DarioHealth (DRIO) Q4 2025 earnings summary

Executive summary

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

• Annual revenue declined due to a single legacy client non-renewal from the Twill acquisition, but core B2B2C business delivered organic revenue growth excluding this headwind.

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

• Platform strategy leverages channel partnerships and multi-condition solutions, driving scale and competitive advantage.

• Strategic review process remains active, considering sale, merger, or continued standalone execution.

Financial highlights

• Q4 2025 revenue grew sequentially to $5.2 million; full-year 2025 revenue was $22.4 million, down from $27 million in 2024 due to a legacy client loss.

• GAAP gross margin improved from 49% in 2024 to 57% in 2025; core B2B2C ARR business maintained ~80% non-GAAP gross margin for two years.

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

• Operating loss improved by $21 million (GAAP) and $9.6 million (non-GAAP) year-over-year; full-year GAAP operating loss was $36.7 million, down 37% from $57.7 million in 2024.

• 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 the year.

• $12.9 million in contracted and late-stage ARR set to contribute to 2026 and 2027 revenue, supporting a high-growth trajectory.

• 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.