Digital therapeutics platform DarioHealth Q2 revenue falls steeper-than-expected 14%
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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $5.40 mln | $6.91 mln (3 Analysts) |
Q2 Net Income | Miss | -$12.99 mln | -$10.80 mln (3 Analysts) |
Q2 Operating Income | Miss | -$9.20 mln | -$8.72 mln (2 Analysts) |
Q2 Gross Profit |
| $3 mln |
|
Q2 Operating Expenses |
| $12.20 mln |
|
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
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