DarioHealth (DRIO) AI Stock Analysis

• Market Cap: $69.61M
• Dividend Yield: N/A
• Average Volume (3M): 33.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 7.29%
• EPS Growth: 7.24%
• Country: US
• Employees: 196
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -2.96
• Shares Outstanding: 6,758,412
• 10 Day Avg. Volume: 41,359
• 30 Day Avg. Volume: 33,324
• PEG Ratio: 0.19
• Price to Book (P/B): 14.66
• Price to Sales (P/S): 39.06
• P/FCF Ratio: -27.29
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 4.02
• Enterprise Value/Ebitda: -1.88
• 1Y Price Target: $16.00
• Price Target Upside: 36.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -8.56
• Revenue Forecast (FY): $25.76M

• Rating: 46 Neutral
• Price Target: $10.00 ▼(-14.68% Downside)
• Action: Reiterated Date: 02/02/26
• Date: Action: Reiterated 02/02/26

The score is held down primarily by weak financial performance (large ongoing losses and cash burn alongside a recent revenue decline) and bearish technicals (price below major moving averages with negative MACD). Offsetting these, the earnings call outlined a more constructive path toward improved efficiency and cash-flow breakeven, while valuation is difficult to assess given negative earnings and no dividend support.

Positive Factors

High gross margins from software-first model

Sustained high gross margins reflect a software-first, device-light delivery that scales with limited incremental cost. This structural margin profile supports operating leverage, makes breakeven achievable at higher revenue levels, and provides durable profitability upside as subscriptions grow.

Strong client retention and enterprise traction

High renewal rates and steady account wins indicate sticky enterprise relationships and product-market fit. A growing base of multi-condition clients improves lifetime value and cross-sell potential, supporting predictable recurring revenue and reducing dependence on one-off projects over the medium term.

Major payer partnership and sizable pipeline

National distribution via UnitedHealthcare materially expands addressable market and distribution efficiency, while a reported $69M pipeline plus explicit new-business targets give visibility into enterprise ARR growth. These structural elements support durable revenue scaling if conversions persist.

Negative Factors

Persistent negative cash flow

Ongoing TTM cash burn of roughly $27M constrains runway and forces reliance on external funding or rapid margin/revenue improvement. Persistent negative FCF limits ability to invest in growth or absorb shocks, raising financing risk until sustained cash-flow breakeven is achieved.

Very large net losses and negative returns on equity

Extremely negative net margins and ROE signal that current operations destroy shareholder value and erode equity if sustained. This structural profitability deficit undermines internal capital generation and increases pressure for either rapid margin improvement or continued external financing.

Revenue decline amid business-model transition

Transitioning milestone-based pharma services to smaller recurring contracts and a nonrenewal caused revenue setbacks. This structural shift can improve long-term predictability but creates near-term top-line pressure and requires successful replacement by recurring ARR to restore sustainable growth.

DarioHealth Business Overview & Revenue Model

Company Description

DarioHealth Corp. operates as a digital therapeutics company in the United States, Canada, the European Union, Australia, and New Zealand. The company offers Dario's metabolic solutions to address metabolic health needs, such as diabetes, hypertension, and weight management; Dario Musculoskeletal, which helps to prevent and treat the most common MSK conditions; Dario's behavioral health solution that optimizes access to evidence-based care; chronic condition management solutions; DarioEngage, a proprietary care management platform; and device-specific disposables test strip cartridges, lancets, and blood glucose monitoring systems. It also provides smart glucose meters; bluetooth connected blood pressure cuff; digital scales; biofeedback sensor devices; and diabetes management programs, including lifestyle changes, healthy eating, advanced tracking, and live coaching. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.

How the Company Makes Money

DarioHealth generates revenue primarily through a subscription-based model, which charges patients and healthcare providers for access to its digital health solutions. Key revenue streams include direct-to-consumer subscriptions, partnerships with healthcare payers, and collaborations with pharmaceutical companies. The company has established significant partnerships with various health plans and employers to provide its services as part of their employee health benefits packages, thus expanding its market reach. Additionally, DarioHealth may also generate income through data analytics services and performance-based contracts that incentivize improved health outcomes.

DarioHealth Financial Statement Overview

Summary

Despite improved gross margin (~64% TTM) and manageable leverage (debt-to-equity ~0.42), the company remains constrained by very large losses (TTM net margin ~-137%) and ongoing cash burn (operating and free cash flow about -$27M TTM), with revenue also down ~9% TTM.

Income Statement

Revenue scale remains modest and has weakened in TTM (Trailing-Twelve-Months) (down ~9%), following a strong 2024 but uneven multi-year growth. A key positive is materially better gross margin over time, reaching ~64% in TTM versus ~49% in 2024 and far below that in earlier years. However, profitability is still very challenged: the company is running very large operating and net losses (TTM net margin roughly -137%), indicating operating costs remain far above the current revenue base despite some improvement versus 2023–2024 levels.

Balance Sheet

Leverage looks manageable on the surface, with debt-to-equity around ~0.42 in TTM (Trailing-Twelve-Months) and equity still meaningfully positive (about $75M) against ~$118M of assets. That said, returns on equity are deeply negative (roughly -48% TTM), reflecting ongoing losses and raising risk that the equity base could erode if profitability does not improve. Overall, the balance sheet is not overly levered, but it is pressured by sustained operating deficits.

Cash Flow

Cash generation remains weak with negative operating cash flow and negative free cash flow in TTM (Trailing-Twelve-Months) (both about -$27M), continuing a multi-year pattern of cash burn. While free cash flow in TTM is slightly better than 2024, the business still requires funding to support operations. Free cash flow is roughly in line with net loss, suggesting losses are translating into cash outflows rather than being offset by strong non-cash addbacks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.73M	27.04M	20.35M	27.66M	20.51M	7.58M
Gross Profit	15.78M	13.27M	5.98M	9.65M	8.07M	2.51M
EBITDA	-33.67M	-50.32M	-54.38M	-55.60M	-70.02M	-29.71M
Net Income	-33.93M	-42.75M	-59.43M	-62.19M	-76.76M	-29.45M
Balance Sheet
Total Assets	117.73M	118.88M	96.39M	119.19M	100.77M	35.41M
Cash, Cash Equivalents and Short-Term Investments	32.13M	28.46M	36.80M	49.36M	36.00M	28.59M
Total Debt	31.64M	30.19M	29.54M	28.05M	287.00K	532.00K
Total Liabilities	42.79M	46.87M	38.24M	39.19M	15.22M	7.26M
Stockholders Equity	74.93M	72.02M	58.14M	80.00M	85.55M	28.15M
Cash Flow
Free Cash Flow	-26.92M	-38.70M	-30.96M	-48.42M	-50.67M	-17.85M
Operating Cash Flow	-26.79M	-38.56M	-30.38M	-47.84M	-50.41M	-17.74M
Investing Cash Flow	-137.00K	-8.93M	-547.00K	-573.00K	-8.13M	-1.62M
Financing Cash Flow	42.66M	38.53M	18.25M	61.94M	65.77M	27.55M

DarioHealth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRIO, the sentiment is Negative. The current price of 11.72 is above the 20-day moving average (MA) of 10.92, above the 50-day MA of 11.24, and below the 200-day MA of 12.22, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 42.68 is Neutral, neither overbought nor oversold. The STOCH value of 34.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DRIO.

DarioHealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRPO	56 Neutral	$44.08M	-30.14	-9.76%	―	30.95%	59.67%
BDSX	56 Neutral	$152.80M	-3.27	-302.55%	―	22.29%	31.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VNRX	47 Neutral	$27.13M	-0.88	―	―	14.48%	36.83%
DRIO	46 Neutral	$69.61M	-0.57	-42.73%	―	7.29%	7.24%
INBS	44 Neutral	$6.58M	-0.27	-146.12%	―	3.26%	65.96%
NOTV	42 Neutral	$9.78M	-0.14	-44.77%	―	4.54%	47.11%

DarioHealth Corporate Events

DarioHealth Streamlines Governance With Amended Corporate Charter

On January 29, 2026, stockholders of DarioHealth Corp. approved an Amended and Restated Certificate of Incorporation, and the company filed the Amended Charter with the Delaware Secretary of State on February 2, 2026. The amendment expressly authorizes the board of directors to alter and repeal the company’s bylaws, while preserving stockholders’ power to alter or repeal them as well, effectively clarifying and potentially streamlining the company’s corporate governance framework.

The most recent analyst rating on (DRIO) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on DarioHealth stock, see the DRIO Stock Forecast page.

DarioHealth Shareholders Back Governance, Capital and Equity Plans

On January 29, 2026, DarioHealth Corp. held its 2026 Annual Meeting of Stockholders, where shareholders elected all nominated directors to serve until the next annual meeting and ratified Kesselman & Kesselman, a member of PricewaterhouseCoopers International, as the company’s independent auditor for the 2026 fiscal year. Investors approved the ratification of conversions and issuances related to the company’s Series D, D-1, D-2, and D-3 preferred stock from private placements completed in December 2024 and January 2025, as well as additional common shares tied to Series B and C preferred stock arrangements, reinforcing prior capital-raising and balance sheet initiatives. Shareholders also ratified the issuance of common shares linked to warrants and restricted stock units issued in connection with DarioHealth’s acquisition of Twill Inc., supporting the integration of that strategic transaction, and authorized an increase of 500,000 shares under the 2020 Equity Incentive Plan, enhancing the company’s capacity to use equity compensation to attract and retain talent. In addition, stockholders backed a non-binding advisory resolution approving executive compensation practices and passed an amendment to the company’s Certificate of Incorporation granting the board the authority to amend the bylaws, collectively signaling strong shareholder support for the current governance structure, capital strategy, and leadership.

The most recent analyst rating on (DRIO) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on DarioHealth stock, see the DRIO Stock Forecast page.

DarioHealth Amends Credit Agreement with Callodine

On November 5, 2025, DarioHealth Corp. entered into a Credit Agreement Amendment with Callodine Commercial Finance, LLC, acting as agent and lender, alongside other financial institutions. This amendment is a significant step for DarioHealth, potentially impacting its financial operations and strategic positioning in the healthcare technology sector.

The most recent analyst rating on (DRIO) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on DarioHealth stock, see the DRIO Stock Forecast page.