DIH Holding US, INC. (NASDAQ:DHAI) announced its financial results for the fiscal year and fourth quarter ended March 31, 2025, reporting a full-year revenue decrease of 2.5% to $62.9 million and an increased net loss of $8.676 million.
For the fiscal year ended March 31, 2025, total revenue decreased from $64.5 million in the prior year. Device revenue fell by 2.8% to $49.7 million, while service revenue increased by 8.4% to $12.0 million. The company reported a negative operating cash flow of $4.1 million for the year. Gross profit, however, increased by 8.2% to $32.2 million, up from $29.8 million in the previous period. Selling, general, and administrative expenses rose by 16.3% to $30.0 million, and research and development costs increased by 7.4% to $7.1 million. DIH also recognized impairment losses of $0.6 million for the SafeGait product and $1.5 million for the HocoNet platform during the year. The net loss for the fiscal year increased to $8.676 million, compared to a net loss of $8.443 million in the prior year. Net loss per share for the fiscal year was $6.07, an improvement from $8.00 in the previous year, due to an increased weighted-average share count.
For the fourth quarter ended March 31, 2025, revenue was $12.6 million, marking a 34.7% decrease from $19.4 million in the prior-year period. This decline was primarily attributed to lower sales volume in EMEA, particularly due to wartime import restrictions impacting a large sales partner in Eastern Europe. Gross profit for the quarter decreased by 30.4% to $6.0 million. Selling, general, and administrative expenses for the quarter decreased by 8.7% to $7.4 million, while research and development expenses were consistent at $1.8 million.
Chairman and CEO Jason Chen stated that DIH remains committed to driving innovation and delivering value for patients and healthcare providers, noting progress on key strategic initiatives and operational discipline. He also referenced the NASDAQ hearing panel regarding the company's listing status held on October 16, 2025.
In subsequent events, a 1-for-25 reverse stock split of the company’s Class A common stock was approved and legally effected on October 17, 2025, with trading on a split-adjusted basis commencing October 20, 2025. This action reduced issued and outstanding shares from approximately 52.3 million to 2.1 million. The company also entered into an equity line of credit agreement on October 15, 2025, with Five Narrow Lane, L.P. for up to $22 million in common stock, subject to certain conditions and limitations, including an upfront commitment fee of 2,500,000 shares of common stock. Additionally, DIH entered into a private placement for senior secured convertible debentures with an aggregate principal amount of $2.2 million, yielding expected net proceeds of $1.9 million, with $1.4 million funded to date.
