DarioHealth Corp. announced its second-quarter 2025 financial results on August 12, 2025, reporting revenue of $5.4 million. This figure was below company expectations, representing a 14% decrease year-over-year from Q2 2024 and a 20% sequential decrease from Q1 2025. The revenue shortfall was attributed to a shift in scope with a large national health plan client that was not renewed at the beginning of 2025, coupled with a slower-than-anticipated ramp-up of new business.
Due to these delays, DarioHealth adjusted its timeline for achieving cash flow breakeven by approximately 12 to 15 months, now projecting it for the end of 2026 to early 2027. Despite the revenue headwinds, the company demonstrated significant operating efficiencies, with total operating expenses decreasing by 36% year-over-year to $12.2 million. Gross profit as a percentage of revenues increased year-over-year to 55%, and the core B2B2C business maintained robust non-GAAP gross margins of approximately 80%.
The company reported a net loss of $12.99 million for the quarter. Dario secured $5 million in new Committed Annual Recurring Revenue (CARR) this year and maintains a pipeline of $53 million in commercial opportunities. Management expects AI-driven improvements to support an additional 15% reduction in operating expenses over the next 12 to 15 months.
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