DarioHealth (DRIO) AI Stock Analysis

• Market Cap: $24.23M
• Dividend Yield: N/A
• Average Volume (3M): 157.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: 47.21%
• EPS Growth: 48.56%
• Country: US
• Employees: 196
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.14
• Shares Outstanding: 44,463,780
• 10 Day Avg. Volume: 231,222
• 30 Day Avg. Volume: 157,289
• PEG Ratio: -0.05
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.83
• Enterprise Value/Market Cap: 2.25
• Enterprise Value/Revenue: 12.04
• Enterprise Value/Gross Profit: -45.17
• Enterprise Value/Ebitda: -1.76
• 1Y Price Target: $1.83
• Price Target Upside: 221.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 46 Neutral
• Price Target: $0.50 ▼(-12.28%Downside)

DarioHealth's overall score is primarily hindered by its financial challenges and negative market momentum. While the company is making strategic moves and has shown positive client growth, profitability and operational efficiency remain significant concerns. The technical indicators and valuation metrics further underscore the risks associated with the stock.

Positive Factors

Contract Wins

Management signed a major national health plan and regional health plan, expected to launch soon.

Cost Management

DRIO's cost management has improved since the Twill acquisition and is expected to continue improving.

Financial Performance

4Q revenue of $7.6M beat our est. of $7.3M, driven by B2B rev of $5.7M coming in ahead of our $5.4M est.

Negative Factors

Market Environment

The demand environment for digital health has remained challenged, contributing to several consecutive quarters of revenues coming in below estimates.

Revenue Miss

Revenue missed estimates driven by weakness in the B2B2C segment.

Strategic Partnerships

There is limited visibility on DRIO's strategic partnerships channel, which is on track to generate zero revenues in 2024.

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 the sale of its digital health solutions and related services. The company operates on a B2B2C (business-to-business-to-consumer) model, partnering with healthcare providers, employers, and insurance companies to offer its platform to patients and members. Revenue streams include subscription fees from enterprise clients who offer DarioHealth's solutions as part of their healthcare plans, as well as direct-to-consumer sales through its mobile applications. Additionally, strategic partnerships with medical and wellness organizations help expand its market reach and contribute to its revenue growth. The company also explores opportunities for monetizing data analytics and insights derived from its user base, enhancing its value proposition to stakeholders.

DarioHealth Financial Statement Overview

Summary

DarioHealth faces significant financial challenges with negative net profit margins and reliance on debt financing. Despite revenue growth, the company is not yet profitable and needs to improve operational efficiency and cash flow generation.

Income Statement

DarioHealth has shown some revenue growth over the years, with a notable increase in 2024. However, the company continues to operate at a net loss and has negative EBIT and EBITDA margins, indicating ongoing profitability challenges. The gross profit margin has improved, but the net profit margin remains negative, reflecting the need for better cost management and revenue optimization.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage. While stockholders' equity has increased, suggesting some financial stability, the equity ratio is concerning, given the negative net income. The balance sheet shows a reliance on debt financing, which could pose risks if revenues do not improve.

Cash Flow

DarioHealth's free cash flow remains negative, and there's a downward trend in free cash flow growth. The operating cash flow to net income ratio is unfavorable, suggesting inefficient cash generation from operations. The company relies heavily on financing activities to support its cash needs, which may not be sustainable in the long term.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.04M	20.35M	27.66M	20.51M	7.58M
Gross Profit	13.27M	5.98M	9.65M	3.96M	2.51M
EBITDA	-50.32M	-54.38M	-56.81M	-73.12M	-29.71M
Net Income	-42.75M	-59.43M	-62.19M	-76.76M	-28.99M
Balance Sheet
Total Assets	118.88M	96.39M	119.19M	100.77M	35.41M
Cash, Cash Equivalents and Short-Term Investments	28.46M	36.80M	49.36M	35.81M	28.59M
Total Debt	30.19M	29.54M	28.05M	287.00K	532.00K
Total Liabilities	46.87M	38.24M	39.19M	15.22M	7.26M
Stockholders Equity	72.02M	58.14M	80.00M	85.55M	28.15M
Cash Flow
Free Cash Flow	-38.70M	-30.96M	-48.42M	-50.67M	-17.85M
Operating Cash Flow	-38.56M	-30.38M	-47.84M	-50.41M	-17.74M
Investing Cash Flow	-8.93M	-547.00K	-573.00K	-8.13M	-1.62M
Financing Cash Flow	38.53M	18.25M	61.94M	65.77M	27.55M

DarioHealth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.57 is below the 20-day moving average (MA) of 0.68, below the 50-day MA of 0.69, and below the 200-day MA of 0.74, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 32.65 is Neutral, neither overbought nor oversold. The STOCH value of 12.18 is Positive, 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	67 Neutral	$21.85M	―	-25.29%	―	26.67%	44.02%
INBS	55 Neutral	$10.99M	―	-126.34%	―	3.87%	91.76%
VNRX	54 Neutral	$73.57M	―	138.92%	―	64.15%	41.65%
Sector *	52 Neutral	$7.47B	0.53	-62.70%	2.38%	14.92%	0.82%
NOTV	47 Neutral	$69.74M	―	-47.95%	―	-13.09%	-15.29%
DRIO	46 Neutral	$24.23M	―	-42.58%	―	47.21%	48.56%
BDSX	45 Neutral	$56.88M	―	-1454.41%	―	35.76%	47.48%

DarioHealth Corporate Events

DarioHealth Approves Key Proposals at Annual Meeting

On July 23, 2025, DarioHealth Corp. held its 2025 Annual Meeting of Stockholders, where several key proposals were voted on. Stockholders elected directors to serve until the next annual meeting, ratified the appointment of Kesselman & Kesselman as auditors, and approved amendments to the 2020 Equity Compensation Plan. Additionally, they authorized a reverse stock split and an increase in authorized shares, which could impact the company’s capital structure and market positioning.

The most recent analyst rating on (DRIO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on DarioHealth stock, see the DRIO Stock Forecast page.

DarioHealth Appoints Steven M. Nelson as President

On July 10, 2025, DarioHealth Corp. announced the appointment of Steven M. Nelson as its President and Chief Commercial Officer. Mr. Nelson, who has been with the company since June 2024, previously held leadership roles at Contigo Health and Anthem, Inc. This appointment is expected to strengthen DarioHealth’s leadership team, leveraging Mr. Nelson’s extensive experience in the health and marketing sectors.

The most recent analyst rating on (DRIO) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on DarioHealth stock, see the DRIO Stock Forecast page.

DarioHealth Amends Preferred Stock Designations

On May 20, 2025, DarioHealth filed amended and restated certificates of designation for its Series A-1 and Series B-1 preferred stocks with the Secretary of State of Delaware. This amendment allows holders of these preferred stocks to request dividends and distributions in the form of pre-funded common stock purchase warrants instead of common stock, without issuing or selling additional securities.

The most recent analyst rating on (DRIO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on DarioHealth stock, see the DRIO Stock Forecast page.

DarioHealth Extends Conversion Period for Preferred Stocks

On May 20, 2025, DarioHealth Corp. amended and restated the certificates of designation for its Series C, C-1, and C-2 Preferred Stocks by extending the mandatory conversion period from 15 to 24 months. This change also includes issuing a 15% dividend of common stock for each full quarter anniversary of holding the preferred stocks, impacting the company’s financial operations but not resulting in the issuance of new securities.

The most recent analyst rating on (DRIO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on DarioHealth stock, see the DRIO Stock Forecast page.

DarioHealth Secures New Credit Agreement with Lenders

DarioHealth Corp. has entered into a Credit Agreement dated April 30, 2025, with Callodine Commercial Finance, LLC, as agent and lender, and other financial institutions as lenders. This agreement signifies a strategic financial move for DarioHealth, potentially impacting its financial stability and market operations.