DarioHealth Corp (DRIO)
NASDAQ:DRIO
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DarioHealth
(NASDAQ:DRIO)
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Rating:45Neutral
Price Target:
$8.00
▼(-31.74% Downside)
Action:ReiteratedDate:03/20/26
The score is held down primarily by weak financial performance (ongoing operating losses and sustained cash burn) and bearish technicals (below key moving averages with negative MACD). Offsetting this, the latest earnings call conveyed improving unit economics and a credible cost-reduction and commercialization plan, but near-term revenue ramp and funding/cash execution risk remain key constraints.
Positive Factors
High gross margins from software-first model
Sustained high gross margins reflect a software-first, device-light delivery that scales with limited incremental cost. This structural margin profile supports operating leverage, makes breakeven achievable at higher revenue levels, and provides durable profitability upside as subscriptions grow.
Negative Factors
Persistent negative cash flow
Ongoing TTM cash burn of roughly $27M constrains runway and forces reliance on external funding or rapid margin/revenue improvement. Persistent negative FCF limits ability to invest in growth or absorb shocks, raising financing risk until sustained cash-flow breakeven is achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins from software-first model
Sustained high gross margins reflect a software-first, device-light delivery that scales with limited incremental cost. This structural margin profile supports operating leverage, makes breakeven achievable at higher revenue levels, and provides durable profitability upside as subscriptions grow.
Read all positive factors
DarioHealth (DRIO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$59.21M
Dividend YieldN/A
Average Volume (3M)33.32K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth7.29%
EPS Growth7.24%
CountryUS
Employees196
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.76
Shares Outstanding7,300,406
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 Cap1.09
Enterprise Value/Revenue2.89
Enterprise Value/Gross Profit5.11
Enterprise Value/Ebitda-1.77
Forecast
1Y Price Target
$10.50Price Target Upside-10.41% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-8.25
Revenue Forecast (FY)$27.80M
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:Mar 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong commercial momentum and meaningful operational improvements alongside near-term revenue and cash execution risks. Highlights include a record number of new agreements (85), a growing contracted ARR ($12.9M), a $122M multi-year commercial pipeline, expansion of gross margins (49% to 57% GAAP) and sizeable OpEx reductions (31% decline in total OpEx). Lowlights center on a 17% year-over-year revenue decline driven by a single legacy non-renewal, modest cash on hand ($26.0M) with continued cash burn, and timing/ramp risks as many large channel deals are still being implemented and will recognize revenue primarily in 2026–2027. Overall, the company shows improving unit economics and promising distribution scale, but reaching the stated breakeven target will require successful execution on ramps and continued margin discipline.Positive Updates
Record New Business Wins
Signed 85 new agreements in 2025 versus a target of 4, with average contract sizes 2x–10x larger than historical averages, described as the company’s strongest year on record for new business.
Negative Updates
Year-Over-Year Revenue Decline
Full-year revenue declined to $22.4 million in 2025 from $27.0 million in 2024, a decrease of $4.6 million or approximately -17% year over year, driven primarily by a single legacy client non-renewal.
Read all updates
Q4-2025 Updates
Positive
Negative
Record New Business Wins
Signed 85 new agreements in 2025 versus a target of 4, with average contract sizes 2x–10x larger than historical averages, described as the company’s strongest year on record for new business.
Read all positive updates
Company Guidance
Management provided no formal guidance but outlined clear targets and expectations: they plan to narrow non‑GAAP operating loss by ~30% in 2026 and reach cash‑flow breakeven by mid‑2027 (which they estimate requires roughly $38–$42M in revenue). Supporting this outlook are $12.9M of contracted and late‑stage ARR expected to contribute in 2026–2027 and a commercial pipeline expanded to $122M (employer pipeline: 102 opportunities ≈ $54M; health‑plan pipeline: 81 opportunities ≈ $60M), following 85 new agreements in 2025 (vs. a target of 4) with average contract sizes 2–10x historical. Operationally and financially they point to Q4 revenue of $5.2M and FY2025 revenue of $22.4M (vs. $27.0M in 2024), year‑end cash of $26.0M, GAAP gross margin of 57% (up from 49%), core B2B2C non‑GAAP gross margin of ~80%, FY OpEx down 31% to $49.3M and non‑GAAP OpEx down 26% to $38.6M, Q4 GAAP OpEx $11.4M (non‑GAAP $9.0M), net cash used in operations $25.9M (down 33%), and operating‑loss improvements of $21.0M (GAAP, 37%) and $9.6M (non‑GAAP, 29%); they expect revenue growth to build through 2026 with the strongest acceleration in H2 and benefit from distribution access to over 160M covered lives.DarioHealth Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
26
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.36M | 27.04M | 20.35M | 27.66M | 20.51M |
| Gross Profit | 12.66M | 13.27M | 5.98M | 9.65M | 8.07M |
| EBITDA | -33.10M | -50.32M | -54.38M | -55.60M | -70.02M |
| Net Income | -41.71M | -42.75M | -59.43M | -62.19M | -76.76M |
Balance Sheet | |||||
| Total Assets | 110.08M | 118.88M | 96.39M | 119.19M | 100.77M |
| Cash, Cash Equivalents and Short-Term Investments | 26.25M | 28.46M | 36.80M | 49.36M | 36.00M |
| Total Debt | 31.75M | 30.19M | 29.54M | 28.05M | 287.00K |
| Total Liabilities | 42.15M | 46.87M | 38.24M | 39.19M | 15.22M |
| Stockholders Equity | 67.92M | 72.02M | 58.14M | 80.00M | 85.55M |
Cash Flow | |||||
| Free Cash Flow | -26.08M | -38.70M | -30.96M | -48.42M | -50.67M |
| Operating Cash Flow | -25.94M | -38.56M | -30.38M | -47.84M | -50.41M |
| Investing Cash Flow | -4.34M | -8.93M | -547.00K | -573.00K | -8.13M |
| Financing Cash Flow | 24.31M | 38.53M | 18.25M | 61.94M | 65.77M |
DarioHealth Technical Analysis
Negative
11.72
Price Trends
10.24
Negative
11.17
Negative
11.75
Negative
Market Momentum
-0.72
Positive
39.42
Neutral
34.81
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 8.88, above the 50-day MA of 10.24, and below the 200-day MA of 11.75, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 34.81 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 48 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 | $45.50M | -92.19 | -10.07% | ― | 30.95% | 59.67% | |
56 Neutral | $140.09M | -1.46 | -302.55% | ― | 22.29% | 31.93% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $26.65M | -3.41 | 76.82% | ― | 14.48% | 36.83% | |
45 Neutral | $59.21M | -13.54 | 88.02% | ― | 7.29% | 7.24% | |
44 Neutral | $6.44M | -0.85 | -197.93% | ― | 3.26% | 65.96% | |
43 Neutral | $9.29M | -0.17 | -44.77% | ― | 4.54% | 47.11% |
* Healthcare Sector Average
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DarioHealth Corporate Events
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
DarioHealth Streamlines Governance With Amended Corporate Charter
Positive
Feb 2, 2026
On January 29, 2026, stockholders of DarioHealth Corp. approved an Amended and Restated Certificate of Incorporation, and the company filed the Amended Charter with the Delaware Secretary of State on February 2, 2026. The amendment expressly autho...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingShareholder Meetings
DarioHealth Shareholders Back Governance, Capital and Equity Plans
Positive
Jan 29, 2026
On January 29, 2026, DarioHealth Corp. held its 2026 Annual Meeting of Stockholders, where shareholders elected all nominated directors to serve until the next annual meeting and ratified Kesselman Kesselman, a member of PricewaterhouseCoopers In...
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.