New York Digital Health Firm Expands Reach to 116 Million Covered Lives

DarioHealth Corp. (DRIO:NASDAQ) reported financial and operating results for the first quarter ended March 31, 2026, including sequential revenue growth, lower operating expenses, and expanded channel partner reach.

Revenue for the quarter totaled US$5.6 million, compared to US$5.2 million in the fourth quarter of 2025 and US$6.8 million in the first quarter of 2025. The company stated that the year-over-year decrease was primarily attributable to the non-recurrence of US$1.3 million in pharmaceutical customer revenue recognized during the prior-year period before transitioning away from one-time and non-recurring revenues toward annual recurring revenue from its core B2B2C business. Dario said the decline was partially offset by growth in channel partner revenues, including increased contributions from Solera, and continued expansion in direct-to-consumer musculoskeletal product sales.

The company reported GAAP gross profit of US$3.2 million for the quarter, compared to US$3.9 million in the prior-year period and US$2.8 million in the fourth quarter of 2025. Gross margin was 57% during the quarter, compared to 58% in the prior-year period and 54% in the fourth quarter of 2025.

Operating expenses were US$10.5 million for the quarter, down 21% year-over-year from US$13.3 million and down 8% sequentially from US$11.4 million. Dario stated that the decreases resulted mainly from increased operational efficiency. Operating loss for the quarter was US$7.3 million, compared to US$9.4 million in the first quarter of 2025 and US$8.6 million in the fourth quarter of 2025.

Cash and short-term deposits totaled US$20 million at March 31, 2026, while net cash used in operations was US$6 million, representing a 10% year-over-year decrease.

"The first quarter of 2026 was our second consecutive quarter of sequential revenue growth, alongside continued reductions in operating expenses," said Erez Raphael, Dario's Chief Executive Officer, in the company news release. Raphael added that Dario's channel partner ecosystem now provides access to more than 116 million covered lives through partners, including Solera and Amwell.

The company also stated that it is in the contracting phase with a new channel partner that, upon finalization, would expand Dario's reach to more than 175 million covered lives and add one of the largest hospital networks in the northeastern U.S. as a day-one anchor account.

Dario reported that DarioIQ™, its proprietary artificial intelligence layer operating on 13 billion real-world data points generated through FDA-cleared connected devices, showed continued performance during the quarter. According to the company, behavior-triggered engagement programs delivered up to a 40% improvement in member retention and up to a 57% increase in active sessions versus control groups.

Steven Nelson, Dario's President and Chief Commercial Officer, stated in the release, "Our channel-led commercial model is producing the compounding effect we built it for." Nelson added that Dario added 10 new accounts during the first quarter, all outside the normal benefit cycle, and referenced several contracted enterprise implementations expected during the second half of the year.

In an April 24 report, Litchfield Hills Research LLC stated that it was "dropping coverage of DarioHealth Corp due to the reallocation of analyst coverage." The firm noted that its "previous rating had been Buy" and that its "previous price target had been US$20."

According to an April 27  report from ThinkEquity analyst Ashok Kumar, PhD, CFA, the firm maintained its "BUY" rating and US$25.00 price target on DarioHealth Corp. Kumar wrote that "the reported evidence still supports a constructive, but risk-adjusted, view." He added that "2025 results and subsequent disclosures show lower operating expense, higher gross margin, and a larger signed and late-stage commercial base than the equity appears to credit."

The ThinkEquity report stated that Dario's 2025 Form 10-K reported revenue of US$22.4 million compared to US$27.0 million in 2024, while management attributed the decline to "a scope change and non-renewal from one legacy Twill client." Kumar also wrote that Dario signed 85 agreements in 2025, identified US$12.9 million of contracted and late-stage ARR expected to contribute in 2026 and 2027, and ended the year with a US$122 million pipeline.

Kumar stated that "the platform case is strongest when limited to reported metrics" and noted that the 2025 Form 10-K showed "57% GAAP gross margin, up from 49% in 2024." The report also referenced disclosures from the March 19 earnings materials and April 2026 investor presentation stating that "the core B2B2C recurring business has sustained roughly 80% non-GAAP gross margin."

In the April 27 report, Kumar wrote that "the long case rests on a structural shift away from narrower point-solution selling and toward an employer, health-plan, and channel model built around multi-condition deployments." He added that management disclosed that "the majority of new 2025 contracts were for multi-condition platforms and that more than 70% of pipeline opportunities were multi-condition."

The ThinkEquity report also discussed Dario's commercial pipeline and channel activity. Kumar wrote that "Dario's commercial pipeline reached US$122 million as of December 31, 2025, across 230 opportunities, with more than 70% of pipeline opportunities described as multi-condition." The report further stated that management discussed "ramp timing for relationships involving Florida Blue, Amwell, HCSC, and Solera."

Regarding financial position, Kumar stated that "the balance sheet remains the core discount." The report noted that the company reported US$21.8 million of cash and cash equivalents, US$2.2 million of short-term bank deposits, and US$30.7 million of long-term loan obligations at December 31, 2025. Kumar added that "execution risk remains the dominant issue" and stated that "partner access and covered lives must still translate into enrolled members, renewal dollars, and recognized revenue."

The ThinkEquity report concluded, "We maintain BUY and US$25.00 because we think the core factual setup is better than it was a year ago: reported operating expense is lower, gross margin is higher, the evidence package is broader, and the company has disclosed enough signed and late-stage commercial activity to support a reasonable growth bridge if even part of it converts on schedule."

In a May 12 company update, CG Capital maintained its "Outperform" rating and US$28.00 price target on DarioHealth Corp. The report stated that DarioHealth reports first quarter 2026 results on May 13, 2026, and framed the quarter as "a quarterly checkpoint on three operating signals coming out of the FY2025 plan: sequential revenue progression off the US$5.2M Q4 2025 base, OpEx discipline against management's guided ~30% non-GAAP operating loss reduction for 2026, and the early indicators of pipeline conversion as the 85 enterprise client wins from 2025 begin implementation."

CG Capital wrote that "Q4 2025 revenue of US$5.2M was the first sequential improvement after the Twill-era client non-renewal headwind" and stated that management had confirmed on the March 19 year-end call that "sequential growth is continuing into Q1 2026."

The May 12 report stated that DarioHealth had "consolidated four formerly separate digital health businesses (diabetes, hypertension, MSK, behavioral health) onto a single technology and commercial chassis under the DarioIQ AI architecture." CG Capital added that "the platform now addresses 6+ chronic conditions across a single member experience with 100+ peer-reviewed studies."

CG Capital also wrote that "against a 40-client target, DarioHealth signed 85 enterprise agreements in 2025 — more than doubling the objective." The report referenced channel and health-plan relationships, including Aetna/CVS, UnitedHealthcare, and Florida Blue.

The report further stated that "cash flow breakeven targeted for mid-2027" had been extended from prior guidance and that "non-GAAP OpEx targeting ~$31–33M by Q4 2026." CG Capital added that "the commercial pipeline expanded to US$122M (200+ B2B2C opportunities), and 85 client agreements were signed in 2025 versus a 40-client target."

CG Capital stated that its US$28.00 price target was based on a "probability-weighted blend of three scenarios." The report said, "We maintain our Outperform rating and US$28.00 price target," while noting that "our investment thesis rests on three interlocking pillars: commercial inflection, strategic optionality, and margin transformation."

Commercial Expansion and Pipeline Activity

According to the company, Dario added 10 new accounts during the first quarter of 2026, all outside the normal benefit cycle, and reported an approximately US$127 million pipeline across 241 active potential opportunities.

The April 2026 corporate presentation stated that Dario's channel partnerships provide access to approximately 116 million covered lives through partners including Solera, Amwell, Personify Health, OneStep, Allegiance, and GreenKey.

The presentation also stated that Dario signed 85 new accounts during 2025, bringing its total client count to more than 160, while approximately 70% of new contracts and pipeline opportunities were multi-condition.

According to the presentation, the company reported US$12.9 million in contracted and late-stage annual recurring revenue expected to contribute revenue during 2026 and 2027, along with a US$122 million pipeline consisting of 233 primarily B2B2C annual recurring revenue opportunities.

The presentation outlined employer pipeline opportunities totaling US$54 million, including 44 new employer opportunities representing US$35 million in pipeline value during 2026 and 58 new employer opportunities representing US$19 million in pipeline value during 2027. It also outlined health plan pipeline opportunities totaling US$60 million, including 70 new health plan opportunities representing US$33 million in pipeline value during 2026 and 11 opportunities representing US$27 million in pipeline value during 2027.

Dario's April 2026 presentation stated that its platform addresses more than six chronic conditions, including diabetes, hypertension, weight management, musculoskeletal health, behavioral health, GLP-1 support, sleep apnea, and maternal health. 

The company also reported that its multi-condition platform operates across cardiometabolic, behavioral health, and musculoskeletal care categories, supported by AI-powered coaching, connected devices, digital tools, and behavioral change programs.

Ownership & Share Information¹

DarioHealth Corp. has a market cap of US$54.17 million, with 7.30 million shares outstanding.

The company's 52-week range is US$5.94-US$17.74.

Institutions own 10.53% of shares, while Strategic Investors own 9.88%.

Management & Insiders own 11.24% of shares, and the remaining 68.35% of shares are held by Retail.