | ||||||
| December 31, | ||||||
| 2025 | 2024 | |||||
| Revenues: | ||||||
| Services | $ | 14,929 | $ | 20,197 | ||
| Consumer hardware | 7,430 | 6,843 | ||||
| Total revenues | 22,359 | 27,040 | ||||
| Cost of revenues: | ||||||
| Services | 2,900 | 3,606 | ||||
| Consumer hardware | 5,124 | 5,139 | ||||
| Amortization of acquired intangible assets | 1,670 | 5,028 | ||||
| Total cost of revenues | 9,694 | 13,773 | ||||
| Gross profit | 12,665 | 13,267 | ||||
| Operating expenses: | ||||||
| Research and development | $ | 13,791 | $ | 24,179 | ||
| Sales and marketing | 20,338 | 26,350 | ||||
| General and administrative | 15,191 | 20,482 | ||||
| Total operating expenses | 49,320 | 71,011 | ||||
| Operating loss | 36,655 | 57,744 | ||||
| Interest expenses | 3,020 | — | ||||
| Other financial expenses (income), net | 1,934 | (13,145) | ||||
| Total financial expenses (income), net | 4,954 | (13,145) | ||||
| Loss before taxes | 41,609 | 44,599 | ||||
| Income taxes (benefit) | 105 | (1,852) | ||||
| Net loss | $ | 41,714 | $ | 42,747 | ||
| Deemed dividend (contribution) | $ | 20,021 | $ | (1,765) | ||
| Net loss attributable to common shareholders | $ | 61,735 | $ | 40,982 | ||
| Net loss per share: | ||||||
| Basic and diluted loss per share of common stock | $ | 10.12 | $ | 12.27 | ||
| Weighted average number of common stock used in computing basic and diluted net loss per share** | 3,982,956 | 2,451,971 |
| DARIOHEALTH CORP. AND ITS SUBSIDIARIES | ||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| U.S. dollars in thousands | ||||||
| Year ended | ||||||
| December 31, | ||||||
| 2025 | 2024 | |||||
| Cash flows from operating activities: | ||||||
| Net loss | $ | (41,714) | $ | (42,747) | ||
| Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||
| Stock-based compensation | 9,365 | 15,796 | ||||
| Change in operating lease right of use assets | 421 | 907 | ||||
| Amortization of acquired intangible assets | 2,831 | 6,100 | ||||
| Changes in operating assets and liabilities, net of effects of businesses acquired: | ||||||
| Depreciation and impairment | 307 | 1,327 | ||||
| Decrease in trade receivables, net | 2,660 | 1,680 | ||||
| Increase in other accounts receivable, prepaid expense and long-term assets | (16) | (80) | ||||
| Decrease in inventories | 437 | 308 | ||||
| Decrease in trade payables | (122) | (496) | ||||
| Decrease in other accounts payable and accrued expenses | (780) | (3,483) | ||||
| Decrease in deferred revenues | (869) | (156) | ||||
| Change in operating lease liabilities | (341) | (1,150) | ||||
| Change in fair value of warrant liability | (1,681) | (16,504) | ||||
| Accrued interest on short term bank deposits | (14) | — | ||||
| Non-cash financial expenses | 2,933 | 516 | ||||
| Other | 642 | (580) | ||||
| Net cash used in operating activities | (25,941) | (38,562) | ||||
| Cash flows from investing activities: | ||||||
| Purchase of property and equipment, net | (142) | (138) | ||||
| Investments in short-term bank deposits | (4,200) | — | ||||
| Payments for business acquisitions, net of cash acquired | — | (8,796) | ||||
| Net cash used in investing activities | (4,342) | (8,934) | ||||
| Cash flows from financing activities: | ||||||
| Proceeds from issuance of common stock and prefunded warrants, net of issuance costs | 17,374 | — | ||||
| Proceeds from issuance of preferred stock, net of issuance costs | 6,754 | 38,531 | ||||
| Proceeds from borrowings on credit agreement, net | 31,700 | — | ||||
| Repayment of long-term loan | (31,515) | — | ||||
| Net cash provided by financing activities | 24,313 | 38,531 | ||||
| Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | (5,970) | (8,965) | ||||
| Effect of exchange rate differences on cash, cash equivalents and restricted cash and cash equivalents | 9 | (68) | ||||
| Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 27,764 | 36,797 | ||||
| Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ | 21,803 | $ | 27,764 | ||
| Supplemental disclosure of cash flow information: | ||||||
| Cash paid during the period for interest on long-term loan | $ | 3,493 | $ | 3,927 | ||
| Non-cash activities: | ||||||
| Right-of-use assets obtained in exchange for lease liabilities | $ | 73 | $ | 428 | ||
| Purchase of property and equipment on credit | 5 | — | ||||
| Exercise of pre-funded warrants to common stock upon acquisition | $ | 2,821 | $ | 2,225 |
| Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted | ||||||||
| Operating Loss, Net Loss and Operating Expenses (Non-GAAP) | ||||||||
| U.S. dollars in thousands | ||||||||
| Three months ended December 31, 2025 | ||||||||
| GAAP | Stock-Based Compensation Expenses | Amortization of acquisition related expenses and depreciation of fixed assets | Non-GAAP | |||||
| Cost of Revenues | $ | 2,427 | (4) | (184) | 2,239 | |||
| Gross Profit | 2,804 | 4 | 184 | 2,992 | ||||
| Research and development | 2,634 | (267) | (31) | 2,336 | ||||
| Sales and Marketing | 4,630 | (300) | (308) | 4,022 | ||||
| General and Administrative | 4,102 | (1,467) | (10) | 2,625 | ||||
| Total Operating Expenses | 11,366 | (2,034) | (349) | 8,983 | ||||
| Operating Loss | $ | (8,562) | 2,038 | 533 | (5,991) | |||
| Financing expenses | 386 | - | - | 386 | ||||
| Income Tax | 83 | - | - | 83 | ||||
| Net Loss | $ | (9,031) | 2,038 | 538 | (6,460) |
| Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted | ||||||||
| Operating Loss, Net Loss and Operating Expenses (Non-GAAP) | ||||||||
| U.S. dollars in thousands | ||||||||
| Three months ended December 31, 2024 | ||||||||
| GAAP | Stock-Based Compensation Expenses | Amortization of acquisition related expenses and depreciation of fixed assets | Non-GAAP | |||||
| Cost of Revenues | $ | 3,402 | (8) | (1,302) | 2,092 | |||
| Gross Profit | 4,202 | (8) | 1,302 | 5,512 | ||||
| Research and development | 5,281 | (985) | (51) | 4,245 | ||||
| Sales and Marketing | 5,575 | (536) | (325) | 4,714 | ||||
| General and Administrative | 5,014 | (1,061) | (474) | 3,479 | ||||
| Total Operating Expenses | 15,870 | (2,582) | (850) | 12,438 | ||||
| Operating Loss | $ | (11,668) | 2,590 | 2,152 | (6,926) | |||
| Financing expenses | (2,191) | - | - | (2,191) | ||||
| Income Tax | 155 | - | - | 155 | ||||
| Net Loss | $ | (9,632) | 2,590 | 2,152 | (4,890) |
| Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted | ||||||||
| Operating Loss, Net Loss and Operating Expenses (Non-GAAP) | ||||||||
| U.S. dollars in thousands | ||||||||
| Twelve months ended December 31, 2025 | ||||||||
| GAAP | Stock-Based Compensation Expenses | Amortization of acquisition related expenses and depreciation of fixed assets | Non-GAAP | |||||
| Cost of Revenues | $ | 9,694 | (26) | (1,713) | 7,955 | |||
| Gross Profit | 12,665 | 26 | 1,713 | 14,404 | ||||
| Research and development | (13,791) | (1,623) | (135) | (12,033) | ||||
| Sales and Marketing | (20,338) | (2,253) | (1,234) | (16,851) | ||||
| General and Administrative | (15,191) | (5,463) | (56) | (9,672) | ||||
| Total Operating Expenses | (49,320) | (9,339) | (1,425) | (38,556) | ||||
| Operating Loss | $ | (36,655) | 9,365 | 3,138 | (24,152) | |||
| Financing expenses | 4,954 | - | - | 4,954 | ||||
| Income Tax | 105 | - | - | 105 | ||||
| Net Loss | $ | (41,714) | 9,365 | 3,138 | (29,211) |
| Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted | ||||||||
| Operating Loss, Net Loss and Operating Expenses (Non-GAAP) | ||||||||
| U.S. dollars in thousands | ||||||||
| Twelve months ended December 31, 2024 | ||||||||
| GAAP | Stock-Based Compensation Expenses | Amortization of acquisition related expenses and depreciation of fixed assets | Non -GAAP | |||||
| Cost of Revenues | $ | 13,773 | (13) | (5,086) | 8,674 | |||
| Gross Profit | 13,267 | 13 | 5,086 | 18,366 | ||||
| Research and development | 24,179 | (3,296) | (238) | 20,645 | ||||
| Sales and Marketing | 26,350 | (4,890) | (1,183) | 20,277 | ||||
| General and Administrative | 20,482 | (7,597) | (1,649) | 11,236 | ||||
| Total Operating Expenses | 71,011 | (15,783) | (3,070) | 52,158 | ||||
| Operating Loss | $ | (57,744) | 15,796 | 8,156 | (33,792) | |||
| Financing expenses | (13,145) | - | - | (13,145) | ||||
| Income Tax | (1,852) | - | - | (1,852) | ||||
| Net Loss | $ | (42,747) | 15,796 | 8,156 | (18,795) |
DarioHealth Corporate Contact
VP, Accounting and Corporate Development
DarioHealth Investor Relations Contact
SVP Corporate Development
SOURCE DarioHealth Corp.
21 %
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