Dario Expects Proprietary AI Engine DarioIQ™ to Increase Recurring Revenue from Existing Customers by 10-15%

Rhea-AI Summary

DarioHealth (NASDAQ: DRIO) announced that broader deployment of its proprietary AI engine DarioIQ™ is expected to increase annual B2B2C recurring revenue from existing customers by approximately 10%–15%, excluding any impact from future customer wins or condition expansions.

According to DarioHealth, DarioIQ’s AI-driven personalization increased active member engagement by 40% and improved member retention by 20% versus a control group, based on development completed in the first half of 2026. The company reports a program ROI of 2.5x–5x across its solutions.

DarioIQ uses more than 13 billion de-identified proprietary real-world healthcare data points, combining biometric readings from FDA-cleared devices, clinical history and behavioral patterns to optimize outreach. DarioHealth highlights responsible-AI practices and notes that its recent expansion into provider-backed care is expected to connect AI-driven engagement more directly to clinical intervention and reimbursement workflows.

Positive

• 10%–15% expected lift in annual B2B2C recurring revenue from existing customers
• AI personalization increased active member engagement by 40% versus control group
• Member retention improved by 20% compared to control group
• Programs deliver a reported ROI of 2.5x–5x across Dario’s platform
• Platform powered by more than 13 billion proprietary real-world healthcare data points

Negative

• None.

Market reaction: DRIO -7.20% on DarioIQ AI guidance update

-7.20%

1 alert

-7.20% News Effect

-$4M Valuation Impact

$47.38M Market Cap

1.3x Rel. Volume

On the day this news was published, DRIO declined 7.20%, reflecting a notable negative market reaction. This price movement removed approximately $4M from the company's valuation, bringing the market cap to $47.38M at that time.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -7.2% in the session following this news. A sharp selloff despite expectations for a...

Analysis

The stock moved -7.2% in the session following this news. A sharp selloff despite expectations for a 10%–15% recurring revenue lift from DarioIQ would echo at least one prior AI headline that traded down. Funding requirements and an at-the-market program under the active shelf could also pressure sentiment.

Key Figures

B2B2C recurring revenue uplift: 10%–15% Program ROI: 2.5X–5X Active member engagement increase: 40% +2 more

5 metrics

B2B2C recurring revenue uplift 10%–15% Expected annual recurring revenue increase from existing customers with broader DarioIQ deployment

Program ROI 2.5X–5X Proven return on investment across Dario programs, with potential further boost from DarioIQ

Active member engagement increase 40% Increase in active member engagement versus control group with DarioIQ personalization

Member retention improvement 20% Improvement in member retention versus control group with DarioIQ personalization

Proprietary data points more than 13 billion De-identified real-world healthcare data points powering DarioIQ

Previous AI Reports

3 past events · Latest: Mar 10 (Positive)

Same Type Pattern 3 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 10	AI clinical study	Positive	-4.3%	Machine learning study in Frontiers showing glycemic gains from higher engagement.
Dec 10	AI product launch	Positive	+4.1%	Initial launch of DarioIQ conversational AI layer for hypertension members.
Jun 24	AI & GLP-1 data	Positive	+4.8%	GLP-1 and AI personalization results showing durable glucose and prediction benefits.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

AI-tagged news for Dario has generally produced modestly positive reactions, though one of three recent AI events saw a negative move despite favorable data.

Key Terms

b2b2c, generative ai, fda-cleared, biometric readings

4 terms

b2b2c financial

"increase annual Business-to-Business-to-Consumer ("B2B2C") recurring revenue by approximately 10% to 15%"

A B2B2C model is a go-to-market approach where a company sells products or services to other businesses that then deliver those goods or offer them to end consumers, so the company reaches final customers through partners rather than directly. For investors it matters because this setup can speed up customer reach and reduce marketing costs but also adds dependency on partners, affecting revenue growth, profit margins and how predictable future sales are — like a manufacturer selling through a chain of retailers instead of opening its own stores.

generative ai technical

"its proprietary, responsible generative and agentic AI platform, to increase annual"

Generative AI is a type of computer technology that can create new content, like text, images, or music, on its own. It’s important because it can produce realistic and useful material quickly, which could change how we create art, write stories, or even develop new products. Think of it as a smart robot that can invent and produce things almost like a human.

fda-cleared regulatory

"By combining biometric readings from U.S. Food and Drug Administration ("FDA")-cleared connected devices"

FDA-cleared means a medical product—typically a device or diagnostic—has passed a U.S. regulator’s review showing it is substantially similar to an existing approved product and is safe and effective for its intended use. For investors, clearance acts like an official safety stamp that lowers regulatory risk and can speed market access, comparable to getting a trusted roadworthy certificate before selling cars, which can make sales and adoption happen faster.

biometric readings technical

"By combining biometric readings from U.S. Food and Drug Administration ("FDA")-cleared"

Measurements of a person’s physical or physiological characteristics—such as heart rate, blood pressure, temperature, blood oxygen levels, fingerprints, or gait—captured by sensors, wearable devices, medical equipment, or apps. Investors care because these readings are the raw data behind health products, clinical trial results, regulatory submissions, and consumer services; their accuracy, volume, and privacy handling can affect product claims, market acceptance, regulatory risk, and revenue potential.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DarioIQ drives higher engagement and retention, better clinical outcomes, higher client ROI and recurring revenue growth for Dario

Dario IQ's AI-driven personalization increases member engagement by 40% and improves member retention by 20% by leveraging 13+ billion proprietary real-world healthcare data points

NEW YORK, July 13, 2026 /PRNewswire/ -- DarioHealth Corp. (NASDAQ: DRIO) (the "Company," "DarioHealth" or "Dario"), a leading AI-powered healthcare technology company transforming the management of chronic conditions, today announced the Company expects broader deployment of DarioIQ™, its proprietary, responsible generative and agentic AI platform, to increase annual Business-to-Business-to-Consumer ("B2B2C") recurring revenue by approximately 10% to 15% from existing customers, before the impact of future customer wins or additional condition expansions.

 

 

While Dario continues to demonstrate success with its land-and-expand strategy with existing enterprise customers through its multi-condition platform, DarioIQ creates an additional opportunity to lift B2B2C annual recurring revenues from current clients. By increasing member engagement, retention and clinical outcomes, DarioIQ has the potential to further boost the Company's proven return on investment ("ROI") of 2.5X to 5X across its programs.

DarioIQ increases active member engagement by 40% and improved member retention by 20% through highly personalized interventions tailored to each member's unique health profile and behavior, as compared to the control group. These results reflect DarioIQ development completed in the first half of 2026, and the Company expects performance to continue improving as the models are enhanced with additional data.

"Higher engagement increases the lifetime value of members while improving customer ROI, enabling Dario to grow revenue without proportionally increasing customer acquisition costs," said Lara Dodo, Chief Operating Officer of Dario.

"AI is transforming healthcare, and we believe Dario is well-positioned to lead the industry in harnessing the power of one of the largest proprietary datasets to improve outcomes for patients and payers," said Erez Raphael, Chief Executive Officer of Dario. "In managing chronic health, Dario owns the whole stack. We own the devices, the data and the AI, built over more than a decade. DarioIQ turns that integrated stack into results we can measure for members and for the clients who pay for outcomes. And this is work from just the first half of 2026. We are still at the beginning of what we can do."

Unlike general-purpose AI models trained primarily on public information, DarioIQ is powered by a de-identified dataset of more than 13 billion proprietary real-world healthcare data points collected across Dario's business-to-consumer ("B2C") experience. By combining biometric readings from U.S. Food and Drug Administration ("FDA")-cleared connected devices, clinical history and member behavioral engagement patterns, DarioIQ determines the right message, delivered through the right channel, at the right time for each individual member. This helps improve engagement while increasing the efficiency of outreach. Every new member interaction strengthens the intelligence of the system, further enhancing the asset as the platform grows and AI capabilities continue to evolve. Consistent with Dario's responsible-AI practices, DarioIQ operates with human and clinical oversight, privacy safeguards and continuous monitoring.

The Company's recently announced expansion into provider-backed care further increases the long-term value of DarioIQ by connecting AI-driven engagement directly to clinical intervention. As Dario expands into larger healthcare markets, the same AI engine can support a broader range of clinical workflows, provider interactions and reimbursement opportunities.

About DarioHealth Corp. (NASDAQ: DRIO)

DarioHealth Corp. (NASDAQ: DRIO) is an AI-powered healthcare technology company helping health plans, health systems and employers improve health outcomes while lowering the cost of care. The Company's integrated platform combines connected devices, personalized member engagement, AI-driven insights and provider-backed clinical care to support people living with conditions including diabetes, hypertension, weight management, musculoskeletal and behavioral health needs.

Powered by more than 13 billion proprietary longitudinal healthcare data points collected over more than a decade, Dario's AI platform personalizes care at the individual member level by analyzing biometric, clinical and behavioral data to deliver more timely and effective interventions. By combining engagement, clinical intelligence and care delivery within a single platform, Dario helps customers address multiple chronic conditions through one solution.

Cautionary Note Regarding Forward-Looking Statements

This news release and the statements of representatives and partners of DarioHealth Corp. related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, the Company is using forward-looking statements in this press release when discussing the expected broader deployment and future performance of DarioIQ™; the expected increase in annual B2B2C recurring revenue from existing customers; the anticipated impact of DarioIQ on member engagement, retention, clinical outcomes and customer ROI; the expectation that DarioIQ's performance will continue to improve as its models are enhanced with additional data; the expected benefits of the Company's proprietary AI platform and dataset; the anticipated ability of DarioIQ to improve the efficiency of outreach and strengthen the platform through additional member interactions; the expected long-term value of the Company's expansion into provider-backed care; the anticipated ability of DarioIQ to support broader clinical workflows, provider interactions and reimbursement opportunities; the Company's growth strategy, including future customer wins and additional condition expansions; and the Company's beliefs, expectations, objectives, plans and prospects. Without limiting the generality of the foregoing, words such as "plan," "project," "potential," "seek," "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Factors that may affect the Company's results include, but are not limited to, regulatory approvals, product demand, market acceptance, impact of competitive products and prices, product development, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks, and the risks associated with the adequacy of existing cash resources. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements include, but are not limited to, those risks discussed in the Company's filings with the U.S. Securities and Exchange Commission. Readers are cautioned that actual results (including, without limitation, the timing for and results of the Company's commercial and regulatory plans for Dario™ as described herein) may differ significantly from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Logo: https://mma.prnewswire.com/media/2866807/Dario_Logo.jpg

DarioHealth Corporate Contacts

Michael Lipari
SVP Corporate Development
irteam@dariohealth.com
+1-201-785-6310

Rob Halpern
SVP Marketing
irteam@dariohealth.com

View original content:https://www.prnewswire.com/news-releases/dario-expects-proprietary-ai-engine-darioiq-to-increase-recurring-revenue-from-existing-customers-by-10-15-302823563.html

SOURCE DarioHealth Corp.

FAQ

What revenue impact does DarioIQ™ aim to have on DarioHealth (NASDAQ: DRIO) as of July 13, 2026?

DarioHealth expects DarioIQ to increase annual B2B2C recurring revenue from existing customers by about 10%–15%. According to DarioHealth, this projected uplift excludes any contribution from future customer wins or additional condition expansions, focusing only on current client relationships.

How does DarioIQ™ improve member engagement and retention for DarioHealth (DRIO)?

DarioIQ reportedly increases active member engagement by 40% and improves member retention by 20% versus a control group. According to DarioHealth, these gains come from highly personalized interventions tailored to each member’s health profile and behavior during development completed in the first half of 2026.

What data powers the DarioIQ™ AI engine used by DarioHealth (NASDAQ: DRIO)?

DarioIQ is powered by over 13 billion de-identified proprietary real-world healthcare data points from Dario’s B2C experience. According to DarioHealth, it combines biometric readings from FDA-cleared connected devices, clinical history and behavioral patterns to optimize outreach timing, messaging and delivery channel.

What return on investment (ROI) does DarioHealth report for its programs using DarioIQ™?

DarioHealth reports a proven ROI of 2.5x–5x across its programs supported by DarioIQ and its platform. According to DarioHealth, higher engagement, retention and clinical outcomes can increase member lifetime value and improve customer ROI without proportionally increasing customer acquisition costs.

How does DarioHealth’s expansion into provider-backed care relate to DarioIQ™?

DarioHealth states that expansion into provider-backed care increases the long-term value of DarioIQ by linking engagement to clinical intervention. According to DarioHealth, the same AI engine can support broader clinical workflows, provider interactions and reimbursement opportunities as it moves into larger healthcare markets.

What differentiates DarioIQ™ from general-purpose AI models in healthcare?

DarioIQ is built on proprietary, de-identified healthcare data rather than mainly public information like many general models. According to DarioHealth, it combines devices, data and AI in an integrated stack with human oversight, privacy safeguards and continuous monitoring as part of its responsible-AI approach.