DarioHealth (NASDAQ:DRIO) today announced its financial results for the fourth quarter and full year ended December 31, 2025, describing the period as a critical "foundation-building" year.
The company reported full-year revenue of $22.4 million, compared to $27 million in 2024.
Management noted that this 17% decline was almost entirely attributable to a scope change and subsequent non-renewal of a single legacy client inherited through the Twill acquisition—a shift unrelated to current market demand.
Despite the top-line headwind, the company’s pivot toward a high-margin Business-to-Business-to-Consumer (B2B2C) model yielded significant structural improvements.
GAAP gross margins climbed to 57% for the full year, up from 49% in 2024, while non-GAAP gross margins in the core B2B2C segment sustained a level above 80%.
This margin expansion was complemented by aggressive cost-management following the Twill integration, with full-year operating expenses dropping 31% to $49.3 million.
Commercial momentum reached record levels in 2025, with 85 new agreements signed across the employer and health plan channels.
This "strongest sales season on record" resulted in $12.9 million in contracted and late-stage Annual Recurring Revenue (ARR) that is expected to begin converting to recognized revenue throughout 2026 and 2027.
Additionally, the company’s total commercial pipeline grew to $122 million by year-end, reflecting broad interest in Dario’s multi-condition platform, which now covers metabolic, behavioral, and musculoskeletal health.
DarioHealth enters 2026 with $26 million in cash and a significantly narrowed operating loss.