Ashok Kumar Thinks Commercial Conversion Should Establish the Next Year of Growth for DarioHealth
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Important Disclosures 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 09/11/2026 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 $5.00 08/26/24 $4.00 03/31/25 $25.00 09/15/25 $12.00 07/27/26 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%). ThinkEquity rating distribution by percentage (as of September 14, 2026): All companies under coverage: All companies under coverage to which it has provided investment banking services in the previous 12 months: Buy (1) 100.00% Buy (1) 86.78% Hold (2) 0.00% Hold (2) 0% Sell (3) 0.00% Sell (3) 0%

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Life Sciences Tools & Diagnostics

Source: Think Equity Research Report (9/14/26)

DarioHealth's paid enrollment and additional signed business will determine the outcome.

September 14, 2026Ashok Kumar, PhD, CFA

DarioHealth Corp. (DRIO US - $6.58 - Buy)

Commercial Conversion Should Establish the Next Year of Growth

Key Points

Investment View. We maintain Buy and lower our twelve-month target to $10 from $12. July financing supports implementation of enterprise contracts. Our target values estimated 2028 revenue from a September 2027 perspective and incorporates another equity raise. It requires substantial business beyond the disclosed opportunity pool. Slower enrollment, sustained operating losses, or difficulty securing further financing could limit the valuation improvement we anticipate.

Contract Conversion. The commercial opportunity is meaningful but incompletely contracted. Management reports $13.1 million of contracted and late-stage ARR, with most implementation benefits expected in 2027. Recent national-payer expansion, an Arizona insurer agreement, and a Fortune 50 employer award support demand. Eligible lives do not establish billable participation. A channel partner accounts for most of the major-customer revenue disclosure, representing 15.1% of second-quarter sales.

Current Economics. Current results require a cash-based assessment. Second-quarter revenue was $5.177 million, including $2.504 million of enterprise revenue and $2.673 million from consumers. Removing a $369,000 tariff benefit reduces GAAP gross margin to approximately 54.5% and adjusted gross margin to 58.0%. Operating cash consumption remained approximately $6.1 million in the quarter.

Growth Requirements. Our forecast requires implementation followed by additional wins. We estimate revenue of $22.4 million in 2026, $27.5 million in 2027, and $44 million in 2028. Enterprise revenue doubles from $16.5 million in 2027 to $33 million in 2028, in our view. Retaining the current business and fully converting the disclosed pool illustrates only approximately $23 million annually. Additional awards and expansion must supply roughly $10 million of recognized revenue. That increment is an analyst assumption, not disclosed backlog.

Valuation. The target explicitly incorporates funding and dilution. We apply 5.0 times 2028 enterprise revenue and 0.75 times $11 million of consumer revenue, producing $173.25 million of enterprise value. A modeled $20 million raise at $6 leaves approximately 16.98 million shares. Adding projected September 2027 cash of $29.79 million and deducting $34.28 million of principal and exit-fee claims produces $9.94 per share, rounded to $10. This is a successfulexecution valuation, not a probability-weighted estimate.

Execution Milestones. The next reports provide measurable execution checkpoints. Our enterprise forecasts are $2.9 million for third-quarter 2026 and $3.3 million for the fourth quarter. By second-quarter 2027, enterprise revenue near $3.9 million and quarterly operating cash use below $5 million would support scaling. By September, signed awards and launch schedules should substantiate the larger 2028 forecast. Nelson’s transition to consulting increases the importance of implementation accountability.

Downside. Delayed conversion changes both value and ownership. A sensitivity using $20 million of 2028 enterprise revenue, a 4.0 times multiple, additional cash use, and financing at $4 produces approximately $4.30 per share. The strategic review offers optionality, but our target includes no transaction premium.

Summary

Paid enrollment and additional signed business determine the outcome. The platform’s recurring economics can support growth, but the $10 target requires evidence beyond announcements. Execution through the August 2027 results should clarify revenue visibility, funding needs, and the case for valuing the following year’s business.

Rating, Price and Target

Symbol DRIO

Rating Buy

Price $6.58

Price Target (Prev.) $10.00 ($12.00)

Market Data

Market Cap (M) $64.5

Shares Outstanding (M) 9.8

Average Daily Volume (000s) 21.8

Float (M) 7.7

Total Debt (M) $32.5

Net Cash/Debt ($M) $4.3

Dividend NM

General: Pro forma debt as of September 10, 2026 is approximately $32.5 million, reflecting outstanding loan principal. Excludes operating lease liabilities and the $1.775 million contractual exit fee deducted separately in our valuation. Pro forma net cash based on disclosures available September 10, 2026 is approximately $4.3 million, calculated as $13.961 million of June 30 cash and unrestricted deposits plus approximately $22.8 million of July net financing proceeds, less $32.5 million of debt. Excludes subsequent cash consumption and does not represent a reported September 10 cash balance.

FYE Dec 2024A 2025A

EPS1 (12.27) (10.12)

Revenue (M) ($) 27.0 22.4

¹Pro forma diluted shares as of September 10, 2026 are estimated at 13.195 million, comprising 9,799,481 common shares and 3,395,052 prefunded warrant equivalents, based on the latest public disclosures. Issued restricted shares are already included in common shares. This economic share count excludes other options, warrants, lender conversion rights, and future financing or award issuances assumed in our price-target valuation.

Company Description

DarioHealth Corp. is a digital health company providing integrated solutions for chronic condition management. Its platform supports diabetes, hypertension, weight management, musculoskeletal health, and behavioral health through connected devices, software, personalized coaching, and digital engagement. The company serves employers, health plans, and consumers, with enterprise distribution supported by channel partnerships. Dario seeks to improve member participation and health outcomes while helping purchasers manage healthcare costs. Its DarioIQ technology uses data and artificial intelligence to personalize engagement. The company is expanding into provider-backed care and additional programs, including women’s health and sleep, to broaden services within existing and new customer relationships.

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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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