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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on DRIO

Here is a 90-word analysis of the negative drivers behind DarioHealth Corp.'s recent stock performance: Despite securing significant agreements with Blue Cross Blue Shield and expanding its GLP-1 weight-loss solution, DarioHealth faces challenges. The company's recent $25.6 million private placement, while supporting long-term growth initiatives, may have contributed to near-term dilution concerns. Additionally, DarioHealth's reliance on high-margin, scalable recurring revenues across B2B and pharma channels may be vulnerable to market fluctuations. The company's ability to execute on its strategy and reach operational cash flow positive run rate by the end of 2025 remains crucial.

1.c. Company Highlights

2. DarioHealth's Transition to High-Margin Recurring Revenue Model

DarioHealth reported revenue of $5 million for the third quarter of 2025, a decline from $7.4 million in 2024, primarily due to the non-renewal of a large scope of work with a national health plan in early 2025. However, the company's gross margin performance continued to strengthen, with GAAP gross margin expanding to 60% from 52% in 2024. Non-GAAP gross margin in the core B2B2C business remained above 80% since the beginning of 2024. The company's EPS came in at -$1.85, beating estimates of -$2.63. The successful completion of an oversubscribed $17.5 million private placement of common stock has bolstered the company's cash position to $31.9 million as of September 30, 2025.

Publication Date: Nov -25

📋 Highlights
  • Multi-condition adoption surge:: Over 50% of new clients in 2025 opted for the multi-condition solution, aligning with market demand for integrated care.
  • Revenue transition to ARRE:: Q3 2025 revenue declined to $5 million YoY/QoQ due to nonrenewal of a large contract and strategic shift to annual recurring revenue (ARR).
  • Gross margin expansion:: GAAP gross margin rose to 60% (vs. 55% in 2025 and 52% in 2024), with non-GAAP margins exceeding 80% since 2024.
  • $69M 2026 pipeline:: Strong commercial traction drove a $69 million pipeline, with 50% of new clients selecting multi-condition solutions and $12.4M in committed ARR.

Business Model Transition

The company's transition to a high-margin annual recurring revenue model is gaining traction, with more than 50% of new clients choosing the multi-condition solution. According to Erez Raphael, "Dario is a digital companion for whole person health, unifying physical, mental, and behavioral care into one connected experience." This shift is expected to drive future revenue growth, with a pipeline of $69 million for 2026. The company's focus on employers and health plans is paying off, with 45 new accounts achieved in 2025, exceeding the target.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 34.8%. With a current P/S Ratio of 23.73, the market is pricing in significant growth expectations. The company's EV/EBITDA ratio stands at -74.36, indicating that the market is factoring in substantial future profitability improvements. The ROE of -18.26% and ROIC of 184.11% suggest that while the company is currently loss-making, it is generating returns on invested capital. As the company continues to execute on its strategy, the prospects for long-term growth and profitability appear promising.

Operational Efficiency and Future Outlook

The company is focused on improving operational efficiency, with an expected additional 10% to 15% reduction in operating expenses over the next 12 to 15 months. With a strong balance sheet and a simplified capital structure, DarioHealth is well-positioned to drive growth and achieve cash flow breakeven by late 2026 to early 2027. The company's commitment to growing the business by improving health outcomes and creating savings for payers is expected to drive long-term success.

3. NewsRoom

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Dario Appoints Veteran Healthcare Executive John R. Palumbo to Board of Directors to Support Accelerated Commercial Scaling

Apr -13

Source: prnewswire.com

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Contrasting DarioHealth (NASDAQ:DRIO) & Thermo Fisher Scientific (NYSE:TMO)

Apr -01

Source: defenseworld.net

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DarioHealth Q4 Earnings Call Highlights

Mar -21

Source: defenseworld.net

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DarioHealth Corp. (DRIO) Q4 2025 Earnings Call Transcript

Mar -19

Source: seekingalpha.com

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DarioHealth Corp. (DRIO) Reports Q4 Loss, Beats Revenue Estimates

Mar -19

Source: zacks.com

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DarioHealth Reports Fourth Quarter and Full Year 2025 Financial and Operating Results

Mar -19

Source: prnewswire.com

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DarioHealth to Report Fourth Quarter and Full Year 2025 Results on Thursday, March 19, 2026

Mar -11

Source: prnewswire.com

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Dario Demonstrates Clinically Meaningful Blood Glucose Improvements and Personalized Glycemic Trajectories Across 22,000+ Users: Machine Learning Study Findings Published in Frontiers in Digital Health

Mar -10

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (19.46%)

6. Segments

Services

Expected Growth: 24.08%

DarioHealth Corp.'s 24.08% growth is driven by increasing adoption of digital health solutions, expansion into new markets, and growing demand for personalized health and wellness services. Additionally, the company's AI-powered platform and strategic partnerships are contributing to its rapid growth.

Consumer Hardware

Expected Growth: 10.88%

DarioHealth Corp's Consumer Hardware segment growth of 10.88% is driven by increasing adoption of digital health technologies, rising demand for remote patient monitoring, and growing awareness of preventive healthcare. Additionally, the company's innovative products, such as its glucose monitoring system, are gaining traction in the market, contributing to the segment's growth.

7. Detailed Products

Digital Therapeutics

DarioHealth Corp.'s digital therapeutics provide personalized, data-driven solutions for chronic condition management, leveraging AI-powered insights and behavioral coaching to drive better health outcomes.

Remote Patient Monitoring (RPM)

DarioHealth Corp.'s RPM solutions enable healthcare providers to remotely monitor patients with chronic conditions, facilitating timely interventions and reducing healthcare costs.

Digital Health Coaching

DarioHealth Corp.'s digital health coaching platform provides personalized guidance and support for individuals with chronic conditions, empowering them to take control of their health.

Population Health Management

DarioHealth Corp.'s population health management solutions help healthcare organizations identify and manage high-risk patient populations, improving health outcomes and reducing costs.

Data Analytics and Insights

DarioHealth Corp.'s data analytics and insights platform provides actionable insights for healthcare stakeholders, enabling data-driven decision-making and improved health outcomes.

8. DarioHealth Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

DarioHealth Corp. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the growing demand for digital health solutions.

Bargaining Power Of Customers

DarioHealth Corp.'s customers are primarily individuals and healthcare providers, who have limited bargaining power due to the company's specialized offerings.

Bargaining Power Of Suppliers

DarioHealth Corp. relies on a few key suppliers for its hardware and software components, giving them moderate bargaining power.

Threat Of New Entrants

The digital health industry is rapidly growing, and new entrants are emerging, posing a significant threat to DarioHealth Corp.'s market share.

Intensity Of Rivalry

The digital health industry is highly competitive, with many established players and new entrants vying for market share, resulting in intense rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.01%
Debt Cost 3.95%
Equity Weight 66.99%
Equity Cost 12.20%
WACC 9.48%
Leverage 49.28%

11. Quality Control: DarioHealth Corp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Exagen

A-Score: 4.5/10

Value: 7.0

Growth: 4.2

Quality: 4.1

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

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Personalis

A-Score: 3.9/10

Value: 6.4

Growth: 3.1

Quality: 3.7

Yield: 0.0

Momentum: 9.5

Volatility: 0.7

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VolitionRx

A-Score: 3.7/10

Value: 8.0

Growth: 6.3

Quality: 5.8

Yield: 0.0

Momentum: 1.0

Volatility: 1.3

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DarioHealth

A-Score: 3.6/10

Value: 6.8

Growth: 4.6

Quality: 4.7

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

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T2 Biosystems

A-Score: 3.2/10

Value: 10.0

Growth: 4.7

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

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Aclaris Therapeutics

A-Score: 3.2/10

Value: 6.7

Growth: 6.7

Quality: 4.0

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.03$

Current Price

7.03$

Potential

-0.00%

Expected Cash-Flows