DarioHealth 2025 Q3 Earnings Narrowed Losses with 39.7% EPS Improvement

DarioHealth (DRIO) reported fiscal 2025 Q3 earnings on Nov 14th, 2025, showcasing a 39.7% improvement in per-share losses year-over-year. The company’s revenue declined by 32.5% to $5.01 million, missing consensus estimates by $0.67 million. Despite the revenue shortfall, DarioHealth’s net loss narrowed to $-10.47 million (or $2.96 per share), a 15.1% reduction from $-12.33 million in the prior-year period. The stock surged 18.25% on the day of the report but remains down 13.11% month-to-date, reflecting mixed investor sentiment.

Revenue

Services revenue amounted to $3.21 million, while consumer hardware generated $1.80 million. Amortization of acquired intangible assets was $0, resulting in total revenue of $5.01 million. The decline reflected a strategic shift toward high-margin annual recurring revenue and the non-renewal of a major client contract in early 2025.

Earnings/Net Income

The company successfully narrowed its net loss by 15.1% compared to the previous year, reflecting improved financial performance.

Post-Earnings Price Action Review

The stock price of DarioHealth surged 18.25% during the latest trading day, though it has dropped 6.16% during the most recent full trading week and tumbled 13.11% month-to-date. The mixed price action highlights investor uncertainty about the company’s near-term prospects despite improved losses.

CEO Commentary

DarioHealth’s CEO emphasized the strategic transition to a high-margin, annual recurring revenue model, which, while causing short-term revenue dips, is expected to stabilize cash flow. The CEO cited progress in securing 45 new accounts year-to-date and a 90% client renewal rate as positive indicators for 2026 growth.

Guidance

The company expects to reach cash flow breakeven by late 2026 or early 2027. Management also highlighted a $12.4 million pipeline for new business in 2026, driven by expanded partnerships and the UnitedHealth national rollout.

Additional News

DarioHealth announced a $17.5 million private placement of common stock to strengthen its balance sheet. The company also engaged Perella Weinberg Partners as a financial adviser to explore strategic options following inbound interest. Separately, DarioHealth presented new data demonstrating significant medical cost reductions among employer populations using its digital health platform, reinforcing its value proposition in chronic disease management.