DIH Holding Reports 11.3% Revenue Growth but Increased Net Loss for Nine Months Ending December 31, 2024

DIH Holding US, Inc. reported its financial results for the nine months ending December 31, 2024, revealing a revenue increase of 11.3% to $50.2 million, compared to $45.1 million for the same period in the previous year. However, the company experienced a net loss of $4.3 million, worsening from a loss of $2.4 million in the prior year. The increase in losses was attributed to higher operational costs associated with becoming a public company, including elevated professional service expenses and increased personnel costs. The gross profit for the nine-month period rose to $26.2 million, up from $21.2 million, reflecting a 23.8% increase.

In terms of operational metrics, the company saw a significant decline in device sales, which dropped by 25.6% year-over-year for the three months ended December 31, 2024, primarily due to reduced sales volume in the EMEA region, impacted by geopolitical tensions. Conversely, service revenue increased by 12.9% for the nine-month period, indicating a shift in revenue sources. The company’s total assets decreased to $31.8 million as of December 31, 2024, down from $35.7 million at the end of the previous fiscal year, largely due to a reduction in cash and cash equivalents.

Strategically, DIH completed a business combination with Aurora Technology Acquisition Corp. on February 7, 2024, which allowed it to become a publicly traded entity. This transition necessitated additional hiring and the implementation of new compliance measures, contributing to increased operational costs. The company also issued $3.3 million in convertible debt in June 2024, which is set to mature in December 2025, and closed a subsequent equity offering in February 2025, raising approximately $3.9 million in net proceeds.

The company’s operational challenges are compounded by ongoing supply chain disruptions and inflationary pressures, which have led to increased costs for materials and logistics. As of December 31, 2024, DIH had $1.1 million in cash and cash equivalents, raising concerns about its liquidity and ability to continue as a going concern. The company is actively exploring financing alternatives to support its operations and fulfill obligations while continuing to streamline its cost structure.

Looking ahead, DIH anticipates that its revenue will continue to grow as demand for its rehabilitation devices expands, particularly in the Americas and EMEA regions. However, the company remains cautious about potential economic slowdowns and the impact of regulatory changes, particularly related to the EU Medical Device Regulation. The management is focused on improving operational efficiencies and enhancing product offerings to drive future growth.