DarioHealth (DRIO) AI Stock Analysis

• Market Cap: $109.58M
• Dividend Yield: N/A
• Average Volume (3M): 110.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• 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: 6,768,184
• 10 Day Avg. Volume: 34,364
• 30 Day Avg. Volume: 110,901
• 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: 0.39
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 2.86
• Enterprise Value/Ebitda: -1.12
• 1Y Price Target: $18.50
• Price Target Upside: 14.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• 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 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 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: 16.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRPO	55 Neutral	$33.28M	-16.99	-14.76%	―	27.05%	55.03%
DRIO	54 Neutral	$109.58M	-0.81	-55.06%	―	41.79%	18.45%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VNRX	43 Neutral	$52.90M	―	―	―	35.10%	39.15%
NOTV	41 Neutral	$48.10M	-0.52	-48.46%	―	0.85%	29.83%
BDSX	41 Neutral	$53.84M	-1.20	-219.68%	―	25.70%	39.25%
INBS	38 Underperform	$9.26M	―	-186.64%	―	-1.90%	87.72%

DarioHealth Corporate Events

DarioHealth Amends Certificate to Accelerate Conversion

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.

DarioHealth Amends Preferred Stock Conversion Terms

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.

DarioHealth Regains Nasdaq Compliance, Stabilizes Position

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

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.

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.

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

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.