DarioHealth Corp. reported a decrease in revenue for the fiscal year ending December 31, 2025, with total revenues amounting to $22.4 million, down from $27 million in 2024. This decline was primarily attributed to the non-renewal of a customer acquired through the company's acquisition of Twill. Despite the drop in revenue, the company achieved a gross profit of $12.7 million, representing 56.6% of revenues, an increase from 49.1% in the previous year. This improvement in gross profit margin was driven by lower amortization costs and reduced hosting expenses.
The company's operating expenses also saw a significant reduction, with research and development expenses decreasing to $13.8 million from $24.2 million in 2024. This reduction was largely due to post-merger integration efficiencies. Sales and marketing expenses fell to $20.3 million from $26.4 million, while general and administrative expenses decreased to $15.2 million from $20.5 million. Overall, DarioHealth reported a net loss of $41.7 million for 2025, slightly improved from a net loss of $42.7 million in 2024.
DarioHealth has made strategic advancements, including the acquisition of Twill, which has expanded its digital health platform offerings. The company now serves a total of 167 employer clients, a significant increase from 53 in 2024, and added 85 new accounts in 2025, surpassing its internal goal of 40 new accounts. The company has also launched several new self-insured employer contracts, including its largest client to date, representing approximately 107,000 covered lives.
In terms of operational metrics, DarioHealth's user engagement remains a focal point, with the company emphasizing the importance of sustained user interaction for effective health outcomes. The company has reported that its digital health solutions are now available to millions of individuals worldwide, supported by partnerships with employers, health plans, and pharmaceutical companies. As of March 2026, DarioHealth employed 160 full-time and five part-time employees, reflecting its commitment to scaling operations.
Looking ahead, DarioHealth's management expressed optimism about future growth, particularly in the context of its strategic review initiated in September 2025, which aims to maximize shareholder value. The company is exploring various opportunities, including potential mergers or acquisitions, while also focusing on enhancing its digital health offerings and expanding its market presence. However, the company continues to face challenges, including the need for additional capital to support its operations and the ongoing geopolitical tensions in Israel, where its headquarters are located.
About DarioHealth Corp.
DarioHealth is a global digital health company specializing in whole-person health management. It offers personalized digital therapeutics and virtual care solutions across physical, mental, and behavioral health conditions. Serving employers, health plans, pharmaceutical companies, and consumers, it leverages AI, data analytics, and engaging user experiences to deliver improved clinical outcomes, cost savings, and high ROI through integrated, scalable platforms focused on chronic disease, mental health, and preventive care.
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