Digital therapeutics platform DarioHealth Q2 revenue falls steeper-than-expected 14%

DarioHealth

12/08/2025 11:41

Overview

DarioHealth Q2 2025 revenue fell 14% yr/yr to $5.4 mln, missing expectations

Operating loss for Q2 narrowed by 43% yr/yr due to operational efficiencies

Co secured $5 mln new CARR, with $53 mln pipeline of opportunities

Outlook

Dario expects cashflow breakeven by end of 2026 to early 2027

Company anticipates $53 mln in commercial opportunities pipeline

AI-driven efficiencies to cut operating expenses by 15% in 12-15 months

Result Drivers

REVENUE DECLINE - Co attributes revenue decline to shift from one-time revenues to building ARR and delays in onboarding new clients

GROSS MARGIN IMPROVEMENT - Gross margin increased to 55% from 44% yr/yr due to changes in revenue mix and lower amortization expenses

OPERATING EFFICIENCIES - Operating expenses decreased by 36% yr/yr due to AI-driven process optimizations and post-merger integration activities

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$5.40 mln
$6.91 mln (3 Analysts)
Q2 Net Income
Miss
-$12.99 mln
-$10.80 mln (3 Analysts)
Q2 Operating Income
Miss
-$9.20 mln
-$8.72 mln (2 Analysts)
Q2 Gross Profit
$3 mln
Q2 Operating Expenses
$12.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

Wall Street's median 12-month price target for DarioHealth Corp is $2.25, about 77.6% above its August 11 closing price of $0.50

Press Release: ID:nPn8nWzC9a

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)