DarioHealth (DRIO) AI Stock Analysis

• Market Cap: $84.07M
• Dividend Yield: N/A
• Average Volume (3M): 33.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• 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: 0.64
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 3.42
• Enterprise Value/Ebitda: -1.60
• 1Y Price Target: $13.50
• Price Target Upside: 8.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $12.00 ▼(-3.54% Downside)

The score is held back primarily by weak financial performance—large losses and ongoing cash burn—despite improving gross margins and manageable leverage. The earnings call adds support via optimistic 2026 guidance, cost-reduction plans, and strong retention/pipeline, while technicals are mixed-to-neutral and valuation remains difficult to justify with a negative P/E and no dividend.

Positive Factors

Client Growth

Strong client expansion indicates effective market penetration and growing demand for DarioHealth's solutions, supporting long-term revenue growth.

High Gross Margins

Sustained high gross margins reflect the profitability of DarioHealth's business model, enhancing financial stability and investment potential.

Strategic Partnerships

The partnership with UnitedHealthcare can significantly increase market reach and revenue potential, strengthening DarioHealth's competitive position.

Negative Factors

Revenue Decline

The revenue decline highlights challenges in maintaining growth, which could impact financial performance and investor confidence if not addressed.

High Debt Levels

High leverage increases financial risk, potentially limiting operational flexibility and increasing vulnerability to economic downturns.

Negative Cash Flow

Negative cash flow indicates inefficiencies in operations and reliance on external financing, which may not be sustainable long-term.

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

DarioHealth faces significant financial challenges with ongoing net losses and negative cash flow. Despite revenue growth, the reliance on debt financing and negative profitability margins highlight the need for improved cost management and operational efficiency.

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	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: Positive
• Last Price: 12.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 12.44 is above the 20-day moving average (MA) of 11.55, above the 50-day MA of 12.05, and below the 200-day MA of 12.65, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 46.55 is Neutral, 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
INBS	59 Neutral	$17.76M	-0.86	-223.45%	―	3.26%	65.96%
PRPO	56 Neutral	$41.17M	-28.15	-9.76%	―	30.95%	59.67%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DRIO	50 Neutral	$84.07M	-0.69	-42.73%	―	7.29%	7.24%
BDSX	50 Neutral	$62.69M	-1.47	-302.55%	―	22.29%	31.93%
VNRX	49 Neutral	$36.01M	-1.29	―	―	14.48%	36.83%
NOTV	43 Neutral	$19.53M	-0.26	-44.77%	―	4.54%	47.11%

DarioHealth Corporate Events

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.