DarioHealth (DRIO) AI Stock Analysis

• Market Cap: $87.31M
• Dividend Yield: N/A
• Average Volume (3M): 33.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• 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: 6,768,184
• 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: 0.62
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 3.42
• Enterprise Value/Ebitda: -1.60
• 1Y Price Target: $13.50
• Price Target Upside: 14.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -8.33
• Revenue Forecast (FY): $23.17M

• Rating: 51 Neutral
• Price Target: $12.00 ▲(1.35% Upside)

DarioHealth's overall stock score reflects significant financial challenges, with ongoing losses and reliance on debt financing. However, the positive earnings call outlook and recent Nasdaq compliance regain provide some optimism. The technical indicators suggest bearish momentum, and valuation metrics remain weak due to negative earnings.

Positive Factors

Strong Client Expansion

Surpassing client acquisition goals indicates strong market demand and effective sales strategies, enhancing long-term revenue potential.

High Gross Margins

High gross margins reflect efficient operations and a strong business model, supporting sustainable profitability and competitive positioning.

UnitedHealthcare Partnership

This partnership expands market reach and enhances credibility, potentially driving significant user growth and revenue through a national rollout.

Negative Factors

Ongoing Net Losses

Persistent net losses and negative margins indicate profitability challenges, which could hinder long-term financial stability and growth.

High Debt Levels

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow suggests operational inefficiencies and reliance on external financing, posing risks to long-term sustainability and growth.

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: Negative
• Last Price: 11.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 11.84 is below the 20-day moving average (MA) of 12.41, below the 50-day MA of 13.90, and below the 200-day MA of 12.89, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 20.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DRIO.

DarioHealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRPO	57 Neutral	$32.51M	-16.60	-9.76%	―	30.95%	59.67%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DRIO	51 Neutral	$87.31M	―	-42.73%	―	7.29%	7.24%
BDSX	48 Neutral	$60.46M	-1.42	-302.55%	―	22.29%	31.93%
INBS	45 Neutral	$6.85M	―	-223.45%	―	3.26%	65.96%
VNRX	42 Neutral	$38.24M	-1.37	―	―	14.48%	36.83%
NOTV	41 Neutral	$27.75M	-0.36	-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.

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.

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.

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.