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DH

DIH HOLDING US, INC. (DHAI)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY2025 revenue was $15.1M, down 20.6% YoY with gross margin of 47.9% and diluted EPS of $(0.11); management said results were “in line with our expectations.”
  • Guidance reiterated: FY2025 revenue $60–$67M; no other quantitative guidance provided.
  • Mix/region headwinds: Devices revenue fell 25.6% YoY (EMEA −29% YoY due to Eastern Europe distributor import restrictions tied to Russia–Ukraine conflict), partially offset by Services +4.3% YoY.
  • Liquidity and capital: Cash was $1.1M at 12/31/24; company closed a $4.6M gross equity raise on 2/3/25; management disclosed “substantial doubt” about going concern despite recent financings.
  • YTD through Q3: revenue up 11.3% to $50.2M with 52.3% gross margin YTD; catalysts include guidance reiteration and partnerships (Nobis, Zahrawi) vs overhang from monthly convertible redemptions.

What Went Well and What Went Wrong

  • What Went Well
    • Services revenue grew YoY: $3.11M vs $2.98M (+4.3%).
    • Gross margin remained solid at 47.9% in Q3; prior price actions supported margins earlier in FY25.
    • Commercial momentum and channel expansion: partnerships with Nobis Rehabilitation Partners and Zahrawi Group; CEO: “Interest in our products remains high… the recent stock offering will enable us to continue working towards fulfilling this order demand.”
  • What Went Wrong
    • Top-line pressure in core product: Devices revenue declined 25.6% YoY ($11.70M vs $15.73M).
    • EMEA weakness: revenue −29% YoY as a large Eastern Europe partner was constrained by wartime import restrictions; Americas −7% YoY.
    • Cost escalation and losses: SG&A +50.6% YoY ($8.20M vs $5.44M), operating loss $(2.75)M, net loss $(3.73)M; cash $1.12M at quarter-end and going concern risk flagged.

Financial Results

Overall P&L snapshot (chronological: prior year → prior quarter → current)

MetricQ3 FY2024 (Dec 2023)Q2 FY2025 (Sep 2024)Q3 FY2025 (Dec 2024)
Revenue ($M)$19.011 $18.162 $15.094
Gross Profit ($M)$10.400 $9.557 $7.236
Gross Margin %54.7% (calc) 52.6% (calc) 47.9%
Operating Income (Loss) ($M)$3.298 $1.888 $(2.746)
Net Income (Loss) ($M)$2.969 $(0.234) $(3.728)
Diluted EPS ($)$0.12 $(0.01) $(0.11)
Consensus RevenueN/A (SPGI unavailable)N/A (SPGI unavailable)N/A (SPGI unavailable)
Consensus EPSN/A (SPGI unavailable)N/A (SPGI unavailable)N/A (SPGI unavailable)

Segment mix (Q3 YoY)

Category ($M)Q3 FY2024Q3 FY2025
Devices$15.725 $11.703
Services$2.982 $3.111
Other$0.304 $0.280

Geographic mix (Q3 YoY)

Region ($M)Q3 FY2024Q3 FY2025
EMEA$12.312 $8.699
Americas$3.759 $3.489
APAC$2.940 $2.906

FY2025 revenue progression (YTD)

QuarterQ1 FY2025Q2 FY2025Q3 FY2025
Revenue ($M)$17.0 $18.2 $15.1

Selected KPIs and balance items (chronological)

MetricMar 31, 2024Sep 30, 2024Dec 31, 2024
Cash & Cash Equivalents ($M)$3.225 $1.759 $1.120
Total Deferred Revenue ($M)$9.881 $10.843 $11.630
Advance Payments from Customers ($M)$10.562 $8.945 $9.476
Current Maturities of Convertible Debt (FV, $M)—$1.991 $1.918

Note on estimates: Wall Street consensus from S&P Global was unavailable at time of request; therefore, no vs-consensus comparisons are shown. Values retrieved from S&P Global for estimates were unavailable due to API limits.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY2025$60–$67M $60–$67M Maintained

No quantitative guidance provided for margins, OpEx, OI&E, tax rate, or segment specifics; no dividend guidance.

Earnings Call Themes & Trends

Note: No Q3 earnings call transcript located; themes reflect management’s press release and 10-Q MD&A.

TopicPrevious Mentions (Q2 FY2025)Current Period (Q3 FY2025)Trend
EMEA distributor/import restrictionsEMEA led growth in H1; macro/supply chain discussed broadly. One of the largest Eastern Europe partners constrained by wartime import restrictions, driving EMEA −29% YoY. Deteriorated in EMEA
Devices vs Services mixDevices +48.8% YoY in Q2; Services roughly flat. Devices −25.6% YoY; Services +4.3% YoY. Mix shifted toward Services
Pricing/MarginsPrice increases supported GM in Q2. GM 47.9%; product mix and indirects weighed QoQ. Margins compressed QoQ
Operating costs/public company costsElevated public company and personnel costs noted. SG&A +50.6% YoY; stock comp and pro services elevated. Cost pressure persists
Liquidity/financingConvertible debentures issued; monthly redemptions from Nov-24. $4.6M gross equity raise (Feb-25); going concern risk remains. Liquidity bolstered but risk remains
Regulatory (EU MDR)Ongoing compliance cost; timelines noted. Continued MDR discussion and macro risks. Ongoing headwind

Management Commentary

  • “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.” — Jason Chen, Chairman & CEO.
  • “Interest in our products remains high… and the recent stock offering will enable us to continue working towards fulfilling this order demand. We remain confident… and are reiterating our full year revenue guidance range of $60 to $67 million.” — Jason Chen.
  • MD&A reiterated going concern uncertainty despite debt and equity financings, and highlighted cost inflation, supply chain, and foreign currency risks.

Q&A Highlights

No Q3 FY2025 earnings call transcript was available in the document set; therefore, Q&A themes, tone, and clarifications could not be assessed. [ListDocuments search returned none]

Estimates Context

  • S&P Global (Capital IQ) consensus for Q3 FY2025 revenue and EPS was not retrievable due to provider rate limits; as a result, we cannot quantify beats/misses vs Street for this quarter. Values retrieved from S&P Global were unavailable at query time.

Key Takeaways for Investors

  • Demand remains intact but timing/mix hurt Q3: Devices softness in EMEA (import restrictions) drove a 20.6% YoY revenue decline; Services provided some resilience (+4.3% YoY).
  • Margins compressed sequentially (GM 47.9% vs ~52.6% in Q2) on mix and fixed overhead; price actions earlier in FY25 supported YTD margins.
  • Cost base elevated: SG&A +50.6% YoY tied to headcount, stock comp, and public company costs; operating leverage is a focus area into FY25 close.
  • Liquidity improved post-quarter via $4.6M gross equity raise, but going concern risk remains; convertible debenture monthly redemptions create potential overhang.
  • FY2025 revenue guide maintained at $60–$67M, positioning Q4 as pivotal given YTD $50.2M. Execution in EMEA channels and shipment/install timing are critical.
  • Partnerships (Nobis, Zahrawi) expand pipeline and distribution, supporting mid-term growth vector despite near-term Europe disruption.
  • Without Street estimates, trading likely keys off guidance credibility, liquidity runway, and region recovery signals; watch updates on EMEA distributor constraints and debenture redemptions.

Appendix: Source documents

  • Q3 FY2025 8-K (press release, exhibits)
  • Q3 FY2025 10-Q (financials, MD&A)
  • Q2 FY2025 10-Q (financials, MD&A)