- Second quarter 2025 revenue was $5.4 million, compared to $6.3 million in the second quarter of 2024, and $6.8 million in the first quarter of 2025 - The Company believes that strong client momentum and strategic wins will offset decrease in revenues
- Approximately $5 million new committed annual recurring revenues ("CARR"); Plus $53 million pipeline of commercial opportunities, over $5 million of which is in final stages toward CARR - On track to secure total of 40 new clients by the end of 2025
- Two new health plan clients are expected to represent multi-million-dollar opportunities for Dario over time, including a full-suite national health plan scheduled to launch in the second half of 2025
- Gross margin increased to 55% compared to 44% in the second quarter of 2024
- The core Business-to-Business-to-Consumer ("B2B2C") has been operating at approximately 80% gross margins on a non-GAAP basis since the first quarter of 2024
- Operating loss in the second quarter of 2025 narrowed by 43% compared to the second quarter of 2024
- Operating expenses for the second quarter of 2025 decreased by $6.8 million, or 36%, from the second quarter of 2024 with additional efficiencies anticipated through ongoing AI-driven process optimization
- Dario will host an investor conference call and webcast at 8:30 a.m. ET today
NEW YORK, Aug. 12, 2025 /PRNewswire/ -- DarioHealth Corp. (NASDAQ: DRIO) ("Dario" or the "Company"), a leader in the global digital health market, today announced financial results for the second quarter ended June 30, 2025, along with strategic and commercial updates. While the Company continues to make significant progress across key strategic areas, the second quarter of 2025 revenue came in below Company expectations at $5.4 million compared to $6.3 million for the second quarter of 2024, and $6.8 million the first quarter of 2025.
As previously disclosed, a shift in scope with a large national health plan client that was not renewed in the beginning of 2025 impacted year-over-year comparisons. Dario remains focused on signing and onboarding new B2B2C clients to drive high-quality, sustainable ARR growth, rather than relying on one-time or non-recurring revenues, which contributed to the revenue decline from the first quarter to the second quarter of 2025. While the Company expected that new account ramp-up would offset the revenue gap from that contract, the pace of onboarding and revenue recognition from new deals proved slower than anticipated. This delay was primarily due to longer implementation timelines with several new clients, including benefit administrator-led contracts that are expected to begin generating revenue in the second half of 2025 and into 2026. As a result, the Company has adjusted its estimates for reaching cashflow breakeven by approximately twelve (12) to fifteen (15) months, which is now expected into the end of 2026 to the beginning of 2027.
"Our 2025 second quarter topline results fell short of our internal goals," said Erez Raphael, Chief Executive Officer of Dario. "However, the underlying momentum in client signings, the strategic quality of new contracts, and growing channel strength give us confidence that the temporary revenue dip will be offset by accelerated growth going forward. We remain focused on signing and onboarding new B2B2C clients, yielding high-quality, sustainable annual recurring revenue growth. Despite these short-term headwinds, I believe that we will continue to show strength in strategic execution as two new health plan clients are expected to represent multi-million-dollar opportunities for Dario over time, including a full-suite national health plan scheduled to launch in the second half of 2025."
Momentum in High-Quality, Long-Term Growth
- 21 new clients signed year-to-date - Including a top U.S. healthcare institution, two regional health plans, 18 employer clients, and on track to achieve 40 new accounts by the end of 2025
- Quality of new contracts improving - Two new health plan clients are expected to represent multi-million-dollar opportunities for Dario over time including a full-suite national health plan scheduled to launch in the second half of 2025
- Strengthening channels - Relationships with benefit consultants and national benefit administrators are maturing and expected to be key revenue drivers in the second half of 2025 and moving into 2026
"We are building a recurring revenue business driven by high-margin, multi-condition platform contracts," said Steven Nelson, Dario's President and Chief Commercial Officer. "With over $5 million in new CARR this year and a strong $53 million pipeline of commercial opportunities-11% of which, representing over $5 million, is in advanced stage towards CARR-we're confident in our ability to return to growth and achieve our long-term targets. To support this next phase, we are adding critical enablers including claims-based billing infrastructure to better align with health plan and employer funding models, and we enhanced our data and analytics capabilities to drive engagement and deliver measurable return on investment ("ROI"). We're fortifying the foundation of our business and preparing to scale meaningfully into 2026."
"Dario continues to deliver substantial operating efficiencies with year over year improvements in operating expenses of 36% and decrease of 43 % in operating loss year over year. Our gross margins remain robust, in the range of 55%, and 80% on a non-GAAP basis, for our core B2B2C business," stated Chen Franco Yehuda, Chief Financial Officer of Dario. "We believe our business model is built to efficiently scale."
Sustained Margin Strength and Strategic Focus
- Gross margin for the second quarter of 2025 was 55% and 64% (non-GAAP) with the core B2B2C channel sustaining approximately 80% non-GAAP gross margins since the first quarter of 2024
- Operating expenses decreased by 36% and 33% (non-GAAP) year-over-year, reflecting strong operational discipline, efficiencies and continued impact of the Company's artificial intelligence ("AI") transformation
- Operating loss narrowed by 43% and 40% (non-GAAP) in the second quarter of 2025 compared to the same period in 2024
- Created operational runway for growth - Refinanced debt, deferring amortization from the end of 2025 to 2028, providing flexibility to support growth initiatives
New Market Expansion and Platform Highlights
- Entered the $150B sleep apnea market via a new partnership with GreenKey Health
- Signed a GLP-1 + cardiometabolic solution deal with a national benefit administrator-now live and generating ARR
- Peer-reviewed evidence base reached 90 studies, including 25 presentations at American Diabetes Association conference and new flu vaccination research with more than 65,000 users
Leadership in AI Delivers Results
Solidifying its leadership, Dario continues to advance and implement its AI engine, which is delivering significant operational efficiencies while enhancing customer value. Over the next twelve (12) to fifteen (15) months, Dario expects AI-driven improvements to support approximately an additional 15% reduction in the Company's operating expenses while also driving improved outcomes and higher engagement for patients, potentially resulting in higher ROI for Dario's clients. Built on a robust dataset from over 13 billion data points, more than 5 million cumulative users over time, and 25 years of user journeys, today Dario's AI powers highly personalized care for more than 5 million patients. The Company believes that the depth and breadth of data that Dario has accumulated sets it apart in the industry.
Financial Results for the Three Months Ended June 30, 2025
Revenues for the three months ended June 30, 2025 were $5.37 million, compared to $6.26 million, a decrease of 14% for the three months ended June 30, 2024, and $6.75 million for the three months ended March 31, 2025 a decrease of 20%. The reason for the decrease as compared to the three months ended June 30, 2024 and the three months ended March 31, 2025 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 was not renewed in the beginning of 2025.
Gross profit for the three months ended June 30, 2025, was $3.0 million, an increase of $0.2 million or 8%, compared to gross profit of $2.8 million for the three months ended June 30, 2024, and a decrease of $0.9 million or 24%, compared to gross profit of $3.9 million for the three months ended March 31, 2025. The reason for the increase as compared to the three months ended June 30, 2024 resulted mainly from change in revenue mix and lower amortization of technology expenses recorded in the cost of revenues. The reason for the decrease as compared to the three months ended March 31, 2025 resulted mainly from the change in revenue mix. Gross profit as a percentage of revenues increased year-over-year to 55% in the three months ended June 30, 2025, from 44% in the three months ended June 30, 2024, and declined slightly from 58% in the three months ended March 31, 2025.
Non-GAAP gross profit, excluding $0.5 million of amortization expenses related to the acquisition of technology, stock-based compensation, and depreciation was $3.4 million, or 64% of revenues, for the three months ended June 30, 2025, compared to non-GAAP gross profit of $4.0 million, or 64% of revenues, for the three months ended June 30, 2024, and a non-GAAP gross profit of $4.8 million, or 71% of revenues, for the three months ended March 31, 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 June 30, 2025, were $12.2 million compared to $18.9 million for the three months ended June 30, 2024, and $13.3 million for the three months ended March 31, 2025 a decrease of $6.8 million, or 36%, compared to the three months ended June 30, 2024, and a decrease of $1.1 million, or 9%, compared to the three months ended March 31, 2025. The decreases in operating expenses compared to the three months ended June 30, 2024 and the three months ended March 31, 2025, 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 three months ended June 30, 2025, were $9.8 million compared to $14.7 million for the three months ended June 30, 2024, and $10.6 million for the three months ended March 31, 2025, representing a decrease of 33% and 8%, respectively.
Operating loss for the three months ended June 30, 2025, was $9.2 million, a decrease of $7.0 million, or 43%, compared to $16.2 million for the three months ended June 30, 2024, and remained relatively the same compared to $9.4 million for the three months ended March 31, 2025. The decrease in operating loss compared to the three months ended June 30, 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 three months ended June 30, 2025 was $6.4 million representing a decrease of 40% and an increase of 10% respectively, compared to a Non-GAAP operating loss of $10.7 million in the three months ended June 30, 2024, and Non-GAAP operating loss of $5.8 million in the three months ended March 31, 2025.
Net loss was $12.99 million for the three months ended June 30, 2025, compared to a net loss of $13.61 million for the three months ended June 30, 2024, and $9.23 million for three months ended March 31, 2025.
Non-GAAP net loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended June 30, 2025 was $10.15 million compared to a Non-GAAP net loss of $8.09 million for the three months ended June 30, 2024, and a Non-GAAP net loss of $5.63 million in the three months ended March 31, 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 Six Months Ended June 30, 2025
Revenues for the six months ended June 30, 2025 were $12.12 million, an increase of $0.11 million or 1%, compared to $12.01 million for the six months ended June 30, 2024. The reason for the increase as compared to the six months ended June 30, 2024 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 was not renewed in the beginning of 2025, offset by new ARR.
Gross profit for the six months ended June 30, 2025, was $6.8 million, an increase of $1.7 million or 32%, compared to gross profit of $5.2 million for the six months ended June 30, 2024. The reason for the increase as compared to the six months ended June 30, 2024 resulted mainly from the change in revenue mix and lower amortization of technology expenses recorded in the cost of revenues. Gross profit as a percentage of revenues increased year-over-year to 57% in the six months ended June 30, 2025, from 43% in the six months ended June 30, 2024.
Non-GAAP gross profit, excluding $1.4 million of amortization expenses related to the acquisition of technology, stock-based compensation and depreciation, was $8.2 million, or 68% of revenues, for the six months ended June 30, 2025, compared to non-GAAP gross profit of $7.6 million, or 64% of revenues, for the six months ended June 30, 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 six months ended June 30, 2025, were $25.5 million compared to $39.2 million for the six months ended June 30, 2024, a decrease of $13.8 million, or 35%, compared to the six months ended June 30, 2024. The decreases in operating expenses compared to the six months ended June 30, 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 six months ended June 30, 2025, were $20.4 million compared to $27.4 million for the six months ended June 30, 2024, representing a decrease of $7.0 million.
Operating loss for the six months ended June 30, 2025, was $18.6 million, a decrease of $15.4 million, or 45%, compared to $34.1 million for the six months ended June 30, 2024. The decrease in operating loss compared to the six months ended June 30, 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 six months ended June 30, 2025 was $12.2 million representing a decrease of 38%, compared to a non-GAAP operating loss of $19.8 million in the six months ended June 30, 2024.
Net loss was $22.22 million for the six months ended June 30, 2025, compared to a net loss of $20.79 million for the six months ended June 30, 2024.
Non-GAAP net loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the six months ended June 30, 2025 was $15.78 million compared to a Non-GAAP net loss of $6.49 million for the six months ended June 30, 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."
Conference Call Details: Tuesday, August 12, 8:30am ET
Dial-in Number: 1-800-717-1738 (domestic) or 1-646-307-1865 (international)
Call me: https://emportal.ink/4kguOcU
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.
Webcast link: https://viavid.webcasts.com/starthere.jsp?ei=1722877&tp_key=c557a85d17
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 Tuesday, August 26th, 2025. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 1195394.
About DarioHealth Corp.
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. Our 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.
Our 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.
DarioHealth Corporate Contacts:
DarioHealth Investor Relations Contact
Michael Lipari
SVP Corporate Development
[email protected]
+1-203-785-6310
Zoe Harrison
VP, Accounting and Corporate Development
[email protected]
Cautionary Note Regarding Forward-Looking Statements
This news release and the statements of representatives and partners of the Company 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. 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. For example, the Company is using forward-looking statements when it discusses its estimate that client momentum and strategic wins can offset decrease in revenues; that the it is on track to secure 40 new clients by the end of 2025; that two new health plan clients are expected to represent multi-million-dollar opportunities; that a full-suite national health plan is scheduled to launch in the second half of 2025; the timing for benefit administrator-led contracts to generate revenue; that it expects to reach cashflow breakeven at the end of 2026 to early 2027; its expected future growth, ROI opportunities and expected, and timing of, revenues; its pipeline of commercial opportunities; the expectancy for reducing operating expenses by 15% over 12-15 months; and that its refinanced debt is expected to provide flexibility to support growth initiatives. 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 in this release financial information 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, deferred inventory, depreciation of fixed assets, earn-out remeasurement and acquisition related expenses and amortization. We believe these measures provide useful information to management and investors for analysis of our operating results.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) | ||||||
U.S. dollars in thousands | ||||||
June 30, | December 31, | |||||
2025 | 2024 | |||||
ASSETS | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ | 21,954 | $ | 27,764 | ||
Short-term bank deposits | - | 697 | ||||
Short-term restricted bank deposits | 218 | 175 | ||||
Trade receivables, net | 2,556 | 4,804 | ||||
Inventories | 4,609 | 4,753 | ||||
Other accounts receivable and prepaid expenses | 2,833 | 2,336 | ||||
Total current assets | 32,170 | 40,529 | ||||
NON-CURRENT ASSETS: | ||||||
Deposits | 79 | 79 | ||||
Operating lease right of use assets | 861 | 1,065 | ||||
Long-term assets | 300 | 313 | ||||
Property and equipment, net | 610 | 709 | ||||
Intangible assets, net | 16,878 | 18,762 | ||||
Goodwill | 57,427 | 57,427 | ||||
Total non-current assets | 76,155 | 78,355 | ||||
Total assets | $ | 108,325 | $ | 118,884 | ||
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) | ||||||
U.S. dollars in thousands (except stock and per share data) | ||||||
June 30, | December 31, | |||||
2025 | 2024 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Trade payables | $ | 3,379 | $ | 3,045 | ||
Deferred revenues | 727 | 1,583 | ||||
Operating lease liabilities | 510 | 504 | ||||
Other accounts payable and accrued expenses | 5,138 | 6,052 | ||||
Current maturity of long-term loan | - | 5,451 | ||||
Total current liabilities | 9,754 | 16,635 | ||||
NON-CURRENT LIABILITIES | ||||||
Operating lease liabilities | 612 | 765 | ||||
Long-term loan | 30,499 | 23,472 | ||||
Warrant liability | 3,393 | 5,968 | ||||
Other long-term liabilities | 81 | 25 | ||||
Total non-current liabilities | 34,585 | 30,230 | ||||
STOCKHOLDERS' EQUITY | ||||||
Common stock of $0.0001 par value - authorized: 160,000,000 shares; issued and outstanding: 45,474,935 and 38,388,431 shares on June 30, 2025 and December 31, 2024, respectively | 4 | 4 | ||||
Preferred stock of $0.0001 par value - authorized: 5,000,000 shares; issued and outstanding: 53,440 and 49,585 shares on June 30, 2025 and December 31, 2024, respectively | *) - | *) - | ||||
Additional paid-in capital | 486,953 | 462,358 | ||||
Accumulated deficit | (422,971) | (390,343) | ||||
Total stockholders' equity | 63,986 | 72,019 | ||||
Total liabilities and stockholders' equity | $ | 108,325 | $ | 118,884 | ||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) | ||||||||||||
U.S. dollars in thousands (except stock and per share data) | ||||||||||||
Three months ended | Six months ended | |||||||||||
June 30, | June 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
Revenues: | ||||||||||||
Services | $ | 3,661 | $ | 4,660 | $ | 8,536 | $ | 8,820 | ||||
Consumer hardware | 1,708 | 1,595 | 3,585 | 3,193 | ||||||||
Total revenues | 5,369 | 6,255 | 12,121 | 12,013 | ||||||||
Cost of revenues: | ||||||||||||
Services | 821 | 960 | 1,686 | 1,925 | ||||||||
Consumer hardware | 1,151 | 1,306 | 2,281 | 2,504 | ||||||||
Amortization of acquired intangible assets | 433 | 1,233 | 1,308 | 2,396 | ||||||||
Total cost of revenues | 2,405 | 3,499 | 5,275 | 6,825 | ||||||||
Gross profit | 2,964 | 2,756 | 6,846 | 5,188 | ||||||||
Operating expenses: | ||||||||||||
Research and development | $ | 3,721 | $ | 6,810 | $ | 7,829 | $ | 13,452 | ||||
Sales and marketing | 5,231 | 7,132 | 11,104 | 14,042 | ||||||||
General and administrative | 3,212 | 5,005 | 6,522 | 11,740 | ||||||||
Total operating expenses | 12,164 | 18,947 | 25,455 | 39,234 | ||||||||
Operating loss | 9,200 | 16,191 | 18,609 | 34,046 | ||||||||
Total financial expenses (income), net | 3,790 | (2,581) | 3,586 | (11,267) | ||||||||
Loss before taxes | 12,990 | 13,610 | 22,195 | 22,779 | ||||||||
Income tax (benefit) | - | - | 22 | (1,994) | ||||||||
Net loss | $ | 12,990 | $ | 13,610 | $ | 22,217 | $ | 20,785 | ||||
Deemed dividend (contribution) | $ | 5,572 | $ | (8,706) | $ | 10,411 | $ | (6,672) | ||||
Net loss attributable to common shareholders | $ | 18,562 | $ | 4,904 | $ | 32,628 | $ | 14,113 | ||||
Net loss per share: | ||||||||||||
Basic and diluted loss per share of common stock | $ | 0.18 | $ | 0.08 | $ | 0.33 | $ | 0.27 | ||||
Weighted average number of common stock used in computing basic and diluted net loss per share | 49,630,949 | 39,830,793 | 48,500,775 | 37,778,087 | ||||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||||||||||
U.S. dollars in thousands | ||||||||||||||||
Six months ended | ||||||||||||||||
June 30, | ||||||||||||||||
2025 | 2024 | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | $ | (22,217) | $ | (20,785) | ||||||||||||
Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Stock-based compensation | 4,377 | 10,420 | ||||||||||||||
Depreciation and impairment | 174 | 648 | ||||||||||||||
Change in operating lease right of use assets | 204 | 425 | ||||||||||||||
Amortization of acquired intangible assets | 1,884 | 2,516 | ||||||||||||||
Decrease (increase) in trade receivables, net | 2,248 | (247) | ||||||||||||||
Increase in other accounts receivable, prepaid expense and long-term assets | (484) | (1,171) | ||||||||||||||
Decrease (increase) in inventories | 143 | (71) | ||||||||||||||
Increase (decrease) in trade payables | 334 | (190) | ||||||||||||||
Decrease in other accounts payable and accrued expenses | (858) | (3,034) | ||||||||||||||
Decrease in deferred revenues | (856) | (224) | ||||||||||||||
Change in operating lease liabilities | (147) | (417) | ||||||||||||||
Change in fair value of warrant liability | (825) | (12,643) | ||||||||||||||
Non-cash financial expenses | 2,665 | 204 | ||||||||||||||
Other | 654 | 96 | ||||||||||||||
Net cash used in operating activities | (12,704) | (24,473) | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property and equipment | (75) | (85) | ||||||||||||||
Payments for business acquisitions, net of cash acquired | - | (8,796) | ||||||||||||||
Net cash used in investing activities | (75) | (8,881) | ||||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of preferred stock, net of issuance costs | 6,754 | 20,206 | ||||||||||||||
Proceeds from borrowings on credit agreement | 31,700 | - | ||||||||||||||
Repayment of long-term loan | (31,515) | - | ||||||||||||||
Net cash provided by financing activities | 6,939 | 20,206 | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | (5,840) | (13,148) | ||||||||||||||
Effect of exchange rate differences on cash, cash equivalents and restricted cash and cash equivalents | 30 | (48) | ||||||||||||||
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 | $ | 21,954 | $ | 23,601 | ||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||
Cash paid during the period for interest on long-term loan | $ | 1,250 | $ | 1,972 | ||||||||||||
Non-cash activities: | ||||||||||||||||
Right-of-use assets obtained in exchange for lease liabilities | $ | - | $ | 428 | ||||||||||||
Exercise of pre-funded warrants to common stock upon acquisition | $ | 1,750 | $ | - | ||||||||||||
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 June 30, 2025 | ||||||||||||
GAAP | Stock-Based | Amortization of | Non-GAAP | |||||||||
Cost of Revenues | $ | 2,405 | (6) | (447) | 1,952 | |||||||
Gross Profit | 2,964 | 6 | 447 | 3,417 | ||||||||
Research and development | 3,721 | (441) | (34) | 3,246 | ||||||||
Sales and Marketing | 5,231 | (583) | (307) | 4,341 | ||||||||
General and Administrative | 3,212 | (1,005) | (14) | 2,193 | ||||||||
Total Operating Expenses | 12,164 | (2,029) | (355) | 9,780 | ||||||||
Operating Loss | $ | (9,200) | 2,035 | 802 | (6,363) | |||||||
Financing expenses | 3,790 | - | - | 3,790 | ||||||||
Net Loss | $ | (12,990) | 2,035 | 802 | (10,153) | |||||||
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 June 30, 2024 | ||||||||
GAAP | Stock-Based | Acquisition costs, | Non-GAAP | |||||
Cost of Revenues | $ | 3,499 | (5) | (1,248) | 2,246 | |||
Gross Profit | 2,756 | 5 | 1,248 | 4,009 | ||||
Research and development | 6,810 | (448) | (63) | 6,299 | ||||
Sales and Marketing | 7,132 | (1,650) | (93) | 5,389 | ||||
General and Administrative | 5,005 | (1,459) | (553) | 2,993 | ||||
Total Operating Expenses | 18,947 | (3,557) | (709) | 14,681 | ||||
Operating Loss | $ | (16,191) | 3,562 | 1,957 | (10,672) | |||
Financing expenses | (2,581) | - | (2,581) | |||||
Net Loss | $ | (13,610) | 3,562 | 1,957 | (8,091) | |||
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 | ||||||||
Six months ended June 30, 2025 | ||||||||
GAAP | Stock-Based | Amortization of | Non-GAAP | |||||
Cost of Revenues | $ | 5,275 | (16) | (1,337) | 3,922 | |||
Gross Profit | 6,846 | 16 | 1,337 | 8,199 | ||||
Research and development | 7,829 | (967) | (74) | 6,788 | ||||
Sales and Marketing | 11,104 | (1,398) | (618) | 9,088 | ||||
General and Administrative | 6,522 | (1,996) | (29) | 4,497 | ||||
Total Operating Expenses | 25,455 | (4,361) | (721) | 20,373 | ||||
Operating Loss | $ | (18,609) | 4,377 | 2,058 | (12,174) | |||
Financing expenses | 3,586 | - | - | 3,586 | ||||
Income Tax | 22 | - | - | 22 | ||||
Net Loss | $ | (22,217) | 4,377 | 2,058 | (15,782) | |||
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 | ||||||||
Six months ended June 30, 2024 | ||||||||
GAAP | Stock-Based | Acquisition costs, | Non-GAAP | |||||
Cost of Revenues | $ | 6,825 | (12) | (2,425) | 4,388 | |||
Gross Profit | 5,188 | 12 | 2,425 | 7,625 | ||||
Research and development | 13,452 | (1,563) | (124) | 11,765 | ||||
Sales and Marketing | 14,042 | (3,406) | (169) | 10,467 | ||||
General and Administrative | 11,740 | (5,439) | (1,158) | 5,143 | ||||
Total Operating Expenses | 39,234 | (10,408) | (1,451) | 27,375 | ||||
Operating Loss | $ | (34,046) | 10,420 | 3,876 | (19,750) | |||
Financing expenses | (11,267) | - | - | (11,267) | ||||
Income Tax | (1,994) | - | - | (1,994) | ||||
Net Loss | $ | (20,785) | 10,420 | 3,876 | (6,489) | |||
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SOURCE DarioHealth Corp.
