tiprankstipranks
Trending News
More News >
DarioHealth Corp (DRIO)
NASDAQ:DRIO
Advertisement

DarioHealth (DRIO) AI Stock Analysis

Compare
282 Followers

Top Page

DRIO

DarioHealth

(NASDAQ:DRIO)

Select Model
Select Model
Select Model
Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$16.50
▲(1.91% Upside)
DarioHealth's overall stock score reflects significant financial challenges and a difficult valuation environment, despite positive technical indicators. The company's strategic initiatives and client acquisition efforts are promising, but the financial performance remains a critical concern.
Positive Factors
Strong Client Acquisition
The addition of 21 new clients, particularly in multi-condition programs, strengthens DarioHealth's market position and revenue potential, indicating robust demand for its solutions.
Improved Gross Margins
An increase in gross margins reflects better cost management and operational efficiency, enhancing profitability prospects and financial health over the long term.
AI Integration
Integrating AI to enhance operational efficiency and reduce costs positions DarioHealth for sustainable growth and competitive advantage in digital health.
Negative Factors
Revenue Decline
The decline in revenue indicates challenges in maintaining growth momentum, potentially impacting future profitability and strategic initiatives.
High Debt Levels
High leverage can strain financial flexibility and increase risk, especially if revenue growth does not improve to support debt obligations.
Delayed Cash Flow Breakeven
The delay in achieving cash flow breakeven extends financial strain and reliance on external funding, posing risks to long-term sustainability.

DarioHealth (DRIO) vs. SPDR S&P 500 ETF (SPY)

DarioHealth Business Overview & Revenue Model

Company DescriptionDarioHealth Corp (DRIO) is a digital health company that specializes in providing innovative solutions for chronic disease management, particularly focusing on diabetes, hypertension, and behavioral health. The company leverages its advanced digital platform and mobile applications to deliver personalized health insights, remote monitoring, and data analytics, empowering patients and healthcare providers to enhance care outcomes. DarioHealth operates primarily in the digital therapeutics sector, integrating behavioral science with technology to support patients in managing their health effectively.
How the Company Makes MoneyDarioHealth generates revenue through a combination of subscription fees, partnerships with healthcare organizations, and licensing agreements. The company charges monthly subscription fees for access to its digital health solutions, which include personalized coaching, real-time health data tracking, and tailored health plans. Additionally, DarioHealth collaborates with health plans, employers, and pharmaceutical companies to integrate its platform into their chronic care management programs, receiving income from these strategic partnerships. The company also explores opportunities for revenue through licensing its technology and data analytics capabilities to third-party healthcare providers and organizations, further expanding its market reach and monetization avenues.

DarioHealth Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlights DarioHealth's strong client acquisition, improved gross margins, and strategic partnerships, indicating a solid foundation for future growth. However, the revenue decline, delayed cash flow breakeven, and loss of a significant contract present notable challenges. Despite these setbacks, the company's strategic focus on AI and operational efficiency provides a positive outlook for recovery and growth.
Q2-2025 Updates
Positive Updates
Strong Client Acquisition and Pipeline Growth
DarioHealth has signed 21 new clients year-to-date, with 80% for multi-condition programs. The pipeline has grown to $53 million, with $5 million in committed annual recurring revenues (CARR) and additional $5 million in late-stage contracting.
Improved Gross Margins and Reduced Operating Expenses
GAAP gross margin increased to 55% from 44% year-over-year. Operating expenses were reduced by 36%, and operating loss was narrowed by 43% year-over-year.
High Retention Rates and Diversified Client Base
DarioHealth reported an 85% client retention rate and has over 100 clients, including health plans, self-insured employers, and pharmaceutical partners.
Strategic Partnerships and Market Expansion
Partnerships with benefit consultants and channel partners like Amwell and Solera have increased access to target employer markets and opened new business opportunities.
AI Integration and Operational Efficiency
DarioHealth is leveraging AI to streamline operations and reduce operating expenses, aiming for a 15% reduction in OpEx over the next 12 to 15 months.
Negative Updates
Revenue Decline and Delayed Cash Flow Breakeven
Total revenues for Q2 2025 were $5.4 million, down from $6.3 million in Q2 2024 and $6.8 million in Q1 2025. Cash flow breakeven is now expected towards the end of 2026 to the beginning of 2027, delayed by 12 to 15 months.
Loss of Large Health Plan Contract
A significant contract with a national health plan for a Medicaid maternity program was not renewed, contributing to revenue decline.
Slower-than-Expected New Account Ramp-Up
Onboarding of new clients has been slower than anticipated, impacting short-term revenue despite a strong pipeline.
Company Guidance
During the DarioHealth Second Quarter 2025 Results Conference Call, the company provided guidance highlighting several key metrics and operational insights. The company reported a revenue decline to $5.4 million from $6.3 million year-over-year, attributing this to the nonrenewal of a large national health plan and a strategic shift toward a SaaS-like recurring revenue model. Despite these short-term challenges, DarioHealth has secured $5 million in newly committed annual recurring revenues (CARR) and has a robust pipeline of $53 million, with $5 million in final stages towards CARR. The company aims to reach cash flow breakeven by the end of 2026 to the beginning of 2027, adjusting its previous estimate by 12 to 15 months. Gross margin increased to 55% year-over-year, with the B2B2C segment maintaining over 80% gross margins on a non-GAAP basis. Operating expenses were reduced by 36%, leading to a 43% decrease in operating loss. The company is optimistic about future growth, having signed 21 new clients year-to-date, with 80% focused on multi-condition programs. DarioHealth also emphasized the importance of AI in enhancing operational efficiency and customer engagement, projecting a 15% reduction in operating expenses over the next 12 to 15 months.

DarioHealth Financial Statement Overview

Summary
DarioHealth faces significant financial challenges with ongoing net losses and negative cash flow. Despite revenue growth and improved gross margins, the high debt-to-equity ratio and reliance on debt financing pose risks.
Income Statement
45
Neutral
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
42
Neutral
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
38
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.15M27.04M20.35M27.66M20.51M7.58M
Gross Profit14.93M13.27M5.98M9.65M3.96M2.51M
EBITDA-38.04M-50.32M-54.38M-52.09M-73.12M-29.71M
Net Income-38.61M-42.75M-59.43M-62.19M-76.76M-29.45M
Balance Sheet
Total Assets108.33M118.88M96.39M119.19M100.77M35.41M
Cash, Cash Equivalents and Short-Term Investments22.17M28.46M36.80M49.36M35.81M28.59M
Total Debt31.62M30.19M29.54M28.05M287.00K532.00K
Total Liabilities44.34M46.87M38.24M39.19M15.22M7.26M
Stockholders Equity63.99M72.02M58.14M80.00M85.55M28.15M
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-128.00K-8.93M-547.00K-573.00K-8.13M-1.62M
Financing Cash Flow25.26M38.53M18.25M61.94M65.77M27.55M

DarioHealth Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.19
Price Trends
50DMA
11.61
Positive
100DMA
12.31
Positive
200DMA
13.02
Positive
Market Momentum
MACD
0.94
Positive
RSI
60.99
Neutral
STOCH
73.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRIO, the sentiment is Positive. The current price of 16.19 is above the 20-day moving average (MA) of 15.40, above the 50-day MA of 11.61, and above the 200-day MA of 13.02, indicating a bullish trend. The MACD of 0.94 indicates Positive momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 73.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DRIO.

DarioHealth Risk Analysis

DarioHealth disclosed 8 risk factors in its most recent earnings report. DarioHealth reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

DarioHealth Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
$33.28M-16.99-14.76%27.05%55.03%
54
Neutral
$109.58M-0.81-55.06%41.79%18.45%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
43
Neutral
$52.90M35.10%39.15%
41
Neutral
$48.10M-0.52-48.46%0.85%29.83%
41
Neutral
$53.84M-1.20-219.68%25.70%39.25%
38
Underperform
$9.26M-186.64%-1.90%87.72%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DRIO
DarioHealth
16.19
-3.71
-18.64%
NOTV
Inotiv
1.40
-0.42
-23.08%
VNRX
VolitionRX
0.44
-0.19
-30.16%
PRPO
Precipio
20.55
14.19
223.11%
BDSX
Biodesix
6.73
-25.27
-78.97%
INBS
Intelligent Bio Solutions
1.01
-0.58
-36.48%

DarioHealth Corporate Events

Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
DarioHealth Amends Certificate to Accelerate Conversion
Neutral
Sep 25, 2025

On September 25, 2025, DarioHealth Corp. filed an Amended and Restated Certificate of Designation for its Series C-1 Preferred Stock to accelerate the mandatory conversion of shares into common stock or pre-funded warrants, ensuring holders receive accrued dividends. Additionally, the company announced a strategic review to maximize shareholder value, considering opportunities such as a sale or merger. Earlier, on September 22, 2025, DarioHealth announced a $17.5 million private placement of common stock to fund general corporate purposes.

The most recent analyst rating on (DRIO) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on DarioHealth stock, see the DRIO Stock Forecast page.

Business Operations and Strategy
DarioHealth Amends Preferred Stock Conversion Terms
Neutral
Sep 19, 2025

On September 18, 2025, DarioHealth Corp. amended and restated the certificates of designation for its Series A-1, Series C, and Series D preferred stocks. These changes were made to accelerate the mandatory conversion of preferred shares into common stock or pre-funded warrants, allowing holders to receive accrued dividends as well. This strategic move is expected to streamline the company’s capital structure without issuing new securities.

The most recent analyst rating on (DRIO) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on DarioHealth stock, see the DRIO Stock Forecast page.

Delistings and Listing ChangesRegulatory Filings and Compliance
DarioHealth Regains Nasdaq Compliance, Stabilizes Position
Positive
Sep 12, 2025

DarioHealth Corp. announced that it has regained compliance with the Nasdaq’s minimum bid price requirement as of September 12, 2025. This development follows a period of non-compliance starting September 16, 2024, and signifies a positive turn for the company’s stock market standing, potentially stabilizing its position and reassuring stakeholders.

The most recent analyst rating on (DRIO) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on DarioHealth stock, see the DRIO Stock Forecast page.

DarioHealth’s Earnings Call: Balancing Challenges and Growth
Sep 1, 2025

DarioHealth’s recent earnings call paints a picture of a company navigating both challenges and opportunities. The sentiment expressed during the call was cautiously optimistic, highlighting strong client acquisition, improved gross margins, and strategic partnerships as positive indicators for future growth. However, the company also faces hurdles such as revenue decline, delayed cash flow breakeven, and the loss of a significant contract. Despite these challenges, DarioHealth’s strategic focus on AI and operational efficiency suggests a promising path to recovery and growth.

Business Operations and StrategyStock Split
DarioHealth Announces 20-to-1 Reverse Stock Split
Neutral
Aug 25, 2025

On August 25, 2025, DarioHealth Corp. announced a 20-to-1 reverse stock split of its common stock, which will take effect on August 28, 2025. This move, approved by the board and stockholders, reduces the number of outstanding shares significantly while maintaining the same authorized shares and stockholder voting power. The reverse split aims to consolidate shares without affecting the proportional rights of stockholders, and it reflects the company’s strategic financial adjustments in the digital health market.

The most recent analyst rating on (DRIO) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on DarioHealth stock, see the DRIO Stock Forecast page.

DarioHealth Reports Increased Losses Amid Revenue Decline
Aug 13, 2025

DarioHealth Corp. is a global digital therapeutics company that provides personalized health interventions through precision data analytics, software, and coaching, focusing on chronic conditions such as diabetes and hypertension. In its latest earnings report, DarioHealth reported a decrease in total revenues to $12.1 million for the first half of 2025, compared to $12 million in the same period of 2024. The company’s net loss widened to $22.2 million from $20.8 million in the previous year, reflecting increased financial expenses and operating costs. Key financial metrics showed a decline in cash and cash equivalents to $21.9 million from $27.8 million at the end of 2024, alongside a reduction in total assets. Despite these challenges, DarioHealth continues to focus on expanding its digital health solutions and partnerships. Looking forward, the company aims to enhance its market presence and achieve profitability through strategic initiatives and product development, although it remains dependent on securing additional funding to support its operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 25, 2025