DarioHealth (DRIO) AI Stock Analysis

• Market Cap: $41.45M
• Dividend Yield: N/A
• Average Volume (3M): 113.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: 41.79%
• EPS Growth: 18.45%
• Country: US
• Employees: 196
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -3.60
• Shares Outstanding: 2,399,829
• 10 Day Avg. Volume: 254,127
• 30 Day Avg. Volume: 113,220
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 2.86
• Enterprise Value/Ebitda: -1.12
• 1Y Price Target: $16.83
• Price Target Upside: 2.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 49 Neutral
• Price Target: $13.50 ▼(-17.43% Downside)

DarioHealth's overall stock score reflects significant financial challenges and valuation concerns, offset by positive technical indicators and strategic initiatives highlighted in the earnings call. The company's focus on AI and operational efficiency offers potential for future growth, but current profitability issues and reliance on debt financing remain key risks.

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 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 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 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

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	27.15M	27.04M	20.35M	27.66M	20.51M	7.58M
Gross Profit	14.93M	13.27M	5.98M	9.65M	3.96M	2.51M
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 Assets	108.33M	118.88M	96.39M	119.19M	100.77M	35.41M
Cash, Cash Equivalents and Short-Term Investments	22.17M	28.46M	36.80M	49.36M	35.81M	28.59M
Total Debt	31.62M	30.19M	29.54M	28.05M	287.00K	532.00K
Total Liabilities	44.34M	46.87M	38.24M	39.19M	15.22M	7.26M
Stockholders Equity	63.99M	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	-128.00K	-8.93M	-547.00K	-573.00K	-8.13M	-1.62M
Financing Cash Flow	25.26M	38.53M	18.25M	61.94M	65.77M	27.55M

DarioHealth Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 16.35 is above the 20-day moving average (MA) of 10.47, above the 50-day MA of 10.33, and above the 200-day MA of 13.11, indicating a bullish trend. The MACD of 1.95 indicates Negative momentum. The RSI at 70.96 is Negative, neither overbought nor oversold. The STOCH value of 92.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DRIO.

DarioHealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRPO	62 Neutral	$33.77M	―	-14.76%	―	27.05%	55.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DRIO	49 Neutral	$41.45M	―	-55.06%	―	41.79%	18.45%
VNRX	48 Neutral	$67.28M	―	138.92%	―	35.10%	39.15%
NOTV	44 Neutral	$51.88M	―	-48.46%	―	0.85%	29.83%
BDSX	44 Neutral	$61.36M	―	-219.68%	―	25.70%	39.25%
INBS	38 Underperform	$9.80M	―	-186.64%	―	-1.90%	87.72%

DarioHealth Corporate Events

DarioHealth Announces 20-to-1 Reverse Stock Split

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.

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.

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.