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DarioHealth
(NASDAQ:DRIO)
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Rating:54Neutral
Price Target:
$7.00
▼(-5.28% Downside)
Action:Reiterated
Date:08/11/26
The score is held back primarily by weak financial performance—particularly the sharp TTM revenue decline and ongoing negative operating/free cash flow—despite better gross margins. Offsetting factors include a generally improving operational narrative from the earnings call (margin and cost discipline, ARR pipeline) and modestly constructive technicals, while valuation appears optically cheap but with uncertain earnings quality.
Positive Factors
Margin expansion and cost discipline
Higher gross margins and sustained expense reductions improve unit economics and operating leverage. If maintained as revenue scales, these changes can reduce the funding required to grow and support a more durable path toward breakeven.
Negative Factors
Sharp revenue contraction
The severe top-line decline indicates that commercial execution and revenue continuity remain major risks. Even with an improving pipeline, rebuilding the revenue base will require successful implementations, enrollment growth and sustained customer demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion and cost discipline
Higher gross margins and sustained expense reductions improve unit economics and operating leverage. If maintained as revenue scales, these changes can reduce the funding required to grow and support a more durable path toward breakeven.
Read all positive factors
DarioHealth (DRIO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$70.95M
Dividend YieldN/A
Average Volume (3M)28.00K
Price to Earnings (P/E)10.5
Beta (1Y)0.20
Revenue Growth-22.65%
EPS Growth62.36%
CountryUS
Employees163
SectorGeneral
Sector StrengthN/A
IndustryMedical - Specialties
Share Statistics
EPS (TTM)1.26
Shares Outstanding9,799,481
10 Day Avg. Volume38,495
30 Day Avg. Volume28,004
Financial Highlights & Ratios
PEG Ratio-1.49
Price to Book (P/B)8.32
Price to Sales (P/S)25.26
P/FCF Ratio-21.65
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$10.00Price Target Upside35.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-4.01
Revenue Forecast (FY)$23.03M
DarioHealth Business Overview & Revenue Model
Company Description
DarioHealth Corp. is a digital therapeutics enterprise operating across the United States, Canada, the European Union, Australia, and New Zealand. The company delivers a suite of digital health solutions, including its 'Dario' metabolic programs d...
How the Company Makes Money
DarioHealth primarily generates revenue by selling access to its digital chronic care platform and programs to organizations (B2B/B2B2C), such as employers and health plans, that then offer the service to their members or employees. Revenue is typ...
DarioHealth Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful operational progress: stronger gross margins, disciplined expense reductions, improvement in net loss, a sizable ARR pipeline ($13.1M) that is predominantly multi-condition, a strengthened cash position (~$36.8M pro forma), and product/AI-driven commercialization (DarioIQ, GLP-1, Dario Women, Dario Sleep). The principal near-term concern is a modest decline in reported revenue due to strategic channel transitions and the multi-quarter lag between contract signings and recognized recurring revenue. Management framed these as temporary/timing issues while highlighting durable improvements in margin, efficiency, and the quality of future revenue. Overall, the positives around margin expansion, expense discipline, sales pipeline quality, AI/data advantages, and cash runway materially outweigh the near-term topline timing headwinds.Positive Updates
Recurring Revenue and Contracted ARR Pipeline
Contracted and late-stage annual recurring revenue (ARR) of approximately $13.1 million, with more than 80% of that ARR multi-condition, positioning future revenue conversion as implementations and enrollments progress.
Negative Updates
Sequential and Year-over-Year Revenue Decline
Reported revenue for Q2 2026 was $5.2 million, down from $5.6 million in Q1 2026 (≈ -7.1% sequential) and down from $5.4 million in Q2 2025 (≈ -3.7% year-over-year). Management attributes decline to timing of implementations and strategic exit from pharmaceutical services.
Read all updates
Q2-2026 Updates
Positive
Negative
Recurring Revenue and Contracted ARR Pipeline
Contracted and late-stage annual recurring revenue (ARR) of approximately $13.1 million, with more than 80% of that ARR multi-condition, positioning future revenue conversion as implementations and enrollments progress.
Read all positive updates
Company Guidance
Management guided that the company’s $13.1 million of contracted and late‑stage ARR is expected to convert into recognized revenue over a typical 4–5 quarter implementation cycle (beginning in H2 2026 with the majority of contribution in 2027), and that DarioIQ could drive an incremental ~10–15% in recurring revenue from existing customers over time; they expect accelerated revenue growth in the back half of 2026 and into 2027 driven by channel-led deals (75% of new accounts), 180+ signed accounts (including five Fortune 50 customers and ~25% of B2B2C clients from the Fortune 500), and >80% of contracted ARR already multi‑condition, supported by a newly launched GLP‑1 provider‑backed program and new Women and Sleep offerings expected to begin contributing in Q4; financially, Q2 revenue was $5.2M (vs. $5.6M Q1 and $5.4M LY), gross margin rose to 62% (non‑GAAP B2B2C gross margin ~80%), operating expenses fell 8% sequentially and 21% YoY, operating loss improved 11% Q/Q and 30% YoY, net loss narrowed to $7.9M (down 39% YoY), and pro forma cash stood at $36.8M ($14M on hand plus $22.8M net from the July financing) to fund the planned scaling.DarioHealth Financial Statement Overview
Summary
Income Statement
28
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 | 21.00M | 22.36M | 27.04M | 20.35M | 27.66M | 20.51M |
| Gross Profit | 11.78M | 12.66M | 13.27M | 5.98M | 9.65M | 8.07M |
| EBITDA | -29.75M | -34.69M | -37.08M | -54.38M | -55.60M | -70.02M |
| Net Income | 67.78M | -41.71M | -42.75M | -59.43M | -62.19M | -76.76M |
Balance Sheet | ||||||
| Total Assets | 96.59M | 110.08M | 118.88M | 96.39M | 119.19M | 100.77M |
| Cash, Cash Equivalents and Short-Term Investments | 14.25M | 26.25M | 28.46M | 36.80M | 49.36M | 36.00M |
| Total Debt | 32.41M | 31.75M | 30.19M | 29.54M | 28.05M | 287.00K |
| Total Liabilities | 41.50M | 42.15M | 46.87M | 38.24M | 39.19M | 15.22M |
| Stockholders Equity | 55.09M | 67.92M | 72.02M | 58.14M | 80.00M | 85.55M |
Cash Flow | ||||||
| Free Cash Flow | -24.89M | -26.08M | -38.70M | -30.96M | -48.42M | -50.67M |
| Operating Cash Flow | -24.75M | -25.94M | -38.56M | -30.38M | -47.84M | -50.41M |
| Investing Cash Flow | -7.38M | -4.34M | -8.93M | -547.00K | -573.00K | -8.13M |
| Financing Cash Flow | 17.37M | 24.31M | 38.53M | 18.25M | 61.94M | 65.77M |
DarioHealth Technical Analysis
Neutral
7.39
Price Trends
7.18
Positive
7.33
Negative
8.98
Negative
Market Momentum
-0.04
Positive
50.53
Neutral
52.27
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 7.39 is above the 20-day moving average (MA) of 7.26, above the 50-day MA of 7.18, and below the 200-day MA of 8.98, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 52.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $3.42B | 29.53 | 8.64% | ― | 17.28% | 323.64% | |
65 Neutral | $436.13M | -6.12 | -49.17% | 2.46% | 182.05% | -5.43% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | $70.95M | 10.49 | 104.15% | ― | -22.65% | 62.36% | |
48 Neutral | $542.88M | -7.00 | -7.87% | ― | 6.83% | -69.59% | |
44 Neutral | $305.12M | -2.67 | -32.59% | 13.45% | -3.16% | 72.02% | |
42 Neutral | $6.07M | -0.16 | 68.09% | 1.23% | -13.28% | 39.65% |
* General Sector Average
DRIO
DarioHealth
7.24
-1.96
-21.30%
MYGN
Myriad Genetics
3.19
-3.72
-53.84%
TRIB
Trinity Biotech
9.41
-24.19
-71.99%
VCYT
Veracyte
42.53
10.07
31.02%
FLGT
Fulgent Genetics
19.73
-2.54
-11.41%
PRE
Prenetics Group
25.44
16.05
170.93%
DarioHealth Corporate Events
Business Operations and StrategyExecutive/Board Changes
DarioHealth Announces Executive Leadership Transition and Consulting Role
Neutral
Aug 21, 2026
DarioHealth Corp. announced leadership changes following the previously disclosed temporary medical leave of Steven Nelson, its President and Chief Commercial Officer, which was extended indefinitely on July 10, 2026. On August 20, 2026, the compa...
Business Operations and StrategyPrivate Placements and Financing
DarioHealth announces $23.5 million registered direct offering
Positive
Jul 22, 2026
On July 22, 2026, DarioHealth entered into securities purchase agreements with institutional investors for a registered direct offering of 3,454,559 shares of common stock and equivalents, priced at $6.80 per share, alongside a director’s pu...
Business Operations and StrategyExecutive/Board Changes
DarioHealth Extends Executive Medical Leave, Adjusts Leadership
Negative
Jul 10, 2026
On July 10, 2026, DarioHealth Corp. announced that President and Chief Commercial Officer Steven Nelson’s temporary medical leave of absence has been extended for an indefinite period. During his absence, members of the company’s senio...
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.