DarioHealth (DRIO) Q4 2025 earnings summary

Executive summary

• Achieved record new business in 2025, signing 85 new agreements, more than double the target, with contract sizes 2–10x historical averages.

• Fourth quarter 2025 revenue grew sequentially to $5.2 million from $5.0 million in Q3, but declined year-over-year from $7.6 million in Q4 2024 due to a legacy client nonrenewal from the Twill acquisition.

• Full-year 2025 revenue was $22.4 million, down from $27 million in 2024, reflecting the legacy client loss, partially offset by organic ARR growth.

• Commercial pipeline expanded to $122 million across 230 B2B2C opportunities, with over 70% being multi-condition contracts.

• Platform differentiation, AI capabilities, and multi-condition coverage drive competitive advantage and demand.

Financial highlights

• Full-year 2025 revenue was $22.4 million, down from $27 million in 2024 due to the legacy client loss.

• GAAP gross margin expanded from 49% in 2024 to 57% in 2025, mainly from reduced technology amortization.

• Core B2B2C ARR business maintained ~80% non-GAAP gross margin for two years.

• Full-year 2025 GAAP operating expenses declined 31% to $49.3 million; non-GAAP OpEx down 26% to $38.6 million.

• Full-year GAAP operating loss improved by $21 million (37%); non-GAAP loss improved by $9.6 million (29%).

• Ended 2025 with $26 million in cash and short-term deposits; net cash used in operations fell 33% to $25.9 million.

Outlook and guidance

• Revenue growth expected to continue in Q1 2026 and accelerate in the second half of 2026.

• $12.9 million in contracted and late-stage ARR from 2025 sales to contribute to 2026 and 2027 revenue.

• Non-GAAP operating loss projected to narrow by 30% in 2026; targeting cash flow breakeven by mid-2027.

• Cash flow positive expected at $38–$42 million in annual revenue.

• Anticipates continued expansion in international markets, especially for the MSK product.