DarioHealth Corp.

quarter 2025 results conference call at this time all lines are in listen-only mode following the presentation we will conduct a question-and-answer session if at any time during this call you require immediate assistance please press star 0 for the operator this call is being recorded on Tuesday August 12 2025 I would now like to turn the conference over to Zoe Harrison VP, Accounting and Corporate Development. Please go ahead.

Thank you, Operator, and good morning, everyone. Thank you for joining us today for a discussion of Dario Health's second quarter 2025 financial results. Leading the call today will be Erez Rafael, Chief Executive Officer of Dario Health. He'll be joined by our President and Chief Commercial Officer, Stephen Nelson, and Hen Franker, our Chief Financial Officer. An audio recording and webcast replay for today's call will also be available online as detailed in the press release invite for this call. For the benefit of those who may be listening to the replay or archived website, this call is being held on Tuesday, August 12th, 2025. This morning, we issued a press release announcing our financial results for the second quarter of 2025. The copy of the release can be found on the investor relations page of Dario Health website. Actual events or results may differ materially from those projected as a result of changing market trends, reduced demand, or the competitive nature of Dario Health industry. Such forward-looking statements and their implications may involve known and unknown risks, uncertainties, and other factors that may cause actual results or performance to differ materially from those projected. For example, the company is using forward-looking statements when it discusses the company's expectations regarding revenue gaps, growth, acceleration, expansion, collaborations, pipeline, new clients, AI leverage, cash flow breakeven, and leadership in the field of digital health. The forward-looking statements discussed on this call are subject to other risks and uncertainties, including those discussed in the risk factor section and elsewhere in the company's second quarter 2025 quarterly report on Form 10Q. Additional information concerning factors that could cause results to differ materially from our forward-looking statements are described in greater detail in the company's press release issued this morning and in the company's other filings with the SEC. In addition, certain non-GAAP financial measures may be discussed during this call. These non-GAAP measures are used by management to make strategic decisions, forecast future results, and evaluate the company's current performance. Management believes the presentation of these non-GAAP financial measures is useful for investors' understanding and assessment of the company's ongoing core operations and prospects for the future. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is included in this morning's press release. With that, I'll hand it over to Erez Rafael, CEO of Dario Health.

Good morning, everyone, and thank you for joining us. We'll start the call with a high-level overview of the financial results along with key metrics that we believe are leading indicators for improving performance in the future. We'll go to Steven for commercial update and more on some very positive momentum with contacts and pipelines. We'll then turn the call over to Han for a deeper look into our numbers. I'll wrap up with a quick message on our drivers for future growth and how AI is a fundamental part of our operations and offerings. Then we'll open the call for Q&A. Before we dive into the numbers, I want to start by acknowledging that our second quarter revenues results came in below our expectations. While we continue to make strong progress on growth indicators, especially around channel partnerships, recurring revenues, gross margins, and client quality, there are a few short-term headwinds that impact that top-line performance. As reported last quarter, we experienced a shift in scope with large National Health Plan clients earlier this year. While we were optimistic that the revenue gap would be offset quickly to a new business ramp-up, that ramp proved slower than expected. Several large accounts that we signed in 2025 are onboarding and generating revenue, but the full impact will be felt more meaningfully in the end of 2025 and into 2026. Some of the shift is also due to our focus on sustainable ARR rather than one-time payments, which affect some of the changes in the revenues for this quarter compared to Q1 2025. As a result, we are adjusting our estimates for reaching cash flow breakeven by approximately 12 to 15 months, which is now expected into the end of 2026 to the beginning of 2027. So while we see this quarter as a transition period, our forward momentum remains strong, and we have already seen early evidence of that in the key metrics. We have signed 21 new clients year-to-date and remain on track to meet our goal of 40 by the end of the year. 80% of the new 21 accounts are for multi-condition programs aligned with our strategy for multi-condition platforms. We have secured about $5 million in newly committed annual recurring revenues, or CARR, plus our pipeline has gone to $53 million with an additional over $5 million of which is in final stages towards CIRR. New logos include some of the largest and highest quality accounts in the history of the company. These include two health plans with national scale representing multimillion dollar opportunities. One of them is launching this second half of 2025. And we are seeing increasing traction from our channel and consultant relationships which are fueling requests for proposals or RFPs, flow and bringing in the kind of strategic accounts that align with our long-term model. All of this gives us confidence that the short-term gap will be closed and growth will be accelerated. Importantly, our financial profile continues to strengthen. This is not just about growth, It's about the quality of that growth. Gap growth margin increased to 55% from 44% year-over-year in the second quarter. Importantly, our B2B2C business continues to operate at over 80% growth margins on a non-gap basis. We reduced gap operating expenses by 36% and narrowed operating loss by 43% year-over-year this quarter. Our strategy, margin-driven, AI-focused, empowered by AI-enabled scale, is working. Steven and Ken will share more on our commercial traction and financial performance, but I want to emphasize that we are building a company designed to thrive not just in today's environment, but in the future landscape of digital health, efficiency, outcomes, and value will define the winners. I will now turn the call over to Steven Nelson, our president and chief commercial officer. Thank you and good morning, everyone.