DarioHealth (DRIO) AI Stock Analysis

• Market Cap: $29.61M
• Dividend Yield: N/A
• Average Volume (3M): 174.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: 47.21%
• EPS Growth: 48.56%
• Country: US
• Employees: 196
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.14
• Shares Outstanding: 44,463,780
• 10 Day Avg. Volume: 220,314
• 30 Day Avg. Volume: 174,943
• PEG Ratio: 0.04
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.09
• Enterprise Value/Market Cap: 2.70
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: -0.39
• 1Y Price Target: $1.83
• Price Target Upside: 173.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 49 Neutral
• Price Target: $0.50 ▼(-25.37%Downside)

DarioHealth's score is primarily affected by its financial challenges and unattractive valuation. While technical indicators are neutral and recent strategic moves offer potential stability, the lack of profitability and heavy reliance on debt are significant concerns. Client growth and improved margins offer some positive outlook, but financial health needs addressing.

Positive Factors

Cost Management

Encouraged by management's ability to lower expenses and continue to sign meaningful new customer.

New Partnerships

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

Revenue 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

Demand Environment

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

Revenue Estimates

Lowering 2025 revenue estimate to reflect this dynamic.

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 ongoing net losses and negative cash flow. Although revenue is growing, the company's reliance on debt financing and negative profit margins indicate the need for improved cost management and revenue optimization.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
28.03M	27.04M	20.35M	27.66M	20.51M	7.58M
	Gross Profit
14.72M	13.27M	5.98M	9.65M	3.96M	2.51M
	EBIT
-49.89M	-57.74M	-56.19M	-56.81M	-76.49M	-29.90M
	EBITDA
-43.20M	-50.32M	-54.38M	-56.81M	-73.12M	-29.71M
	Net Income Common Stockholders
-11.26M	-42.75M	-59.43M	-62.19M	-76.76M	-28.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	28.46M	36.80M	49.36M	35.81M	28.59M
	Total Assets
0.00	118.88M	96.39M	119.19M	100.77M	35.41M
	Total Debt
30.34M	30.19M	29.54M	28.05M	287.00K	532.00K
	Net Debt
30.34M	2.43M	-7.26M	-21.31M	-35.52M	-28.06M
	Total Liabilities
41.90M	46.87M	38.24M	39.19M	15.22M	7.26M
	Stockholders Equity
73.70M	72.02M	58.14M	80.00M	85.55M	28.15M
Cash Flow		Free Cash Flow
-32.24M	-38.70M	-30.96M	-48.42M	-50.67M	-17.85M
	Operating Cash Flow
-32.13M	-38.56M	-30.38M	-47.84M	-50.41M	-17.74M
	Investing Cash Flow
-113.00K	-8.93M	-547.00K	-573.00K	-8.13M	-1.62M
	Financing Cash Flow
25.14M	38.53M	18.25M	61.94M	65.77M	27.55M

DarioHealth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.67
• 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 0.67 is below the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.70, and below the 200-day MA of 0.78, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 41.15 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
Sector *	54 Neutral	$5.37B	3.26	-45.10%	3.30%	16.81%	0.02%
PULM	53 Neutral	$28.52M	―	-93.19%	―	6.96%	32.32%
DRIO	49 Neutral	$29.61M	―	-42.58%	―	47.21%	48.56%
VYNE	42 Neutral	$14.99M	―	-66.15%	―	43.03%	81.75%
CGTX	41 Neutral	$18.49M	―	-161.93%	―	―	-0.38%
GDTC	41 Neutral	$26.10M	―	-24.97%	―	―	38.80%
TENX	36 Underperform	$23.65M	―	-39.78%	―	―	84.17%

DarioHealth Corporate Events

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.

DarioHealth Announces CFO Resignation and Successor

On April 18, 2025, DarioHealth Corp. announced the resignation of its Chief Financial Officer, Treasurer, and Secretary, Mr. Zvi Ben-David, effective May 15, 2025, due to personal reasons. The company appointed Chen Franco-Yehuda as his successor, effective the same date. Franco-Yehuda, with extensive experience in financial roles at Pluri Inc. and PricewaterhouseCoopers, will receive a comprehensive compensation package, including a monthly salary, bonuses, and stock options. The transition is expected to be smooth, with Ben-David continuing as an advisory board member, ensuring continuity in the company’s financial strategy.