DarioHealth Corp. announced its first-quarter 2025 financial results on May 14, 2025, reporting revenue of $6.75 million. This represents a 17% increase year-over-year but an 11.2% sequential decrease from Q4 2024. The sequential decline was primarily attributed to a shift in scope with a large national health plan client that in-sourced a Medicaid maternity program, alongside slower-than-anticipated ramp-up of new business due to tariff-related pressures impacting hardware sourcing and partner-side execution.
Despite the revenue headwinds, the company demonstrated strong operational discipline, with total operating expenses decreasing by 35% year-over-year to $13.3 million and 16% sequentially. Non-GAAP operating expenses totaled $10.6 million, a 16.6% year-over-year reduction. This led to a 47% year-over-year decrease in GAAP operating loss to $9.4 million and a 36% decrease in non-GAAP operating loss to $5.8 million.
DarioHealth signed 14 new clients year-to-date, including one national and one regional health plan and 12 employers, contributing to its 2025 goal of 40 new clients. The company maintained a contract renewal rate above 90% and reported B2B2C gross margins above 81% on a non-GAAP basis for four consecutive quarters. Dario reiterated its expectation for a further 15-20% reduction in operating expenses over the next 12-18 months and its goal of achieving cash flow positivity by the end of 2025.
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