Executive Summary

No company 8-K 2.02 press release or earnings call transcript for Q2 FY2026 was found; the most recent earnings disclosure is the Oct 20, 2025 press release announcing FY2025 and Q4 FY2025 results .
Latest reported quarter (Q4 FY2025) showed revenue of $12.65M, gross profit of $5.97M, operating loss of $(5.37)M, and diluted EPS of $(2.80), with EMEA device sales pressured by wartime import restrictions affecting a key distributor .
Liquidity and listing compliance actions dominated recent disclosures: 1-for-25 reverse split, new secured convertible debentures maturing Sep 2026, monthly redemptions, and an equity line of credit with a 19.99% cap under Nasdaq rules .
Prior commentary highlighted FY2025 revenue of $62.9M (–2.5% YoY), device revenue of $49.7M (–2.8% YoY), service revenue of $12.0M (+8.4% YoY), and negative operating cash flow of $(4.14)M; management emphasized innovation while navigating Nasdaq listing processes .

What Went Well and What Went Wrong

Gross profit increased 8.2% YoY in FY2025 to $32.2M, driven by lower cost of goods sold and reduced inventory reserves; services revenue grew +8.4% YoY to $12.0M .
Management secured financing flexibility via senior secured convertible debentures (initial conversion price $0.25/share, warrants for 8,888,888 shares) and an equity line of credit to support operations and listing compliance .
CEO tone remained forward-looking: “DIH remains committed to driving innovation and delivering value for patients and healthcare providers… positioning DIH for long-term success” .

Q4 FY2025 revenue declined 34.7% YoY to $12.65M amid EMEA demand pressure tied to wartime import restrictions on a major Eastern European distributor .
FY2025 operating cash flow was negative $(4.14)M and cash/equivalents were $1.94M at March 31, 2025, underscoring liquidity constraints .
Portfolio rationalization: discontinued SafeGait and ceased further HocoNet software development, resulting in $2.16M impairment in Q4 FY2025, contributing to operating losses .

Note: No Q2 FY2026 earnings materials were located; comparisons include the latest available quarters.

Metric	Q2 FY2025	Q4 FY2025	Q1 FY2026	Q2 FY2026
Revenue ($USD Millions)	$18.2	$12.65	N/A	N/A
Gross Profit ($USD Millions)	N/A	$5.97	N/A	N/A
Gross Margin (%)	N/A	47.2% (calc from $5.97/$12.65)	N/A	N/A
Total Operating Expenses ($USD Millions)	N/A	$11.33	N/A	N/A
Operating Income (Loss) ($USD Millions)	N/A	$(5.37)	N/A	N/A
Net Income (Loss) ($USD Millions)	N/A	$(4.40)	N/A	N/A
Diluted EPS ($)	N/A	$(2.80)	N/A	N/A

Segment breakdown (latest available, annual):

Segment Metric	FY2024	FY2025
Device Revenue ($USD Millions)	N/A	$49.7
Service Revenue ($USD Millions)	N/A	$12.0
Device Revenue YoY (%)	N/A	–2.8%
Service Revenue YoY (%)	N/A	+8.4%

Selected KPIs:

KPI	Q2 FY2025	Q4 FY2025	FY2025
Cash & Equivalents ($USD Millions)	N/A	$1.94	$1.94
Operating Cash Flow ($USD Millions)	N/A	N/A	$(4.14)

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025	$60–$67M (Nov 14, 2024)	No update provided in Oct 20, 2025 press release	Not reiterated
All other metrics (margins, OpEx, OI&E, tax rate, dividends)	FY2025/FY2026	Not disclosed	Not disclosed	N/A

No Q2 FY2026 earnings call transcript was found. Narrative trends drawn from recent disclosures:

Topic	Previous Mentions (Q2 FY2025)	Current Period (Q2 FY2026)	Trend
EMEA demand/supply chain	EMEA device sales strength; revenue +39% YoY in Q2 FY2025	N/A	Deteriorated by Q4 FY2025 due to wartime import restrictions impacting key distributor
Nasdaq listing/compliance	Not highlighted	N/A	Elevated focus in late 2025: reverse split, hearings, equity line, debentures
R&D execution/product roadmap	Not highlighted	N/A	Portfolio rationalization by Q4 FY2025 with SafeGait discontinued and HocoNet impairment
Gross margin profile	“Significant inflection” highlighted in Q2 FY2025	N/A	Mixed by Q4 FY2025; gross margin ~47% with weaker revenue
Liquidity/financing	Guidance adjusted; restatement activity noted	N/A	Financing raised via secured debentures and equity line

“DIH remains committed to driving innovation and delivering value for patients and healthcare providers… our team is committed to positioning DIH for long-term success.” — Jason Chen, Chairman & CEO (Oct 20, 2025) .
FY2025 narrative emphasized product mix shifts, services expansion, and cost discipline to support gross profit despite softer device ASPs .
Strategic financing actions were framed around maintaining listing compliance and funding operations (reverse split, debentures, equity line, shareholder approvals) .

No Q2 FY2026 earnings call transcript located; consequently, no Q&A content to report for the period. The most recent detailed discussion of operations is contained within the Oct 20, 2025 press release and accompanying exhibits .

Attempts to retrieve S&P Global consensus for Q2 FY2026 and Q1 FY2026 returned no values; consensus estimates appear unavailable for this issuer/period at query time. Values retrieved from S&P Global.*
Given the lack of Q2 FY2026 reported results and unavailable consensus, there is no beat/miss determination versus estimates for the quarter.

Near-term trading likely hinges more on corporate actions (listing compliance, financing cadence, monthly debenture redemptions, potential equity line usage) than on reported Q2 FY2026 fundamentals, which were not located in standard filings or press releases .
EMEA exposure remains a key variable: distributor headwinds tied to wartime restrictions weighed on Q4 FY2025; monitoring the channel’s normalization is critical for device revenue recovery .
Liquidity is tight with $1.94M cash at FY2025-end and negative operating cash flow; financing structures (convertible debentures, warrants, equity line) introduce dilution/convertibility overhang risks but provide runway .
Portfolio focus is tightening (SafeGait discontinued; HocoNet impairment), which may streamline R&D spend but could reduce near-term product breadth; evaluate ROI of remaining programs .
Without Q2 FY2026 disclosures, use Q4 FY2025 metrics and FY context as baseline; watch for subsequent 10-Qs or press releases to update trajectory .
Estimate frameworks may need to be rebuilt once fresh disclosures arrive, particularly around revenue cadence, margin sustainability, and cash burn; consensus was unavailable via S&P Global for Q2 FY2026.*
Catalysts: any filing of delayed 10-Qs, updates on Nasdaq panel decisions, progress on distributor remediation in EMEA, and visibility into FY2026 guidance could drive stock reaction .

References:

Oct 20, 2025 Form 8-K and press release (FY2025 and Q4 FY2025 results, liquidity actions): .
Q2 FY2025 press release (Nov 14, 2024) highlights: .

Footnote: *Values retrieved from S&P Global.