8-K: DIH Holding US, Inc. Announces Third Quarter 2025 Financial Results, Reaffirms Full Year Guidance

DIH Holding US, Inc. reports a revenue decline of 21% for Q3 2025 but reiterates its full-year revenue guidance of $60 to $67 million.

Summary

• DIH Holding US, Inc. announced its financial results for the third fiscal quarter ended December 31, 2024.
• Revenue for the quarter was $15.1 million, a 21% decrease compared to the prior year period.
• Device revenue decreased by 26% to $11.7 million, while service revenue increased by 4% to $3.1 million.
• The company's EMEA and Americas regions experienced revenue declines of 29% and 7%, respectively.
• Gross profit decreased by 30.4% to $7.2 million.
• Selling, general, and administrative expenses increased by 50.6% to $8.2 million.
• Research and development costs increased by 7.7% to $1.8 million.
• Cash and cash equivalents totaled $1.1 million as of December 31, 2024.
• The company reiterated its revenue guidance for fiscal year 2025 to range between $60 million and $67 million.
• A public offering closed on February 3, 2025, yielding gross proceeds of approximately $4.6 million.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While the company reiterates its revenue guidance and highlights partnerships, the Q3 results show a significant decline in revenue and profitability.

Positives

• Service revenue increased by 4% year-over-year to $3.1 million.
• The company closed a public offering, yielding gross proceeds of approximately $4.6 million.
• DIH reiterated its full-year revenue guidance for fiscal year 2025, projecting a range of $60 to $67 million.
• Collaborations with Nobis Rehabilitation Partners and Zahrawi Group were announced, expanding the distribution network.

Negatives

• Overall revenue decreased by 21% to $15.1 million compared to the prior year period.
• Device revenue decreased by 26% to $11.7 million.
• Revenue declined in EMEA and the Americas by 29% and 7%, respectively.
• Gross profit decreased by 30.4% to $7.2 million.
• Selling, general, and administrative expenses increased by 50.6% to $8.2 million.

Risks

• Import restrictions related to the ongoing conflict between Russia and Ukraine are negatively impacting sales in the EMEA region.
• Lower overall European sales volumes are contributing to the revenue decline.
• The company's ability to achieve its projected revenue is subject to general economic, political, and business conditions.
• The company's ability to realize the anticipated benefits of the recently completed business combination is a risk.

Future Outlook

The company reiterates its revenue guidance for fiscal year 2025 to range between $60 million and $67 million.

Management Comments

• Our third quarter results were in line with our expectations despite facing challenges with import restrictions related to the ongoing conflict between Russia and Ukraine and lower overall European sales volumes, said Jason Chen, Chairman and CEO of DIH.
• We continue to position the company for future success through upgrades to our commercial organizations while also remaining focused on reaching our year-end revenue targets.
• Interest in our products remains high, as evidenced by multiple recently formed partnerships, and the recent stock offering will enable us to continue working towards fulfilling this order demand.
• We remain confident for a strong finish through the remainder of fiscal year 2025 and are reiterating our full year revenue guidance range of $60 to $67 million.

Industry Context

DIH operates in the rehabilitation-tech and research markets, providing robotic and VR technologies for physical rehabilitation. The company faces competition from other players in the industry, including LFWD, EKSO, and DVL.

Comparison to Industry Standards

• DIH competes with companies like LFWD (NASDAQ), EKSO (NASDAQ), and DVL (ASX) in the rehabilitation technology market.
• DIH claims to have a broader product portfolio and stronger global market coverage compared to its competitors.
• The company highlights its sustained innovation capabilities and strong partnerships with leading research groups as differentiators.

Stakeholder Impact

• Shareholders may be concerned about the decline in revenue and profitability.
• Employees may be affected by the company's efforts to improve efficiency and reduce costs.
• Customers may benefit from the company's expanded distribution network and device integration pipeline.

Next Steps

• The company will continue to focus on reaching its year-end revenue targets.
• DIH will continue to position the company for future success through upgrades to its commercial organizations.
• The company intends to leverage the proceeds from the recent stock offering to fulfill order demand.

Key Dates