DarioHealth Corp. SEC 10-Q Report
DarioHealth Corp., a leading provider of digital health solutions, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's financial performance and operational achievements, reflecting its strategic initiatives and market dynamics.
Financial Highlights
Revenues: DarioHealth Corp. reported revenues of $5.369 million for the three months ended June 30, 2025, a decrease of 14.2% compared to the same period in 2024. This decline was primarily due to reduced revenues from the pharma channel. For the six months ended June 30, 2025, revenues were $12.121 million, representing a slight increase of 0.9% compared to the same period in 2024, driven by higher revenues from the Consumers channel.
Gross Profit: The company achieved a gross profit of $2.964 million (55.2% of revenues) for the three months ended June 30, 2025, compared to $2.756 million (44.1% of revenues) for the same period in 2024. This improvement in gross profit percentage was attributed to a change in revenue mix and lower amortization of technology. For the six months ended June 30, 2025, gross profit was $6.846 million (56.5% of revenues), up from $5.188 million (43.2% of revenues) in the same period in 2024, reflecting enhanced efficiency and cost management.
Net Loss: The net loss for the three months ended June 30, 2025, was $12.990 million, a decrease of 4.6% compared to a net loss of $13.610 million for the same period in 2024. This reduction was due to increased gross profit and decreased operating expenses. However, for the six months ended June 30, 2025, the net loss increased by 6.9% to $22.217 million, compared to $20.785 million in the same period in 2024, primarily due to higher financial expenses related to the valuation of pre-funded warrants.
Non-GAAP Adjusted Loss: The non-GAAP adjusted loss for the three months ended June 30, 2025, was $6.363 million, compared to $10.671 million for the same period in 2024, indicating improved operational efficiency. For the six months ended June 30, 2025, the non-GAAP adjusted loss was $12.174 million, down from $19.749 million in the same period in 2024, reflecting significant cost reductions and efficiency improvements.
Business Highlights
Business Model and Market Segments: DarioHealth Corp. operates in four primary market segments: direct-to-consumer (D2C), medium-to-large employers, national and regional health plans, and global pharmaceutical companies. The D2C market serves as an innovation lab, while the B2B segments now represent three-fourths of current revenues.
Whole-Person Health Platform: The company offers a comprehensive digital health platform focusing on physical health, mental health, social and environmental factors, individualized care, and integration of clinical services. This platform is designed to deliver personalized care solutions using data-driven AI.
New Clients: As of June 30, 2025, DarioHealth Corp. added 21 new clients, including a top U.S. healthcare institution, two regional health plans, and 18 employers, as part of its 2025 goal to add 40 new clients.
Strategic Commercial Agreement: In June 2025, a strategic commercial agreement was announced with GreenKey Health to expand integrated chronic condition management solutions into the sleep apnea market, enhancing the company's employer footprint.
Research and Development: The company has focused on efficiency and post-merger integration activities, resulting in a significant decrease in research and development expenses, primarily due to reduced payroll, stock-based compensation, and consulting expenses.
Sales and Marketing Strategy: DarioHealth Corp. has reduced sales and marketing expenses by optimizing payroll and stock-based compensation, while increasing subcontractor and consulting expenses to support customer relationship management.
Operational Efficiency: The company has achieved operational efficiencies through post-merger integration activities, leading to reduced general and administrative expenses, particularly in stock-based compensation and consulting costs.
Future Outlook: DarioHealth Corp. aims to leverage its Medicare and Medicaid behavioral health specialty to expand access to other chronic condition solutions and continues to focus on delivering high ROI and improved health outcomes through its digital health platform.
SEC Filing: DarioHealth Corp. [ DRIO ] - 10-Q - Aug. 12, 2025