Executive Summary

DIH (Nasdaq: DHAI) reported fiscal Q1 2025 (calendar Q2 2024) revenue of $16.2M (+24% y/y), gross margin of 53.5% (+~12pp y/y), and net loss of $0.6M (EPS -$0.02), driven by stronger Devices and Services sales in EMEA and the Americas and aided by FX; management reiterated FY25 revenue guidance of $74–77M (+15–20% y/y) .
Sequentially versus Q4 FY24, revenue declined (seasonality/order timing) but operating loss and EPS improved as gross margin expanded; y/y improvements reflect higher volumes and absence of prior-year inventory reserve build, partly offset by higher public-company SG&A and tax expense .
Liquidity remains tight (cash $2.7M) and DIH issued $3.3M OID senior secured convertible debentures (8% coupon; $5.00 conversion; monthly redemptions starting Dec-2024) alongside 330k warrants, creating potential dilution/overhang; remediation of material weaknesses in ICFR is ongoing .
No Q2 2024 earnings call transcript was filed; S&P Global (Capital IQ) consensus estimates were unavailable for this ticker mapping, so beat/miss versus Street could not be assessed; near‑term stock catalysts are likely margin sustainability, EMEA/Americas momentum, and execution on FY25 revenue guidance amid FX and APAC variability .

What Went Well and What Went Wrong

What Went Well

Strong y/y top-line growth (+24%) with Devices +18% and Services +49%, led by EMEA (+54%) and Americas (+54%); management highlighted increased account penetration, workflow efficiencies, and margin expansion .
Material gross margin improvement to 53.5% (from ~41% a year ago), supported by higher volumes and the absence of prior-period inventory reserve charges that weighed on gross profit in the year-ago quarter .
CEO tone positive: “We are very pleased… two of our major strategic markets, 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” .

What Went Wrong

APAC declined sharply y/y ($1.37M vs $3.43M) offsetting some regional strength; management cited overall regional mix dynamics .
Operating cash flow was negative for the quarter (-$2.0M) with lower advance payments and working capital swings; cash declined to $2.7M, underscoring tight liquidity .
Internal controls: disclosure controls and procedures were not effective due to material weaknesses; remediation is in progress, presenting governance/process risk .

Financial Results

Note: Company’s fiscal Q1 2025 corresponds to calendar Q2 2024.

Metric	Q1 FY2024 (Jun 30, 2023)	Q4 FY2024 (Mar 31, 2024)	Q1 FY2025 (Jun 30, 2024)
Revenue ($M)	$13.05	$19.36	$16.19
Cost of Sales ($M)	$7.65	$9.55	$7.52
Gross Profit ($M)	$5.40	$9.81	$8.67
Gross Margin %	41.4% (calc)	50.7% (calc)	53.5%
SG&A ($M)	$5.84	$8.12	$8.68
R&D ($M)	$1.44	$1.93	$1.64
Operating Income (Loss) ($M)	$(1.88)	$(0.24)	$(1.65)
Other Income (Expense), net ($M)	$(0.81)	$(3.94)	$1.76
Pre‑Tax Income (Loss) ($M)	$(2.69)	$(4.18)	$0.11
Income Tax Expense ($M)	$0.23	$0.59	$0.72
Net Income (Loss) ($M)	$(2.91)	$(4.77)	$(0.61)
Diluted EPS ($)	$(0.12)	$(0.16)	$(0.02)

Segment/Categorical revenue mix (y/y comparison)

Category ($M)	Q1 FY2024 (Jun 30, 2023)	Q1 FY2025 (Jun 30, 2024)
Devices	$10.44	$12.28
Services	$2.38	$3.54
Other	$0.23	$0.36

Geographic mix (y/y comparison)

Region ($M)	Q1 FY2024 (Jun 30, 2023)	Q1 FY2025 (Jun 30, 2024)
EMEA	$6.63	$10.21
Americas	$2.98	$4.61
APAC	$3.43	$1.37

KPIs and balance sheet/operating metrics

KPI	Mar 31, 2024	Jun 30, 2024
Cash & Cash Equivalents ($M)	$3.23	$2.75
Accounts Receivable, net ($M)	$5.20	$5.69
Inventory, net ($M)	$7.83	$9.01
Deferred Revenue – Current ($M)	$5.21	$6.35
Deferred Revenue – Noncurrent ($M)	$4.67	$4.75
Advance Payments from Customers ($M)	$10.56	$9.27
RPO ≥1 yr (approx., $M)	$4.67	$4.75
Operating Cash Flow (quarter, $M)	—	$(2.01)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$74–$77M (7/15/24)	$74–$77M (8/19/24)	Maintained

No additional quantitative guidance (margins, opex, tax, segments) was provided in the quarter’s press materials .

Earnings Call Themes & Trends

Note: No earnings call transcript found for Q2 2024; themes synthesized from press releases and 10‑Q/MD&A.

Topic	Previous Mentions (Q‑2 and Q‑1)	Current Period (Q2 2024 / Q1 FY25)	Trend
Regional performance	FY24 Q4: soft Q4 from timing; strong FY24 growth; EMEA/Americas growth across FY24	EMEA/Americas +54% y/y; APAC down; services +49% y/y	Positive in EMEA/US; APAC weaker
Gross margin drivers	FY24 margin pressure from inflation, inventory reserve; timing in Q4	GM 53.5% (+~12pp y/y) on volume and absence of prior reserve; FX tailwind in other income	Improving
Supply chain & inflation	Ongoing challenges but not materially affecting outlook; inflation elevated	Conditions reiterated in MD&A; no new adverse impacts cited	Stable
FX exposure	FX impacted results historically; translational risk	Q1 benefited from FX (other income +$1.9M)	Mixed tailwind this quarter
R&D & product roadmap	Continued investment; portfolio breadth emphasized	R&D +14% y/y; ongoing innovation and services expansion	Steady investment
Regulatory (EU MDR)	Elevated EU MDR compliance costs in prior periods	Ongoing compliance noted; no new dislocations	Neutral
Liquidity & capital structure	FY24: operating cash flow positive; low cash at FYE	Cash $2.7M; issued $3.3M OID secured converts; monthly redemptions from Dec-24	Tighter liquidity; potential dilution
Controls/Governance	—	Material weaknesses in ICFR; remediation plan in place	Addressing

Management Commentary

“We are very pleased with the Company’s performance… 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, Chairman & CEO .
FY24 context: “Fiscal 2024 was a critical inflection year… deliver significant commercial growth while… completing our initial public offering… generating positive operating cash flow… strong foundation for our growth strategy” — Jason Chen .

Q&A Highlights

No earnings call transcript or Q&A was filed for the quarter; no analyst Q&A to summarize [ListDocuments earnings-call-transcript returned none].

Estimates Context

S&P Global/Capital IQ consensus estimates were unavailable for ATAK/DHAI due to missing CIQ mapping; therefore, we cannot assess beat/miss versus Street for revenue or EPS this quarter [GetEstimates errors].

Key Takeaways for Investors

Revenue growth was broad-based in EMEA and the Americas, with robust Services growth improving mix; APAC weakness partly offset regional strength .
Margin trajectory improved meaningfully (53.5% GM), aided by higher volumes and lapping prior-year inventory reserve; sustaining >50% GM is a key watch‑item .
Liquidity is tight (cash $2.7M) and the June convertible issuance (8%, $5.00 conversion, monthly redemptions from Dec‑2024 in cash or shares) introduces refinancing/dilution risk; monitor redemption mechanics and cash generation in 2H .
Operating cash flow was negative in the quarter on working-capital swings (lower advance payments); converting backlog/deferred revenue to cash is critical near term .
Governance/process: material weaknesses in internal controls persist; remediation progress and audit outcomes are important to sentiment and valuation .
FY25 revenue guidance maintained at $74–77M (+15–20% y/y); delivery against this while managing FX and APAC variability is the core fundamental catalyst .
No transcript/consensus visibility limits near-term “beat/miss” narratives; investor focus likely centers on margin durability, cash/convert overhang, and regional execution .

Other Q2 2024 Period Press Releases

Appointed Haapsalu Neurological Rehabilitation Center (Estonia) as a DIH Center of Excellence (first in Baltics), highlighting clinical adoption and portfolio breadth (Lokomat, Erigo, Armeo) .
Prior to the quarter, Zihlschlacht Rehabilitation Clinic named first DIH Center of Excellence in Switzerland, reinforcing institutional relationships and technology deployment (Lokomat, Andago, C‑Mill, Armeo) .

DIH HOLDING US, INC. (ATAK)·Q2 2024 Earnings Summary