Executive Summary

DIH reported $19.36M revenue and a net loss of $4.77M for the three months ended March 31, 2024, down 10.2% YoY as device shipments slipped due to customer-driven installation timing; EPS was $(0.16) versus $0.19 prior year .
Gross profit fell to $9.81M versus $14.81M YoY, driven by inflationary cost increases, overhead and service parts costs, and installation delays impacting revenue recognition .
Management introduced FY25 revenue guidance of $74–$77M on July 15 and maintained it on Aug 19; near-term narrative hinges on execution and normalization of fulfillment schedules to recapture deferred device revenue .
Incremental financing (OrbiMed $1.5M equity in Feb and $3.0M gross proceeds from 8% secured convertible debentures in June) supports working capital and growth initiatives; instruments include $10 strike warrants (OrbiMed) and $5.00 conversion/ exercise features (Debentures/warrants) .

What Went Well and What Went Wrong

What Went Well

“Fiscal 2024 was a critical inflection year… generating positive operating cash flow while furthering operational accomplishments” and delivering FY revenue of $64.5M (+19% YoY) and $5.2M cash from operations, underscoring commercial momentum and cash discipline .
FY25 Q1 (three months ended June 30, 2024) showed strong snapback: revenue +24% YoY to $16.2M, gross margin 53.5% (+12 ppt YoY), and net loss improved by $2.3M, driven by EMEA and Americas +54% growth and recurring service revenue +49% .
Strategic capital support: OrbiMed participated in a $1.5M private placement at $10 per share with 300,000 warrants, and the company raised ~$3.0M through secured convertibles (8% OID with $5.00 conversion and associated warrants) to bolster growth .

What Went Wrong

Q1 2024 (three months ended March 31, 2024) revenue declined 10.2% YoY to $19.36M on device fulfillment timing and installation delays, pressuring gross profit (-33.8% YoY to $9.81M) and flipping to an operating loss of $(0.24)M .
SG&A rose 19.2% YoY in the quarter to $8.12M on IT consulting, software licenses, and insurance tied to the business combination, intensifying near-term operating leverage challenges .
Elevated overhead and service parts costs, inventory reserves (+$0.6M), and inflationary input costs (≈$2.2M full-year impact) weighed on profitability; FX also marginally impacted results across periods .

Financial Results

Metric	Three Months Ended Mar 31, 2023	Three Months Ended Mar 31, 2024	Three Months Ended Jun 30, 2024
Revenue ($USD Millions)	$21.56	$19.36	$16.19
Gross Profit ($USD Millions)	$14.81	$9.81	$8.67
Total Operating Expenses ($USD Millions)	$8.79	$10.05	$10.32
Operating Income (Loss) ($USD Millions)	$6.02	$(0.24)	$(1.65)
Net Income (Loss) ($USD Millions)	$4.68	$(4.77)	$(0.61)
Diluted EPS ($USD)	$0.19	$(0.16)	$(0.02)
Weighted Avg Shares (Millions)	25.00	30.56	34.55

Segment/Category Breakdown – FY Context

Metric	FY 2023	FY 2024
Revenue ($USD Millions)	$54.1	$64.5
Device Revenue ($USD Millions)	—	$51.1
Service Revenue ($USD Millions)	—	$11.1
Other Revenue ($USD Millions)	—	$2.3

Quarterly Segment – Q1 FY25 (for trend reference)

Metric	Three Months Ended Jun 30, 2024
Device Revenue ($USD Millions)	$12.3
Service Revenue ($USD Millions)	$3.5
Other Revenue ($USD Millions)	≈$0.3 (2% of $16.2M)

KPIs and Operational Items

KPI	Period	Value
Cash & Cash Equivalents ($USD Millions)	Mar 31, 2024	$3.23
Cash Flow from Operations ($USD Millions)	FY 2024	$5.19
Gross Margin (%)	FY 2024	46%
Gross Margin (%)	Three Months Ended Jun 30, 2024	53.5%
FX Impact on Revenue ($USD Millions)	FY 2024	+$1.7
FX Impact on Revenue ($USD Millions)	Three Months Ended Mar 31, 2024	+$0.1

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	FY 2025	$74–$77 (issued Jul 15, 2024)	$74–$77 (reiterated Aug 19, 2024)	Maintained
Net Income / Margins	FY 2025	Not provided	Not provided	—
OpEx / SG&A	FY 2025	Not provided	Not provided	—
Tax Rate	FY 2025	Not provided	Not provided	—

Earnings Call Themes & Trends

Note: No Q1 2024 earnings call transcript was available in the document set (no earnings-call-transcript filings found for ATAK) [ListDocuments].

Topic	Previous Mentions (Nine months ended Dec 31, 2023)	Prior Quarter (Three months ended Mar 31, 2024)	Current Period Narrative
Geographic performance	Stronger sales volumes in Europe, Americas, Asia drove 42% nine-month revenue growth	Higher sales volume cited for FY; Europe/Americas/Asia described as drivers	Sequential recovery in Q1 FY25 led by EMEA & Americas (+54% YoY), offset by Asia softness
FX	Favorable FX (Euro) +$1.7M benefit in nine months	Minor favorable FX +$0.1M in the three months ended Mar 31, 2024 (Euro stabilization)	Modest FX headwind ≈$(0.1)M in Q1 FY25
Cost/inflation	Inflationary direct costs impacted results; overhead increased	Inflationary cost increases ≈$2.2M full-year; overhead and service parts costs up; inventory reserve +$0.6M	Cost of sales improved vs prior-year quarter due to non-recurring prior-year provisions; margin expanded to 53.5%
Installation timing/recognition	—	Customer scheduling and installation delays deferred device revenue recognition; expected to be recognized in FY25	Catch-up reflected in Q1 FY25 revenue growth; services scaling
Capital & liquidity	Cash on Dec 31, 2023: $2.84M; nine-month CFO $1.92M	Cash at Mar 31, 2024: $3.23M; FY CFO $5.19M	Cash at Jun 30, 2024: $2.75M; raised ~$3.0M via convertibles; reiterated FY25 rev guidance
Financing & listing	Pre-combination Nasdaq listing notices in Jan 2024 (SPAC phase)	Business combination completed; operating as DHAI with investor deck posted	Convertible debentures ($5.00 conversion) and warrants issued; operational execution focus

Management Commentary

“Fiscal 2024 was a critical inflection year for DIH… generating positive operating cash flow while furthering operational accomplishments creates a strong foundation for our growth strategy. With our continued industry leadership, we remain committed… to consolidate the fragmented rehabilitation industry.” – Jason Chen, CEO .
“We are very pleased with the Company’s performance in the first quarter of Fiscal Year 2025… EMEA and the Americas each achieved growth of 54% and recurring service revenue grew by 49%… significant improvements in both gross margin and net income.” – Jason Chen, CEO .
“We continue to see increased opportunity and positive momentum in expanding the business into new markets and geographies… significant revenue growth over the prior year.” – Jason Chen, CEO (nine months release) .

Q&A Highlights

No Q1 2024 earnings call transcript was filed (none available) [ListDocuments].
Guidance clarifications were delivered via press releases: FY25 revenue $74–$77M introduced on Jul 15 and reiterated Aug 19 .
Financing strategy communicated through press releases: OrbiMed private placement ($1.5M; $10 strike warrants) and 8% OID secured convertible debentures ($5.00 conversion; $3.0M gross proceeds; 330,000 warrants) .

Estimates Context

Wall Street consensus estimates (S&P Global/Capital IQ) were unavailable for ATAK due to missing SPGI mapping at the time of query; we could not retrieve EPS or revenue consensus for Q1 2024 or adjacent quarters. This limits beat/miss assessment versus the Street.

Key Takeaways for Investors

Q1 2024 (three months ended Mar 31, 2024) softness was timing-driven, not demand-driven; installation delays deferred device revenue into FY25, implying potential revenue catch-up as logistics normalize .
FY25 Q1 performance (three months ended Jun 30, 2024) shows early re-acceleration with broadened regional strength (EMEA/Americas) and service growth, alongside materially improved gross margins; watch margin durability and mix .
FY25 revenue guidance maintained at $74–$77M; execution on backlog conversion and service monetization is the central near-term catalyst for sentiment and potential re-rating .
Cost/overhead discipline and supply-chain/service parts management are focal points after FY24 inflationary and reserve impacts; sustained margin improvement would support operating leverage .
Capital flexibility improved via OrbiMed equity and secured convertibles; monitor dilution mechanics (conversion/warrants) and covenant/secured status versus growth investments .
Regulatory/listing complexities were pre-combination SPAC issues; focus now shifts to public-company reporting cadence and investor communications through decks and releases .
Trading implication: near-term moves likely tied to evidence of deferred device revenue recognition, service growth persistence, and margin trajectory; medium-term thesis rests on platform consolidation and VR/robotics leadership in rehab markets .

Supporting Documents Read

8-K (Jul 15, 2024): Fiscal 2024 Q4 and FY results press release and exhibits .
8-K (Apr 30, 2024): Nine months ended Dec 31, 2023 press release .
8-K (Aug 19, 2024): Fiscal 2025 Q1 press release and financial statements .
8-K (Feb 9, 2024): OrbiMed $1.5M private placement .
8-K (Jan 12 & Jan 18, 2024): Nasdaq listing notices during SPAC phase .

Note: No Q1 2024-specific 8-K Item 2.02 press release or earnings call transcript were found for ATAK within Jan–Mar 2024; disclosures covering the three months ended Mar 31, 2024 are contained in the Jul 15, 2024 8-K press release and exhibits [ListDocuments].

DIH HOLDING US, INC. (ATAK)·Q1 2024 Earnings Summary