DarioHealth Corp (DRIO)
NASDAQ:DRIO
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DarioHealth
(NASDAQ:DRIO)
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Rating:49Neutral
Price Target:
$8.00
▼(-31.74% Downside)
Action:Reiterated
Date:05/14/26
The score is held down primarily by weak financial performance—ongoing operating losses and persistent negative operating/free cash flow, plus earnings-quality concerns. Offsetting factors include constructive earnings-call signals around improving margins/cost structure and a large pipeline with expanded channel reach, while technicals are only moderately supportive and valuation metrics provided are not favorable/insufficient.
Positive Factors
High-margin unit economics
Sustained ~80% non‑GAAP B2B2C gross margins and a 57% overall gross margin indicate durable unit economics for partner-driven programs. Strong per-member margins create scalability: as channel volumes grow, incremental revenue can drop to the bottom line faster, supporting a path to profitability without needing continual price cuts.
Negative Factors
Persistent cash burn
Consistently negative operating and free cash flow implies ongoing reliance on external financing or balance-sheet resources. Even with recent OpEx reductions and $20M cash on hand, continued negative cash generation constrains investment pace, makes scaling dependent on funding, and risks dilution or restricted strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
High-margin unit economics
Sustained ~80% non‑GAAP B2B2C gross margins and a 57% overall gross margin indicate durable unit economics for partner-driven programs. Strong per-member margins create scalability: as channel volumes grow, incremental revenue can drop to the bottom line faster, supporting a path to profitability without needing continual price cuts.
Read all positive factors
DarioHealth (DRIO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.48M
Dividend YieldN/A
Average Volume (3M)33.32K
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth-24.41%
EPS Growth40.02%
CountryUS
Employees196
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)2.25
Shares Outstanding7,312,398
10 Day Avg. Volume41,359
30 Day Avg. Volume33,324
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)8.32
Price to Sales (P/S)25.26
P/FCF Ratio-21.65
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue3.26
Enterprise Value/Gross Profit5.76
Enterprise Value/Ebitda-1.96
Forecast
1Y Price Target
$10.50Price Target Upside-10.41% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-4.79
Revenue Forecast (FY)$26.24M
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, hyperten...
How the Company Makes Money
DarioHealth primarily makes money by selling its digital health programs as a business-to-business (B2B) service to organizations such as employers and health plans, which then provide access to eligible members or employees. Revenue is generated ...
DarioHealth Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call emphasized sequential revenue growth, a materially improved cost structure, a sizeable commercial pipeline ($127M) and expanding channel distribution (targeting >175M covered lives), supported by proprietary data assets and early AI-driven engagement gains. Key positives include meaningful OpEx reductions, improving margins on core B2B2C offerings (~80% non-GAAP gross margin), a clear strategic push to participate in care- and outcomes-based revenue via partnerships, and accelerating consumer product demand. Offsetting these positives are a year-over-year revenue decline tied to deliberate removal of non-recurring pharmaceutical revenue, continued GAAP and non-GAAP operating losses, dependence on the timing of large partner conversions (implementation and onboarding risks), limited near-term revenue visibility and an ongoing strategic review that introduces some uncertainty. On balance, management presented measurable operational improvements and a clear path toward scaled, higher-margin channel revenue, while acknowledging conversion and timing risks that remain to be resolved.Positive Updates
Sequential Revenue Growth
Q1 2026 revenue was $5.6M, up from $5.2M in Q4 2025 (+~7.7% quarter-over-quarter); this marks the second consecutive quarter of sequential revenue growth.
Negative Updates
Year-Over-Year Revenue Decline
Revenue declined year-over-year versus Q1 2025; management attributes this to a deliberate strategic transition away from non-recurring pharmaceutical revenue that is no longer core to the model (no absolute YoY percentage disclosed in the call).
Read all updates
Q1-2026 Updates
Positive
Negative
Sequential Revenue Growth
Q1 2026 revenue was $5.6M, up from $5.2M in Q4 2025 (+~7.7% quarter-over-quarter); this marks the second consecutive quarter of sequential revenue growth.
Read all positive updates
Company Guidance
Management guided that revenue should accelerate in the second half of 2026 as 2025‑signed accounts convert, pointing to Q1 revenue of $5.6M (up from $5.2M in Q4), a $127M commercial pipeline across 241 opportunities, nearly $13M in contracted/late‑stage business closed at year‑end 2025 and management‑disclosed contracted ARR/late‑stage business of $30M expected to contribute later in 2026–2027; they highlighted commercial momentum (10 new accounts in Q1, 85 added in 2025) and expanded distribution to ~175M covered lives (including ~65M and ~3,500 employer relationships from a new partner, with partner channels already providing access to ~116M covered lives). Financially, they emphasized improving unit economics and lower cash burn — Q1 gross margin 57% (B2B2C non‑GAAP gross margin ~80% for the ninth consecutive quarter), total OpEx $10.5M (down 21% YoY), non‑GAAP OpEx $8.7M (down 18% YoY), GAAP operating loss $7.3M (improved 22% YoY), non‑GAAP operating loss $5.3M (improved 8% YoY), $20M cash and short‑term deposits, and $6M net cash used in operations in Q1 (10% YoY improvement); they also reiterated a move toward outcomes‑ and claims‑based care supported by >13 billion proprietary data points, 100+ peer‑reviewed studies and DarioIQ (driving up to 40% better retention and up to 55% more active sessions).DarioHealth Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.19M | 22.36M | 27.04M | 20.35M | 27.66M | 20.51M |
| Gross Profit | 11.98M | 12.66M | 13.27M | 5.98M | 9.65M | 8.07M |
| EBITDA | -35.18M | -33.10M | -50.32M | -54.38M | -55.60M | -70.02M |
| Net Income | 62.71M | -41.71M | -42.75M | -59.43M | -62.19M | -76.76M |
Balance Sheet | ||||||
| Total Assets | 103.28M | 110.08M | 118.88M | 96.39M | 119.19M | 100.77M |
| Cash, Cash Equivalents and Short-Term Investments | 20.26M | 26.25M | 28.46M | 36.80M | 49.36M | 36.00M |
| Total Debt | 31.82M | 31.75M | 30.19M | 29.54M | 28.05M | 287.00K |
| Total Liabilities | 40.90M | 42.15M | 46.87M | 38.24M | 39.19M | 15.22M |
| Stockholders Equity | 62.38M | 67.92M | 72.02M | 58.14M | 80.00M | 85.55M |
Cash Flow | ||||||
| Free Cash Flow | -25.43M | -26.08M | -38.70M | -30.96M | -48.42M | -50.67M |
| Operating Cash Flow | -25.29M | -25.94M | -38.56M | -30.38M | -47.84M | -50.41M |
| Investing Cash Flow | -5.14M | -4.34M | -8.93M | -547.00K | -573.00K | -8.13M |
| Financing Cash Flow | 17.50M | 24.31M | 38.53M | 18.25M | 61.94M | 65.77M |
DarioHealth Technical Analysis
Negative
11.72
Price Trends
7.79
Positive
9.42
Negative
10.63
Negative
Market Momentum
0.05
Positive
49.04
Neutral
37.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRIO, the sentiment is Negative. The current price of 11.72 is above the 20-day moving average (MA) of 7.88, above the 50-day MA of 7.79, and above the 200-day MA of 10.63, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 37.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DRIO.
DarioHealth Risk Analysis
DarioHealth disclosed 49 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $42.54M | -7.72 | -6.73% | ― | 28.97% | 75.43% | |
56 Neutral | $150.92M | -4.49 | -2101.40% | ― | 29.05% | 29.88% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $57.48M | -12.06 | 93.18% | ― | -24.41% | 40.02% | |
45 Neutral | $26.07M | -1.04 | 76.82% | ― | 88.49% | 21.17% | |
45 Neutral | $6.15M | ― | -174.16% | ― | 33.26% | 49.65% | |
41 Neutral | $9.42M | -0.07 | -44.77% | ― | 5.61% | 20.77% |
* Healthcare Sector Average
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DarioHealth Corporate Events
Business Operations and StrategyExecutive/Board Changes
DarioHealth Adds Veteran Healthcare Leader to Board
Positive
Apr 13, 2026
On April 10, 2026, DarioHealth appointed veteran healthcare executive John R. Palumbo, 75, to its board of directors, expanding its governance with more than four decades of experience spanning early-stage ventures and Fortune 100 companies. The m...
Business Operations and StrategyPrivate Placements and Financing
DarioHealth Launches $20 Million At-The-Market Equity Program
Positive
Mar 30, 2026
On March 30, 2026, DarioHealth Corp. entered into a sales agreement with A.G.P./Alliance Global Partners to launch an at-the-market equity program allowing the company to issue and sell up to $20 million of common stock from time to time. The shar...
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.