DarioHealth Reports Third Quarter 2025 Financial and Operating Results
- Third quarter 2025 revenue was $5.0 million, compared to $7.4 million in the third quarter of 2024, and $5.4 million in the second quarter of 2025
- Targeting $12.4 million in new business, reflecting both committed annual recurring revenue ("CARR") and late-stage opportunities nearing completion; 2026 pipeline expanded to $69 million
- Exceeded 2025 goal of 40 new signed accounts for 2026 revenue, with 45 new signed accounts to date—several already contributing to 2025 results; average employer customer size nearly doubled what was projected
- Strong business fundamentals in the third quarter including GAAP gross margin increase to 60%, 7 consecutive quarters of 80%+ non-GAAP gross margins on core B2B2C business, and $17.2 million, or 31%, reduction in operating expenses for the first nine months of 2025 compared to the same period in 2024
- Dario's integrated whole-person digital health platform is driving adoption as more than 50% of Company's new clients are choosing the multi-condition offering—combining AI-driven personalization across diabetes, hypertension, weight management, musculoskeletal, and mental health
- Backed by $31.9 million in cash and cash equivalents on the balance sheet as of September 30, 2025, and accelerating commercial momentum, Dario expects to reach cashflow breakeven by late 2026 to early 2027
- Dario will host an investor conference call and webcast at 8:30 a.m. ET today
NEW YORK, Nov. 13, 2025 /PRNewswire/ -- DarioHealth Corp. (NASDAQ:DRIO) ("Dario" or the "Company"), a leader in the global digital health market, today announced financial results for the third quarter ended September 30, 2025, along with strategic and commercial updates.
"As we execute a powerful transition to a high-margin recurring revenue model built on high-quality, long-term contracts generating 60% GAAP and 80%-plus non-GAAP gross margins, Dario's financials are significantly improving as evidenced by continued gross margin expansion, declines in operating expenses, and a robust balance sheet. We believe we are on a solid path to profitability," stated Erez Raphael, Chief Executive Officer of Dario. "While revenue declined during this transition, mainly due to our focus on a high-margin, annual recurring revenue model, our multi-condition platform is garnering strong traction with large insurers and with employers that are two to ten-times larger than our historical client size."
"We have 45 new clients in 2025 thus far and are targeting $12.4 million in new business including committed annual recurring revenues and a portion of our late-stage pipeline that is in the contracting process. Our commercial pipeline now stands at $69 million for 2026 reflecting the success of our channel strategy and robust momentum which we believe positions us for strong revenue acceleration in 2026 as we sign and onboard new clients. Our diversified customer base numbers over 125 clients, including four national and seven major regional health plans, 112 employers, and seven channel partners representing 116 million lives. With more than 50% of new contracts now multi-condition, we aim to lead healthcare's shift toward integrated, clinically proven, outcomes-driven digital solutions. We believe we have created tremendous value both in our technology platform and our business, and this is being recognized by other companies in the rapidly evolving digital health ecosystem," Raphael concluded.
In September 2025, in response to multiple unsolicited inbound expressions of interest, Dario engaged Perella Weinberg Partners and established a Special Committee of its Board of Directors. We will not be commenting further on this matter unless or until there is a material update.
Commercial Momentum Accelerates: Dario is a Multi-Condition Leader in Digital Health
- 45 New Annual Recurring Revenues ("ARR") Clients year-to-date, surpassing stated goal of signing 40 new accounts in 2025
- Signing Larger Clients that are increasingly looking for multi-condition solutions, doubling expected client size and doubling win rate for sustained revenue ramp
- Value-Based Pricing Model Enables Faster Expansion as an increasing number of new accounts are opting for Dario's innovative new performance-based pricing model
- Expansion into Fall-Risk Assessment through strategic collaboration with OneStep to further drive measurable return on investment ("ROI") for health plans by reducing falls, the leading cause of injury of older adults in the U.S. generating more than $50 billion in annual direct medical costs
- Channel Partners Representing 116 million Lives are accelerating market penetration
"We believe that Dario's multi-condition platform, among the few in the market addressing over five conditions, is resonating strongly with blue-chip employers and insurers," said Steven Nelson, Dario's President and Chief Commercial Officer. "In addition to surpassing our new business goal, we have built a 2026 commercial pipeline that is extremely healthy and still has early 2026 and mid 2026 opportunities on the table due to diversifying our product market fit to new employers and health plans, including government opportunities. Impressively, more than 50% of our new clients choose our multi-condition option. We now serve over 125 clients, including Fortune 100 companies, and our diversified approach across employers, health plans, and pharma creates multiple revenue streams with low customer concentration risk. Our growth is further amplified by top-tier channel partnerships, collectively reaching over 116 million lives."
Solid Financial Foundation for Growth
- Cash Balance of $31.9 million following a $17.5 million oversubscribed private placement during the third quarter of 2025
- Runway to Cashflow Positive based on growing ARR, robust commercial pipeline, continued reductions in operating expenses, and strong cash position
- Optimized Cap Table in September 2025, as all outstanding preferred shares converted into shares of common stock and common stock equivalents, creating a clearer equity structure
- Expanded Gross Margins in the third quarter of 2025 to 60% with the core B2B2C channel sustaining approximately 80% non-GAAP gross margins since the first quarter of 2024
- Decreased Operating Expenses by $17 million, or 31%, in the first nine months of 2025 compared to the year-ago period and decreased by $3.4 million, or 21%, in the third quarter compared to the year-ago period, reflecting strong operational discipline, efficiencies and continued impact of the Company's artificial intelligence ("AI") transformation; Further 10-15% improvements expected from additional AI implementations and efficiencies over the next 12-15 months
- Narrowed Operating Loss in the third quarter of 2025 by 21% and by 39% for the nine-month period compared to the same periods in 2024
- Credit Agreement amended to reset covenants, creating greater flexibility
"During the third quarter of 2025, Dario significantly strengthened its financial position, highlighted by an oversubscribed $17.5 million private placement, reflecting strong investor confidence in our ability to capture a massive digital health opportunity," stated Chen Franco Yehuda, Dario's Chief Financial Officer. "Our disciplined approach to operations resulted in further substantial reductions in operating expenses and corresponding operating loss on a year-over-year basis both for the third quarter of 2025 and the first nine months of 2025. High-quality accounts are translating into 60% GAAP gross margins and sustained 80% gross margins on our B2B2C business on a non-GAAP basis, setting Dario on a clear path to cashflow breakeven by late 2026 to early 2027."
Financial Results for the Three Months Ended September 30, 2025
Revenue for the three months ended September 30, 2025 was $5.0 million, compared to $7.4 million, for the three months ended September 30, 2024, and $5.4 million for the three months ended June 30, 2025. The quarter-over-quarter and 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 was not renewed in the beginning of 2025.
Gross profit for the three months ended September 30, 2025 was $3.0 million, compared to gross profit of $3.9 million for the three months ended September 30, 2024, and gross profit of $3.0 million for the three months ended June 30, 2025. The reason for the increase as compared to the three months ended September 30, 2024 resulted mainly from 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 60% in the three months ended September, 2025, from 52% in the three months ended September 30, 2024, and increased from 55% in the three months ended June 30, 2025.
Non-GAAP gross profit, excluding $0.2 million of amortization expenses related to the acquisition of technology, stock-based compensation, and depreciation was $3.2 million, or 64% of revenues, for the three months ended September 30, 2025, compared to non-GAAP gross profit of $5.2 million, or 70% of revenues, for the three months ended September 30, 2024, and a non-GAAP gross profit of $3.4 million, or 64% of revenues, for the three months ended June 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 September 30, 2025, were $12.5 million compared to $15.9 million for the three months ended September 30, 2024, and $12.2 million for the three months ended June 30, 2025 a decrease of $3.4 million, or 21%, compared to the three months ended September 30, 2024, and an increase of $0.3 million, or 3%, compared to the three months ended June 30, 2025. The year-over-year decrease in operating expenses resulted mainly from increased operational efficiency 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 September 30, 2025, were $9.2 million compared to $12.3 million for the three months ended September 30, 2024, and $9.8 million for the three months ended June 30, 2025, representing a decrease of 25% and 6%, respectively.
Operating loss for the three months ended September 30, 2025, was $9.5 million, a decrease of $2.5 million, or 21%, compared to $12.0 million for the three months ended September 30, 2024, and remained relatively the same compared to $9.2 million for the three months ended June 30, 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 September 30, 2025 was $6.0 million representing a decrease of 16% and an decrease of 6% respectively, compared to a Non-GAAP operating loss of $7.1 million in the three months ended September 30, 2024, and Non-GAAP operating loss of $6.4 million in the three months ended June 30, 2025.
Net loss was $10.5 million for the three months ended September 30, 2025, compared to a net loss of $12.3 million for the three months ended September 30, 2024, and $13.0 million for three months ended June 30, 2025.
Non-GAAP net loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended September 30, 2025 was $7.0 million compared to a Non-GAAP net loss of $7.4 million for the three months ended September 30, 2024, and a Non-GAAP net loss of $10.2 million in the three months ended June 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 Nine Months Ended September 30, 2025
Revenues for the nine months ended September 30, 2025 were $17.1 million, compared to $19.4 million for the nine months ended September 30, 2024. The reason for the decrease as compared to the nine months ended September 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, partially offset by new ARR.
Gross profit for the nine months ended September 30, 2025, was $9.9 million, an increase of $0.8 million or 9%, compared to gross profit of $9.1 million for the nine months ended September 30, 2024. The reason for the increase as compared to the nine months ended September 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 58% in the nine months ended September 30, 2025, from 47% in the nine months ended September 30, 2024.
Non-GAAP gross profit, excluding $1.6 million of amortization expenses related to the acquisition of technology, stock-based compensation and depreciation, was $11.4 million, or 67% of revenues, for the nine months ended September 30, 2025, compared to non-GAAP gross profit of $12.9 million, or 66% of revenues, for the nine months ended September 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 nine months ended September 30, 2025, were $38.0 million compared to $55.1 million for the nine months ended September 30, 2024, a decrease of $17.1 million, or 31%. The decrease in operating expenses compared to the nine months ended September 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 nine months ended September 30, 2025, were $29.6 million compared to $39.7 million for the nine months ended September 30, 2024, representing a decrease of $10.1 million.
Operating loss for the nine months ended September 30, 2025, was $28.1 million, a decrease of $17.9 million, or 39%, compared to $46.1 million for the nine months ended September 30, 2024. The decrease in operating loss compared to the nine months ended September 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 nine months ended September 30, 2025 was $18.2 million representing a decrease of 32%, compared to a non-GAAP operating loss of $26.9 million in the nine months ended September 30, 2024.
Net loss was $32.7 million for the nine months ended September 30, 2025, compared to a net loss of $33.1 million for the nine months ended September 30, 2024.
Non-GAAP net loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the nine months ended September 30, 2025 was $22.8 million compared to a Non-GAAP net loss of $13.9 million for the nine months ended September 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: Thursday November 13, 8:30am ET
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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. 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 the amount of its targeted new business, its 2026 pipeline and expected strong revenue acceleration in 2026, that it expects to reach cashflow breakeven by late 2026 to early 2027, that it expects to transition to a high-margin recurring revenue model; that it is on a solid path to profitability; the number of new accounts it expects to sign in 2025, its potential future business opportunities, and that it expects to further cut its operating expenses over the next 12-15 months. 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.
DarioHealth Corporate Contacts
Michael Lipari
SVP Corporate Development
[email protected]
+1-201-785-6310
Zoe Harrison
VP, Accounting and Corporate Development
[email protected]
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
September 30, | December 31, | |||||
2025 | 2024 | |||||
ASSETS | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ | 31,907 | $ | 27,764 | ||
Short-term bank deposits | - | 697 | ||||
Short-term restricted bank deposits | 222 | 175 | ||||
Trade receivables, net | 2,375 | 4,804 | ||||
Inventories | 4,869 | 4,753 | ||||
Other accounts receivable and prepaid expenses | 2,812 | 2,336 | ||||
Total current assets | 42,185 | 40,529 | ||||
NON-CURRENT ASSETS: | ||||||
Deposits | 79 | 79 | ||||
Operating lease right of use assets | 746 | 1,065 | ||||
Long-term assets | 307 | 313 | ||||
Property and equipment, net | 578 | 709 | ||||
Intangible assets, net | 16,405 | 18,762 | ||||
Goodwill | 57,427 | 57,427 | ||||
Total non-current assets | 75,542 | 78,355 | ||||
Total assets | $ | 117,727 | $ | 118,884 | ||
The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements. | ||||||
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)
U.S. dollars in thousands (except stock and per share data)
September 30, | December 31, | |||||
2025 | 2024 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Trade payables | $ | 3,469 | $ | 3,045 | ||
Deferred revenues | 860 | 1,583 | ||||
Operating lease liabilities | 442 | 504 | ||||
Other accounts payable and accrued expenses | 4,508 | 6,052 | ||||
Current maturity of long-term loan | — | 5,451 | ||||
Total current liabilities | 9,279 | 16,635 | ||||
NON-CURRENT LIABILITIES | ||||||
Operating lease liabilities | 579 | 765 | ||||
Long-term loan | 30,617 | 23,472 | ||||
Warrant liability | 2,244 | 5,968 | ||||
Other long-term liabilities | 74 | 25 | ||||
Total non-current liabilities | 33,514 | 30,230 | ||||
STOCKHOLDERS' EQUITY ** | ||||||
Common stock of $0.0001 par value - authorized: 400,000,000 shares; issued and | 4 | 4 | ||||
Preferred stock of $0.0001 par value - authorized: 5,000,000 shares; issued and | *) - | *) - | ||||
Additional paid-in capital | 516,756 | 462,358 | ||||
Accumulated deficit | (441,826) | (390,343) | ||||
Total stockholders' equity | 74,934 | 72,019 | ||||
Total liabilities and stockholders' equity | $ | 117,727 | $ | 118,884 | ||
*) Represents an amount lower than $1. | ||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
U.S. dollars in thousands (except stock and per share data)
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
Revenues: | ||||||||||||
Services | $ | 3,209 | $ | 5,604 | $ | 11,745 | $ | 14,424 | ||||
Consumer hardware | 1,798 | 1,819 | 5,383 | 5,012 | ||||||||
Total revenues | 5,007 | 7,423 | 17,128 | 19,436 | ||||||||
Cost of revenues: | ||||||||||||
Services | 613 | 920 | 2,299 | 2,845 | ||||||||
Consumer hardware | 1,198 | 1,282 | 3,479 | 3,786 | ||||||||
Amortization of acquired intangible assets | 181 | 1,344 | 1,489 | 3,740 | ||||||||
Total cost of revenues | 1,992 | 3,546 | 7,267 | 10,371 | ||||||||
Gross profit | 3,015 | 3,877 | 9,861 | 9,065 | ||||||||
Operating expenses: | ||||||||||||
Research and development | $ | 3,328 | $ | 5,446 | $ | 11,157 | $ | 18,898 | ||||
Sales and marketing | 4,604 | 6,733 | 15,708 | 20,775 | ||||||||
General and administrative | 4,567 | 3,728 | 11,089 | 15,468 | ||||||||
Total operating expenses | 12,499 | 15,907 | 37,954 | 55,141 | ||||||||
Operating loss | 9,484 | 12,030 | 28,093 | 46,076 | ||||||||
Interest expenses | 1,157 | — | 1,923 | — | ||||||||
Other financial expenses (income), net | (175) | 313 | 2,645 | (10,954) | ||||||||
Total financial expenses (income), net | 982 | 313 | 4,568 | (10,954) | ||||||||
Loss before taxes | 10,466 | 12,343 | 32,661 | 35,122 | ||||||||
Income tax (benefit) | — | (13) | 22 | (2,007) | ||||||||
Net loss | $ | 10,466 | $ | 12,330 | $ | 32,683 | $ | 33,115 | ||||
Deemed dividend (contribution) | $ | 8,389 | $ | 2,278 | $ | 18,800 | $ | (4,394) | ||||
Net loss attributable to common shareholders | $ | 18,855 | $ | 14,608 | $ | 51,483 | $ | 28,721 | ||||
Net loss per share: | ||||||||||||
Basic and diluted loss per share of common stock | $ | 2.96 | $ | 4.91 | $ | 9.05 | $ | 10.38 | ||||
Weighted average number of common stock used in | 3,138,106 | 2,020,872 | 2,673,794 | 1,954,679 | ||||||||
(**) See note 1e regarding reverse share split. | ||||||||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)
U.S. dollars in thousands
Nine months ended | ||||||
September 30, | ||||||
2025 | 2024 | |||||
Cash flows from operating activities: | ||||||
Net loss | $ | (32,683) | $ | (33,115) | ||
Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||
Stock-based compensation | 7,327 | 13,206 | ||||
Depreciation and impairment | 247 | 773 | ||||
Disposal of property and equipment | - | 7 | ||||
Change in operating lease right of use assets | 319 | 666 | ||||
Amortization of acquired intangible assets | 2,357 | 4,519 | ||||
Decrease in trade receivables, net | 2,429 | 1,536 | ||||
Increase in other accounts receivable, prepaid expense and long-term assets | (470) | (894) | ||||
Decrease (increase) in inventories | (117) | 320 | ||||
Increase (decrease) in trade payables | 424 | (886) | ||||
Decrease in other accounts payable and accrued expenses | (1,495) | (3,704) | ||||
Decrease in deferred revenues | (723) | (621) | ||||
Change in operating lease liabilities | (248) | (791) | ||||
Change in fair value of warrant liability | (903) | (13,370) | ||||
Non-cash financial expenses | 2,832 | 432 | ||||
Other | 650 | 92 | ||||
Net cash used in operating activities | (20,054) | (31,830) | ||||
Cash flows from investing activities: | ||||||
Purchase of property and equipment | (116) | (117) | ||||
Payments for business acquisitions, net of cash acquired | — | (8,796) | ||||
Net cash used in investing activities | (116) | (8,913) | ||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of common stock and prefunded warrants, net of issuance costs | 17,393 | — | ||||
Proceeds from issuance of preferred stock, net of issuance costs | 6,754 | 20,206 | ||||
Proceeds from borrowings on credit agreement, net | 31,700 | — | ||||
Repayment of long-term loan | (31,515) | — | ||||
Net cash provided by financing activities | 24,332 | 20,206 | ||||
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | 4,162 | (20,537) | ||||
Effect of exchange rate differences on cash, cash equivalents and restricted cash and cash equivalents | (19) | (50) | ||||
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 | $ | 31,907 | $ | 16,210 | ||
Supplemental disclosure of cash flow information: | ||||||
Cash paid during the period for interest on long-term loan | $ | 2,260 | $ | 2,968 | ||
Non-cash activities: | ||||||
Right-of-use assets obtained in exchange for lease liabilities | $ | — | $ | 428 | ||
Exercise of pre-funded warrants to common stock upon acquisition | $ | 2,821 | $ | — | ||
The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements. | ||||||
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 September 30, 2025 | ||||||||
GAAP | Stock-Based | Amortization of | Non-GAAP | |||||
Cost of Revenues | $ | 1,992 | (6) | (192) | 1,794 | |||
Gross Profit | 3,015 | 6 | 192 | 3,213 | ||||
Research and development | 3,328 | (389) | (30) | 2,909 | ||||
Sales and Marketing | 4,604 | (555) | (308) | 3,741 | ||||
General and Administrative | 4,567 | (2,000) | (17) | 2,550 | ||||
Total Operating Expenses | 12,499 | (2,944) | (355) | 9,200 | ||||
Operating Loss | $ | (9,484) | 2,950 | 547 | (5,987) | |||
Financing expenses | 928 | - | - | 982 | ||||
Net Loss | $ | (10,466) | 2,950 | 547 | (6,969) | |||
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 September 30, 2024 | ||||||||
GAAP | Stock-Based | Amortization of | Non-GAAP | |||||
Cost of Revenues | $ | 3,546 | 7 | (1,359) | 2,194 | |||
Gross Profit | 3,877 | (7) | 1,359 | 5,229 | ||||
Research and development | 5,446 | (748) | (63) | 4,635 | ||||
Sales and Marketing | 6,733 | (948) | (689) | 5,096 | ||||
General and Administrative | 3,728 | (1,097) | (17) | 2,614 | ||||
Total Operating Expenses | 15,907 | (2,793) | (769) | 12,345 | ||||
Operating Loss | $ | (12,030) | 2,786 | 2,128 | (7,116) | |||
Financing expenses | 313 | - | 313 | |||||
Income Tax | (13) | (13) | ||||||
Net Loss | $ | (12,330) | 2,786 | 2,128 | (7,416) | |||
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 | ||||||||
Nine months ended September 30, 2025 | ||||||||
GAAP | Stock-Based | Amortization of | Non-GAAP | |||||
Cost of Revenues | $ | 7,267 | (22) | (1,529) | 5,716 | |||
Gross Profit | 9,861 | 22 | 1,529 | 11,412 | ||||
Research and development | 11,157 | (1,356) | (104) | 9,697 | ||||
Sales and Marketing | 15,708 | (1,953) | (926) | 12,829 | ||||
General and Administrative | 11,089 | (3,996) | (46) | 7,047 | ||||
Total Operating Expenses | 37,954 | (7,305) | (1,076) | 29,573 | ||||
Operating Loss | $ | (28,093) | 7,327 | 2,605 | (18,161) | |||
Financing expenses | 4,568 | - | - | 4,568 | ||||
Income Tax | 22 | 22 | ||||||
Net Loss | $ | (32,683) | 7,327 | 2,605 | (22,751) | |||
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 | ||||||||
Nine months ended September 30, 2024 | ||||||||
GAAP | Stock-Based | Amortization of | Non -GAAP | |||||
Cost of Revenues | $ | 10,371 | (5) | (3,784) | 6,582 | |||
Gross Profit | 9,065 | 5 | 3,784 | 12,854 | ||||
Research and development | 18,898 | (2,311) | (187) | 16,400 | ||||
Sales and Marketing | 20,775 | (4,354) | (859) | 15,562 | ||||
General and Administrative | 15,468 | (6,536) | (1,175) | 7,757 | ||||
Total Operating Expenses | 55,141 | (13,201) | (2,221) | 39,719 | ||||
Operating Loss | $ | (46,076) | 13,206 | 6,005 | (26,865) | |||
Financing expenses | (10,954) | - | - | (10,954) | ||||
Income Tax | (2,007) | (2,007) | ||||||
Net Loss | $ | (33,115) | 13,206 | 6,005 | (13,904) | |||
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SOURCE DarioHealth Corp.