DarioHealth Corp. reported its financial and operating results for the first quarter of 2025, highlighting a revenue of $6.75 million, marking a 17% increase year-over-year. This growth was primarily driven by recurring revenues from employers and health plans. However, the revenue represented an 11.2% decrease sequentially from the fourth quarter of 2024, attributed mainly to a scope shift with a large national health plan client. The company achieved a gross margin of 57.5% on a GAAP basis, up from 42.2% in the first quarter of 2024, and a non-GAAP gross margin of 70.5%, an increase from 62.4%. Operating expenses saw a significant reduction, decreasing by 35% year-over-year and 16% sequentially, with further reductions expected as AI-driven process optimizations continue to be implemented. DarioHealth reported a net loss, excluding stock-based compensation, acquisition-related expenses, and depreciation, of $5.6 million for the three months ending March 31, 2025, compared to a net profit of $1.6 million during the same period in 2024, and a net loss of $4.9 million in the fourth quarter of 2024. The company maintained a contract renewal rate of above 90%, highlighting platform stickiness and payer satisfaction. Additionally, DarioHealth signed 14 new clients year-to-date, including a national health plan, a regional plan, 12 employers, and two pharmaceutical companies.