DarioHealth (DRIO) AI Stock Analysis

• Market Cap: $20.02M
• Dividend Yield: N/A
• Average Volume (3M): 191.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: 41.79%
• EPS Growth: 18.44%
• Country: US
• Employees: 196
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.18
• Shares Outstanding: 45,496,956
• 10 Day Avg. Volume: 233,638
• 30 Day Avg. Volume: 191,658
• 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: 2.13
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 2.86
• Enterprise Value/Ebitda: -1.12
• 1Y Price Target: $0.93
• Price Target Upside: 63.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $0.50 ▼(-12.28% Downside)

DarioHealth's overall stock score is primarily impacted by its financial challenges, including ongoing losses and high leverage. While technical indicators suggest a bearish trend, the company's strategic initiatives and leadership changes provide some optimism for future growth.

Positive Factors

Client Acquisition

The company noted two new major health plan clients, with one scheduled to launch in the second half of 2025, bringing their total clients signed year-to-date to 21.

Growth Opportunities

Management quantified their pipeline at $53 million, with $5 million being in an advanced stage, indicating potential growth opportunities.

Revenue Growth

DRIO highlighted two key wins: a large national health plan and a large US insurance company, both expected to contribute to revenue in the second half.

Negative Factors

Contract Renewal

A significant contract expiration contributed to the revenue miss and is pending renewal.

Financial Guidance

DarioHealth subsequently cut its breakeven cash flow guidance from the end of 2025 to the end of 2026 or early 2027.

Revenue Miss

The 2Q headline numbers were disappointing, with revenue and EBITDA coming in substantially below estimates.

DarioHealth Business Overview & Revenue Model

Company Description

DarioHealth 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 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 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	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: Neutral
• Last Price: 0.57
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 0.57 is above the 20-day moving average (MA) of 0.52, below the 50-day MA of 0.63, and below the 200-day MA of 0.70, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 44.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DRIO.

DarioHealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRPO	60 Neutral	$23.16M	―	-14.76%	―	27.05%	55.03%
Sector *	51 Neutral	$7.77B	-0.12	-39.78%	2.21%	22.68%	-1.42%
BDSX	49 Neutral	$59.64M	―	-219.68%	―	25.70%	39.23%
VNRX	47 Neutral	$72.41M	―	138.92%	―	35.10%	39.15%
INBS	46 Neutral	$13.11M	―	-186.64%	―	-1.90%	87.72%
DRIO	45 Neutral	$20.02M	―	-55.06%	―	41.79%	18.44%
NOTV	43 Neutral	$57.72M	―	-48.46%	―	0.85%	29.83%

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.

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.

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.