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Investor releaseQuarter not tagged2026-08-12DarioHealth (DRIO) Q2 2026 Earnings Call Transcript
Motley Fool
DarioHealth (DRIO) Q2 2026 Earnings Call Transcript
Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 8:30 a.m. ET Chief Executive Officer - Erez Raphael Chief Financial Officer - Chen Franco-Yehuda Chief Operating Officer - Lara Dodo VP, Accounting and Corporate Development - Zoe Harrison Operator: Good morning, ladies and gentlemen, and welcome to the DarioHealth Second Quarter 2026 Results Conference Call. [Operator Instructions] This call is being recorded on Tuesday, August 11, 2026. I would now like to turn the conference over to Zoe Harrison, VP, Accounting and Corporate Development at DarioHealth. Zoe, please go ahead. Zoe Harrison: Thank you, operator, and good morning, everyone. Thank you for joining us today for a discussion of DarioHealth's second quarter of 2026 financial results. Leading the call today will be Erez Raphael, Chief Executive Officer of DarioHealth. He will be joined by Chen Franco, our Chief Financial Officer, and our Chief Operating Officer, Lara Dodo. And Steven Nelson, the company's President and Chief Commercial Officer, is on medical leave. An audio recording and webcast replay for today's call will also be available online as detailed in the press release invite for this call. The benefit of those who may be listening to the replay or archived webcast, this call is being held on Tuesday, August 11, 2026. This morning, we issued a press release announcing our financial results for the second quarter of 2026. A copy of the release can be found on the Investor Relations page of DarioHealth website. I'd like to remind you that on this call, management will make forward-looking statements within the meaning of the federal securities laws. For example, the company is using forward-looking statements when it discusses expected revenue growth and contribution from signed accounts, its path to profitability and positive cash flow, the continued reduction in operating expenses and losses, its expansion of channel partnerships and distribution, expected revenue and scaling from partner-led opportunities, expected onboarding, implementation and enrollment of large enterprise accounts, expected conversion of contracted annual recurring revenue into recognized revenue, expected expansion into care delivery, claims-based and outcomes-based models, expected benefits from care delivery participants, expected growth in recurring revenue and operating leverage, expected advantages and f…Read full documentShow less
Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 8:30 a.m. ET Chief Executive Officer - Erez Raphael Chief Financial Officer - Chen Franco-Yehuda Chief Operating Officer - Lara Dodo VP, Accounting and Corporate Development - Zoe Harrison Operator: Good morning, ladies and gentlemen, and welcome to the DarioHealth Second Quarter 2026 Results Conference Call. [Operator Instructions] This call is being recorded on Tuesday, August 11, 2026. I would now like to turn the conference over to Zoe Harrison, VP, Accounting and Corporate Development at DarioHealth. Zoe, please go ahead. Zoe Harrison: Thank you, operator, and good morning, everyone. Thank you for joining us today for a discussion of DarioHealth's second quarter of 2026 financial results. Leading the call today will be Erez Raphael, Chief Executive Officer of DarioHealth. He will be joined by Chen Franco, our Chief Financial Officer, and our Chief Operating Officer, Lara Dodo. And Steven Nelson, the company's President and Chief Commercial Officer, is on medical leave. An audio recording and webcast replay for today's call will also be available online as detailed in the press release invite for this call. The benefit of those who may be listening to the replay or archived webcast, this call is being held on Tuesday, August 11, 2026. This morning, we issued a press release announcing our financial results for the second quarter of 2026. A copy of the release can be found on the Investor Relations page of DarioHealth website. I'd like to remind you that on this call, management will make forward-looking statements within the meaning of the federal securities laws. For example, the company is using forward-looking statements when it discusses expected revenue growth and contribution from signed accounts, its path to profitability and positive cash flow, the continued reduction in operating expenses and losses, its expansion of channel partnerships and distribution, expected revenue and scaling from partner-led opportunities, expected onboarding, implementation and enrollment of large enterprise accounts, expected conversion of contracted annual recurring revenue into recognized revenue, expected expansion into care delivery, claims-based and outcomes-based models, expected benefits from care delivery participants, expected growth in recurring revenue and operating leverage, expected advantages and future impacts of DarioIQ and proprietary data assets, expected improvements in member engagement, retention and outcome, the anticipated benefits of artificial intelligence across the company's commercial operations and internal operations, the anticipated expansion of existing customer relationships into additional chronic condition, the expected timing and contribution of new product offering, the company's ability to increase revenue per customer through its multi-condition strategy, the expected benefits of provider-backed clinical care and beliefs regarding competitive positioning and market opportunity. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, including the risks described from time to time in its SEC filings. The company's results may differ materially from those projections. These statements involve material risks and uncertainties that could cause actual results or events to materially differ. Accordingly, you should not place undue reliance on these statements. I encourage you to review the company's filings with the SEC, including, without limitation, the company's annual report on Form 10-K, which identifies specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. With that, I'll hand it over to Erez Raphael, Chief Executive Officer of DarioHealth. Erez Raphael: Good morning, everyone. Thank you for taking the time to be with us today. Before reviewing the quarter, I would like to step back and discuss where Dario is today and more importantly, how we believe the business is positioned going forward. For more than a decade, we have been building the foundation of this company. We built a digital health platform connected to our FDA-cleared devices. We built one of the industry first comprehensive multi-condition platforms. We expanded from diabetes into hypertension, musculoskeletal health, behavioral health, weight management and additional chronic conditions. We generated extensive clinical validations with more than 100 published studies, built proprietary longitudinal data sets comprising approximately 13 billion proprietary data points, developed our AI capabilities, established national channel partnerships and most recently moved into provider-backed clinical care. We have created a scalable enterprise platform capable of serving employers and health plans by delivering an end-to-end patient journey that is designed to optimize care for members while improving return on investment for employers and insurers. That investment phase has created something we believe the market is only beginning to recognize now. Today, we are leveraging a platform that has reached a level of maturity where we view each new commercial success as strengthening the value of everything already in place. The best way to think about value today is through the lens of compounding growth, four drivers, each acting on a different part of the economics and each one multiplying what the others produce. Account depth increases the revenue we generate from a customer we have already won. Distribution efficiency lowers what it costs us and how long it takes to win the next one. AI leverage raises the revenue we generate per member while reducing our cost to serve and value chain participation gives us the access to leverage pool of health care spend from the same member base. More revenue per account, more accounts faster for less, more from every member and lower cost and more of the value chain. Three of those 4 are operating across our business today. The fourth is now beginning. Let me take them one at a time. The first is account depth, more revenue per account. Health care purchasers increasingly want fewer vendors. They want integrated solutions capable of managing multiple chronic conditions on one platform, one member experience and implementation. We recognized this shift years ago and deliberately built Dario as a multi-condition platform. Every additional condition increases the eligible population within the existing customer while leveraging the same commercial relationships, the same implementation and the same technology platform. That has the potential to generate 2 to 5x more revenue from the same account while delivering a greater clinical value through a more integrated approach to care. The value we deliver is supported by more than 100 published studies demonstrating improved clinical outcomes across multiple conditions and significant health care cost savings for our customers. Published research also shows that members managing 3 chronic conditions achieved better outcomes than those managing one. Better one clinical results and more revenue from the same member is a rare alignment in this industry. The second is distribution efficiency, more accounts faster with less dependency on direct sales resources. Over the past several years, we transformed our commercial model from primarily direct selling into channel-enabled distribution. Through our channel partners, we reached substantially more customers without proportionally increasing our sales organization. We spend less to acquire new business. We close it faster and our reach expands while our cost base holds. The third is AI leverage, more revenue per member at a lower cost to serve. The foundation underneath everything I have described is what we have always said, it is the data. Dario is a data company that leverages generative and agentic AI on top of what we believe is one of the industry's most extensive proprietary and longitudinal clinical data sets. And the reason we are confident in that position is structural. We are fully vertically integrated. We design and manufacture our own FDA-cleared connected devices. Those devices generate continuous clinical data directly from the members in real time. That data flows into our platform, our analytics and AI run on top of it from hardware to AI, the stack is ours. We do not license it, rent it or depends on third-party inputs. Today, we hold over 13 billion proprietary real-world data points tied to actual clinical outcomes across multiple conditions at individual member level. We believe data set of that depth could be difficult to replicate in the short period of time. DarioIQ, our proprietary AI agent trained on that data set is the product expression of that advantage. It delivers personalized real-time clinical recommendations that a general purpose model cannot match because to our knowledge, no general-purpose model has access to longitudinal data of this depth tied to a real outcome. DarioIQ is also what makes account depth work operationally. A member managing 3 conditions require one coherent clinical experience rather than 3 parallel programs. And DarioIQ is what resolves that into a single intervention path. DarioIQ is an active deployment across existing book of business, and we measure it where it matters commercially. The recurring revenue it produces from customers we have already won. Based on current experience, we believe DarioIQ could contribute an increase of approximately 10% to 15% in recurring revenues from existing customers over time through a higher engagement, utilization and overall customer value. The same capabilities run inside our own operations, expanding what we can do while holding our cost base. That is a direct contributor to the reduction in operating expenses and operating loss Chen will walk you through. This is also where 4 drivers connect. Every new member deeper the data set, a deeper data set makes DarioIQ more precise. A more precise DarioIQ produces better outcomes and a higher engagement, and that is what win the next account and expand the last one. We believe the advantage in DarioIQ capabilities may further enhance the value of our platform and data sets. Every advance in AI raises the value of the underlying data, and we own the data. The moat is not static asset. It compounds with every member we add. The fourth is the value chain participation, access to more of the health care dollar. I want to emphasize that we do not view this as a new strategy. It is a natural extension of the platform we have spent the past decade building. The market is moving beyond digital engagement alone toward integrated models that connect monitoring, AI-driven insights and clinical intervention. Our provider-backed care capabilities allows us to extend from helping members manage chronic conditions between physician visits to closing care gaps through diagnosis, prescribing and clinical services where appropriate. Most companies in this market can tell health plan what is happening with the member. We can now treat that member and can be reimbursed for their treatment. The latter works because the first three already exist. Without the multi-condition platform, the clinical evidence, the AI capabilities, the enterprise relationship and the channel infrastructure, provider-based care could not create the same value. It is additive. It builds on business that is already compounding today. Those four layers create a business that we believe is fundamentally different than it was only a year ago. We believe Dario is uniquely positioned in offering an integrated platform that spans the entire patient journey from continuous monitoring and personalized engagement to high-risk identification, coaching, clinical decision support and now provider-backed clinical care when needed. By bringing those capabilities together on a single multi-condition platform, we help customers improve outcomes, simplify care delivery, reduce vendor fragmentation and generate a stronger return on the health care investment. With that, let me turn the call over to Lara, who will discuss the strong commercial momentum we are seeing across our business and how we are executing on those opportunities. Lara Dodo: Thank you, Erez. Our commercial organization executed well during the quarter, and I want to walk through what we are seeing across 3 areas: how we are winning new accounts, how we are growing the accounts we already have and how quickly we are able to bring new capabilities to market. We have been serving more than a dozen health plan customers over the past 4 quarters, 3 of them national carriers. As of the end of the second quarter, we have more than 180 sign accounts across employers and health plans. Five of those are Fortune 50 companies and approximately 25% of our B2B2C client base is drawn from the Fortune 500. I'll start with new accounts. Approximately 75% of our new accounts now come through channel partners. That is a structural shift in our commercial model. It means we are gaining access to employers and plan populations we have not previously reached with shorter sales cycles and materially lower customer acquisition costs than a direct sales model. Nearly half of all private sector employees in the United States work for small businesses. That market is very difficult to reach economically through a direct enterprise sales model. Our growing network of channel partners gives us access to those same employers at scale, diversifying our client base and further expanding our target markets. As a result, our commercial reach continues to expand while sales and marketing spend continues to decline. All at the same time, we are efficiently signing and serving channel partners that we are activating through and with and to some of the largest employers and health plans in the U.S. Two examples from recent weeks. The first, we signed another Fortune 50 employer covering more than 100,000 eligible employees for diabetes and hypertension. That is our fifth Fortune 50 client. Another example is through our channel partnership with Amwell, we signed a major health insurer with a stronghold in Arizona, opening that insurer's entire administrative services book, the ASO to our cardiometabolic solution. Instead of selling employer by employer, this relationship gives us access to a broader employer population through a single enterprise channel, creating significant potential for scaled adoption across diabetes, hypertension and weight management. Aligned with the growth of our client base through channel partners, we are in the final stages of adding a new channel partner with a broad reach across employers, health plans and health systems. We look forward to sharing more details and the early impact of this relationship as it progresses. The second area to discuss is growth inside the accounts we already have, and this is where our multi-condition strategy shows up most clearly. This works in two ways. We land with one condition and expand and increasingly, we win multi-condition from the first day of the relationship. Today, nearly all of our new enterprise opportunities involve multiple conditions. During the quarter, one of the five largest health insurers in the United States expanded its relationship with us by adding hypertension to the behavioral health program it was already running. We stated publicly that this expansion has the potential to approximately triple our revenue opportunity. It is the third health plan customer to expand beyond an initial deployment of Dario. We also expanded our reach through our channel partnership with Solera by extending our hypertension program across the full spectrum of severity. This expands our addressable population from lower acuity patients who can benefit from earlier intervention to higher acuity patients requiring more intensive management. This is exactly what we built the multi-condition platform to do. Once the customer experiences the value of the platform, adding conditions and reaching members across the full acuity spectrum becomes the natural and logical next step. They serve more members through a single integrated solution while simplifying contracting, implementation, reporting and vendor management. Every additional condition broadens the eligible member population and has the potential to create meaningful recurring revenue without the need to acquire or acquire a new customer. The result is visible in the composition of our book. More than 80% of our contracted and late-stage recurring revenue is now multi-condition. That is the clearest metric of how this strategy is compounding, and it is why we are increasingly confident in the revenue per account that we can generate going forward. The third area to discuss is speed, how quickly we can turn a new capability into something commercial. Only weeks after announcing our provider-backed care strategy, we launched our integrated GLP-1 program, combining Dario's AI-powered engagement platform with licensed provider evaluation and access to FDA-approved GLP-1 therapies when clinically appropriate. The program will be available through three channels, including Dario's Direct-to-Consumer Shop, B2B2C employer programs, as well as health plan marketplaces, which extend our reach into new distribution channels. This rapid launch was possible because the technology platform, the AI infrastructure, and the commercial relationships are already in place, which means new offerings can be introduced and commercialized across our existing customer base quickly. We also broadened the platform itself during the quarter with two new programs. Dario Women supports members navigating perimenopause and menopause. That stage is frequently associated with weight changes, sleep disruption, and increased cardio metabolic risk. Dario Sleep addresses obstructive sleep apnea, a significant contributor to cardiometabolic disease and rising healthcare costs. Those are expected to begin contributing revenue in the fourth quarter and both are conditions we can sell into accounts we already hold. Looking ahead, our focus remains on execution. A signed account is just the beginning of the revenue opportunity. As activations progress and eligible members enroll over time, the same enterprise customer generates increasing recurring revenue quarter after quarter. Many of the customer wins and contract expansions announced over the past several quarters are currently progressing through activation and enrollment. I want to spend a moment on how that translates into revenue, because it is part of our model most often misread. Contracted annual recurring revenue does not convert on the day an agreement is signed. Three things happen in sequence. First, the program launches and launch timings is set by the plan year cycles and open enrollment windows rather than by the signature date. Secondly, eligible members enroll progressively over the quarters that follow as benefit communications reach them. Third, customers expand into additional conditions and across the acuity spectrum, the eligible population. This process progressively unlocks recurring revenues from the signed contract. From signature to full run rate revenue, the sequence may typically take four to five quarters. We ended the quarter with approximately $13.1 million in contracted and late-stage annual recurring revenue, more than 80% of which is multi-conditioned. Applying that four to five quarter cycle, we expect to begin seeing this convert into revenue in the second half of this year, the majority of the contribution showing up in 2027 as implementations mature and enrollment ramps across the base. What I'd like to leave you with is this. Customers are no longer evaluating individual point solutions. They are looking for integrated platforms that manage multiple chronic conditions, use AI to improve engagement and outcomes, and increasingly connect members to clinical care when appropriate. That is precisely the platform that Dario has built. With that, I'll turn the call over to Chen to review our financial results. Chen Franco-Yehuda: Thank you, Lara. Our second quarter results reflect our continued progress in building a more efficient and scalable business while positioning Dario for the next phase of commercial growth. The underlying financial trends during the quarter were particularly encouraging. Revenue for the quarter was $5.2 million, compared with $5.6 million in the first quarter of 2026 and $5.4 million in the second quarter of last year. As we discussed, this reflects the timing of implementation as well as our strategic decision to move away from pharmaceutical services revenue in favor of higher quality recurring B2B2C revenue. That transition has impacted near-term reported revenue, we believe it's strengthened the quality and long-term predictability of our business. Gross margin increased to 62%, up from 57% in the first quarter and 55% a year ago. our non-GAAP B2B2C gross margin remained approximately at 80% for the 10th consecutive quarter. At the same time, we continue to improve operating efficiency, reducing operating expenses by 8% sequentially and 21% year-over-year, while improving operating loss by 11% quarter-over-quarter and 30% year-over-year. Net loss for the quarter was $7.9 million, compared with $13 million in the second quarter of last year, 39% improvement. A reconciliation of GAAP to non-GAAP measures has been provided in the financial statements table included in our earnings press release. We also increasingly applying AI within our own operations. which is helping us hold the line on cost even as we scale the business. That is a direct contributor to the expense discipline I just described. These results demonstrate continued focus on disciplined expense management while investing in areas that will drive future growth. From a financial perspective, what excites us most is the operating leverage embedded in our business model. Much of our infrastructure needed to support future growth has already been built. As new enterprise customers are implemented, existing customers expand into additional conditions. AI drives higher engagement and retention, and new provider-backed care offerings are commercialized. We expect those revenues opportunities to leverage our existing technology platform, commercial organization, and operating infrastructure. We believe that positions us to deliver improving financial performance as revenue accelerates. We also significantly strengthened our balance sheet during the quarter. As of June 30, 2026, our pro forma cash position is $36.8 million, as we ended the second quarter with $14 million in cash, cash equivalent, and short-term deposits, plus $22.8 million net of offering expenses from the registered direct financing we closed in July. This offering was priced at the market with participation from both existing long-term shareholders and new fundamental institutional investors. We believe that financing reflects confidence in our strategy, and importantly, it provides the cash runway to execute on the commercial opportunities we've discussed today, advancing our path to cash flow positives. As Lara noted, many of the new customer implementations and existing customer condition extensions announced over the past several quarters are expected to begin contributing more meaningfully at the end of 2026 and continue ramping throughout 2027. Combined with the anticipated benefits of DarioIQ and our provider-backed care initiative, we believe we are well-positioned to continue improving both the scale and quality of our revenue over time. Erez Raphael: Thank you all for joining us today. I want to close where I started. Direct compounds across four drivers account that generating more revenue from customers who have already gained. And you saw that this quarter in a top five health plan expansion with the potential to approximately triple opportunity under that relationship. Distribution efficiency is bringing us more accounts faster for less, with roughly three-quarters of our new accounts now arriving to channel partners. AI leverage is raising the value of every member while lowering our costs to serve, and it is a direct contributor to the operating expense and loss reduction Chen just walked through. And value chain participation now allows us to participate more broadly in clinical care delivery and reimbursement. Three of those four are operating in our business today. The fourth is now beginning. That is why we believe the composition of revenue is stronger than it has been, even in a quarter where the top line came down. What is increasingly clear is this. We own our hardware, our data, and the AI capabilities that run on top of them. We have commercial engine designed to compound over time, and we have a clinical foundation, more than 100 peer-reviewed studies that power our expansion from digital engagement into care delivery. Before I hand it back to the operator, I want to thank the people who make this possible. To our employees, your dedication to our members and to each other is what drives everything we do. To our partners and channel ecosystem, your trust and collaboration are central to how we scale. And to our shareholders, thank you for your continued support and confidence in our platform and in our mission. I will now turn the call over to the operator for Q&A. Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. [Operator Instructions] And your first question comes from David Grossman with Stifel. Your line is now open. Aidan Conniff: Hi, all. This is Aidan Conniff on for David. Thanks for taking the question. I just wanted to start on the top line revenue with the sequential decline in the B2B2C. Is there any incremental details you can kind of give there? What kind of led to that decline? And then with the recent wins you guys have had, how should we think about the kind of magnitude of the acceleration in the back half from the health plans? Erez Raphael: Yes. Thanks for the question. So as we stated on the call, we signed accounts with contracted ARR of $13.1 million that we believe that in a few quarters we're going to gain this ARR in actual revenues. The slight decline is coming from additional cleanup that we did post all the transformation and after closing the pharma channel. Just in the last two to three months, we announced on the large expansion of a national health plan from the health to cardiometabolic. We have a huge employer that we signed on and we have more that are coming in. So we think that in the second half, we're going to start to see this revenue starting to gain traction and you're going to see the growth between Q3 to Q4 with more momentum into Q1 of next year. That's how we expect things to happen. Meanwhile, we made the entire P&L much more efficient from a gross margin perspective, OPEX perspective. We expect that every additional dollar that will be added from accounts that we already signed on is going to be extremely efficient in its ability to go to the bottom line and reduce the loss. Aidan Conniff: I appreciate that. And then just as a follow up on DarioIQ, you talked about the 10% to 15% increase in the B2B2C ARR from existing customers. Can you give us a sense of how that actually shows up commercially? Is it a pricing or a PMPM increase that's negotiated at like a renewal? And is that included in the $13.1 million ARR? Erez Raphael: Yes, thank you. Very good question. So the way that AI is being implemented is that we optimize the way that we are engaging with members. It means that we are improving the retention and we're also improving the way that members are interacting with the platform, and we see that direct impact on the clinical outcomes that is being generated. So this is one area so we think that more revenue can be recognized from the existing book of business and members and this is purely something that should be generated in addition to the contracted ARR of $13.1 million because it's on the existing book of business. The $13.1 million is either a new book of business or expansion of the existing book of business for additional conditions. So this is one part. The other part that is already reflected in our ability to reduce OPEX is how we are leveraging agentic AI to be utilized in order to take specific roles in the value chain from the win of the client to the enrollment of the member and end-to-end, managing the member on the platform, that's another side of the AI implementation. But the majority of the value is going to come from managing members more engaged on the platform, more retained on the platform, and with better clinical outcomes. That's something that we're already seeing the numbers. And the more we're going to implement it, the more we're going to see this result in the existing book of business. Operator: Great. Thank you. Your next question comes from Aaron Kimson with Citizens Bank. Your line is now open. Aaron Kimson: Great, thanks for the question. It's good to hear 75% of new accounts now come through channel partners. Is there a way to quantify how implementation time and time to ROI differ for a client that's landed through a channel partner for an enterprise customer versus when you sell an enterprise customer directly? Erez Raphael: Yes, actually the main difference is whether we are signing with a client that is an employer or a client that is a health plan. It's less depending on the channel partner and it's more depending on the profile of the client. So usually employers are being rolled into the next year like in January of the next year in most of the cases, like 75% of the cases. And health plans is something that is usually getting in all three to six months from the point that we are signing on an agreement. This is for the few that we already signed and this is what we see practically in the field. I think that there is a difference to some of the channel partners that we work with in the way that we are enrolling the members to the platform. For some of them, they are taking responsibility also for the enrollment, and this is something actually creating a better ROI for us because we don't need to spend sales and marketing or resources on enrollment in order to get to the revenues. And we believe that once this kind of accounts are going to be with more volume, we're going to see a more strong P&L profile that we will continue and improve. Because practically we have, for some of the channel partners, we have almost zero spend for the win and then for the enrollment of the members. Aaron Kimson: Great. And then one on DarioIQ. Can you help us think about what percentage of the 13 billion data points underlying it are first-party data from your own devices versus third-party data from insurers and employers? And how well do you think you realize the value of that data today? Erez Raphael: Yes, so Dario is operating side by side B2C and B2B. There are a lot of elements that are related to compliance on how the data can be utilized. And one of the big advantages that Dario have is that we are operating the entire B2C business. And when we are talking later, the 13 billion is something that is between B2C and the B2B. But for most of what we do on the R&D side, training models and so on, we are doing it purely on the B2C because of compliance aspects. And this is something that is very important for us. The data, practically the majority is coming from the B2C. And whenever we have a new feature or additional capabilities, including multi-condition, it goes first into the B2C. This is where we are learning the patterns, the user journey, especially when we are running multi-condition because big part of our story today is the multi-condition and managing comorbidities between the conditions. And we are doing everything first on the B2C, training models, and then we are moving it into the B2B. So practically we developed a very unique and innovative way to implement AI capabilities in a highly regulated market. Operator: [Operator Instructions] There are no further questions at this time. I will now turn the call back to management for closing remarks. Erez Raphael: Thank you, everyone. We appreciate it and have a good day. Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Before you buy stock in DarioHealth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DarioHealth wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. DarioHealth (DRIO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool
Investor releaseQuarter not tagged2026-08-11DarioHealth Corp (DRIO) Q2 2026 Earnings Report Preview: What To Look For
GuruFocus.com
DarioHealth Corp (DRIO) Q2 2026 Earnings Report Preview: What To Look For
This article first appeared on GuruFocus. DarioHealth Corp (NASDAQ:DRIO) is set to release its Q2 2026 earnings on Aug 12, 2026. The consensus estimate for Q2 2026 revenue is 5.92 million, and the earnings are expected to come in at -1.22 per share. The full year 2026's revenue is expected to be $26.18 million and the earnings are expected to be $-3.96 per share. More detailed estimate data can be found on the Forecast page Warning! GuruFocus has detected 4 Warning Signs with DRIO. Is DRIO fairly valued? Test your thesis with our free DCF calculator. Revenue estimates for DarioHealth Corp (NASDAQ:DRIO) have declined from $26.29 million to $26.18 million for the full year 2026 and declined from $38.91 million to $38.23 million for 2027 over the past 90 days. Earnings estimates for DarioHealth Corp (NASDAQ:DRIO) have increased from $-4.39 per share to $-3.96 per share for the full year 2026 and increased from $-2.12 per share to $-1.94 per share for 2027 over the past 90 days. In the previous quarter of 2026-03-31, DarioHealth Corp's (NASDAQ:DRIO) actual revenue was $5.58 million, which beat analysts' revenue expectations of $5.46 million by 2.36%. DarioHealth Corp's (NASDAQ:DRIO) actual earnings were $-1.25 per share, which beat analysts' earnings expectations of $-1.48 per share by 15.54%. After releasing the results, DarioHealth Corp (NASDAQ:DRIO) was down by -6.68% in one day. Based on the one-year price targets offered by 4 analysts, the average target price for DarioHealth Corp (NASDAQ:DRIO) is $15.25 with a high estimate of $28.00 and a low estimate of $10.00. The average target implies an upside of 99.09% from the current price of $7.66. Based on the consensus recommendation from 4 brokerage firms, DarioHealth Corp's (NASDAQ:DRIO) average brokerage recommendation is currently 2.00, indicating an "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Investor releaseQuarter not tagged2026-08-11DarioHealth Q2 Earnings Call Highlights
MarketBeat
DarioHealth Q2 Earnings Call Highlights
Interested in DarioHealth Corp.? Here are five stocks we like better. Q2 revenue fell to $5.2 million as DarioHealth continued moving away from pharmaceutical services toward recurring B2B2C revenue, but gross margin improved to 62% and net loss narrowed to $7.9 million. The company reported $13.1 million in contracted and late-stage annual recurring revenue, with most conversion expected in the second half of 2026 and during 2027 as customer implementations and enrollment mature. Channel partnerships now generate about 75% of new accounts, supporting more than 180 signed employer and health-plan customers. DarioHealth is expanding its AI and care offerings, including DarioIQ, an integrated GLP-1 program, Dario Women and Dario Sleep. After a July financing, pro forma cash totaled $36.8 million, providing additional runway to scale operations and pursue positive cash flow. DarioHealth is an AI-Powered Digital Therapeutics Play DarioHealth (NASDAQ:DRIO) reported second-quarter 2026 revenue of $5.2 million, down from $5.6 million in the first quarter and $5.4 million a year earlier, as the company continued to shift away from pharmaceutical services revenue toward recurring B2B2C business. Chief Financial Officer Chen Franco said the transition affected near-term reported revenue but was intended to improve the quality and predictability of the company’s revenue base. Gross margin rose to 62% from 57% in the prior quarter and 55% in the year-earlier period. DarioHealth’s non-GAAP B2B2C gross margin remained approximately 80% for the 10th consecutive quarter, according to Franco. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat The company reduced operating expenses by 8% sequentially and 21% year over year. Operating loss improved 11% from the first quarter and 30% from the prior-year quarter. Net loss narrowed to $7.9 million from $13 million a year earlier. DarioHealth ended the quarter with approximately $13.1 million in contracted and late-stage annual recurring revenue, with more than 80% tied to multi-condition programs. Chief Operating Officer Lara Dodo said the company expects that contracted revenue to begin converting more visibly during the second half of 2026, with most of the contribution expected in 2027 as implementations and enrollment mature. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Dodo said the company’s…Read full documentShow less
Interested in DarioHealth Corp.? Here are five stocks we like better. Q2 revenue fell to $5.2 million as DarioHealth continued moving away from pharmaceutical services toward recurring B2B2C revenue, but gross margin improved to 62% and net loss narrowed to $7.9 million. The company reported $13.1 million in contracted and late-stage annual recurring revenue, with most conversion expected in the second half of 2026 and during 2027 as customer implementations and enrollment mature. Channel partnerships now generate about 75% of new accounts, supporting more than 180 signed employer and health-plan customers. DarioHealth is expanding its AI and care offerings, including DarioIQ, an integrated GLP-1 program, Dario Women and Dario Sleep. After a July financing, pro forma cash totaled $36.8 million, providing additional runway to scale operations and pursue positive cash flow. DarioHealth is an AI-Powered Digital Therapeutics Play DarioHealth (NASDAQ:DRIO) reported second-quarter 2026 revenue of $5.2 million, down from $5.6 million in the first quarter and $5.4 million a year earlier, as the company continued to shift away from pharmaceutical services revenue toward recurring B2B2C business. Chief Financial Officer Chen Franco said the transition affected near-term reported revenue but was intended to improve the quality and predictability of the company’s revenue base. Gross margin rose to 62% from 57% in the prior quarter and 55% in the year-earlier period. DarioHealth’s non-GAAP B2B2C gross margin remained approximately 80% for the 10th consecutive quarter, according to Franco. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat The company reduced operating expenses by 8% sequentially and 21% year over year. Operating loss improved 11% from the first quarter and 30% from the prior-year quarter. Net loss narrowed to $7.9 million from $13 million a year earlier. DarioHealth ended the quarter with approximately $13.1 million in contracted and late-stage annual recurring revenue, with more than 80% tied to multi-condition programs. Chief Operating Officer Lara Dodo said the company expects that contracted revenue to begin converting more visibly during the second half of 2026, with most of the contribution expected in 2027 as implementations and enrollment mature. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Dodo said the company’s enterprise contracts generally require a four-to-five-quarter progression from signing to full run-rate revenue. Program launches depend on plan-year cycles and open-enrollment windows, while eligible members enroll over subsequent quarters. During the question-and-answer session, Chief Executive Officer Erez Raphael said the sequential revenue decline also reflected additional “cleanup” following the company’s transformation and closure of its pharmaceutical channel. He said management expects revenue momentum to build between the third and fourth quarters, with further acceleration anticipated in the first quarter of 2027. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War DarioHealth said approximately 75% of new accounts now come through channel partners, a shift from its former predominantly direct-sales approach. The company said channel distribution provides access to more employers and health plans while reducing customer-acquisition costs and shortening sales cycles. As of the end of the second quarter, DarioHealth had more than 180 signed employer and health-plan accounts. Five were Fortune 50 companies, while approximately 25% of its B2B2C clients were from the Fortune 500. The company said it had served more than a dozen health-plan customers over the preceding four quarters, including three national carriers. Recent commercial wins included a new Fortune 50 employer with more than 100,000 eligible employees for diabetes and hypertension programs. Through its partnership with Amwell, DarioHealth also signed a major Arizona-focused health insurer, giving the insurer’s administrative-services-only employer book access to the company’s cardiometabolic offering. Dodo also highlighted expansion within existing accounts. One of the five largest U.S. health insurers added hypertension services to an existing behavioral-health program, an expansion that DarioHealth said could approximately triple its revenue opportunity with that customer. The company also expanded its hypertension program through its Solera partnership to cover a broader range of patient acuity. Management emphasized its DarioIQ artificial-intelligence capabilities, which are trained on what the company said are approximately 13 billion proprietary real-world data points. Raphael said DarioIQ is being deployed across the existing customer base to improve member engagement, retention and clinical outcomes. Based on current experience, the company believes DarioIQ could increase recurring revenue from existing customers by roughly 10% to 15% over time. Raphael clarified that this potential revenue contribution is separate from the $13.1 million in contracted and late-stage annual recurring revenue, which represents new business or condition expansions. Raphael also said the company is using agentic AI in internal operations, including functions ranging from client acquisition and member enrollment to member management. Management cited those initiatives as a contributor to lower operating expenses. During the quarter, DarioHealth launched an integrated GLP-1 program that combines its AI-powered engagement platform with licensed-provider evaluations and access to FDA-approved GLP-1 therapies when clinically appropriate. The offering is planned for DarioHealth’s direct-to-consumer store, employer programs and health-plan marketplaces. The company also introduced Dario Women, targeting members navigating perimenopause and menopause, and Dario Sleep, focused on obstructive sleep apnea. Dodo said both programs are expected to begin contributing revenue in the fourth quarter. As of June 30, DarioHealth had $14 million in cash equivalents and short-term deposits. Including $22.8 million in net proceeds from a registered direct financing completed in July, the company reported a pro forma cash position of $36.8 million. Franco said the financing provides runway to pursue commercial opportunities and advance toward positive cash flow. Management said it expects its existing technology platform, commercial organization and operating infrastructure to provide operating leverage as customer implementations, multi-condition expansions, AI initiatives and provider-backed care offerings scale. DarioHealth (NASDAQ:DRIO) is a digital health company specializing in chronic disease management through a smartphone-based care platform. Its core solution combines connected devices—such as glucose meters, blood pressure monitors and smart scales—with real-time data analytics and personalized coaching. The platform is designed to support individuals living with diabetes, hypertension, weight management challenges and other cardiometabolic conditions, offering continuous monitoring, tailored insights and behavioral nudges aimed at improving clinical outcomes. The Dario platform integrates artificial intelligence and machine learning to deliver personalized guidance and education. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "DarioHealth Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.
Investor releaseQuarter not tagged2026-08-11DarioHealth Corp (DRIO) (Q2 2026) Earnings Call Highlights: Multi-Condition Platform Drives ...
GuruFocus.com
DarioHealth Corp (DRIO) (Q2 2026) Earnings Call Highlights: Multi-Condition Platform Drives ...
This article first appeared on GuruFocus. Revenue: $5.2 million for Q2 2026, compared with $5.6 million in Q1 2026 and $5.4 million in Q2 2025. Gross Margin: Increased to 62%, up from 57% in Q1 2026 and 55% in the year-ago quarter. Non-GAAP B2B2C Gross Margin: Approximately 80% for the 10th consecutive quarter. Operating Expenses: Reduced by 80% sequentially and 21% year over year. Operating Loss: Improved by 11% quarter over quarter and 30% year over year. Net Loss: $7.9 million for Q2 2026, a 39% improvement from $13 million in Q2 2025. Cash Position: Pro forma cash of $36.8 million as of June 30, 2026, including $14 million in cash, cash equivalents, and short-term deposits plus $22.8 million net from a July financing. Contracted and Late-Stage Annual Recurring Revenue: Approximately $13.1 million at quarter end, with more than 80% multi-condition. Signed Accounts: More than 180 signed accounts across employers and health plans, including five Fortune 50 companies. Warning! GuruFocus has detected 4 Warning Signs with DRIO. Is DRIO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DarioHealth Corp (NASDAQ:DRIO) has a strong multi-condition platform, with over 80% of contracted and late-stage recurring revenue now multi-condition, enabling expansion within existing accounts. The company's channel partner strategy is effective, with approximately 75% of new accounts coming through partners, reducing customer acquisition costs and expanding market reach. DarioIQ, the proprietary AI agent, is expected to increase recurring revenues from existing customers by 10% to 15% through improved engagement and retention. The launch of the integrated GLP-1 program and new offerings like Dario Women and Dario Sleep demonstrates the company's ability to quickly commercialize new capabilities. Financial efficiency is improving, with gross margin up to 62% and operating expenses reduced by 21% year-over-year, while net loss improved by 39%. The company has a strong balance sheet with a pro forma cash position of $36.8 million, providing runway to execute on growth opportunities. Revenue declined to $5.2 million in Q2 2026, down from $5.6 million in Q1 2026 and $5.4 million in Q2 2025, due to implementation timing and the strategic exi…Read full documentShow less
This article first appeared on GuruFocus. Revenue: $5.2 million for Q2 2026, compared with $5.6 million in Q1 2026 and $5.4 million in Q2 2025. Gross Margin: Increased to 62%, up from 57% in Q1 2026 and 55% in the year-ago quarter. Non-GAAP B2B2C Gross Margin: Approximately 80% for the 10th consecutive quarter. Operating Expenses: Reduced by 80% sequentially and 21% year over year. Operating Loss: Improved by 11% quarter over quarter and 30% year over year. Net Loss: $7.9 million for Q2 2026, a 39% improvement from $13 million in Q2 2025. Cash Position: Pro forma cash of $36.8 million as of June 30, 2026, including $14 million in cash, cash equivalents, and short-term deposits plus $22.8 million net from a July financing. Contracted and Late-Stage Annual Recurring Revenue: Approximately $13.1 million at quarter end, with more than 80% multi-condition. Signed Accounts: More than 180 signed accounts across employers and health plans, including five Fortune 50 companies. Warning! GuruFocus has detected 4 Warning Signs with DRIO. Is DRIO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DarioHealth Corp (NASDAQ:DRIO) has a strong multi-condition platform, with over 80% of contracted and late-stage recurring revenue now multi-condition, enabling expansion within existing accounts. The company's channel partner strategy is effective, with approximately 75% of new accounts coming through partners, reducing customer acquisition costs and expanding market reach. DarioIQ, the proprietary AI agent, is expected to increase recurring revenues from existing customers by 10% to 15% through improved engagement and retention. The launch of the integrated GLP-1 program and new offerings like Dario Women and Dario Sleep demonstrates the company's ability to quickly commercialize new capabilities. Financial efficiency is improving, with gross margin up to 62% and operating expenses reduced by 21% year-over-year, while net loss improved by 39%. The company has a strong balance sheet with a pro forma cash position of $36.8 million, providing runway to execute on growth opportunities. Revenue declined to $5.2 million in Q2 2026, down from $5.6 million in Q1 2026 and $5.4 million in Q2 2025, due to implementation timing and the strategic exit from pharmaceutical services. The conversion of contracted annual recurring revenue to actual revenue takes four to five quarters, delaying the financial benefits of new signings. The company's path to profitability is still uncertain, with a net loss of $7.9 million in the quarter, though improved year-over-year. Dependence on channel partners for new accounts may lead to less control over the sales process and customer relationships. The company's growth is heavily reliant on the successful implementation and enrollment of large enterprise accounts, which can be subject to delays. The absence of the President and Chief Commercial Officer, Steven Nelson, on medical leave could impact commercial execution during a critical growth period. Q: Can you provide incremental details on the sequential decline in B2B2C revenue and how we should think about the magnitude of acceleration in the back half from recent health plan wins?A: Erez Raphael, CEO, explained that the slight decline is due to additional cleanup following the transformation and closing of the pharma channel. The company has signed accounts with contracted ARR of $13.1 million, which they expect to convert into actual revenues over the next few quarters. They anticipate revenue gaining traction in the second half of the year, with growth between Q3 and Q4 and more momentum into Q1 of next year. He emphasized that the P&L is now much more efficient, so every additional dollar from signed accounts will be extremely efficient in reducing losses. Q: How does DarioIQ's expected 10% to 15% increase in B2B2C ARR from existing customers show up commercially? Is it pricing, PMPM increases at renewal, and is it included in the $13.1 million ARR?A: Erez Raphael, CEO, clarified that DarioIQ improves member engagement, retention, and clinical outcomes, which generates additional revenue from the existing book of business. This is separate from the $13.1 million contracted ARR, which represents new business or expansions into additional conditions. He also noted that agentic AI is being used internally to reduce OpEx by taking over roles in the value chain, but the majority of the value will come from more engaged and retained members with better outcomes. Q: Can you quantify how implementation time and time to ROI differ for a client landed through a channel partner versus a direct enterprise sale?A: Erez Raphael, CEO, stated that the main difference depends on the client profile rather than the channel. Employers typically roll out in January of the next year (about 75% of cases), while health plans usually enroll members three to six months after signing. He highlighted that some channel partners take responsibility for enrollment, which creates a better ROI for Dario as they don't need to spend sales and marketing resources on enrollment, leading to a stronger P&L profile with almost zero spend for winning and enrolling members. Q: What percentage of the 13 billion data points underlying DarioIQ are first-party data from Dario's own devices versus third-party data, and how well is the value of that data realized today?A: Erez Raphael, CEO, explained that due to compliance aspects, the majority of data used for R&D and training models comes purely from the B2C business. Dario operates both B2C and B2B, but for training models and developing new features, they use B2C data first, learning patterns and improving the user journey, especially for multi-condition management. This approach allows them to implement AI capabilities in a highly regulated market, moving innovations from B2C to B2B after validation. Q: With 75% of new accounts now coming through channel partners, how does this shift impact the company's sales cycle and customer acquisition costs?A: Lara Dodo, COO, noted that this structural shift gives Dario access to employers and plan populations they previously couldn't reach, with shorter sales cycles and materially lower customer acquisition costs. Nearly half of all private sector employees work for small businesses, which are difficult to reach through direct enterprise sales. The channel partner network allows Dario to access these employers at scale, diversifying the client base while sales and marketing spend continues to decline. Q: Can you elaborate on the expansion with one of the five largest health insurers and the potential to triple the revenue opportunity?A: Lara Dodo, COO, confirmed that during the quarter, a top-five health insurer expanded its relationship by adding hypertension to its existing behavioral health program. This expansion has the potential to approximately triple Dario's revenue opportunity under that relationship. It marks the third health plan customer to expand beyond an initial deployment, demonstrating the success of the multi-condition platform strategy. Q: How does the contracted annual recurring revenue (ARR) convert into recognized revenue, and what is the typical timeline?A: Lara Dodo, COO, explained that contracted ARR does not convert on the day an agreement is signed. Three things happen in sequence: program launch is set by plan year cycles and open enrollment windows; eligible members enroll progressively over quarters; and customers expand into additional conditions. From signature to full run-rate revenue typically takes four to five quarters. The company ended Q2 with approximately $13.1 million in contracted and late-stage ARR, with more than 80% being multi-condition, expected to convert into revenue in the second half of 2026 with the majority showing up in 2027. Q: What is the company's current cash position and how does it support the path to profitability?A: Chen Franco-Yehuda, CFO, reported a pro forma cash position of $36.8 million as of June 30, 2026, including $14 million in cash and short-term deposits plus $22.8 million net from a registered direct financing closed in July. The financing was priced at the market with participation from existing long-term shareholders and new institutional investors. This provides the cash runway to execute on commercial opportunities and advance the path to cash flow positivity, with new implementations expected to contribute more meaningfully at the end of 2026 and ramp throughout 2027. Q: How is the company leveraging AI to reduce operating expenses while scaling the business?A: Chen Franco-Yehuda, CFO, highlighted that Dario increased the use of AI within its own operations, helping to hold the line on costs even as the business scales. This contributed to an 80% sequential reduction in operating expenses and a 21% year-over-year decrease, while improving operating loss by 11% quarter-over-quarter and 30% year-over-year. The operating leverage embedded in the business model means that as new customers are implemented and existing customers expand, revenues can leverage the existing technology platform and infrastructure. Q: Can you provide details on the new GLP-1 program and its distribution channels?A: Lara Dodo, COO, stated that weeks after announcing the provider-backed care strategy, Dario launched an integrated GLP-1 program combining AI-powered engagement with licensed provider evaluation and access to FDA-approved GLP-1 therapies. The program is available through three channels: Dario's direct-to-consumer shop, B2B2C employer programs, and health plan marketplaces. This rapid launch was possible because the technology platform, AI For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Investor releaseQuarter not tagged2026-08-11DarioHealth Corp. Q2 2026 Earnings Call Summary
Moby
DarioHealth Corp. Q2 2026 Earnings Call Summary
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is pivoting the business from an investment phase to a compounding growth phase, centered on four drivers: account depth, distribution efficiency, AI leverage, and value chain participation. Performance attribution for the quarter was impacted by the strategic decision to exit pharmaceutical services revenue in favor of higher-quality, recurring B2B2C revenue streams. The multi-condition strategy is driving higher revenue per account, as nearly all new enterprise opportunities now involve multiple conditions, which can generate 2 to 5x more revenue than single-condition contracts. A structural shift toward channel-enabled distribution has resulted in 75% of new accounts coming through partners, significantly lowering customer acquisition costs and shortening sales cycles. The company's vertical integration—owning hardware, data, and AI—serves as a competitive moat, with 13 billion proprietary data points powering personalized clinical interventions via DarioIQ. Expansion into provider-backed clinical care allows the company to move beyond digital monitoring into diagnosis and prescribing, capturing a larger share of healthcare spend. Management expects the $13.1 million in contracted and late-stage annual recurring revenue (ARR) to begin converting to recognized revenue in the second half of 2026, with the majority of impact in 2027. The revenue conversion cycle is defined by a four to five quarter sequence: program launch (aligned with plan years), progressive member enrollment, and subsequent condition expansion. DarioIQ is projected to contribute an incremental 10% to 15% in recurring revenue from existing customers over time through improved member engagement and retention. New product offerings, including Dario Women (menopause) and Dario Sleep (apnea), are expected to begin contributing to revenue in the fourth quarter of 2026. The company's pro forma cash position of $36.8 million is intended to provide the necessary runway to reach cash flow positivity and execute on current commercial opportunities. Operating expenses were reduced by 21% year-over-year, driven by the application of AI within internal operations to hold costs steady while scaling. Gross margins improved to 62%, reflecting…Read full documentShow less
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is pivoting the business from an investment phase to a compounding growth phase, centered on four drivers: account depth, distribution efficiency, AI leverage, and value chain participation. Performance attribution for the quarter was impacted by the strategic decision to exit pharmaceutical services revenue in favor of higher-quality, recurring B2B2C revenue streams. The multi-condition strategy is driving higher revenue per account, as nearly all new enterprise opportunities now involve multiple conditions, which can generate 2 to 5x more revenue than single-condition contracts. A structural shift toward channel-enabled distribution has resulted in 75% of new accounts coming through partners, significantly lowering customer acquisition costs and shortening sales cycles. The company's vertical integration—owning hardware, data, and AI—serves as a competitive moat, with 13 billion proprietary data points powering personalized clinical interventions via DarioIQ. Expansion into provider-backed clinical care allows the company to move beyond digital monitoring into diagnosis and prescribing, capturing a larger share of healthcare spend. Management expects the $13.1 million in contracted and late-stage annual recurring revenue (ARR) to begin converting to recognized revenue in the second half of 2026, with the majority of impact in 2027. The revenue conversion cycle is defined by a four to five quarter sequence: program launch (aligned with plan years), progressive member enrollment, and subsequent condition expansion. DarioIQ is projected to contribute an incremental 10% to 15% in recurring revenue from existing customers over time through improved member engagement and retention. New product offerings, including Dario Women (menopause) and Dario Sleep (apnea), are expected to begin contributing to revenue in the fourth quarter of 2026. The company's pro forma cash position of $36.8 million is intended to provide the necessary runway to reach cash flow positivity and execute on current commercial opportunities. Operating expenses were reduced by 21% year-over-year, driven by the application of AI within internal operations to hold costs steady while scaling. Gross margins improved to 62%, reflecting the transition away from lower-margin pharmaceutical services toward high-margin B2B2C recurring revenue. The company successfully closed a $22.8 million registered direct financing in July to strengthen the balance sheet and support the path to profitability. President and Chief Commercial Officer Steven Nelson is currently on medical leave, though commercial execution remains on track through the existing leadership team. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The slight decline resulted from a final 'cleanup' following the transformation of the business and the closure of the pharmaceutical channel. Management expects revenue growth to gain traction between Q3 and Q4 2026, with significant momentum entering Q1 2027 as signed accounts activate. DarioIQ increases revenue by optimizing member retention and interaction, which improves clinical outcomes and allows for more revenue recognition from the existing book of business. This 10% to 15% expected uplift is additive to the $13.1 million contracted ARR, as it applies to existing members rather than new contract signatures. Implementation speed depends more on the client profile than the channel; employers typically launch in January, while health plans launch within three to six months of signing. Certain channel partners handle member enrollment directly, which creates a superior ROI for Dario by eliminating internal sales and marketing spend for those accounts. The majority of the 13 billion data points are sourced from the company's B2C business, which allows for rapid R&D and model training without the compliance hurdles of B2B data. New features and multi-condition patterns are first refined in the B2C environment before being deployed to the enterprise B2B2C platform.
Investor releaseQuarter not tagged2026-08-11CoreWeave’s Forecast Is Key to Stopping Another Earnings Selloff
Bloomberg
CoreWeave’s Forecast Is Key to Stopping Another Earnings Selloff
(Bloomberg) -- CoreWeave Inc. shares have been on a roll lately after a monthslong slump. Now, the neocloud provider’s earnings after the close Tuesday can give investors a sense of whether the rally is sustainable. Most Read from Bloomberg China Unleashes $28 Trillion Capital Markets to Challenge US in AI Nvidia Taps Wall Street for $500 Billion Funding Commitment Trump Makes Sweeping New Demands on Iran as Deal Hopes Dim Stocks Churn as Hormuz Standoff Spurs Rally in Oil: Markets Wrap Iran Shakes Up Security Team After Saying Oman Deal ‘Very Close’ The problem is, quarterly results tend to bring out the worst in the stock, which has fallen after each of the company’s last five earnings reports, according to data compiled by Bloomberg. “It almost doesn’t matter what they say on their earnings,” said Willy Lee, principal at venture firm Neostellar, which has held shares of CoreWeave since before its initial public offering. “The market’s still I think locked in on pieces of their earnings where I’m not sure if people fully understand parts of the story, and I think it’s just taken time for people to digest.” It’s been a rocky ride in the stock market for CoreWeave, which rents cloud-computing power for artificial intelligence, since going public in March 2025. The shares have been whip-lashed by the expiration of early investor lockups and shifting sentiment surrounding AI. They more than tripled in their first few months of trading, gave back a good chunk of that gain over the next few months, and have flipped between periods of steep gains and sharp losses ever since. Through it all, the stock is up 120% since the IPO and 23% this year. However it’s still down 41% from the all-time high it hit almost exactly a year ago. The latest downturn started in May after the company’s first-quarter earnings report featured a disappointing forecast that sparked concerns about slowing growth. The stock plunged 56% from a high in May to a low in July. But it has recovered almost half that loss, with a 21% jump in a single session after CoreWeave and Leidos Holdings Inc. announced they were developing AI cloud services for US defense and intelligence operations, followed by last week’s 26% gain, its best performance in over a year. After all that, the company’s earnings will offer a clearer view of where CoreWeave stands at this critical juncture. The company has been sp…Read full documentShow less
(Bloomberg) -- CoreWeave Inc. shares have been on a roll lately after a monthslong slump. Now, the neocloud provider’s earnings after the close Tuesday can give investors a sense of whether the rally is sustainable. Most Read from Bloomberg China Unleashes $28 Trillion Capital Markets to Challenge US in AI Nvidia Taps Wall Street for $500 Billion Funding Commitment Trump Makes Sweeping New Demands on Iran as Deal Hopes Dim Stocks Churn as Hormuz Standoff Spurs Rally in Oil: Markets Wrap Iran Shakes Up Security Team After Saying Oman Deal ‘Very Close’ The problem is, quarterly results tend to bring out the worst in the stock, which has fallen after each of the company’s last five earnings reports, according to data compiled by Bloomberg. “It almost doesn’t matter what they say on their earnings,” said Willy Lee, principal at venture firm Neostellar, which has held shares of CoreWeave since before its initial public offering. “The market’s still I think locked in on pieces of their earnings where I’m not sure if people fully understand parts of the story, and I think it’s just taken time for people to digest.” It’s been a rocky ride in the stock market for CoreWeave, which rents cloud-computing power for artificial intelligence, since going public in March 2025. The shares have been whip-lashed by the expiration of early investor lockups and shifting sentiment surrounding AI. They more than tripled in their first few months of trading, gave back a good chunk of that gain over the next few months, and have flipped between periods of steep gains and sharp losses ever since. Through it all, the stock is up 120% since the IPO and 23% this year. However it’s still down 41% from the all-time high it hit almost exactly a year ago. The latest downturn started in May after the company’s first-quarter earnings report featured a disappointing forecast that sparked concerns about slowing growth. The stock plunged 56% from a high in May to a low in July. But it has recovered almost half that loss, with a 21% jump in a single session after CoreWeave and Leidos Holdings Inc. announced they were developing AI cloud services for US defense and intelligence operations, followed by last week’s 26% gain, its best performance in over a year. After all that, the company’s earnings will offer a clearer view of where CoreWeave stands at this critical juncture. The company has been spending to build more data center capacity, and it has said that the benefits of those investments should start showing up in the second half of this year, making management’s forward guidance even more crucial than they’ve ever been. “It’s great if you can bring on capacity, but you have to make money from that,” said BNP Paribas analyst Stefan Slowinski, who has an outperform rating on the stock. “The risk is if they’re cautious on that Q3 guidance on the operating profits, then it may not answer those concerns people have. And if all of that has to come in the fourth quarter, then just like with any stock it creates risk if you’re sort of putting all of your eggs into the Q4 basket.” Wall Street expects the Livingston, New Jersey-based company to report a 111% rise in second-quarter revenue to $2.6 billion, and an adjusted net loss of $649 million compared with $131 million a year ago. Analysts have grown increasingly skeptical about this report, raising their projections for CoreWeave’s adjusted loss by 8.4% in the last month and 18% over the last three months. CoreWeave also is expected to post an adjusted operating margin of 2.9% in the second quarter. The figure will be key for investors after falling to about 1% in the first quarter. “I’m hoping that that margin was the low that we’ll see for the year, and that when they report this quarter, it’ll be up from the March trough and they guide to increases each and every quarter in margin,” said Paul Meeks of Freedom Capital Markets. “That’ll make me feel that the ding in short term property profitability is indeed behind us.” The optimism is reasonable considering the biggest AI spenders like Alphabet Inc., Meta Platforms Inc. and Microsoft Corp. are maintaining or raising their capital expenditure plans. The three companies make up roughly 80% of CoreWeave’s revenue, according to data compiled by Bloomberg. At the same time, the field is becoming increasingly competitive. Elon Musk’s SpaceX has inked a number of deals to sell AI computing power, and Meta is reportedly developing plans to do the same. Still, Wall Street remains bullish on CoreWeave due to the overwhelming demand for AI infrastructure. Of the 43 analysts tracked by Bloomberg who cover the company, 29 have buy ratings. The average price target of around $138 implies shares will climb 57% over the next 12 months. “AI infrastructure demand remains exceptionally strong and capacity largely sold out,” Citi’s Tyler Radke, who has a buy rating on the stock, wrote in an August 4 note to clients. Of course, the stock’s position — up from a recent trough but still significantly below its all-time high — also sets up a potential buying opportunity. That is, as long as CoreWeave can deliver a solid outlook that calms concerns around its return on investment and gives investors confidence that it will be able to borrow at a cheaper cost of capital and deliver profits before long. “If they can do that, then it’s kind of a self-fulfilling prophecy,” BNP Paribas’s Slowinski said. “All that has to come together to increase confidence in the company and in the business model.” Tech Chart of the Day Top Tech Stories Tencent Holdings Ltd.’s early success with WorkBuddy may give the Chinese Internet giant a chance to catch up after lagging peers in the artificial intelligence race for the past few years. Intel Corp. raised $20 billion in an upsized share sale, a third more than it was targeting when it announced the deal Monday morning. US investment giants including Apollo Global Management Inc., Blackstone Inc., BlackRock Inc. and Brookfield Asset Management are partnering with Nvidia Corp. to source $500 billion in financing for artificial intelligence infrastructure. Anthropic PBC has struck a $9.1 billion deal with Riot Platforms Inc., a Bitcoin mining company that recently began selling AI data center capacity, people familiar with the matter said, underscoring the Claude maker’s efforts to secure enough computing power to meet its customers’ demand. Apple Inc. is still planning to offer a glass-centric overhaul of the iPhone for the device’s 20th anniversary, people familiar with the matter said, countering an analyst report that the move had been canceled. Earnings Due Earnings Premarket: Earnings Postmarket: --With assistance from Subrat Patnaik and David Watkins. 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Investor releaseQuarter not tagged2026-08-11DarioHealth Reports Second Quarter 2026 Financial Results
PR Newswire
DarioHealth Reports Second Quarter 2026 Financial Results
Second quarter 2026 revenue was $5.2 million, reflecting the Company's strategic decision to discontinue certain pharmaceutical-related business Gross margin increased to 62%, compared to 57% in the first quarter of 2026 and 55% in the second quarter of 2025; non-GAAP B2B2C gross margin was approximately 80% for the 10th consecutive quarter Operating loss decreased by 30% year-over-year and 11% quarter-over-quarter Operating expenses declined by 21% year-over-year and 8% quarter-over-quarter Multi-condition strategy compounding: more than 80% of the $13.1 million in contracted and late-stage annual recurring revenue ("ARR") is multi-condition Commercial momentum with three significant wins in recent weeks, led by a top-5 national health plan expansion with the potential to approximately triple Dario's potential revenue opportunity — its third such expansion — plus a 5th Fortune 50 client and a new health insurer via the Amwell channel Expanded into provider-backed clinical care delivery, accessing a larger portion of the healthcare value chain and increasing the potential revenue opportunity per client Pro forma cash of $36.8 million following $22.8 million net proceeds from at-the-market registered direct financing with participation from existing long-term shareholders and new fundamental institutional investors completed in July 2026 Conference call today, August 11, 2026 at 8:30 am ET NEW YORK, Aug. 11, 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 second quarter ended June 30, 2026. "We believe that Dario has reached an important stage where the investments made in our technology, product, and distribution infrastructure are compounding positive momentum," said Erez Raphael, Chief Executive Officer of Dario. "Over the past decade, we have built a comprehensive multi-condition platform supported by robust clinical evidence, enterprise distribution generating ARR and, more recently, AI-powered capabilities that have the potential to increase the recurring revenue we generate from customers we have already won. Our strategy is translating into execution as new customers are increasingly adopting our multi-condition solutions and existing customers expand into addit…Read full documentShow less
Second quarter 2026 revenue was $5.2 million, reflecting the Company's strategic decision to discontinue certain pharmaceutical-related business Gross margin increased to 62%, compared to 57% in the first quarter of 2026 and 55% in the second quarter of 2025; non-GAAP B2B2C gross margin was approximately 80% for the 10th consecutive quarter Operating loss decreased by 30% year-over-year and 11% quarter-over-quarter Operating expenses declined by 21% year-over-year and 8% quarter-over-quarter Multi-condition strategy compounding: more than 80% of the $13.1 million in contracted and late-stage annual recurring revenue ("ARR") is multi-condition Commercial momentum with three significant wins in recent weeks, led by a top-5 national health plan expansion with the potential to approximately triple Dario's potential revenue opportunity — its third such expansion — plus a 5th Fortune 50 client and a new health insurer via the Amwell channel Expanded into provider-backed clinical care delivery, accessing a larger portion of the healthcare value chain and increasing the potential revenue opportunity per client Pro forma cash of $36.8 million following $22.8 million net proceeds from at-the-market registered direct financing with participation from existing long-term shareholders and new fundamental institutional investors completed in July 2026 Conference call today, August 11, 2026 at 8:30 am ET NEW YORK, Aug. 11, 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 second quarter ended June 30, 2026. "We believe that Dario has reached an important stage where the investments made in our technology, product, and distribution infrastructure are compounding positive momentum," said Erez Raphael, Chief Executive Officer of Dario. "Over the past decade, we have built a comprehensive multi-condition platform supported by robust clinical evidence, enterprise distribution generating ARR and, more recently, AI-powered capabilities that have the potential to increase the recurring revenue we generate from customers we have already won. Our strategy is translating into execution as new customers are increasingly adopting our multi-condition solutions and existing customers expand into additional conditions. Today, we believe provider-backed care is the natural extension of our platform, positioning us to capture a larger share of the healthcare value chain. We believe we have built an end-to-end chronic care platform that is unique in the market and positions us to accelerate revenue growth by the end of 2026 and into 2027." Commercial Highlights: Dario has served more than a dozen health plans over the last 4 quarters, including 3 national carriers, across more than 6 chronic condition solutions, with 5 Fortune 50 clients and approximately 25% of B2B2C clients drawn from the Fortune 500. Growth compounds across three layers: channel partners add accounts at lower acquisition cost, multi-condition expansion and provider-based care increase revenue per account with no incremental acquisition spend, and DarioIQ™ powers both. Added New Enterprise Accounts Through Channel Partners Signed new Fortune 50 client representing more than 100,000 eligible employees, Dario's 5th Fortune 50 client; the Company expects ARR contribution to begin at the end of 2026 and ramp into 2027 Signed a major health insurer with a stronghold in Arizona, representing hundreds of thousands of lives, through the Amwell channel partnership Expanded Within Existing Customers Top 5 national health plan extended its behavioral health agreement and added Dario's hypertension solution, the third such plan to expand number of conditions; the expansion has the potential to approximately triple Dario's potential revenue opportunity under this relationship, with contribution expected in 2026 and higher impact in 2027 and onward, demonstrating Dario's land-and-expand strategy Channel partner Solera expanded its contract to add Dario's hypertension program across its existing member base, addressing an additional 500,000+ new eligible lives, approximately doubling Dario's addressable eligible population through Solera Added Product Extensions The Company expects the new programs to begin revenue contribution in the fourth quarter of 2026 Dario Women supports members navigating perimenopause and menopause, life stages frequently associated with weight changes, sleep disruption, metabolic changes and increased cardiometabolic risk Dario Sleep addresses obstructive sleep apnea ("OSA"), a significant contributor to cardiometabolic disease and rising healthcare costs Extended Into Provider-Backed Care Expanded into provider-backed care through Beluga Health's care delivery infrastructure, adding 50-state embedded clinical delivery, expanding Dario's platform beyond digital engagement to include provider-led care capabilities Launched the first provider-backed offering, Dario's Integrated GLP-1 Program, combining the digital platform with GLP-1 medical evaluation, prescribing and oversight DarioIQ: The Engine Underneath More than 13 billion proprietary longitudinal data points from FDA-cleared connected devices power a vertically integrated device-to-data-to-AI stack, and support delivery of integrated multi-condition care Broad deployment of DarioIQ, which the Company believes could contribute an increase of 10-15% in B2B2C ARR from existing customers through higher engagement, retention and clinical outcomes Applied within Dario's own operations, AI has helped expand operational capability while holding the cost base, contributing to the reduction in operating expenses and operating loss this quarter Lara Dodo, Dario's Chief Operating Officer, commented, "Commercial execution remained strong during the second quarter of 2026 as we continued advancing enterprise customer implementations, expanding relationships with channel partners and broadening adoption of our integrated multi-condition platform. We swiftly advanced our provider-backed care strategy and implementation, expanding our ability to increase long-term customer value." Second Quarter 2026 Financial Highlights: Revenue was $5.2 million, compared with $5.6 million in the first quarter of 2026 and $5.4 million in the second quarter of 2025. The year-over-year comparison primarily reflected the Company's strategic decision to discontinue certain pharmaceutical-related business, partially offset by continued growth from channel partners and direct-to-consumer programs. Gross profit increased to $3.2 million, up approximately 8% year-over-year and substantially consistent quarter-over-quarter Gross margin increased to 62%, compared with 57% in the first quarter of 2026 and 55% in the second quarter of 2025; Non-GAAP B2B2C gross margins remain at approximately 80% for the 10th consecutive quarter Operating expenses declined to $9.7 million, down 8% quarter-over-quarter and 21% year-over-year, while operating loss improved 11% quarter-over-quarter and 30% year-over-year Balance sheet strengthened with $36.8 million pro forma cash, cash equivalents and short-term deposits; $14.0 million as of June 30, 2026, plus $22.8 million, raised through registered direct financing in July 2026, net of offering expenses. "Our second quarter results reflect continued progress in improving the efficiency of our business, with improvements in gross margin, operating expenses and net loss, year-over-year," stated Chen Franco Yehuda, Dario's Chief Financial Officer. "Following quarter end, we strengthened our balance sheet through a successful $23.5 million registered direct financing priced at-the-market, with participation from both existing long-term shareholders and new fundamental institutional investors. This financing enhances our financial flexibility as we continue executing on commercial opportunities created by our AI-powered integrated care platform." Second Quarter 2026 Financial Results Revenue was $5.2 million for the second quarter of 2026, compared with $5.4 million in the second quarter of 2025 and $5.6 million in the first quarter of 2026. The year-over-year decrease primarily reflects the absence of one-time pharmaceutical services revenue recognized in the prior-year period, as the Company transitions to a B2B2C ARR model, partially offset by growth in revenue from enterprise B2B2C revenues and direct to consumer sales. Gross profit was $3.2 million, compared with $3.0 million in the second quarter of 2025 and $3.2 million in the first quarter of 2026. Gross margin improved to 61.7%, compared with 55.2% in the second quarter of 2025 and 57.3% in the first quarter of 2026, reflecting improved product mix and the benefit of lower cost of revenues, including the impact of an International Emergency Economic Powers Act (IEEPA) tariff refund recognized during the quarter. Operating expenses declined to $9.7 million, compared with $12.2 million in the second quarter of 2025 and $10.5 million in the first quarter of 2026, reflecting continued operating discipline. Operating loss improved to $6.5 million, compared with $9.2 million in the second quarter of 2025 and $7.3 million in the first quarter of 2026. Net loss was $7.9 million, compared with $13.0 million in the second quarter of 2025, and $8.2 million in the first quarter of 2026. Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended June 30, 2026 was $5.3 million compared to a Non-GAAP operating loss of $6.4 million for the three months ended June 30, 2025, and Non-GAAP operating loss of $5.3 million for the three months ended March 31, 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." Six Months Ended June 30, 2026 Revenue for the first six months of 2026 was $10.8 million, compared with $12.1 million for the first six months of 2025. The decrease primarily reflected a transition away from one-time pharmaceutical services, partially offset by growth in revenue from enterprise B2B2C revenues and direct to consumer sales. Gross profit was $6.4 million for the first six months of 2026, compared with $6.8 million in the prior-year period. Gross margin improved to 59.4%, compared with 56.5% for the first six months of 2025, primarily reflecting lower cost of revenues, including the benefit of an IEEPA tariff refund recognized during the period. Operating expenses decreased to $20.2 million for the first six months of 2026, compared with $25.5 million for the first six months of 2025, reflecting lower research and development, sales and marketing, and general and administrative expenses. Operating loss improved to $13.8 million, compared with $18.6 million in the first six months of 2025. Net loss improved to $16.2 million, for the first six months of 2026, compared with $22.2 million, for the first six months of 2025. Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the six months ended June 30, 2026 was $10.7 million compared to a Non-GAAP operating loss of $12.2 million for the six months ended June 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: Tuesday, August 11th, 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/4vKeztO 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=1767650&tp_key=4cfb9bb10d 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 Tuesday, August 25th, 2026. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 1188083. About DarioHealth Corp. (Nasdaq: DRIO) 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 expected revenue growth and commercial momentum, the expected timing and contribution of ARR, the anticipated implementation and expansion of customer relationships, including the top-5 national health plan expansion and new Fortune 50 client, the potential revenue opportunity associated with customer expansions, the expected launch and revenue contribution of new product offerings, the anticipated benefits of its provider-backed care strategy and DarioIQ™ platform, the expected impact of AI on customer engagement, retention, clinical outcomes and operating efficiency, the Company's ability to accelerate revenue growth by the end of 2026 and into 2027, and the Company's future financial performance and 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. Non-GAAP Financial Measures This release includes financial measures that are not prepared in accordance with U.S. GAAP. Management uses these non-GAAP measures internally to evaluate ongoing operating performance and believes they provide investors with additional insight when used as a supplement to GAAP measures. Non-GAAP measures should not be considered in isolation from, or as a substitute for, GAAP measures. A reconciliation of GAAP to non-GAAP measures is provided in the financial tables included in this release. 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 Contacts Michael LipariSVP Corporate [email protected]+1-201-785-6310 Zoe HarrisonVP, Accounting and Corporate [email protected] Logo - https://mma.prnewswire.com/media/2866807/6031067/Dario_Logo.jpg View original content to download multimedia:https://www.prnewswire.com/news-releases/dariohealth-reports-second-quarter-2026-financial-results-302848170.html
TranscriptFY2026 Q22026-08-11FY2026 Q2 earnings call transcript
Earnings source - 51 paragraphs
FY2026 Q2 earnings call transcript
Good morning, ladies and gentlemen, and welcome to the DarioHealth Second Quarter 2026 Results Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, August 11, 2026. I would now like to turn the conference over to Zoe Harrison, VP Accounting and Corporate Development at DarioHealth. Zoe, please go ahead.
Thank you, operator, and good morning everyone. Thank you for joining us today for a discussion of DarioHealth's Second Quarter of 2026 Financial Results. Leading the call today will be Erez Raphael, Chief Executive Officer of DarioHealth, who will be joined by Chen Franco, our Chief Financial Officer, and our Chief Operating Officer, Lara Dodo. Steven Nelson, the company's President and Chief Commercial Officer, is on medical leave. An audio recording and webcast replay for today's call will also be available online, as detailed in the press release invite for this call. For the benefit of those who may be listening to the replay or archived webcast, this call is being held on Tuesday, August 11, 2026. This morning, we issued a press release announcing our financial results for the second quarter of 2026. A copy of the release can be found on the investor relations page of DarioHealth's website.
I would like to remind you that on this call, management will make forward-looking statements within the meaning of the federal securities law. For example, the company is using forward-looking statements when it discusses expected revenue growth and contribution from signed accounts. Its path to profitability and positive cash flow. The continued reduction in operating expenses and losses. Its expansion of channel partnerships and distribution. Expected revenue and scaling from partner-led opportunities. Expected onboarding, implementation, and enrollment of large enterprise accounts. Expected conversion of contracted annual recurring revenue into recognized revenue.
Expected expansion into care delivery, claims-based and outcomes-based models. Expected benefits from care delivery participants. Expected growth in recurring revenue and operating leverage. Expected advantages and future impacts of DarioIQ and proprietary data assets. Expected improvements in member engagement, retention, and outcomes. The anticipated benefits of artificial intelligence across the company's commercial operations and internal operations. The anticipated expansion of existing customer relationships into additional chronic conditions. The expected timing and contribution of new product offerings. The company's ability to increase revenue per customer through its multi-condition strategy. The expected benefits of provider-backed clinical care, and beliefs regarding competitive positioning and market opportunity.
Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, including the risks described from time to time in its SEC filings. The company's results may differ materially from those projections. These statements involve material risks and uncertainties that could cause actual results or events to materially differ. Accordingly, you should not place undue reliance on these statements. I encourage you to review the company's filings with the SEC, including, without limitation, the company's annual report on Form 10-K. Which identifies specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. With that, I'll hand it over to Erez Raphael, Chief Executive Officer of DarioHealth.
Good morning, everyone. Thank you for taking the time to be with us today. Before reviewing the quarter, I would like to step back and discuss where Dario is today, and more importantly, how we believe the business is positioned going forward. For more than a decade, we have been building the foundation of this company. We built a digital health platform connected to our FDA-cleared devices. We built one of the industry's first comprehensive multi-condition platforms. We expanded from diabetes into hypertension, musculoskeletal health, behavioral health, weight management, and additional chronic conditions. We generated extensive clinical validations with more than 100 published studies, built proprietary longitudinal data sets comprising approximately 13 billion proprietary data points, developed our AI capabilities, established national channel partnerships, and most recently, moved into provider-backed clinical care.
We have created a scalable enterprise platform capable of serving employers and health plans by delivering an end-to-end patient journey that is designed to optimize care for members while improving return on investment for employers and insurers. That investment phase has created something we believe the market is only beginning to recognize now. Today, we are leveraging a platform that has reached a level of maturity where we view each new commercial success as strengthening the value of everything already in place. The best way to think about Dario today is through the lens of compounding growth. Four drivers, each acting on a different part of the economics, and each one multiplying what the others produce. Account depth increases the revenue we generate from a customer we have already won. Distribution efficiency lowers what it costs us and how long it takes to win the next one.
AI leverage raises the revenue we generate per member while reducing our cost to serve. Value chain participation gives us the access to leverage pool of healthcare spend from the same member base. More revenue per account, more accounts, faster for less, more from every member and lower cost, and more of the value chain. Three of those four are operating across our business today. The fourth is now beginning. Let me take them one at a time. The first is account depth. More revenue per account. Healthcare purchasers increasingly want pure vendors. They want integrated solutions capable of managing multiple chronic conditions on one platform, one member experience, and one implementation. We recognized this shift years ago and deliberately built Dario as a multi-condition platform.
Every additional condition increases the eligible population within the existing customer while leveraging the same commercial relationships, the same implementation, and the same technology platform. That has the potential to generate 2x-5x more revenue from the same account while delivering a greater clinical value through a more integrated approach to care. The value we deliver is supported by more than 100 published studies demonstrating improved clinical outcomes across multiple conditions and significant total cost savings for our customers. Published research also shows that members managing three chronic conditions achieved better outcomes than those managing one. Better clinical results and more revenue from the same member is a rare alignment in this industry. The second is distribution efficiency. More accounts, faster, with less dependency on Dario sales resources. Over the past several years, we transformed our commercial model from primarily direct selling into channel-enabled distribution.
Through our channel partners, we reach substantially more customers without proportionally increasing our sales organization. We spend less to acquire new business, we close it faster, and our reach expands while our cost base holds. The third is AI leverage. More revenue per member at a lower cost to serve. The foundation underneath everything I have described is what we have always said, it is the data. Dario is a data company that leverages generative and agentic AI on top of what we believe is one of the industry's most extensive proprietary longitudinal clinical dataset. The reason we are confident in that position is structural. We are fully vertically integrated. We design and manufacture our own FDA-cleared connected devices. Those devices generate continuous clinical data directly from the members in real-time. That data flows into our platform. Our analytics and AI run on top of it.
From hardware to AI, the stack is ours. We do not license it, rent it, or depend on third-party inputs. Today, we hold over 13 billion proprietary real-world data points tied to actual clinical outcomes across multiple conditions at the individual member level. We believe dataset of that depth would be difficult to replicate in a short period of time. DarioIQ, our proprietary AI agent trained on that dataset, is the product expression of that advantage. It delivers personalized real-time clinical recommendations that a general-purpose model cannot match because, to our knowledge, no general-purpose model has access to longitudinal data of this depth tied to a real outcome. DarioIQ is also what makes account depth work operationally. A member managing three conditions require one current clinical experience rather than three parallel programs. DarioIQ is what resolves that into a single intervention path.
DarioIQ is in active deployment across existing book of business, and we measure it where it matters commercially. The recurring revenue it produces from customers we have already won. Based on current experience, we believe DarioIQ could contribute an increase of approximately 10%-15% in recurring revenues from existing customers over time through a higher engagement, utilization, and overall customer value. The same capabilities run inside our own operations, expanding what we can do while holding our cost base. That is a direct contributor to the reduction in operating expenses and operating loss Chen will walk you through. This is also where four drivers connect. Every new member deeper the dataset. A deeper dataset makes DarioIQ more precise. A more precise DarioIQ produces better outcomes and a higher engagement, and that is what win the next account and expand the last one.
We believe the advantage in DarioIQ capabilities may further enhance the value of our platform and datasets. Every advance in AI raises the value of the underlying data, and we own the data. The moat is not static asset, it compounds with every member we add. The fourth is the value chain participation. Access to more of the healthcare dollar. I want to emphasize that we do not view this as a new strategy. It is a natural extension of the platform we have spent the past decade building. The market is moving beyond digital engagement alone towards integrated models that connect monitoring, AI-driven insights, and clinical intervention.
Our provider-backed care capabilities allows us to extend from helping members manage chronic conditions between physician visits to closing care gaps through diagnosis, prescribing, and clinical services where appropriate. Most companies in this market can tell health plans what is happening with the member. We can now treat that member and can be reimbursed for the treatment. The layer works because the first three already exist. Without the multi-condition platform, the clinical evidence, the AI capabilities, the enterprise relationship, and the channel infrastructure, provider-backed care could not create the same value. It is additive. It builds on business that is already compounding today. These four layers create a business that we believe is fundamentally different than it was only a year ago.
We believe Dario is uniquely positioned in offering an integrated platform that spans the entire patient journey, from continuous monitoring and personalized engagement to high-risk identification, to coaching, clinical decision support, and now provider-backed clinical care where needed. By bringing those capabilities together on a single multi-condition platform, we help customers improve outcomes, simplify care delivery, reduce vendor fragmentation, and generate a stronger return on their healthcare investment. With that, let me turn the call over to Lara, who will discuss the strong commercial momentum we are seeing across our business and how we are executing on those opportunities.
Thank you, Erez. Our commercial organization executed well during the quarter, and I want to walk through what we are seeing across three areas. How we are winning new accounts, how we are growing the accounts we already have, and how quickly we are able to bring new capabilities to market. We have been serving more than a dozen health plan customers over the past four quarters, three of them national carriers. As of the end of the second quarter, we have more than 180 signed accounts across employers and health plans. Five of those are Fortune 50 companies, and approximately 25% of our B2B2C client base is drawn from the Fortune 500. I'll start with new accounts. Approximately 75% of our new accounts now come through channel partners. That is a structural shift in our commercial model.
It means we are gaining access to employers and plan populations we have not previously reached, with shorter sales cycles and materially lower customer acquisition costs than a direct sales model. Nearly half of all private sector employees in the United States work for small businesses. That market is very difficult to reach economically through a direct enterprise sales model. Our growing network of channel partners gives us access to those same employers at scale, diversifying our client base and further expanding our target markets. As a result, our commercial reach continues to expand while sales and marketing spend continues to decline. All at the same time, we are efficiently signing and serving channel partners that we are activating through and with, and with too some of the largest employers and health plans in the U.S. Two examples from recent weeks.
The first, we signed another Fortune 50 employer covering more than 100,000 eligible employees for diabetes and hypertension. That is our fifth Fortune 50 client. Another example is through our channel partnership with Amwell. We signed a major health insurer with a stronghold in Arizona, opening that insurer's entire administrative services book, the ASO, to our cardiometabolic solution. Instead of selling employer by employer, this relationship gives us access to a broader employer population through a single enterprise channel, creating significant potential for scaled adoption across diabetes, hypertension, and weight management. Aligned with the growth of our client base through channel partners, we are in the final stages of adding a new channel partner with a broad reach across employers, health plans, and health systems. We look forward to sharing more details and the early impact of this relationship as it progresses.
The second area to discuss is growth inside the accounts we already have, and this is where our multi-condition strategy shows up most clearly. This works in two ways. We land with one condition and expand, and increasingly, we win multi-condition from the first day of the relationship. Today, nearly all of our new enterprise opportunities involve multiple conditions. During the quarter, one of the five largest health insurers in the United States expanded its relationship with us by adding hypertension to the behavioral health program it was already running. We stated publicly that this expansion has the potential to approximately triple our revenue opportunity. It is the third health plan customer to expand beyond an initial deployment of Dario. We also expanded our reach through our channel partnership with Solera by extending our hypertension program across the full spectrum of severity.
This expands our addressable population from lower acuity patients who can benefit from early intervention to higher acuity patients requiring more intensive management. This is exactly what we built the multi-condition platform to do. Once a customer experiences the value of the platform, adding conditions and reaching members across the full acuity spectrum becomes the natural and logical next step. They serve more members through a single integrated solution while simplifying contracting, implementation, reporting, and vendor management. Every additional condition broadens the eligible member population and has the potential to create meaningful recurring revenue without the need to require or acquire a new customer. The result is visible in the composition of our books. More than 80% of our contracted and late-stage recurring revenue is now multi-condition.
That is the clearest metric of how this strategy is compounding, and it is why we are increasingly confident in the revenue per account that we can generate going forward. The third area to discuss is speed. How quickly we can turn a new capability into something commercial. Only weeks after announcing our provider-backed care strategy, we launched our integrated GLP-1 program, combining Dario's AI-powered engagement platform with licensed provider evaluation and access to FDA-approved GLP-1 therapies when clinically appropriate. The program will be available through three channels, including Dario's direct-to-consumer shop, B2B2C employer programs, as well as health plan marketplaces, which extend our reach into new distribution channels. This rapid launch was possible because the technology platform, the AI infrastructure, and the commercial relationships are already in place. Which means new offerings can be introduced and commercialized across our existing customer base quickly.
We also broadened the platform itself during the quarter with two new programs. Dario Women supports members navigating perimenopause and menopause, life stages frequently associated with weight changes, sleep disruption, and increased cardiometabolic risk. Dario Sleep addresses obstructive sleep apnea, a significant contributor to cardiometabolic disease and rising healthcare costs. Both are expected to begin contributing revenue in the fourth quarter, and both are conditions we can sell into accounts we already hold. Looking ahead, our focus remains on execution. A signed account is just the beginning of the revenue opportunity. As activations progress and eligible members enroll over time, the same enterprise customer generates increasing recurring revenue quarter after quarter. Many of the customer wins and contract expansions announced over the past several quarters are currently progressing through activation and enrollment.
I want to spend a moment on how that translates into revenue, because it is part of our model most often misread. Contracted annual recurring revenue does not convert on the day an agreement is signed. Three things happen in sequence. First, the program launches, and launch timings are set by the plan year cycles and open enrollment windows rather than by the signature date. Secondly, eligible members enroll progressively over the quarters that follow as benefit communications reach them. Third, customers expand into additional conditions and across the acuity spectrum, broadening the eligible population. This process progressively unlocks recurring revenues from the signed contract. From signature to full run rate revenue, the sequence may typically take four to five quarters. We ended the quarter with approximately $13.1 million in contracted and late-stage annual recurring revenue, more than 80% of which is multi-condition.
Applying that four to five-quarter cycle, we expect to begin seeing this convert into revenue in the second half of this year, with the majority of the contribution showing up in 2027 as implementations mature and enrollment ramps across the base. What I'd like to leave you with is this. Customers are no longer evaluating individual point solutions. They are looking for integrated platforms that manage multiple chronic conditions, use AI to improve engagement and outcomes, and increasingly connect members to clinical care when appropriate. That is precisely the platform that Dario has built. With that, I'll turn the call over to Chen to review our financial results.
Thank you, Lara. Our second quarter results reflect our continued progress in building a more efficient and scalable business while positioning Dario for the next phase of commercial growth. The underlying financial trends during the quarter were particularly encouraging. Revenue for the quarter was $5.2 million, compared with $5.6 million in the first quarter of 2026 and $5.4 million in the second quarter of last year. As we discussed, this reflects the timing of implementations as well as our strategic decision to move away from pharmaceutical services revenue in favor of higher quality recurring B2B2C revenue. While that transition has impacted near-term reported revenue, we believe it strengthens the quality and long-term predictability of our business. Gross margin increased to 62%, up from 57% in the first quarter and 55% a year ago, where our non-GAAP B2B2C gross margin remained approximately at 80% for the 10th consecutive quarter.
At the same time, we continue to improve operating efficiency, reducing operating expenses by 8% sequentially and 21% year-over-year, while improving operating loss by 11% quarter-over-quarter and 30% year-over-year. Net loss for the quarter was $7.9 million, compared with $13 million in the second quarter of last year, a 39% improvement. A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement table included in our earnings press release. We also increased the applying AI within our own operations, which is helping us hold the line on costs even as we scale the business. That is a direct contributor to the expense discipline I just described. These results demonstrate continued focus on disciplined expense management while investing in areas that will drive future growth. From a financial perspective, what excites us most is the operating leverage embedded in our business model.
Much of our infrastructure needed to support future growth has already been built. As new enterprise customers are implemented, existing customers spend into additional conditions. AI drives higher engagement and retention, and new provider-backed care offerings are commercialized. We expect those revenue opportunities to leverage our existing technology platform, commercial organization, and operating infrastructure. We believe that positions us to deliver improving financial performance as revenue accelerates. We also significantly strengthened our balance sheet during the quarter. As of June 30th, 2026, our pro forma cash position is $36.8 million, as we ended the second quarter with $14 million in cash equivalents, and short-term deposits, plus $22.8 million net of offering expenses from the registered direct financing we closed in July. This offering was priced at the market with participation from both existing long-term shareholders and new fundamental institutional investors.
We believe that financing reflects confidence in our strategy, and importantly, it provides the cash runway to execute on the commercial opportunities we've discussed today, advancing our path to cash flow positivity. As Lara noted, many of the new customer implementations and existing customer condition expansions announced over the past several quarters are expected to begin contributing more meaningfully at the end of 2026 and continue ramping throughout 2027. Combined with the anticipated benefit of DarioIQ and our provider-backed care initiatives, we believe we are well-positioned to continue improving both the scale and quality of our revenue over time.
Thank you all for joining us today. I want to close where I started. Value compounds across four drivers. Account depth is generating more revenue from customers we have already gained, and you saw that this quarter in a top five health plan expansion with the potential to approximately triple our opportunity under that relationship. Distribution efficiency is bringing us more accounts faster for less, with roughly three-quarters of our new accounts now arriving through channel partners. AI leverage is raising the value of every member while lowering our cost to serve, and it is a direct contributor to the operating expense and loss reduction I just walked through. Value chain participation now allows us to participate more broadly in clinical care delivery and reimbursement. Three of those four are operating in the business today. The fourth is now beginning.
That is why we believe the composition of our revenue is stronger than it has been, even in a quarter where the top line came down. What is increasingly clear is this: We own our hardware, our data, and the AI capabilities that run on top of them. We have a commercial engine designed to compound over time, and we have a clinical foundation, more than 100 peer-reviewed studies, that powers our expansion from digital engagement into care delivery. Before I hand it back to the operator, I want to thank the people who make this possible. To our employees, your dedication to our members and to each other is what drives everything we do. To our partners and channel ecosystem, your trust and collaboration are central to how we scale. To our shareholders, thank you for your continued support and confidence in our platform and in our mission.
I will now turn the call over to the operator for Q&A.
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. Your first question comes from David Grossman with Stifel. Your line is now open.
Hi, all. This is Aidan Conniff on for David. Thanks for taking the question. I just wanted to start on the top-line revenue with the sequential decline in the B2B2C. Is there any incremental details you can give there? What kind of led to that decline? Then with the recent wins you guys have had, how should we think about the kind of magnitude of the acceleration in the back half from the health plans?
Yes. Thanks for the question. As we stated on the call, we signed accounts with contracted ARR of $13.1 million that we believe that in few quarters we're going to gain this ARR in actual revenues. The slight decline is coming from additional cleanup that we did post all the transformation and after closing the pharma channel. Just in the last two to three months, we announced on a large expansion of a national health plan from behavioral health to cardiometabolic. We have a huge employer that we signed on, and we have more that are coming in. We think that in the second half, we're going to start to see this revenue starting to gain traction, and we're going to see the growth between Q3 to Q4 with more momentum into Q1 of next year. That's how we expect things to happen.
Meanwhile, we made the entire P&L much more efficient from a gross margin perspective, OpEx perspective. We expect that every additional dollar that will be added from accounts that we already signed on is going to be extremely efficient in its ability to go to the bottom line and reduce the loss.
I appreciate that. Then just as a follow-up on DarioIQ, you talked about the 10% to 15% increase in the B2B2C ARR from existing customers. Can you give us a sense of how that actually shows up commercially? Is it a pricing or a PMPM increase that's negotiated at, like a renewal? Is that included in the $13.1 million ARR?
Yeah. Thank you. Very good question. The way that AI is being implemented is that we optimize the way that we are engaging with members. It means that we are improving the retention, and we are also improving the way that members are interacting with the platform. We see direct impact on the clinical outcomes that is being generated. This is one area. We think that more revenue can be recognized from the existing book of business and members, and this is purely something that should be generated, in addition to the contracted ARR of $13.1 million because it is on the existing book of business. The $13.1 million is either a new book of business or expansion of the existing book of business for additional conditions. This is one part.
The other part that is already reflected in our ability to reduce OpEx is how we are leveraging agentic AI to be utilized in order to take specific roles in the value chain, from the win of the client to the enrollment of the member, and end-to-end managing the member on the platform. That is another side of the AI implementation. The majority of the value is going to come from members more engaged on the platform, more retained on the platform, and with better clinical outcomes. That is something that we are already seeing the numbers. The more we are going to implement it, the more we are going to see these results in the existing book of business.
Great. Thank you.
Your next question comes from Aaron Kimson with Citizens Bank. Your line is now open.
Great, thanks for the questions. It is good to hear 75% of new accounts now come through channel partners. Is there a way to quantify how implementation time and time to ROI differ for a client that is landed through a channel partner for an enterprise customer versus when you sell an enterprise customer directly?
Yes. Actually, the main difference is whether we are signing with a client that is employer or a client that is a health plan. It is less depending on the channel partner and it is more depending on the profile of the client. So usually, employers are being enrolled into the next year, like in January of the next year, in most of the cases, like 75% of the cases. Health plans is something that is usually getting enrolled three to six months from the point that we are signing on an agreement. This is for the few that we already signed, and this is what we see practically in the field. I think that there is a difference to some of the channel partners that we work with, in the way that we are enrolling the members to the platform.
For some of them, they are taking responsibility also for the enrollment. This is something that is actually creating a better ROI for us because we do not need to spend sales and marketing or resources on enrollment in order to get to the revenues. We believe that once these kind of accounts are going to be with more volume, we are going to see a more strong P&L profile that will continue and improve. Because practically, for some of the channel partners, we have almost zero spend for the win and then for the enrollment of the members.
Great. Then one on DarioIQ. Can you help us think about what percentage of the 13 billion data points underlying it are first-party data from your own devices versus third-party data from insurers and employers? How well do you think you realize the value of that data today? Thanks.
Yeah. Dario is operating side by side, B2C and B2B. There are a lot of elements that are related to compliance on how the data can be utilized. One of the big advantages that Dario has is that we are operating the entire B2C business. When we are talking about data, the 13 billion is something that is between B2C and the B2B. For most of what we do on the R&D side, training models and so on, we are doing it purely on the B2C because of compliance aspects. This is something that is very important for us. The data, practically the majority is coming from the B2C. Whenever we have a new feature or additional capabilities, including multi-condition, it goes first into the B2C. This is where we are learning the patterns.
We are improving the user journey, especially when we are running multi-condition, because a big part of our story today is the multi-condition and managing comorbidities between the conditions. We are doing everything first on the B2C training models, and then we are moving it into the B2B. Practically, we developed a very unique and innovative way to implement AI capabilities in a highly regulated market.
Understood. Thank you.
Thank you, Aaron.
There are no further questions at this time. I will now turn the call back to management for closing remarks.
Thank you, everyone. We appreciate it, and have a good day.
Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.
Investor releaseQuarter not tagged2026-08-03DarioHealth to Report Second Quarter 2026 Results on Tuesday, August 11, 2026
PR Newswire
DarioHealth to Report Second Quarter 2026 Results on Tuesday, August 11, 2026
Company to host conference call and webcast at 8:30 a.m. Eastern Time NEW YORK, Aug. 3, 2026 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO) ("Dario" or the "Company"), a leading artificial intelligence ("AI")-powered healthcare technology company transforming the management of chronic conditions, announced today that it will release its financial results for the 2nd quarter ended June 30th, 2026 and will host a conference call and webcast at 8:30 a.m. Eastern Time, on Tuesday, August 11th, 2026, before the market opens. Erez Raphael, Chief Executive Officer, Lara Dodo, Chief Operations Officer, and Chen Franco-Yehuda, Chief Financial Officer, will host the call. Conference Call Details Date: Tuesday, August 11th, 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/4vKeztO 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=1767650&tp_key=4cfb9bb10d 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 Tuesday, August 25th, 2026. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 1188083. About DarioHealth Corp. 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 singl…Read full documentShow less
Company to host conference call and webcast at 8:30 a.m. Eastern Time NEW YORK, Aug. 3, 2026 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO) ("Dario" or the "Company"), a leading artificial intelligence ("AI")-powered healthcare technology company transforming the management of chronic conditions, announced today that it will release its financial results for the 2nd quarter ended June 30th, 2026 and will host a conference call and webcast at 8:30 a.m. Eastern Time, on Tuesday, August 11th, 2026, before the market opens. Erez Raphael, Chief Executive Officer, Lara Dodo, Chief Operations Officer, and Chen Franco-Yehuda, Chief Financial Officer, will host the call. Conference Call Details Date: Tuesday, August 11th, 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/4vKeztO 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=1767650&tp_key=4cfb9bb10d 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 Tuesday, August 25th, 2026. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 1188083. About DarioHealth Corp. 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 it discusses the expected date of its earnings release. 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 ContactZoe HarrisonVP, Accounting and Corporate [email protected] DarioHealth Investor Relations ContactMichael LipariSVP Corporate [email protected]+1-203-785-6310 View original content:https://www.prnewswire.com/news-releases/dariohealth-to-report-second-quarter-2026-results-on-tuesday-august-11-2026-302840643.html
Investor releaseQuarter not tagged2026-05-14DarioHealth Corp (DRIO) Q1 2026 Earnings Call Highlights: Navigating Growth and Strategic ...
GuruFocus.com
DarioHealth Corp (DRIO) Q1 2026 Earnings Call Highlights: Navigating Growth and Strategic ...
This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DarioHealth Corp (NASDAQ:DRIO) reported its second consecutive quarter of sequential revenue growth, indicating positive financial momentum. The company has successfully expanded its channel partnerships, now reaching over 175 million covered lives, which is expected to drive future revenue growth. DarioHealth Corp (NASDAQ:DRIO) is moving closer to care delivery, opening new revenue streams and enhancing its value proposition. The company's proprietary AI engine, ValueIQ, has shown significant improvements in member engagement and retention, with up to 40% improvement in retention and 55% lift in active sessions. DarioHealth Corp (NASDAQ:DRIO) has a strong commercial pipeline, with approximately $127 million across 241 open opportunities, indicating robust future growth potential. Despite revenue growth, DarioHealth Corp (NASDAQ:DRIO) reported a year-over-year decline in revenue due to a strategic transition away from non-recurrent pharmaceutical revenue. The company is still in the process of implementing large accounts signed in 2025, with revenue recognition expected primarily in the second half of 2026, indicating potential delays in revenue realization. DarioHealth Corp (NASDAQ:DRIO) continues to operate at a loss, with a non-GAAP operating loss of $5.3 million for the first quarter of 2026. The transition to care delivery and outcomes-based models involves significant operational changes and partnerships, which may pose integration challenges. The company's financial results are subject to numerous risks and uncertainties, including those related to its strategic review process and potential strategic transactions. Warning! GuruFocus has detected 3 Warning Signs with DRIO. Is DRIO fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on DarioHealth's expansion into care and how the partnership with health systems will work on the ground level? A: Steven Nelson, President and Chief Commercial Officer, explained that DarioHealth is forming referral-based partnerships with health systems to close gaps in care by connecting digital care to actual care. This collaboration allows DarioHealth to enhance its chronic management programs and explore new profit pools…Read full documentShow less
This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DarioHealth Corp (NASDAQ:DRIO) reported its second consecutive quarter of sequential revenue growth, indicating positive financial momentum. The company has successfully expanded its channel partnerships, now reaching over 175 million covered lives, which is expected to drive future revenue growth. DarioHealth Corp (NASDAQ:DRIO) is moving closer to care delivery, opening new revenue streams and enhancing its value proposition. The company's proprietary AI engine, ValueIQ, has shown significant improvements in member engagement and retention, with up to 40% improvement in retention and 55% lift in active sessions. DarioHealth Corp (NASDAQ:DRIO) has a strong commercial pipeline, with approximately $127 million across 241 open opportunities, indicating robust future growth potential. Despite revenue growth, DarioHealth Corp (NASDAQ:DRIO) reported a year-over-year decline in revenue due to a strategic transition away from non-recurrent pharmaceutical revenue. The company is still in the process of implementing large accounts signed in 2025, with revenue recognition expected primarily in the second half of 2026, indicating potential delays in revenue realization. DarioHealth Corp (NASDAQ:DRIO) continues to operate at a loss, with a non-GAAP operating loss of $5.3 million for the first quarter of 2026. The transition to care delivery and outcomes-based models involves significant operational changes and partnerships, which may pose integration challenges. The company's financial results are subject to numerous risks and uncertainties, including those related to its strategic review process and potential strategic transactions. Warning! GuruFocus has detected 3 Warning Signs with DRIO. Is DRIO fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on DarioHealth's expansion into care and how the partnership with health systems will work on the ground level? A: Steven Nelson, President and Chief Commercial Officer, explained that DarioHealth is forming referral-based partnerships with health systems to close gaps in care by connecting digital care to actual care. This collaboration allows DarioHealth to enhance its chronic management programs and explore new profit pools like claims-based billing. The company is also working on outcomes-based arrangements to improve health plan ratings and measures. Q: What are the expectations for DarioHealth's role in getting closer to health systems, and how many partnerships are in the pipeline? A: Steven Nelson mentioned that DarioHealth plans to announce a new partnership soon and currently has 7 to 10 active proposals with health systems. These proposals are primarily focused on Medicare Advantage and Medicaid-based business, with potential opportunities through the Rural Healthcare Transformation Program. Q: Can you provide insights into the expected revenue acceleration in the second half of the year? A: Steven Nelson stated that while specific guidance is not provided, there is an expectation of increased contributions from large accounts being onboarded. Erez Rafael, CEO, added that $30 million worth of contracts are in mid-stage business, with significant growth anticipated in the second half of the year as these accounts launch. Q: What is driving the strong growth in consumer revenue, particularly in the direct-to-consumer market? A: Erez Rafael attributed the growth to increased demand for DarioHealth's landscape product, which is popular both in the U.S. and internationally. The product's success is also generating interest from clinics in the U.S., contributing to the overall growth in the B2C business. Q: How is DarioHealth's channel strategy evolving, and what impact does it have on revenue growth? A: Steven Nelson highlighted that over 80% of DarioHealth's revenue is now generated through partner-driven channels, providing access to over 116 million covered lives. The channel strategy is producing scaled opportunities and larger deployments, which are expected to increase recurring revenue growth as these ecosystems expand. For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Investor releaseQuarter not tagged2026-05-14DarioHealth (DRIO) Q1 2026 Earnings Transcript
Motley Fool
DarioHealth (DRIO) Q1 2026 Earnings Transcript
Image source: The Motley Fool. Wednesday, May 13, 2026 at 8:30 a.m. ET Chief Executive Officer — Erez Raphael President and Chief Commercial Officer — Steven Nelson Chief Financial Officer — Chen Franco-Yehuda Vice President, Accounting and Corporate Development — Zoe Harrison Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good morning, ladies and gentlemen, and welcome to the DarioHealth First Quarter 2026 Results Conference Call. [Operator Instructions] This call is being recorded on Wednesday, May 13, 2026. I would now like to turn the conference over to Zoe Harrison, VP, Accounting and Corporate Development at DarioHealth. Zoe, please go ahead. Zoe Harrison: Thank you, operator, and good morning, everyone. Thank you for joining us today for a discussion of DarioHealth's First Quarter 2026 Financial Results. Leading the call today will be Erez Raphael, Chief Executive Officer of DarioHealth. He'll be joined by our President and Chief Commercial Officer, Steven Nelson; and Chen Franco, our Chief Financial Officer. An audio recording and webcast replay for today's call will also be available online as detailed in the press release invite for this call. For the benefit of those who may be listening to the replay or archived webcast, this call is being held on Wednesday, May 13, 2026. This morning, we issued a press release announcing our financial results for the first quarter of 2026. A copy of the release can be found on the Investor Relations page of DarioHealth's website. I'd like to remind you that on this call, management will make forward-looking statements within the meaning of the federal securities laws. For example, the company is using forward-looking statements when it discusses expected revenue growth and contribution from 2025 signed accounts, its path to profitability and cash flow breakeven, the continued reduction in operating expenses and losses, its expansion of channel partnerships and covered lives reach, its expected revenue and scaling from partner-led and off-cycle opportunities, expected onboarding and implementation of large enterprise accounts, expected growth and conversion of commercial pipeline opportunities, expected expansion into care delivery, claims-based and outcomes-based models, expected benefits from care delivery and GreenKey Health partnerships, expected growth in recurring revenue and operating…Read full documentShow less
Image source: The Motley Fool. Wednesday, May 13, 2026 at 8:30 a.m. ET Chief Executive Officer — Erez Raphael President and Chief Commercial Officer — Steven Nelson Chief Financial Officer — Chen Franco-Yehuda Vice President, Accounting and Corporate Development — Zoe Harrison Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good morning, ladies and gentlemen, and welcome to the DarioHealth First Quarter 2026 Results Conference Call. [Operator Instructions] This call is being recorded on Wednesday, May 13, 2026. I would now like to turn the conference over to Zoe Harrison, VP, Accounting and Corporate Development at DarioHealth. Zoe, please go ahead. Zoe Harrison: Thank you, operator, and good morning, everyone. Thank you for joining us today for a discussion of DarioHealth's First Quarter 2026 Financial Results. Leading the call today will be Erez Raphael, Chief Executive Officer of DarioHealth. He'll be joined by our President and Chief Commercial Officer, Steven Nelson; and Chen Franco, our Chief Financial Officer. An audio recording and webcast replay for today's call will also be available online as detailed in the press release invite for this call. For the benefit of those who may be listening to the replay or archived webcast, this call is being held on Wednesday, May 13, 2026. This morning, we issued a press release announcing our financial results for the first quarter of 2026. A copy of the release can be found on the Investor Relations page of DarioHealth's website. I'd like to remind you that on this call, management will make forward-looking statements within the meaning of the federal securities laws. For example, the company is using forward-looking statements when it discusses expected revenue growth and contribution from 2025 signed accounts, its path to profitability and cash flow breakeven, the continued reduction in operating expenses and losses, its expansion of channel partnerships and covered lives reach, its expected revenue and scaling from partner-led and off-cycle opportunities, expected onboarding and implementation of large enterprise accounts, expected growth and conversion of commercial pipeline opportunities, expected expansion into care delivery, claims-based and outcomes-based models, expected benefits from care delivery and GreenKey Health partnerships, expected growth in recurring revenue and operating leverage, expected advantages and future impact of DarioIQ and proprietary data assets, expected improvements in member engagement, retention and outcomes, beliefs regarding competitive positioning and market opportunity and the expected outcomes of the company's strategic review process, including potential strategic transactions. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, including the risks described from time-to-time in its SEC filings. The company's results may differ materially from those projections. These statements involve material risks and uncertainties that could cause actual results or events to materially differ. Accordingly, you should not place undue reliance on these statements. I encourage you to review the company's filings with the SEC, including, without limitation, the company's Annual Report on Form 10-K, which identifies specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. With that, I'll hand it over to Erez Raphael, Chief Executive Officer of DarioHealth. Erez Raphael: Good morning, everyone, and thank you for joining us. We started 2026 with continued momentum. Q1 marked our second consecutive quarter of sequential revenue growth, while we continue to reduce our operating expenses. The financial trajectory is on track, and Chen will walk you through the details shortly. I want to focus my comment today on 3 things: the continued expansion of our Channel ecosystem, the scale we are now operationalizing from the accounts signed in 2025, and the next strategic step in our platform moving closer to care, which opens new revenue streams for us. I'll also share some strong numbers on how our DarioIQ AI engine is further boosting member engagement. Last quarter, we described 2 compounding layers at the core of our growth strategy. Layer 1, channel partnership that gives access to millions of covered lives or single commercial relationship. Layer 2, our multi-condition platform that captures a far greater share of each account population. That thesis is now playing out and is being accelerated. Our channel partnerships continues to grow. We have entered the contracting stage with a new channel partner, the largest in Dario's history. The relationship comes from a major Day 1 anchor account, one of the largest hospital network in Northeastern United States. With this partnership, we expect to access approximately 65 million additional covered lives and roughly 3,500 employer relationships. Combined with our existing relationships with Solera, Amwell and our other blue-chip channel partners, this will bring our distribution reach to over 175 million covered lives. With a strong sales cycle at the end of 2025 and closed out the year with nearly $13 million in contracted and late-stage business, which remains on track to contribute to revenue later this year and in 2027. In parallel, our Channel model is producing contract flow outside of the traditional benefit cycle [indiscernible]. Steven will share the commercial details. The third area I want to spend time on is an important strategic step we are taking. How we are evolving the platform itself to move closer to care. We have built a strong digital health foundation, a scalable recurring and engaged member per month revenue model with measurable outcomes. That continues. What is changing is what we are expanding beyond engagement and support into actual delivery of care. We believe Dario is uniquely positioned to lead this shift and the reason is straightforward. We have built one of the deepest bodies of clinical evidence in digital health, more than 100 peer-reviewed clinical studies, more than any other company in our category, demonstrating real measurable outcomes. This level of validation is what the potential payers and providers require. It is also what makes outcomes-based and claims-based revenue models possible for us. We are building beyond our core ability to engage members and support improved outcomes through behavioral change. We are building to directly impact clinical outcomes, close care gaps and participate in the medical spend associated with those outcomes. To accelerate this strategy, we are working with the care delivery partner. Steven will share more on this work shortly. The foundation underneath everything I've just described is what we have always said, which is data. Dario is a data company that leverage Generative and Agentic AI on top of one of the most valuable proprietary clinical data sets in digital health. The reason we are confident is that position is structural. We are fully vertically integrated. We design and manufacture our FDA-cleared connected devices. Those devices generate continuous biochemical and other clinical data directly from the members in real time. The data flows into our platform, our analytics and AI are on top of it from hardware to AI, [ that start ] in ours. We do not license it, rent it or depend on third-party inputs. Today, we have more than 13 billion proprietary real-world data points tied to clinical outcomes across multiple conditions at the individual member level. That is the kind of data set that takes a decade to build and cannot be replicated quickly. DarioIQ, our proprietary AI engine trained on that data set is the product expression of that advantage. It delivers personalized real-time clinical recommendation that the general purpose model cannot match because no general purpose model has access to longitudinal data of this depth tied to real outcomes. DarioIQ is now in active deployment and the early results are meaningful. Our behavioral triggered engagement programs where the DarioIQ identifies the right intervention at the right moment for each member based on their personal data signature are delivering up to 40% improvement in member retention and up to 55% lift in active session versus our control group. These are early data points, but they are directional. They tell us the AI layer is producing measurable behavioral change today and that the same data flywheel that build the moat is what compounded. The implication is direct. As AI capabilities advance our position strength, every advance in AI raises the value of the underlying data, we own this data. We put this together, our Channel ecosystem continues to scale. The accounts we signed in 2025 are converting into revenues, and we are evolving the platform from digital engagement into care delivery, backed by clinical evidence and proprietary data and the foundation that compounds with every member we add. We are building a business that is more deeply integrated into how health care is delivered, paid for and measured. This is exactly where the market is going. That is where Dario is positioned to lead. With that, I will turn the call over to Steven. Steven Nelson: Thank you, Erez, and good morning, everyone. I'll start with account growth and channel momentum. Last year, we added 85 new accounts against an original goal of 40, more than double our target, demonstrating the strength of our market demand for Dario's multi-condition platform. That momentum continued into 2026. In the first quarter alone, we have already added 10 new accounts, most through channel partners and all outside the normal employer benefit cycle timing. That is important because it shows that our Channel ecosystem is beginning to create opportunities on a more continuous basis rather than only through traditional annual buying cycles. It also reinforces the broader shift in our commercial model from one account at a time direct selling to more scalable partner-led model that can create access to larger populations and multiple downstream opportunities over time. Today, more than 80% of our revenue is generated through partner-driven channels, providing access to over 116 million covered lives. As these ecosystems expand, each new partner or payer deployment has the potential to bring Dario's platform to significantly larger populations without requiring a proportional increase in commercial infrastructure. We are also continuing to deepen relationships with existing partners and customers. We are currently working toward a 3-year extension with Aetna and a 4-year extension with Centene, reinforcing the long-term value these organizations see and the outcomes delivered through the Dario platform. In addition, we continue to see strong activity across our Channel ecosystem. Solera remains an important partner and continues to create opportunities through existing client relationships and [ planned ] partners. Amwell has also identified a new Blue Cross Blue Shield plan opportunity that is expected to launch Dario as a part of its digital health offering. And we continue to see opportunities across larger payer and partner ecosystems, including UnitedHealthcare-related channels and additional payer aligned relationships. The important point is that our channel strategy is now producing scaled opportunities, larger deployments and a path to further increasing reoccurring revenue growth. At the same time, we are also focused on converting the accounts we already have sold into scaled platform activity. Several of the larger accounts referenced in prior quarters are now moving through onboarding, testing and client-specific requirements. That includes the technical, operational, eligibility, data sharing, reporting, integration and implementation steps required to support large-scale deployments. Overall, these implementations are progressing well. To-date, the work remains substantially on time and on track. This is an important transition for Dario. Last year was heavily focused on building the channel pipeline and closing new accounts. This year is increasingly about activating those relationships, scaling them across client populations and converting commercial progress into reoccurring revenue growth. For accounts such as Aetna, Allegiance, Solera-driven opportunities, Amwell-driven payer opportunities and others previously referenced channel partner relationships, we are encouraged by the progress and expect continued advancement as these clients scale on the Dario platform. Turning specifically to our broader pipeline. Commercial demand remains strong. As of the end of Q1, our total commercial pipeline increased to approximately $127 million across 241 open opportunities. This includes opportunities across employers, health plans, channel partners and other B2B2C relationships. Importantly, the size and quality of opportunities entering our pipeline continues to increase, driven by multi-condition adoption, large enterprise deployments and increased reach created through our channel partners. As we expand our presence with payer ecosystems, the scale of these opportunities continues to grow. We are also continuing to engage in government-sponsored health care initiatives with 11 state-level opportunities currently in motion through the Rural Health Transformation Program. These opportunities represent another potential path for Dario to expand through state-sponsored payer-aligned and population health-oriented models. I'll now turn to our expansion into care, which we believe is one of the most important developments in the business. Erez has already mentioned the opportunity and how Dario is well-positioned to capture more health care spend by delivering improved clinical outcomes. I'll get into the specifics of the execution. To execute this broader strategy of expanding into care, we plan to work with partners that bring the clinical and provider-enabled capabilities that complement Dario's digital engagement platform. Dario has built a strong ability to identify, activate, engage and support members across chronic conditions. These partners may add the care delivery layer that can help close gaps in care, support provider-led interventions, document clinical activity, help connect engagement to reimbursable health care events and operate across relevant geographies. The strategic logic is very clear. Dario can find and engage the member, the care partner can help support the clinical intervention. And together, we believe we can create a more complete model that identifies, engages, intervenes, documents and supports monetization through care-related and claims-based models. By moving closer to care through partnership, we believe we can accelerate the strategy without requiring Dario to build every clinical capability internally from the ground up. This gives us a more efficient path to expand our value proposition, strengthen our relevance with health plans and employers and create new revenue opportunities tied directly to outcomes and medical spend. A strong example of this direction is our expanded work with GreenKey Health. Building on the strategic co-promotion agreement established last year, we are deepening the integration of GreenKey4Life Clinical Sleep Service Pathway into the Dario ecosystem, creating a national diagnostic and telehealth-enabled pathway for obstructive sleep apnea screening and physician-guided patient choice interventions. Because unresolved sleep disorders can materially affect cardiometabolic outcomes, this partnership strengthens our ability to support members more holistically while creating additional value for enterprise partners focused on adherence, outcomes and cost savings. Dario is growing beyond its core strength as a digital health platform through participating in the delivery and monetization of care. This also expands both our value proposition and our revenue opportunities. It makes us even more relevant to health plans, employers and channel partners that are increasingly focused on measurable outcomes, care gap closure, claims visibility and medical cost impact. Stepping back, what we believe investors should take away from this quarter is that Dario is executing its business plan with greater focus and clarity. We have sharpened the business around employer and health plan growth. We are scaling our distribution through Channel ecosystems. We are preparing the business operationally for larger claims-enabled supported models. We are moving closer to care through clinical pathways, clinical gap closure and provider-enabled capabilities, including our expanded work with GreenKey Health. Together, these priorities position Dario to expand beyond the strong digital engagement that creates positive behavior change and toward a broader health care platform that can support care delivery, document outcomes and participate more directly in the health care dollars tied to those outcomes. And with large-scale deployments now beginning to come online, we believe we are entering the phase where the strategy begins to translate in a meaningful scale. With that, I'll turn the call over to Chen. Chen Franco-Yehuda: Thank you, Steven, and good morning, everyone. Q1 2026 demonstrated that our financial model is beginning to reflect the commercial and operational progress Erez and Steven described, revenue growing, cost declining and cash utilization continuing to improve. Revenue for Q1 2026 was $5.6 million, up from $5.2 million in fourth quarter of 2025, our second consecutive quarter of sequential growth. The year-over-year decline from the first quarter of 2025 reflects a deliberate strategic transition away from non-recurring pharmaceutical revenue that is currently not part of our core business model. That reduction was offset by increased revenue coming from our channel partners and increased sales in our direct-to-consumer channel. Gross margin was 57% in Q1 2026, about the same year-over-year and up from 54% in the fourth quarter of 2025. The sequential improvement was driven by efficiency. I want to highlight what sits underneath the GAAP margin. Our B2B2C non-GAAP gross margin held at approximately 80% for the ninth consecutive quarter. It reflects the economics of our model. As B2B2C revenue scales, it carries that 80% non-GAAP margin with it, and that is the engine of operating leverage going forward. On operating expenses, total OpEx for the first quarter of 2026 was $10.5 million, down 21% year-over-year and down 8% sequentially. This is the result of continued operational efficiency across the organization, including utilization of AI and post-merger integration activities following the Twill acquisition. Non-GAAP operating expenses, which exclude stock-based compensation, depreciation and amortization, were $8.7 million, down 18% year-over-year and down 3% compared to the fourth quarter of 2025. Operating loss for the first quarter of 2026 was $7.3 million, a 22% improvement year-over-year and 15% improvement sequentially. On a non-GAAP basis, operating loss was $5.3 million, an 8% improvement year-over-year and 11% improvement sequentially. We plan to continue reducing our non-GAAP operating loss through 2026. As of March 2026, we held $20 million in combined cash and short-term deposits, and we were in full compliance with all covenants under the Callodine facility, under which principal payments do not begin until May 2028. Net cash used in operations was $6 million in the first quarter of 2026 compared to $6.7 million in the first quarter of 2025, a 10% reduction year-over-year. I will close with how we think about the financial trajectory from here. The accounts signed in 2025 are moving through implementation and are expected to convert to recognized revenue primarily in the second half of 2026. The channel economics are favorable. Each new covered life relationship carries lower incremental cost. The cost structure has been reset materially from where it was a year ago. As we plan to integrate into clinical workflows and support outcome-based and claim-related models, we are positioning Dario to participate in materially larger share of the health care spend. The potential combination of contracted revenue becoming recognized revenue, high-margin channel growth and a lower cost base is what underpins our confidence in our financial direction of this business. I'll turn the call over to Erez. Erez Raphael: Thank you all for joining us today. This quarter shows the platform [ thesis ] is playing out in the numbers, 2 consecutive quarters of sequential revenue growth, 10 new accounts in the first quarter, most of them through a channel partner. $127 million pipeline across 241 active opportunities, a path that brings our distribution reach to 175 million covered lives. As a reminder, in September 2025, in response to multiple unsolicitated inbound expressions of interest, Dario engaged Perella Weinberg Partners and established a special committee of Board of Directors to consider a full range of strategic opportunities, including sale, merger, strategic business combination or continued execution of our stand-alone strategy. The process remains active, and we will provide updates when there is a material development to share. What is increasingly clear is that Dario is positioned to succeed in any scenario we choose to pursue. We own our hardware, our data and the AI that runs on top of them. We have a commercial engine that compounds, and we have a clinical foundation of more than 100 peer-reviewed studies that powers the expansion from digital engagement into care delivery. Before I hand back to the operator, I want to take a moment to thank people who make this possible, to our employees, the dedication to our members and to each other is what drives everything we do. To our partners and Channel ecosystem, your trust and collaboration are central to how we scale. And to our shareholders, thank you for your continued support and confidence in our platform and our mission. I will now turn it over to the operator for a Q&A session. Operator: [Operator Instructions] The first question comes from Charles Rhyee with TD Cowen. Lucas Romanski: This is Lucas on for Charles. Congrats on the quarter. I wanted to ask more about your guys' expansion into care. Congrats on the partnership. Up until now, most of your engagements have been with the health plan and employer channels. Can you dive a little bit more into how this specific channel will work on the ground level? See from your comments, it sounds like Dario will be a referral partner to the health systems. And then you guys have highlighted the opportunity to participate in outcomes-based arrangements. Can you dive a little bit deeper into the structure of the economic side of these relationships and how they differ from current arrangements? Steven Nelson: Yes. This is Steven. I'll take that one. 3 parts, I'll break it down for you. So you're right, it is a referral-based relationship, a partnership in care. They deliver care, specific care, we do not. So we're working collectively on joint agreements, joint relationships, go-to-market, getting back. We have proposals from health systems that are looking to close gaps in care, where digital care connects to actual care. And so we're going to collaborate in that space. We also can round out our current chronic management programs with direct care delivery, whether that's specialty care or other forms of specialty care. So that's part one. Part 2, will we be working back and forth with referral relationships? Absolutely. They have clients. We have clients. There's proposals that we put out in the market that have sought this specific relationship. So one, we know that we're doing the right thing with the product, part one. Two, we have existing proposals in the market that are actually requesting some of these product enhancements, if you will. And we are not a care delivery organization. And then third, this also allows us to kind of stretch our wing -- spread out and stretch our wings a little bit into some additional profit pools, right, claims-based billing, things that we started just this year in January for the first time. This allows us to get closer to care activities, data, sharing data, being able to curate what a digital engagement looks like and then when they need care, surface care opportunities. So we've talked about some different things in the past on doing this, Rula around behavioral health services in the past. We did some things with MediOrbis in GLP-1 early last year in that same regard. And we've recently talked about GreenKey and obstructive sleep apnea, which is also in the care space. So we're kind of getting and stretching deeper into that. And then your secondary question was regarding outcomes. Two things. One, we have a product today already on outcomes. We call it clinical milestones. We do that with our largest channel partner that's evolved to really where you have to meet very specific clinical milestones versus engagement metrics where we didn't get paid. And two, this is a great fit for that. This brings care directly in line of sight of that. And so that's great for health plans, which is the biggest opportunity where a significant amount of health plans now are trying to cap, close gap closures in care in order to improve their Stars ratings and their HEDIS measures. So it's a one-to-one on outcomes-based product. What we have today can be enhanced. We will also add additional products that will be on this path. We call it value-based light, kind of what you're getting to is value-based care and value-based light in terms of contracting. Innovative for sure, and making sure that we have other things that are tied to where the market is headed, which is a lot more ROI. Lucas Romanski: Great. Appreciate all that color. And then I guess in terms of this channel going forward, what are your expectations for the role of getting closer to health systems within your organization moving forward? And then can you give us a sense of -- obviously, we have this one partnership right now that you guys are highlighting. Can you give us a sense for how many other health systems you guys may be in conversations with? Steven Nelson: Yes. So broadly speaking, we'll announce this partnership next week sometime. So we're kind of angling towards a little bit more details, which will probably answer a lot more of your questions or questions that may arise after this call today. That's part one. Two, currently right now, we have proposals in the pipeline somewhere between 7 and 10 where we have active proposals in the market with health systems specifically looking for us to deliver this work. And so that is very active. All of that would be oriented towards 2027 business, January 2027 business. The majority of that business is Medicare Advantage. There are some subsets of that are Medicaid-based. And then the other proposals would tie to what I talked about, which was the Rural Health Care Transformation Initiative, RHT, around The Beautiful Bill. And so there's really 3 things: what's in pipe today, what we think we can capture doing more work with our partners, going back to our existing health plans. We have a significant amount of health plans today that we can go back and enhance our services with now that we have this. And then we have the RHT bids. Currently, we are around, I believe, 11 there on those bids as well, 11 in a direct sense, but all states are receiving money from The Beautiful Bill, and that may be opportunistically timing perfect for us as well when we think about this add-on of care. Lucas Romanski: Okay. Appreciate that. And then I want to ask about the health plan and employer pipeline. And it sounds like implementations this year remain on track, and we're expecting revenue to accelerate in the second half. Can you give us any sense of the magnitude of what we're expecting for that second half acceleration? Steven Nelson: Yes. I mean we're trying to get through all the planning and details around that. I mean as I mentioned, I actually got into the detail a little bit into the script about what it takes to onboard them. They're very large accounts. And so how they grow and where they grow, we have modeled all the account behaviors about what we think. We don't give specific guidance, obviously, in that regard to revenue. But we do see uptick in all of them. They're all onboarding. After we can kind of get the flood gates open per se, we expect them all to be contributing in a more material way as the year continues. And we don't have a lot of those details because, again, right now, as we announced who they were last year and on the last earnings call, we're now kind of in the thick of it in terms of standing them up, building the product connections, doing a lot of the back-end work to make sure that we have good partners that are stably going to generate that revenue. So we're still working through a lot of the enrollment and projections in detail. We know what it looks like in a pipeline sense, but we don't know what it looks like in a detailed sense. But Erez, would you like to add something to that? Erez Raphael: Yes, sure. So I think that what we disclosed in the press release and also in the earnings script is that we have $30 million worth of contracted ARR late-stage business. And we know specifically about a few of those accounts that are launching by the mid of the year. And this is what put us in a place where we are confident about a more significant growth in the second half of the year and into next year. So practically, the accounts landed, we started to implement them in Q1 and will continue in Q2. But we see a few largest ones that are going to launch by July 1, and this is something that gives us more confidence that we're going to see higher numbers in the second half of the year compared to the first half of the year. Lucas Romanski: Okay. Appreciate that color. And then my last question, I'll hop into the queue. It seems like consumer revenue continues to see strong growth, up 42% year-over-year and 24% quarter-over-quarter. I guess what's driving this acceleration on this side of the business? Erez Raphael: Yes. So this is something that related to general demand that we are having mainly on our MSK product. Our MSK product is very popular. Users like it a lot. And it's done as a respond to a larger demand around that product and the majority of the growth is coming from this product. It's not just in the U.S., it's also selling out of the U.S. So it's the time that the global demand for this product. Recently, this volume that we see in the direct-to-consumer market is also demand on the B2B side from clinics in the U.S. So we are exploring that as well. And that's a good news. And this product is very good and popular by consumers. So it drives a lot of growth. So we think that we're going to see this year versus last year, a nice growth in the entire B2C business. Operator: We have reached the end of the question-and-answer session. This concludes today's conference, and you may now disconnect your lines. Thank you for your participation. Before you buy stock in DarioHealth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DarioHealth wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,744!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,353,500!* Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. DarioHealth (DRIO) Q1 2026 Earnings Transcript was originally published by The Motley Fool
Investor releaseQuarter not tagged2026-05-13DarioHealth Q1 Earnings Call Highlights
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DarioHealth Q1 Earnings Call Highlights
Interested in DarioHealth Corp.? Here are five stocks we like better. DarioHealth posted sequential revenue growth for the second straight quarter, with Q1 revenue rising to $5.6 million from $5.2 million in Q4 2025. Operating losses and expenses also improved year over year, while the company ended the quarter with $20 million in cash and deposits. Channel partnerships are driving growth: more than 80% of revenue now comes from partner-driven channels, and DarioHealth added 10 new accounts in Q1. Management said its pipeline was about $127 million across 241 open opportunities, with several larger accounts expected to launch later in 2026. The company is expanding beyond digital engagement into care delivery and outcomes-based models by partnering with clinical providers and health systems. DarioHealth also highlighted its AI engine, DarioIQ, and said it remains active in a strategic review that could include a sale, merger, or continued standalone execution. DarioHealth is an AI-Powered Digital Therapeutics Play DarioHealth (NASDAQ:DRIO) reported sequential revenue growth for the second straight quarter while outlining plans to expand its digital health platform further into care delivery, management said on the company’s first-quarter 2026 earnings call Wednesday. Chief Executive Officer Erez Raphael said the company entered 2026 with “continued momentum,” citing revenue growth, reduced operating expenses and progress converting 2025 commercial wins into revenue. Management also highlighted a growing channel partner strategy, new account additions and plans to use DarioHealth’s data and artificial intelligence capabilities to support more outcomes-based and claims-related models. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? In the company’s financial review, management said first-quarter revenue was $5.6 million, up from $5.2 million in the fourth quarter of 2025. The company said the year-over-year revenue decline from the first quarter of 2025 reflected a planned move away from non-recurring pharmaceutical revenue that is not part of its core business model. Gross margin was 57% in the first quarter, roughly flat from a year earlier and up from 54% in the fourth quarter. Management said DarioHealth’s B2B2C non-GAAP gross margin remained around 80% for the ninth consecutive quarter, which it described as an important driver of…Read full documentShow less
Interested in DarioHealth Corp.? Here are five stocks we like better. DarioHealth posted sequential revenue growth for the second straight quarter, with Q1 revenue rising to $5.6 million from $5.2 million in Q4 2025. Operating losses and expenses also improved year over year, while the company ended the quarter with $20 million in cash and deposits. Channel partnerships are driving growth: more than 80% of revenue now comes from partner-driven channels, and DarioHealth added 10 new accounts in Q1. Management said its pipeline was about $127 million across 241 open opportunities, with several larger accounts expected to launch later in 2026. The company is expanding beyond digital engagement into care delivery and outcomes-based models by partnering with clinical providers and health systems. DarioHealth also highlighted its AI engine, DarioIQ, and said it remains active in a strategic review that could include a sale, merger, or continued standalone execution. DarioHealth is an AI-Powered Digital Therapeutics Play DarioHealth (NASDAQ:DRIO) reported sequential revenue growth for the second straight quarter while outlining plans to expand its digital health platform further into care delivery, management said on the company’s first-quarter 2026 earnings call Wednesday. Chief Executive Officer Erez Raphael said the company entered 2026 with “continued momentum,” citing revenue growth, reduced operating expenses and progress converting 2025 commercial wins into revenue. Management also highlighted a growing channel partner strategy, new account additions and plans to use DarioHealth’s data and artificial intelligence capabilities to support more outcomes-based and claims-related models. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? In the company’s financial review, management said first-quarter revenue was $5.6 million, up from $5.2 million in the fourth quarter of 2025. The company said the year-over-year revenue decline from the first quarter of 2025 reflected a planned move away from non-recurring pharmaceutical revenue that is not part of its core business model. Gross margin was 57% in the first quarter, roughly flat from a year earlier and up from 54% in the fourth quarter. Management said DarioHealth’s B2B2C non-GAAP gross margin remained around 80% for the ninth consecutive quarter, which it described as an important driver of operating leverage as that revenue base grows. → MercadoLibre Boldly Invests in Growth: Discount Deepens Total operating expenses were $10.5 million, down 21% year-over-year and 8% sequentially. Non-GAAP operating expenses were $8.7 million, down 18% from the prior year and 3% from the fourth quarter of 2025. Operating loss was $7.3 million, improving 22% year-over-year and 15% sequentially. Non-GAAP operating loss was $5.3 million. Management said DarioHealth ended March with $20 million in combined cash and short-term deposits and remained in compliance with covenants under its OrbiMed facility, where principal payments do not begin until May 2028. Net cash used in operations was $6 million, compared with $6.7 million in the prior-year quarter. → MP Materials Is Quietly Building a Rare Earth Powerhouse Raphael said the company’s growth strategy remains focused on two “compounding layers”: channel partnerships that provide access to large populations through single commercial relationships, and a multi-condition platform designed to capture a larger portion of each account’s population. DarioHealth added 10 new accounts in the first quarter, President and Chief Commercial Officer Steven Nelson said. Most came through channel partners, and all were added outside the normal employer benefit cycle timing. Nelson said that showed the company’s partner ecosystem is creating opportunities more continuously rather than only during traditional annual buying cycles. Nelson said more than 80% of revenue is now generated through partner-driven channels, which provide access to more than 116 million covered lives. Raphael said DarioHealth has entered the contracting stage with what would be the largest channel partner in the company’s history, tied to a “major day 1 anchor account” that he described as one of the largest hospital networks in the Northeastern United States. He said the partnership is expected to provide access to about 65 million additional covered lives and roughly 3,500 employer relationships. Combined with existing relationships including Solera and Amwell, Raphael said the company’s distribution reach would increase to more than 175 million covered lives. Nelson also said DarioHealth is working toward a three-year extension with Aetna and a four-year extension with Centene. He said Solera continues to generate opportunities through existing client relationships and plan partners, while Amwell has identified a new Blue Cross Blue Shield plan opportunity expected to launch DarioHealth as part of its digital health offering. Management said several larger accounts referenced in prior quarters are moving through onboarding, testing and client-specific implementation steps, including technical, operational, eligibility, data sharing, reporting and integration requirements. Nelson said those implementations are “substantially on time and on track.” He said the company’s total commercial pipeline was approximately $127 million across 241 open opportunities at the end of the first quarter, spanning employers, health plans, channel partners and other B2B2C relationships. DarioHealth is also pursuing 11 state-level opportunities through the Rural Health Transformation Program, which Nelson described as another potential path into state-sponsored, payer-aligned and population health models. In the question-and-answer session, Nelson said management was still working through detailed enrollment and revenue projections for large accounts, but expected them to contribute more materially as the year progresses. Raphael added that some large accounts are expected to launch by July 1, supporting confidence in stronger revenue in the second half of 2026 and into 2027. A major theme of the call was DarioHealth’s plan to move “closer to care” by working with care delivery partners. Raphael said the company has built a digital health foundation with a recurring per-engaged-member-per-month model and now intends to extend beyond engagement and support into care delivery. Nelson said DarioHealth plans to work with partners that can add clinical and provider-enabled capabilities, including care gap closure, provider-led interventions, clinical documentation and connections to reimbursable healthcare events. He said the approach could allow DarioHealth to participate in claims-based and outcomes-based models without building all clinical capabilities internally. During the Q&A session, Nelson said the care strategy includes referral-based relationships with care partners and proposals from health systems seeking to connect digital care with “actual care.” He said DarioHealth currently has between seven and 10 active proposals with health systems, primarily oriented toward January 2027 business. Most of that prospective business is Medicare Advantage, with some Medicaid-related opportunities, he said. Nelson also discussed expanded work with GreenKey Health, including integration of GreenKey’s For Life clinical sleep service pathway into the DarioHealth ecosystem. He said the partnership is designed to support obstructive sleep apnea screening and physician-guided interventions, which could be relevant to cardiometabolic outcomes. Raphael emphasized DarioHealth’s proprietary data and artificial intelligence capabilities, saying the company has more than 13 billion proprietary real-world data points tied to clinical outcomes across multiple conditions. He said DarioIQ, the company’s AI engine, is being deployed to deliver personalized real-time clinical recommendations. According to Raphael, early deployments of DarioIQ’s behavioral triggered engagement programs have produced up to a 40% improvement in member retention and up to a 55% lift in active sessions versus control groups. Raphael also reminded investors that DarioHealth engaged Perella Weinberg Partners in September 2025 and established a special committee of the board to review strategic opportunities, including a sale, merger, strategic business combination or continued standalone execution. He said the process remains active and that the company will provide updates if there is a material development. “What is increasingly clear is that Dario is positioned to succeed in any scenario we choose to pursue,” Raphael said, pointing to the company’s owned hardware, data, AI capabilities, commercial channel strategy and clinical evidence base. DarioHealth (NASDAQ:DRIO) is a digital health company specializing in chronic disease management through a smartphone-based care platform. Its core solution combines connected devices—such as glucose meters, blood pressure monitors and smart scales—with real-time data analytics and personalized coaching. The platform is designed to support individuals living with diabetes, hypertension, weight management challenges and other cardiometabolic conditions, offering continuous monitoring, tailored insights and behavioral nudges aimed at improving clinical outcomes. The Dario platform integrates artificial intelligence and machine learning to deliver personalized guidance and education. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "DarioHealth Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

