DarioHealth Reports Third Quarter 2026 Financial Results: Year-over-Year Revenue Growth and Operating Expense Reduction

Direct-to-consumer growth offset declining business customer revenue, while quarterly gross margin fell against both comparison periods.

Rhea-AI Summary

DarioHealth (DRIO) reported third-quarter 2026 revenue of $5.3 million, with year-over-year growth and lower operating expenses than a year earlier. Revenue rose 6% year over year and 3% sequentially, driven by direct-to-consumer sales. Gross margin fell to 59.2%, from 60.2% a year earlier and 61.7% in the second quarter. Operating loss was $8.0 million, versus $9.5 million a year earlier and $6.5 million sequentially.

Cash, cash equivalents and short-term deposits totaled $31.2 million at September 30. Dario signed a New Jersey health plan covering approximately 1.5 million lives, with revenue expected to begin in 2027. Contracted and late-stage annual recurring revenue totaled $13.1 million. The company expects revenue growth to accelerate at the end of 2026 and into 2027. Nine-month revenue fell to $16.1 million from $17.1 million, while net loss narrowed to $25.0 million from $32.7 million.

22 points · 0 major

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0 major · 6 points

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Positive

• Moderate pointThird-quarter revenue rose 6% year over year and 3% sequentially to $5.3 million.
• Moderate pointDirect-to-consumer sales increased approximately 48% year over year in the third quarter.
• Moderate pointThird-quarter operating expenses fell 10% year over year to $11.2 million, but rose 16% sequentially.
• Moderate pointThird-quarter operating loss narrowed 15% year over year to $8.0 million, but increased 24% sequentially.
• Moderate pointThird-quarter net loss narrowed to $8.8 million from $10.5 million annually, but widened from $7.9 million sequentially.
• Moderate point. Forward-looking: it has not happened yet and may not happen.New Jersey health plan agreement covers approximately 1.5 million lives; revenue contribution is expected to begin in 2027.
• Moderate pointChannel-sourced business grew more than 2x year over year across multiple contracting paths.
• Moderate pointSigned accounts exceed 180; contracted and late-stage annual recurring revenue totals $13.1 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Dario expects revenue acceleration at the end of 2026 and into 2027, primarily from committed recurring revenue conversion.
• Moderate pointNine-month operating expenses declined 17% to $31.4 million, versus $38.0 million a year earlier.
• Moderate pointNine-month operating loss improved 22% to $21.8 million, versus $28.1 million a year earlier.
• Moderate pointNine-month net loss improved 23% to $25.0 million, versus $32.7 million a year earlier.

10 minor points

• Minor pointThird-quarter gross profit rose approximately 4% year over year to $3.1 million, but fell approximately 2% sequentially.
• Minor pointBusiness-to-business-to-consumer gross margin, excluding specified accounting items, remained approximately 80% for the 11th consecutive quarter.
• Minor pointMulti-condition opportunities represent more than 80% of contracted and late-stage annual recurring revenue.
• Minor point. Forward-looking: it has not happened yet and may not happen.Regional grocery retailer contract expanded to include Dario Women, expected to become available to eligible insured employees in 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.National health plan customer is working with Dario to extend its relationship into GLP-1 therapy delivery.
• Minor point. Forward-looking: it has not happened yet and may not happen.Third-party analysis of 17 studies supports an estimated 2.5% to 7.2% annual reduction in total healthcare costs.
• Minor pointType 2 diabetes findings included $5,077 annual healthcare savings per user and 23.5% fewer inpatient discharges versus matched non-users.
• Minor pointDarioIQ early outreach recipients returned within one week at 1.7 times the rate of comparable members not reached.
• Minor point. Forward-looking: it has not happened yet and may not happen.Dario expects DarioIQ could increase existing customers' engagement-based recurring revenue by up to approximately 14%.
• Minor pointNine-month gross margin improved to 59.4% from 57.6% in the prior-year period.

Negative

• Moderate pointThird-quarter gross margin fell to 59.2%, versus 60.2% a year earlier and 61.7% sequentially.
• Moderate pointBusiness-to-business and business-to-business-to-consumer revenue declined year over year, reflecting non-renewal of several legacy Twill contracts.
• Moderate pointNine-month revenue declined to $16.1 million from $17.1 million, reflecting prior-year non-recurring pharmaceutical partner revenue.
• Minor pointThird-quarter stock-based compensation rose to $2.2 million from $0.6 million in the second quarter.
• Minor pointNine-month gross profit declined to $9.5 million from $9.9 million a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Health plan administrative-services agreements represent approximately 40% of contracted and late-stage recurring revenue; revenue builds as employers activate.

News Explained

At September 30, cash and short-term investments equaled 517.5 days of third-quarter operating cash use at the third-quarter rate.

Dario has reported its third-quarter 2026 results; the balance sheet lists 11,197,024 shares issued and outstanding on September 30, 2026, versus 6,905,948 on December 31, 2025, so a holder whose share count stayed constant held a smaller fraction of the company.

Sources and calculations

• DarioHealth third-quarter 2026 results (2026-11-12)
• DarioHealth third-quarter 2026 fundamentals (2026Q3)

• Available liquidity against the last reported quarterly operating outflow, in days at that rate ($27,844,000 + $3,309,000) / ($5,538,000 / 92) = 517.5 days

Key Figures

Third-quarter revenue: $5.3 million; up 6% year over year and 3% sequentially GAAP gross margin: 59.2% Non-GAAP B2B2C gross margin: Approximately 80% +5 more

Third-quarter revenue

$5.3 million; up 6% year over year and 3% sequentially

Third quarter 2026

GAAP gross margin

59.2%

Third quarter 2026; compared with 60.2% in Q3 2025 and 61.7% in Q2 2026

Non-GAAP B2B2C gross margin

Approximately 80%

Maintained for the 11th consecutive quarter

Operating expenses

$11.2 million; down 10% year over year and up 16% quarter over quarter

Third quarter 2026

Operating loss

$8.0 million; improved 15% year over year and increased 24% quarter over quarter

Third quarter 2026

Net loss

$8.8 million

Third quarter 2026; compared with $10.5 million in Q3 2025 and $7.9 million in Q2 2026

Nine-month revenue

$16.1 million

First nine months of 2026; compared with $17.1 million in the prior-year period

Cash, cash equivalents and short-term deposits

$31.2 million

As of September 30, 2026

Previous Earnings Reports

2 past events · Latest: Aug 11

Same Type 2 events

1. Aug 11

   Q2 earnings

   24h Move

   +0.1%

   Revenue fell year over year; B2B2C margin held near 80% for the tenth consecutive quarter.

2. Nov 13

   Q3 earnings

   24h Move

   -15.6%

   Third-quarter revenue fell to $5.0 million year over year; GAAP gross margin was 60%.

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

Key Terms

annual recurring revenue, glp-1, gaap, non-gaap

4 terms

annual recurring revenue financial

"conversion of committed annual recurring revenue ("ARR")"

Annual recurring revenue is the predictable amount of money a company expects to earn each year from ongoing customer subscriptions or contracts. It helps businesses understand how much steady income they can count on, much like a subscription service that charges customers every month or year. This figure is important because it shows the company's stability and growth potential.

glp-1 medical

"bring GLP-1 therapy delivery into its member marketplace"

GLP-1 (glucagon-like peptide-1) is a natural hormone in the body that helps regulate blood sugar levels and appetite. Its significance to investors lies in its role as the basis for a class of medications that address conditions like type 2 diabetes and obesity, which are large and growing markets. Advances or investments in GLP-1-based treatments can signal opportunities in healthcare innovation and potentially impact pharmaceutical companies’ growth.

gaap financial

"GAAP gross margin was 59%"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"non-GAAP business-to-business-to-consumer"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

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

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• Third quarter 2026 revenue increased 6% year-over-year and 3% sequentially to $5.3 million
• GAAP gross margin was 59%, compared to 60% in the third quarter of 2025; non-GAAP business-to-business-to-consumer ("B2B2C") gross margin remained at approximately 80% for the 11th consecutive quarter
• Revenue expected to accelerate at the end of 2026 and into 2027, driven primarily by the conversion of committed annual recurring revenue ("ARR"), including new enterprise customers and multi-condition expansions, such as Dario Women™ and Dario Sleep
• Expanding payer relationships from digital health behavior programming to integrated clinical care and medication management: working with a national health plan customer to bring GLP-1 therapy delivery into its member marketplace
• Signed one of New Jersey's largest health plans, representing 1.5 million covered lives, the third state health plan signed through the Amwell channel partnership in the past 12 months
• Operating loss decreased by 15% year-over-year while operating expenses declined by 10% year-over-year
• Cash, cash equivalents and short-term deposits totaled $31.2 million as of September 30, 2026
• More than 180 signed accounts across employers and health plans, with contracted and late-stage ARR of $13.1 million, more than 80% of it relates to multi-condition opportunities
• Conference call today, November 12, 2026 at 8:30 am ET

NEW YORK, Nov. 12, 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 financial results for the third quarter ended September 30, 2026.

"In the second quarter of 2026, we described how Dario's business model is designed to support growth. We believe that our third quarter of 2026 shows that model is working, with multi-condition expansion within existing accounts and new health plan agreements through our channel partners," said Erez Raphael, Chief Executive Officer of DarioHealth. "At the same time, the market is moving toward the integrated platform we have spent more than a decade building. For years, the industry treated consumer health and payer-funded chronic care as two different businesses. We believe they are becoming one, and Dario sits exactly where they meet. Payers are moving from buying programs around a single therapy to buying a multi-condition integrated platform, as well as the therapy delivered inside a managed program, and we see that as a meaningful expansion of what Dario can do for payers and their members."

Today's consumer increasingly chooses the entry point into care, while the payer continues to fund the chronic condition behind it, and Dario believes the value in the market will move to whoever owns the path between the two. One of the largest national health insurers, an existing Dario customer, plans to implement a marketplace model that combines consumer choice with payer funding. This customer is working with Dario to extend the relationship from the digital program to delivery of the GLP-1 therapy itself.  Dario views the convergence of these markets around access to specific therapies, inside a managed and measured program, as a significant opportunity.

Dario believes this shift will move chronic care management from single-condition apps to an AI-led, clinically governed system built on one member record. We believe Dario is one of very few platforms with consumer engagement and payer-grade evidence on the same member record, built over more than a decade on both sides: consumer roots and FDA-cleared connected devices in the home, more than 13 billion proprietary data points, more than 100 published studies and payer savings analyses prepared by third party, all on one platform. As payers bring specific therapies into the benefit, starting with GLP-1, Dario aims to connect access to therapy with the chronic conditions it already manages, supported by its existing member engagement capabilities and clinical and economic evidence.

Commercial Highlights:

Added New Enterprise Accounts Through Channel Partners and Expanded Within Existing Customers

• Signed one of New Jersey's largest health plans, representing approximately 1.5 million covered lives, through the Amwell channel partnership, with revenue contribution expected to begin in 2027.
• Approximately 40% of Dario's contracted and late-stage ARR comes from health plan ASO agreements, such as the new customer in New Jersey, which open access to a plan's self-insured employer book; revenue from these agreements builds over a multi-year horizon as each employer activates.
• Channel-sourced business grew more than 2x year-over-year, with growth across multiple contracting paths, including direct, reseller, health plan ASO or TPA, and marketplace.
• Expanded an existing contract with a leading regional grocery retailer, that has more than 200 stores and 19,000 employees, to add Dario Women™ program expected to become available to eligible insured employees in 2027.

Expanded Multi-Condition Platform

• Launched Dario Women™ and Dario Sleep, extending the Company's integrated platform into menopause, perimenopause and obstructive sleep apnea.
• Nearly 45% of Dario's current book of business consists of women over age 40, representing an opportunity to expand adoption of Dario Women™ across more of its existing enterprise customers.
• Dario views women's health, alongside men's health, as an additional growth driver, extending its multi-condition platform into conditions closely linked to cardiometabolic risk and selling into customer relationships it already holds.

Validation of Dario Platform's Clinical and Economic Value

• 3^rd party analysis of 17 studies supports an estimated 2.5% to 7.2% annual reduction in total healthcare costs, representing approximately $3.8 million to $10.8 million in annual savings for a representative population of 20,000 covered lives.
• Analysis included findings of $5,077 in annual healthcare savings per user with type 2 diabetes and 23.5% fewer inpatient discharges compared with matched non-users.

DarioIQ: The Engine Underneath

• DarioIQ™ advanced from discrete engagement programs to an integrated AI system designed to predict member disengagement and trigger targeted interventions: members reached early returned within one week at 1.7 times the rate of comparable members not reached
• Results measured during the quarter now support the Company's expectation that DarioIQ could contribute to an increase of up to approximately 14% in engagement-based B2B2C ARR from existing customers
• DarioIQ, the Company's generative AI layer, is now deployed across the organization and is one of several contributors to the 10% year-over-year reduction in operating expenses

"We are adding large health plans through our channel partners and expanding inside the accounts we already serve," said Lara Dodo, Chief Operating Officer. "The rapid adoption of our new solutions like Dario Women reflects growing customer interest for more personalized, integrated care. We are meeting that demand with solutions that address interconnected chronic conditions and are demonstrated to deliver better health outcomes."

Third Quarter 2026 Financial Highlights:

• Revenue grew to $5.3 million, compared with $5.2 million in the second quarter of 2026 and $5.0 million in the third quarter of 2025. The year-over-year increase of 6% was primarily driven by continued growth in direct-to-consumer sales, which increased approximately 48% year-over-year. Business-to-business (B2B) and B2B2C revenue decreased compared to 2025, reflecting the non-renewal of several of Twill's legacy contracts, partially offset by growth from channel partners.
• Gross profit increased to $3.1 million, up approximately 4% year-over-year and down approximately 2% quarter-over-quarter.
• GAAP gross margin was 59%, compared with 60% in the third quarter of 2025 and 62% in the second quarter of 2026. The decline primarily reflects a lower IEEPA tariff refund benefit in the third quarter compared to the second quarter of 2026. Compared to the third quarter of 2025, the decline primarily reflects a higher direct-to-consumer mix, partly offset by lower hosting costs.   Non-GAAP B2B2C gross margin remained at approximately 80% for the 11th consecutive quarter.
• Operating expenses were $11.2 million, down 10% year-over-year and up 16% quarter-over-quarter, while operating loss improved 15% year-over-year and increased 24% quarter-over-quarter. The sequential increase primarily reflects higher stock-based compensation, which was $2.2 million in the third quarter compared with $0.6 million in the second quarter.
• Cash, cash equivalents and short-term deposits totaled $31.2 million as of September 30, 2026.

"We grew revenue 6% year-over-year while reducing our operating expenses by 10% and our operating loss by 15%. Our B2B2C gross margin has remained strong, and we are focused on scaling that model," said Chen Franco-Yehuda, Chief Financial Officer. "With $31.2 million in cash, cash equivalents and short-term deposits, we believe we have the resources to execute on our priorities."

Third Quarter 2026 Financial Results

Revenue grew to $5.3 million for the third quarter of 2026, compared with $5.0 million in the third quarter of 2025 and $5.2 million in the second quarter of 2026, representing increases of 6% and 3%, respectively. The year-over-year increase primarily reflects growth in direct-to-consumer sales.

Gross profit was $3.1 million, compared with $3.0 million in the third quarter of 2025 and $3.2 million in the second quarter of 2026. Gross margin was 59.2%, compared with 60.2% in the third quarter of 2025 and 61.7% in the second quarter of 2026, primarily reflecting changes in revenue mix, including increased direct-to-consumer sales, partially offset by lower hosting costs. Gross margin in the second quarter included an IEEPA tariff refund benefit of approximately $0.4 million, compared with approximately $0.1 million in the third quarter.

Operating expenses declined year-over-year to $11.2 million, compared with $12.5 million in the third quarter of 2025 and $9.7 million in the second quarter of 2026, reflecting lower research and development and general and administrative expenses, partially offset by increased sales and marketing expenses compared to the year-ago period. Operating loss improved to $8.0 million, compared with $9.5 million in the third quarter of 2025 and $6.5 million in the second quarter of 2026.

Net loss decreased year-over-year to $8.8 million, compared with $10.5 million in the third quarter of 2025, and $7.9 million in the second quarter of 2026.

Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended September 30, 2026 was $5.3 million compared to a non-GAAP operating loss of $6.0 million for the three months ended September 30, 2025, and non-GAAP operating loss of $5.3 million for the three months ended June 30, 2026.

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."

Nine Months Ended September 30, 2026

Revenue for the first nine months of 2026 was $16.1 million, compared with $17.1 million for the first nine months of 2025. The decrease primarily reflected non-recurring revenue from a pharmaceutical partner recognized in the prior-year period, partially offset by growth in B2B2C revenues from channel partners and direct-to-consumer sales.

Gross profit was $9.5 million for the first nine months of 2026, compared with $9.9 million in the prior-year period. Gross margin improved to 59.4%, compared with 57.6% for the first nine months of 2025, primarily reflecting lower amortization of technology and hosting costs and IEEPA tariff refund benefits of approximately $0.4 million.

Operating expenses decreased by 17% to $31.4 million for the first nine months of 2026, compared with $38.0 million for the first nine months of 2025, reflecting lower research and development, sales and marketing, and general and administrative expenses. Operating loss improved by 22% to $21.8 million, compared with $28.1 million in the first nine months of 2025.

Net loss improved by 23% to $25.0 million for the first nine months of 2026, compared with $32.7 million for the first nine months of 2025.

Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the nine months ended September 30, 2026 was $16.0 million compared to Non-GAAP operating loss of $18.2 million for the nine months ended September 30, 2025.

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: Thursday, November 12^th, 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/4623c5K 

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=1775359&tp_key=4596015d94 

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 Thursday, November 26^th, 2026. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 1139413.

About DarioHealth Corp.

DarioHealth (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 it discusses its expectations regarding revenue growth and acceleration, the timing and conversion of contracted and late-stage annual recurring revenue into recognized revenue, the onboarding, implementation and activation of new enterprise and health plan customers, the expansion of existing customer relationships, the anticipated benefits and commercial opportunities associated with Dario Women™, Dario Sleep and DarioIQ™, the potential impact of artificial intelligence on operating efficiency and member engagement, including the ability of DarioIQ™ to identify and predict member disengagement, deliver targeted interventions, improve member re-engagement and contribute to an increase of up to approximately 14% in engagement-based B2B2C annual recurring revenue from existing customers, as well as the expected operational efficiencies and cost savings associated with the deployment and expanded use of DarioIQ™ across the Company's operations, the expected benefits of its channel partnerships, the development and commercialization of integrated clinical care and GLP-1 medication access and management offerings, the anticipated convergence of consumer-directed and payer-funded healthcare, the potential clinical and economic benefits of its solutions, including estimated healthcare cost savings, and its liquidity, financial resources and ability to execute its business strategy. 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.

DarioHealth Corporate Contacts

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

Zoe Harrison
VP, Accounting and Corporate Development
irteam@dariohealth.com 

 

 

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)
U.S. dollars in thousands
		September 30,			December 31,
		2026			2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	27,844		$	21,803
Short-term bank deposits			3,309			4,214
Short-term restricted bank deposits			288			229
Trade receivables, net			1,449			2,144
Inventories			3,538			4,316
Other accounts receivable and prepaid expenses			2,058			2,361
Total current assets			38,486			35,067
NON-CURRENT ASSETS:
Deposits			110			80
Operating lease right of use assets			935			717
Long-term assets			469			304
Property and equipment, net			479			549
Intangible assets, net			14,526			15,931
Goodwill			57,427			57,427
Total non-current assets			73,946			75,008
Total assets		$	112,432		$	110,075
The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.

 

 

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)
U.S. dollars in thousands
		September 30,			December 31,
		2026			2025
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	2,703		$	2,928
Deferred revenues			755			714
Operating lease liabilities			561			430
Other accounts payable and accrued expenses			5,154			5,251
Total current liabilities			9,173			9,323
NON-CURRENT LIABILITIES
Operating lease liabilities			652			571
Long-term loan			31,247			30,747
Warrant liability			12			1,466
Other long-term liabilities			79			46
Total non-current liabilities			31,990			32,830
STOCKHOLDERS' EQUITY **
Common stock of $0.0001 par value - authorized: 400,000,000 shares; issued and outstanding: 11,197,024 and 6,905,948 shares on September 30, 2026 and December 31, 2025, respectively			4			4
Additional paid-in capital			548,365			519,996
Accumulated deficit			(477,100)			(452,078)
Total stockholders' equity			71,269			67,922
Total liabilities and stockholders' equity		$	112,432		$	110,075
The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.

 

 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
U.S. dollars in thousands (except stock and per share data)
		Three months ended						Nine months ended
		September 30,						September 30,
		2026			2025			2026			2025
Revenues:
Services		$	2,554		$	3,209		$	7,964		$	11,745
Consumer hardware			2,757			1,798			8,107			5,383
Total revenues			5,311			5,007			16,071			17,128
Cost of revenues:
Services			533			613			1,535			2,299
Consumer hardware			1,452			1,198			4,463			3,479
Amortization of acquired intangible assets			181			181			535			1,489
Total cost of revenues			2,166			1,992			6,533			7,267
Gross profit			3,145			3,015			9,538			9,861
Operating expenses:
Research and development		$	2,295		$	3,328		$	6,780		$	11,157
Sales and marketing			4,814			4,604			14,684			15,708
General and administrative			4,081			4,567			9,907			11,089
Total operating expenses			11,190			12,499			31,371			37,954
Operating loss			8,045			9,484			21,833			28,093
Interest expenses			1,094			1,157			3,367			1,923
Other financial expenses (income), net			(272)			(175)			(545)			2,645
Total financial expenses, net			822			982			2,822			4,568
Loss before taxes			8,867			10,466			24,655			32,661
Income tax (benefits)			(18)			—			367			22
Net loss		$	8,849		$	10,466		$	25,022		$	32,683
Deemed dividend		$	—		$	8,389		$	—		$	18,800
Net loss attributable to common shareholders		$	8,849		$	18,855		$	25,022		$	51,483
Net loss per share:
Basic and diluted loss per share of common stock		$	0.73		$	2.96		$	2.46		$	9.05
Weighted average number of common stock used in computing basic and diluted net loss per share**			12,060,332			3,138,106			10,179,366			2,673,794
The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.

 

 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)
U.S. dollars in thousands
		Nine months ended
		September 30,
		2026			2025
Cash flows from operating activities:
Net loss		$	(25,022)		$	(32,683)
Adjustments required to reconcile net loss to net cash used in operating activities:
Stock-based compensation			4,279			7,327
Change in operating lease right of use assets			331			319
Amortization of acquired intangible assets			1,405			2,357
Depreciation and impairment			158			247
Change in fair value of warrant liability			(188)			(903)
Accrued interest on short term bank deposits			(45)			—
Non-cash financial expenses			497			2,832
Changes in operating assets and liabilities:
Decrease in trade receivables, net			695			2,429
Decrease (increase) in other accounts receivable, prepaid expense and long-term assets			108			(470)
Decrease (increase) in inventories			778			(117)
Increase (decrease) in trade payables			(237)			424
Decrease in other accounts payable and accrued expenses			(64)			(1,495)
Decrease (increase) in deferred revenues			41			(723)
Decrease in operating lease liabilities			(337)			(248)
Other			(45)			650
Net cash used in operating activities			(17,646)			(20,054)
Cash flows from investing activities:
Investment in short term bank deposit			(9,250)			—
Proceeds from maturity of short-term bank deposit			10,200			—
Purchase of property and equipment			(96)			(116)
Disposals of property and equipment			6			—
Net cash provided by (used in) investing activities			860			(116)
Cash flows from financing activities:
Proceeds from AT-The-Market ("ATM") equity offerings			104			—
Issuance costs related to ATM equity offerings			(104)			—
Proceeds from issuance of common stock, preferred stock and warrant, net of issuance cost			22,824			24,147
Proceeds from borrowings on credit agreement			—			31,700
Repayment of long-term loan			—			(31,515)
Net cash provided by financing activities			22,824			24,332
Increase in cash, cash equivalents and restricted cash and cash equivalents			6,038			4,162
Effect of exchange rate differences on cash, cash equivalents and restricted cash and cash equivalents			3			(19)
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		$	27,844		$	31,907
Supplemental disclosure of cash flow information:
Cash paid during the period for interest on long-term loan		$	2,931		$	2,260
Non-cash activities:
Exercise of pre-funded warrants to common stock		$	1,266		$	2,821
Right-of-use assets obtained in exchange for lease liabilities		$	549		$	—
Purchase of property and equipment on credit		$	12		$	—
The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.

 

 

Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted
Operating Loss, Net Loss and Operating Expenses (Non-GAAP)
U.S. dollars in thousands
Three months ended September 30, 2026
	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
Cost of Revenues	$	2,166		(5)		(184)		1,803
Gross Profit		3,145		5		184		3,374
Research and development		2,295		124		(24)		2,210
Sales and Marketing		4,814		(313)		(304)		4,364
General and Administrative		4,081		(1,764)		(11)		2,132
Total Operating Expenses		11,190		(2,201)		(339)		8,706
Operating Loss	$	(8,045)		2,206		523		(5,332)
Financing expenses		822		-		-		822
Income Tax (benefits)		(18)		-		-		(18)
Net Loss	$	(8,849)		2,206		523		(6,120)

 

 

Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted
Operating Loss, Net Loss and Operating Expenses (Non-GAAP)
U.S. dollars in thousands
Three months ended September 30, 2025
	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
Cost of Revenues	$	1,992		(6)		(192)		1,794
Gross Profit		3,015		6		192		3,213
Research and development		3,328		(389)		(30)		2,909
Sales and Marketing		4,604		(555)		(308)		3,741
General and Administrative		4,567		(2,000)		(17)		2,550
Total Operating Expenses		12,499		(2,944)		(355)		9,200
Operating Loss	$	(9,484)		2,950		547		(5,987)
Financing expenses		928		-		-		982
Net Loss	$	(10,466)		2,950		547		(6,969)

 

 

Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted
Operating Loss, Net Loss and Operating Expenses (Non-GAAP)
U.S. dollars in thousands
Nine months ended September 30, 2026
	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
Cost of Revenues	$	6,531		(12)		(544)		5,975
Gross Profit		9,538		12		544		10,094
Research and development		6,780		(82)		(80)		6,618
Sales and Marketing		14,684		(754)		(902)		13,028
General and Administrative		9,907		(3,431)		(36)		6,440
Total Operating Expenses		31,371		(4,267)		(1,018)		26,086
Operating Loss	$	(21,833)		4,279		1,562		(15,992)
Financing expenses		2,822		-		-		2,822
Income Tax		367		-		-		367
Net Loss	$	(25,022)		4,279		1,562		(19,181)

 

 

Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted
Operating Loss, Net Loss and Operating Expenses (Non-GAAP)
U.S. dollars in thousands
Nine months ended September 30, 2025
	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
Cost of Revenues	$	7,267		(22)		(1,529)		5,716
Gross Profit		9,861		22		1,529		11,412
Research and development		11,157		(1,356)		(104)		9,697
Sales and Marketing		15,708		(1,953)		(926)		12,829
General and Administrative		11,089		(3,996)		(46)		7,047
Total Operating Expenses		37,954		(7,305)		(1,076)		29,573
Operating Loss	$	(28,093)		7,327		2,605		(18,161)
Financing expenses		4,568		-		-		4,568
Income Tax		22		-		-		22
Net Loss	$	(32,683)		7,327		2,605		(22,751)

 

 

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SOURCE DarioHealth Corp.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were DarioHealth's third-quarter 2026 revenue and net loss?

DarioHealth reported $5.3 million in revenue and an $8.8 million net loss for the third quarter of 2026. Revenue increased 6% year over year and 3% sequentially. Net loss narrowed from $10.5 million a year earlier but widened from $7.9 million in the second quarter.

When does DarioHealth expect revenue from its new New Jersey health plan agreement?

Revenue contribution from the new New Jersey health plan agreement is expected to begin in 2027. The plan represents approximately 1.5 million covered lives and was signed through Amwell. It is the third state health plan signed through that channel partnership in the past 12 months.

Why does some DarioHealth health plan revenue build over multiple years?

Revenue from health plan administrative-services agreements builds over a multi-year horizon as individual employers activate. These agreements open access to a health plan's self-insured employer customers and account for approximately 40% of DarioHealth's contracted and late-stage annual recurring revenue.

Why did DarioHealth's third-quarter 2026 gross margin decline?

The year-over-year gross margin decline primarily reflected a higher direct-to-consumer revenue mix, partly offset by lower hosting costs. The sequential decline primarily reflected a smaller tariff refund benefit: approximately $0.1 million in the third quarter, compared with approximately $0.4 million in the second quarter.