Ashok Kumar Says Commercial Runway Supports Outlook for Health Co.
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Analyst Certification The analyst, Ashok Kumar, responsible for the preparation of this research report attests to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers; and (2) that no part of the research analyst’s compensation was, is, or will be directly related to the specific recommendations or views in this research report. Financial Interests The analyst, Ashok Kumar, has no financial interest in the debt or equity securities of the subject company of this report. Further, no member of his household has any financial interest in the securities of the subject company. Neither the analyst, nor any member of his household, is an officer, director, or advisory board member of the issuer(s) or has another significant affiliation with the issuer(s) that is the subject of this research report. The analyst has not received compensation from the subject company. The CEO of ThinkEquity, LLC., owns shares in the company. At the time of this research report, the analyst does not know, or have reason to know, of any other material conflict of interest. Company Specific Disclosures ThinkEquity, LLC is a member of FINRA and SIPC. ThinkEquity, LLC or an affiliate has a client relationship with and has received compensation from this subject company DarioHealth Corp. in the last 12 months. DarioHealth Corp. Rating History as of 07/24/2026 powered by: BlueMatrix 30 25 20 15 10 5 0 Oct 23 Jan 24 Apr 24 Jul 24 Oct 24 Jan 25 Apr 25 Jul 25 Oct 25 Jan 26 Apr 26 Jul 26 $8.00 08/07/23 $5.00 08/26/24 $4.00 03/31/25 $25.00 09/15/25 Closing Price Target Price ThinkEquity, LLC ThinkEquity, LLC is a member of FINRA and SIPC. ThinkEquity expects to receive or intends to seek investment banking business from the subject company in the next three months. ThinkEquity does not make a market in the securities of the subject company of this report at the time of publication. ThinkEquity does not hold a beneficial ownership of more than 1% or more of any class of common equity securities of the subject company. This report is for information purposes only. Under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy any security. While the information contained in this report has been obtained from sources believed to be reliable, we have not independently verified the information and we do not represent or guarantee that the report is accurate or complete and it should not be relied upon as such. Any references or citations to, or excerpts from, third-party information or data sources (including, but not limited to, Bloomberg and Capital IQ) do not and are not intended to provide financial or investment advice and are not to be relied upon by anyone as providing financial or investment advice. Based on public information available to us, prices and opinions expressed in this report reflect judgments as of the date hereof and are subject to change without notice. The securities covered by or mentioned in this report involve substantial risk and should generally be purchased only by investors able to accept such risk. This research report and the securities mentioned herein, some of which may not be registered under the Securities Act of 1933, are intended only for Qualified Institutional Buyers (QIBs), as defined under Rule 144A. Any opinions expressed assume that this type of investment is suitable for the investor. Ratings Definitions ThinkEquity rating definitions are expressed as the total return relative to the expected performance of S&P 500 over a 12-month period. BUY (B) - Total return expected to exceed S&P 500 by at least 10% HOLD (H) - Total return expected to be in-line with S&P 500 SELL (S) - Total return expected to underperform S&P 500 by at least 10% Current Ratings Distribution This Equity Ratings Distribution reflects the percentage distribution for rated equity securities for the twelve month period June 30, 2019 through June 30, 2020. Within the twelve month period ended June 30, 2020, ThinkEquity, LLC has provided investment banking services to 54% of companies with equity rated a Buy, 0% of companies with equity rated a Hold and 0% of companies with equity rated a Sell. As of June 30, 2020, ThinkEquity, LLC had twentythree stocks under coverage: Buy 23 (100%), Hold 0 (0%), Sell 0 (0%).

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This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

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Biotechnology / Pharmaceuticals

Source: Think Equity Research Report (7/27/26)

Visible commercial conversion and improving cash use through the third-quarter report would strengthen the base case and support confidence in the rating and target.

Healthcare

July 27, 2026Ashok Kumar, PhD, CFA

DarioHealth Corp. (DRIO US - $7.79 - Buy)

Financing Extends The Runway, Commercial Conversion Supports The Outlook

Key Points

Rating and Frame We rate DarioHealth Buy with a new $12 twelve-month target. The July financing extends the implementation window and reduces liquidity pressure. The investment case centers on converting approximately $12.9 million of contracted and late-stage annual recurring revenue into recognized B2B2C sales. High recurring margins can create operating leverage, while covered-life access, unsigned negotiations, and eligible populations offer revenue potential as programs activate. Second-half operating progress would support the outlook, while further material equity issuance would weaken per-share value. Commercial continuity will also matter during the leadership transition.

Investment Case First-quarter revenue was $5.584 million, including $2.716 million of B2B2C revenue and $2.868 million of consumer revenue. B2B2C declined 42.7% year over year, adjusted consolidated gross margin was 60.6%, and operating cash use was $6.025 million. We estimate $25 million of 2026 revenue and $33 million in 2027. The thesis assumes B2B2C growth resumes, its approximately 80% company-defined non-GAAP margin holds, and recurring revenue becomes the primary source of gross profit. Consumer growth provides validation, while its lower-margin hardware economics offer less valuation support.

Operations Our milestones include third-quarter B2B2C revenue above $3 million with at least 10% sequential growth, followed by a fourth-quarter increase. We look for the Fortune 50 cardiometabolic program covering more than 100,000 eligible employees to launch during fall 2026 and begin contributing revenue by year-end. An executed channel partnership with a deployment schedule would add visibility. At least one Aetna or Centene extension would strengthen the recurring base and validate payer retention. Recognized revenue, enrolled members, and billable participation would provide the clearest evidence of progress.

Financials and Funding The registered direct offering generated estimated net proceeds of $22.828 million and added 3.469 million common equivalents. Including legacy pre-funded warrants, the minimum economic denominator is 13.188 million shares. Mechanical pro forma cash and deposits were $42.940 million before post-March operating use, compared with $32.5 million of debt principal and a $10 million liquidity covenant. Quarterly operating cash use is expected to trend below $5 million by year-end, while cash and deposits should remain above approximately $25 million. Share-count discipline is a central operating milestone and valuation assumption.

Capitalization, Valuation, and Risk The target represents $158 million of equity value on the financing-adjusted denominator. Our framework weights strong conversion, base conversion, and slippage at 45%, 45%, and 10%. Enterprise value is $156 million before modeled net cash. Strong and base cases use 5.25 and 4.20 times revenue. The valuation excludes a strategic transaction, care-delivery revenue, and full pipeline conversion. Material ATM use, extended implementations, weaker payer retention, or consumer-led mix would moderate the multiple and per-share value and are risks to our price target. This premium would gain support as recurring revenue scales faster than operating expense and financing risk declines.

Summary

Our Buy rating and $12 target are supported by sequential B2B2C growth, timely Fortune 50 activation, execution of the channel agreement, at least one payer extension, and adjusted consolidated gross margin improving toward the mid-60% range. Liquidity would ideally remain above the covenant floor with limited ATM use. Visible commercial conversion and improving cash use through the third-quarter report would strengthen the base case and support confidence in the rating and target

Rating, Price and Target

Symbol DRIO

Rating Buy

Price $7.79

Price Target (Prev.) $12.00 ($25.00)

Market Data

Market Cap (M) $54.1

Shares Outstanding (M) 9.8

Average Daily Volume (000s) 22.5

Float (M) 5.2

Total Debt (M) $32.5

Net Cash/Debt ($M) $2.0

Dividend NM

General: Pro forma debt and net cash: Total debt principal was $32.5 million. Estimated post-offering cash was approximately $34.5 million after intervening operating burn, implying approximately $2.0 million of net cash. July cash was not reported, so cash and net cash are analyst estimates.

FYE Dec 2024A 2025A

EPS1 (12.27)↑ (10.12)

Previous (21.04) (10.12)

Revenue (M) ($) 27.0 22.4↑

Previous 27.0 22.3

¹Fully diluted shares outstanding: Approximately 14.1 million as of July 24, 2026, including 9.793 million pro forma common shares, 3.395 million pre-funded warrants, and approximately 0.92 million other warrants and options. The valuation denominator excludes high-strike securities and uses 13.188 million economic shares.

Company Description

DarioHealth Corp. (Nasdaq: DRIO) is a digital health company providing integrated chroniccondition management solutions to employers, health plans, providers, and consumers. Its platform combines connected medical devices, software, personalized coaching, behavioral support, and datadriven engagement across diabetes, hypertension, weight management, musculoskeletal care, and behavioral health. Dario primarily commercializes its services through business-to-business-to-consumer contracts and channel partnerships while also selling consumer products. The company is expanding toward provider-backed care and outcomes-based reimbursement. Investment performance depends on converting contracted programs into enrolled members, recurring revenue, higher-margin service mix, and lower cash burn while managing debt, customer concentration, and dilution risk carefully.

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Streetwise Disclosures

DarioHealth Corp. is a billboard sponsor of Streetwise Reports. The company pays a monthly sponsorship fee of US$3,000–US$6,000 for banner advertising and an enhanced company profile page. Streetwise Reports’ editorial content is fully independent and is not influenced by sponsorship.
This research report was produced by Think Equity and is republished by Streetwise Reports as unedited editorial content.
This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

For additional disclosures, please click here.

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