Overview

• DarioHealth Q2 2025 revenue fell 14% yr/yr to $5.4 mln, missing expectations

• Operating loss for Q2 narrowed by 43% yr/yr due to operational efficiencies

• Co secured $5 mln new CARR, with $53 mln pipeline of opportunities

Outlook

• Dario expects cashflow breakeven by end of 2026 to early 2027

• Company anticipates $53 mln in commercial opportunities pipeline

• AI-driven efficiencies to cut operating expenses by 15% in 12-15 months

Result Drivers

• REVENUE DECLINE - Co attributes revenue decline to shift from one-time revenues to building ARR and delays in onboarding new clients

• GROSS MARGIN IMPROVEMENT - Gross margin increased to 55% from 44% yr/yr due to changes in revenue mix and lower amortization expenses

• OPERATING EFFICIENCIES - Operating expenses decreased by 36% yr/yr due to AI-driven process optimizations and post-merger integration activities

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for DarioHealth Corp is $2.25, about 77.6% above its August 11 closing price of $0.50

Press Release: ID:nPn8nWzC9a

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)