DarioHealth Corp.

Good morning, ladies and gentlemen, and welcome to the Dario Health third quarter 2025 results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If you require immediate assistance during this call, please press star zero at any time for the operator. This call is being recorded on Thursday, November 13th of 2025. I would now like to turn the conference over to Zoe Harrison, VP Accounting and Corporate Development at Dario Health. Zoe, please go ahead.

Thank you, Operator, and good morning, everyone. Thank you for joining us today for a discussion of Dario Health's third 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 Franco, 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 webcast, this call is being held on Thursday, November 13, 2025. This morning, we issued a press release announcing our financial results for the third quarter of 2025. The copy of the release can be found on the investor relations page of Dario Health website. I'd like to remind you that on this call, management will make forward-looking statements within the meaning of the federal securities laws. For example, the company is using forward-looking statements when it is discussing amount of its targeted new business, its 2026 pipeline, and expected strong revenue acceleration in 2026, that it expects to reach cash flow breakeven by late 2026 to early 2027, that it expects to transition to a high-margin recurring revenue model, that it is on a solid path to profitability, the number of new accounts it expects to sign in 2025, its potential future business opportunities, and that it expects to further cut its operating expenses over the next 12 to 15 months. Forward-looking statements are subject to numerous risks and uncertainties. many of which are beyond the company's control, including the risks described from time to time in its SEC filings. The company's results may differ materially from those projections. These statements involve material risks and uncertainties that could cause actual results or events to materially differ. Accordingly, you should not place undue reliance on these statements. I encourage you to review the company's filings with the SEC, including, without limitation, the company's annual report on Form 10-K, which identifies specific factors that may cause actual results or events to differ materially from those described in the forward-looking statement. With that, I'll hand it over to Erez Rafael, Chief Executive Officer of Dario Health.

Good day, everyone, and thanks to you for joining our third quarter result review. Before getting into the numbers, I want to start by highlighting what makes Dario truly unique and why we are seeing a growing strategic interest in our business. Today, Dario is a digital companion for whole person health. Our platform unifies physical, mental, and behavioral care into one connected experience, addressing diabetes, hypertension, weight management, musculoskeletal pain, mental health, and more. all within a single data-driven framework. We believe this multi-condition, whole-person model is where the market is heading, and our results prove it. More than 50% of our new clients this year have chosen our multi-condition solution. Artificial intelligence for AI-powered personalized engine combines biometric, self-reported, and behavioral data to deliver measurable outcome. And our software-first model drives 60% gap and over 80% non-gap gross margins with expanding profitability. We now serve over 125 clients, including four national and seven major regional health plans and numerous fortune-level employers, supported by channel partners reaching more than 116 million covered lives. Together, these assets are engagement engines, scalable infrastructure, deep data, and expanding client base make Dario one of the most advanced and scalable digital health platforms in the industry. Now let's jump into the numbers. In the third quarter of 2025, our top line and gross margin results reflected the ongoing transition to our high margin annual recurring revenue model. While revenue came in at $5 million and was lower on a year-over-year and quarter-over-quarter basis, key metrics driving future revenues combined with reductions in operating costs and growing margins set Dario on a track for a strong 2026, including reaching cash flow break-even by late 2026 to early 2027. We are targeting $12.4 million in new business for implementation in 2026, including committed annual recurring revenues and a portion of our late stage pipeline that is in the final stages of contracting. With 45 new signed accounts year to date in 2025 contributing to revenue momentum for 2026, we have already surpassed our 2025 goal of 40 new accounts. This brings our client base to over 125 and counting, which includes over 110 employers, four national health plans, and seven major regional health plans. Our new accounts and large portion of our $69 million pipeline are customers that are two to ten times larger than our clients have been in the past, creating a multiplier effect for new business coming in for the balance of 2025 and 2026. Vario business economics are healthy and stronger than ever. In the third quarter of 2025, we achieved a gap gross margins to 60%, and we achieved our seven consecutive quarters of 80% plus non-gap gross margins on our core B2B2C business. With the help of AI and our commitment to optimizing efficiency, we reduced operating expenses by an impressive $17.2 million or 31% in the first nine months of 2025 and reduced by $3.4 million or 21% during the third quarter compared to the year ago periods. Several new accounts are now onboarding and beginning to contribute to revenue with full impact expected in 2026. Of this, two are large health plans and are among the most sizable and strategic clients in the Dario's history. Our 90% renewal rate underscores the value we deliver to our clients. As an early leader in digital health, we aim to continue to drive the industry-wide shift from fragmented point solution to integrated multi-condition platforms that deliver measurable outcomes and cost savings. With healthcare costs continuing to rise, Dario's approach to powering lasting behavioral changes through personalized digital solution is in a high demand. I will now turn the call over to Steven.