DarioHealth Reports First Quarter 2026 Financial and Operating Results
Rhea-AI Summary
DarioHealth (NASDAQ: DRIO) reported first quarter 2026 revenue of $5.6 million, up 6.7% sequentially but below $6.8 million a year earlier, mainly due to non-recurring prior pharma revenue. GAAP gross margin was 57%; operating expenses fell to $10.5 million (down 21% YoY), cutting operating loss to $7.3 million. Net loss was $8.2 million. Cash and short-term deposits totaled $20 million, with $6 million net cash used in operations. Channel partnerships provide access to over 116 million covered lives, with a new contract in progress that could raise reach above 175 million. DarioHealth added 10 new accounts and reported a $127 million pipeline across 241 active opportunities.
Positive
- Revenue rose 6.7% sequentially to $5.6 million in Q1 2026
- GAAP gross margin held at 57%, up from 54% sequentially
- Operating expenses declined 21% YoY to $10.5 million
- GAAP operating loss improved 22% YoY to $7.3 million
- Net cash used in operations fell 10% YoY to $6 million
- Channel partnerships now cover 116 million lives, with potential to exceed 175 million
- Sales pipeline of approximately $127 million across 241 active opportunities
Negative
- Revenue declined year-over-year from $6.8 million to $5.6 million
- GAAP net loss remained high at $8.2 million in Q1 2026
- Non-GAAP net loss increased 12% YoY to $6.3 million
- GAAP gross profit fell YoY from $3.9 million to $3.2 million
- Non-GAAP gross margin declined YoY from 71% to 61%
News Market Reaction – DRIO
In the May 13 session, DRIO declined 6.68%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 19 | Q4 2025 earnings | Positive | -7.7% | Reported Q4 and full-year 2025 results with $22.4M revenue and 57% margin. |
| Nov 13 | Q3 2025 earnings | Positive | -15.6% | Q3 2025 results showed shift to ARR, 60% GAAP margins, strong pipeline and cash. |
| Aug 12 | Q2 2025 earnings | Positive | -14.8% | Q2 2025 revenue $5.4M with big cuts in operating loss and expenses year-over-year. |
| May 14 | Q1 2025 earnings | Positive | -8.5% | Q1 2025 revenue $6.75M, margin gains and lower operating expenses versus prior year. |
| Mar 10 | FY 2024 earnings | Positive | -8.0% | Full-year 2024 revenue $27.0M, strong B2B2C growth and improved operating loss. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases over the past five quarters have consistently been followed by negative next-day moves despite operational improvements, making today’s positive reaction an exception to the usual pattern.
Over the last several earnings cycles, DarioHealth reported solid operational progress but saw its shares trade lower after results. Q4 2025 revenue was $5.2M with full-year 2025 revenue of $22.4M versus $27.0M in 2024, as the company shifted away from legacy one-time revenue. Prior quarters highlighted strong B2B2C gross margins around 80%, sizable pipelines (up to $122M), and cash raises including a $25.6M equity financing. Despite these fundamentals, each earnings release in 2024–2025 saw a negative 24-hour price reaction, contrasting with today’s positive response.
Key Terms
non-GAAP financial
B2B2C financial
musculoskeletal ("MSK") medical
artificial intelligence ("AI") technical
U.S. Food and Drug Administration regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
- First quarter 2026 revenues increased to
$5.6 million - Operating expenses decreased by
21% year-over-year and decreased by8% quarter-over-quarter - Operating loss decreased by
22% year-over-year and decreased by15% quarter-over-quarter; Non-GAAP operating loss decreased by8% year-over-year and decreased by11% quarter-over-quarter - Channel partnerships through Solera, Amwell and other blue-chip partners provide access to over 116 million covered lives
- Now in contracting phase with new channel partner that, upon finalization, would extend Dario's reach to a combined 175+ million covered lives and add one of the largest hospital networks in the northeastern
U.S. as a day-one anchor account - 10 new accounts added during the first quarter ended March 31, 2026 — all outside the normal benefit cycle; Approximately
$127 million
"The first quarter of 2026 was our second consecutive quarter of sequential revenue growth, alongside continued reductions in operating expenses. Our channel partner ecosystem now provides access to more than 116 million covered lives through blue-chip partners such as Solera and Amwell. These relationships are expanding our reach into leading national and regional payer organizations across the
"In a strategic move, we are also moving closer to care, backed by more than 100 peer-reviewed clinical studies, which we believe expands both our role and our revenue model into claims-based and outcomes-driven payments. This move broadens our platform toward clinical gap closure and care delivery, with the potential of positioning Dario across a larger share of the healthcare workflow and associated spend, while continuing to grow our subscription-based annual recurring revenue contracts," Raphael added.
Underpinning this strategy, DarioIQ™ — Dario's proprietary artificial intelligence ("AI") layer, operating on 13 billion real-world data points generated through
Steven Nelson, Dario's President and Chief Commercial Officer, commented, "Our channel-led commercial model is producing the compounding effect we built it for. With 10 new accounts all off cycle already added in the first quarter of 2026 and several large, contracted enterprise implementations coming in the second half of the year, we believe that we are reaching the phase where our 2025 sales execution translates into meaningful scale."
First Quarter 2026 Financial Highlights
- Revenue of
$5.6 million $5.2 million - GAAP gross margin of
57% ; Non-GAAP business-to-business-to-consumer ("B2B2C") gross margin of approximately80% for the ninth consecutive quarter - Operating expenses of
$10.5 million 21% year-over-year and decreased by8% sequentially; operating loss of$7.3 million 22% year-over-year and decreased by15% sequentially - Cash and short-term deposits of
$20 million $6 million 10% year-over-year.
"We delivered a second consecutive quarter of sequential revenue growth with sustained B2B2C gross margins, while further reducing operating expenses. With our cash position and continued cost discipline, we believe that we are well positioned to expand our operating leverage," said Chen Franco Yehuda, Dario's Chief Financial Officer.
Financial Results for the Three Months Ended March 31, 2026
Revenue for the three months ended March 31, 2026 was
Gross profit for the three months ended March 31, 2026 was
Non-GAAP gross profit, excluding
Total operating expenses for the three months ended March 31, 2026, were
Non-GAAP operating expenses (excluding stock-based compensation, depreciation and amortization expenses) for the three months ended March 31, 2026, were
Operating loss for the three months ended March 31, 2026 was
Non-GAAP operating loss (excluding stock-based compensation, and depreciation and amortization) for the three months ended March 31, 2026 was
Net loss was
Non-GAAP net loss (excluding stock-based compensation, depreciation and amortization expenses) for the three months ended March 31, 2026 increased by
A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Conference Call Details
Date: Wednesday, May 13th, 2026, 8:30 a.m. Eastern Time
Dial-in Number: 1-800-717-1738 (domestic) or 1-646-307-1865 (international)
Call me™: https://emportal.ink/4seOwJK
Participants can use the dial-in numbers above and be answered by an operator OR click the Call me™ link for instant telephone access to the event. This link will be made active 15 minutes prior to the scheduled start time.
Webcast link: https://viavid.webcasts.com/starthere.jsp?ei=1756269&tp_key=7306dc53e7
Participants are asked to dial in approximately 10 minutes prior to the start of the event. A replay of the call will be available approximately three hours after completion of the conference call through Wednesday, May 27th, 2026. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 1111468.
About DarioHealth Corp. (NASDAQ: DRIO)
DarioHealth Corp. (Nasdaq: DRIO) is a leading digital health company revolutionizing how people with chronic conditions manage their health through a user-centric, multi-chronic condition digital therapeutics platform. Dario's platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain and behavioral health.
Dario's user-centric platform offers people continuous and customized care for their health, disrupting the traditional episodic approach to healthcare. This approach empowers people to holistically adapt their lifestyles for sustainable behavior change, driving exceptional user satisfaction, retention and results and making the right thing to do the easy thing to do.
Dario provides its highly user-rated solutions globally to health plans and other payers, self-insured employers, providers of care and consumers. To learn more about Dario and its digital health solutions, or for more information, visit http://dariohealth.com.
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 it discusses expectations regarding recurring revenue contribution from agreements signed in 2025, potential future growth trajectory and scaling opportunities, the expected expansion of channel partner reach and covered lives, the potential addition of a major northeastern
Non-GAAP Financial Measures
This release includes financial measures that are not prepared in accordance with
Operating expenses (non-GAAP). Our presentation of non-GAAP operating expenses excludes stock-based compensation expenses, amortization of acquisition-related expenses and depreciation of fixed assets. Due to varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company's non-cash operating expenses, we believe that providing non-GAAP financial measures that exclude non-cash expenses provides us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.
Net loss (non-GAAP). Our presentation of adjusted net loss excludes the effect of certain items that are non-GAAP financial measures. Adjusted net loss represents net loss determined under GAAP without regard to stock-based compensation expenses, depreciation and impairment expense, amortization of acquired technology and brand, financial (income) expenses, net, income tax, and acquisition costs. We believe these measures provide useful information to management and investors for analysis of our operating results.
DarioHealth Corporate Contact
Zoe Harrison
VP, Accounting and Corporate Development
irteam@dariohealth.com
DarioHealth Investor Relations Contact
Michael Lipari
SVP Corporate Development
irteam@dariohealth.com
+1-201-785-6310
DARIOHEALTH CORP. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
| ||||||
March 31, | December 31, | |||||
2026 | 2025 | |||||
ASSETS | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ | 14,977 | $ | 21,803 | ||
Short-term bank deposits | 5,035 | 4,214 | ||||
Short-term restricted bank deposits | 252 | 229 | ||||
Trade receivables, net | 2,219 | 2,144 | ||||
Inventories | 4,172 | 4,316 | ||||
Other accounts receivable and prepaid expenses | 2,079 | 2,361 | ||||
Total current assets | 28,734 | 35,067 | ||||
NON-CURRENT ASSETS: | ||||||
Deposits | 80 | 80 | ||||
Operating lease right of use assets | 607 | 717 | ||||
Long-term assets | 454 | 304 | ||||
Property and equipment, net | 511 | 549 | ||||
Intangible assets, net | 15,468 | 15,931 | ||||
Goodwill | 57,427 | 57,427 | ||||
Total non-current assets | 74,547 | 75,008 | ||||
Total assets | $ | 103,281 | $ | 110,075 | ||
The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.
DARIOHEALTH CORP. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
| ||||||
March 31, | December 31, | |||||
2026 | 2025 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Trade payables | $ | 3,468 | $ | 2,928 | ||
Deferred revenues | 501 | 714 | ||||
Operating lease liabilities | 378 | 430 | ||||
Other accounts payable and accrued expenses | 5,010 | 5,251 | ||||
Total current liabilities | 9,357 | 9,323 | ||||
NON-CURRENT LIABILITIES | ||||||
Operating lease liabilities | 507 | 571 | ||||
Long-term loan | 30,931 | 30,747 | ||||
Warrant liability | 23 | 1,466 | ||||
Other long-term liabilities | 83 | 46 | ||||
Total non-current liabilities | 31,544 | 32,830 | ||||
STOCKHOLDERS' EQUITY ** | ||||||
Common stock of | 4 | 4 | ||||
Additional paid-in capital | 522,703 | 519,996 | ||||
Accumulated deficit | (460,327) | (452,078) | ||||
Total stockholders' equity | 62,380 | 67,922 | ||||
Total liabilities and stockholders' equity | $ | 103,281 | $ | 110,075 | ||
The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.
DARIOHEALTH CORP. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
| ||||||
Three months ended | ||||||
March 31, | ||||||
2026 | 2025 | |||||
Revenues: | ||||||
Services | $ | 2,826 | $ | 4,875 | ||
Consumer hardware | 2,758 | 1,877 | ||||
Total revenues | 5,584 | 6,752 | ||||
Cost of revenues: | ||||||
Services | 563 | 865 | ||||
Consumer hardware | 1,644 | 1,130 | ||||
Amortization of acquired intangible assets | 177 | 875 | ||||
Total cost of revenues | 2,384 | 2,870 | ||||
Gross profit | 3,200 | 3,882 | ||||
Operating expenses: | ||||||
Research and development | $ | 2,385 | $ | 4,108 | ||
Sales and marketing | 4,898 | 5,873 | ||||
General and administrative | 3,226 | 3,310 | ||||
Total operating expenses | 10,509 | 13,291 | ||||
Operating loss | 7,309 | 9,409 | ||||
Interest expenses | 1,149 | — | ||||
Other financial income, net | (266) | (204) | ||||
Total financial expenses (income), net | 883 | (204) | ||||
Loss before taxes | 8,192 | 9,205 | ||||
Income tax (benefit) | 57 | 22 | ||||
Net loss | $ | 8,249 | $ | 9,227 | ||
Deemed dividend | $ | — | $ | 4,839 | ||
Net loss attributable to common shareholders | $ | 8,249 | $ | 14,066 | ||
Net loss per share: | ||||||
Basic and diluted loss per share of common stock | $ | 1.25 | $ | 2.87 | ||
Weighted average number of common stock used in computing basic and | 6,582,297 | 2,368,516 | ||||
DARIOHEALTH CORP. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
| ||||||
Three months ended | ||||||
March 31, | ||||||
2026 | 2025 | |||||
Cash flows from operating activities: | ||||||
Net loss | $ | (8,249) | $ | (9,227) | ||
Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||
Stock-based compensation | 1,441 | 2,342 | ||||
Change in operating lease right of use assets | 110 | 110 | ||||
Amortization of acquired intangible assets | 463 | 1,162 | ||||
Depreciation and impairment | 61 | 94 | ||||
Change in fair value of warrant liability | (177) | (1,115) | ||||
Accrued interest on short term bank deposits | (21) | — | ||||
Non-cash financial expenses | 159 | 293 | ||||
Changes in operating assets and liabilities: | ||||||
Decrease (increase) in trade receivables, net | (75) | 1,597 | ||||
Decrease (increase) in other accounts receivable, prepaid expense and long-term assets | 269 | (369) | ||||
Decrease in inventories | 144 | 130 | ||||
Increase (decrease) in trade payables | 535 | (300) | ||||
Decrease in other accounts payable and accrued expenses | (341) | (1,666) | ||||
Decrease in deferred revenues | (213) | (278) | ||||
Decrease in operating lease liabilities | (116) | (126) | ||||
Other | (15) | 680 | ||||
Net cash used in operating activities | (6,025) | (6,673) | ||||
Cash flows from investing activities: | ||||||
Investment in short term bank deposit | (5,000) | — | ||||
Proceeds from maturity of short-term bank deposit | 4,200 | — | ||||
Purchase of property and equipment | (31) | (31) | ||||
Disposals of property and equipment | 5 | — | ||||
Net cash used in investing activities | (826) | (31) | ||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of preferred stock, net of issuance costs | — | 6,815 | ||||
Net cash provided by financing activities | — | 6,815 | ||||
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | (6,851) | 111 | ||||
Effect of exchange rate differences on cash, cash equivalents and restricted cash and cash | 25 | (21) | ||||
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 21,803 | 27,764 | ||||
Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ | 14,977 | $ | 27,854 | ||
Supplemental disclosure of cash flow information: | ||||||
Cash paid during the period for interest on long-term loan | $ | 965 | $ | 937 | ||
Non-cash activities: | ||||||
Exercise of pre-funded warrants to common stock | $ | 1,266 | $ | 1,750 | ||
Deferred cost related to ATM offering | $ | 137 | $ | — | ||
Purchase of property and equipment on credit | $ | 5 | $ | — | ||
Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted | ||||||||
Operating Loss, Net Loss and Operating Expenses (Non-GAAP) | ||||||||
Three months ended March 31, 2026 | ||||||||
GAAP | Stock-Based | Amortization of | Non-GAAP | |||||
Cost of Revenues | $ | 2,384 | (5) | (180) | 2,199 | |||
Gross Profit | 3,200 | 5 | 180 | 3,385 | ||||
Research and development | 2,385 | (92) | (32) | 2,261 | ||||
Sales and Marketing | 4,898 | (133) | (299) | 4,466 | ||||
General and Administrative | 3,226 | (1,211) | (13) | 2,002 | ||||
Total Operating Expenses | 10,509 | (1,436) | (351) | 8,722 | ||||
Operating Loss | $ | (7,309) | 1,441 | 524 | (5,344) | |||
Financing expenses | 883 | - | - | 883 | ||||
Income Tax | 57 | 57 | ||||||
Net Loss | $ | (8,249) | 1,441 | 524 | (6,284) | |||
Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted | ||||||||
Operating Loss, Net Loss and Operating Expenses (Non-GAAP) | ||||||||
Three months ended March 31, 2025 | ||||||||
GAAP | Stock-Based | Amortization of | Non-GAAP | |||||
Cost of Revenues | $ | 2,870 | (10) | (890) | 1,970 | |||
Gross Profit | 3,882 | 10 | 890 | 4,782 | ||||
Research and development | 4,108 | (526) | (40) | 3,542 | ||||
Sales and Marketing | 5,873 | (815) | (311) | 4,747 | ||||
General and Administrative | 3,310 | (991) | (15) | 2,304 | ||||
Total Operating Expenses | 13,291 | (2,332) | (366) | 10,593 | ||||
Operating Loss | $ | (9,409) | 2,342 | 1,256 | (5,811) | |||
Financing expenses | (204) | - | - | (204) | ||||
Income Tax | 22 | 22 | ||||||
Net Loss | $ | (9,227) | 2,342 | 1,256 | (5,629) | |||
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SOURCE DarioHealth Corp.