Earnings release
Page 1
DarioHealth - InvestorRoom 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 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
Page 2
Expanded into provider-backed care through Beluga Health's care delivery infrastructure, adding 50-state embeddedclinical delivery, expanding Dario's platform beyond digital engagement to include provider-led care capabilitiesLaunched the first provider-backed offering, Dario's Integrated GLP-1 Program, combining the digital platform withGLP-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 verticallyintegrated device-to-data-to-AI stack, and support delivery of integrated multi-condition careBroad deployment of DarioIQ, which the Company believes could contribute an increase of 10-15% in B2B2C ARRfrom existing customers through higher engagement, retention and clinical outcomesApplied 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 of2026 as we continued advancing enterprise customer implementations, expanding relationships with channel partners andbroadening adoption of our integrated multi-condition platform. We swiftly advanced our provider-backed care strategy andimplementation, 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 quarterof 2025. The year-over-year comparison primarily reflected the Company's strategic decision to discontinue certainpharmaceutical-related business, partially offset by continued growth from channel partners and direct-to-consumerprograms.Gross profit increased to $3.2 million, up approximately 8% year-over-year and substantially consistent quarter-over-quarterGross 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 quarterOperating expenses declined to $9.7 million, down 8% quarter-over-quarter and 21% year-over-year, while operatingloss improved 11% quarter-over-quarter and 30% year-over-yearBalance sheet strengthened with $36.8 million pro forma cash, cash equivalents and short-term deposits; $14.0million as of June 30, 2026, plus $22.8 million, raised through registered direct financing in July 2026, net of offeringexpenses. "Our second quarter results reflect continued progress in improving the efficiency of our business, with improvements in grossmargin, 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 pricedat-the-market, with participation from both existing long-term shareholders and new fundamental institutional investors. Thisfinancing enhances our financial flexibility as we continue executing on commercial opportunities created by our AI-poweredintegrated 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 $5.6million in the first quarter of 2026. The year-over-year decrease primarily reflects the absence of one-time pharmaceuticalservices revenue recognized in the prior-year period, as the Company transitions to a B2B2C ARR model, partially offset bygrowth 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 of2026. Gross margin improved to 61.7%, compared with 55.2% in the second quarter of 2025 and 57.3% in the first quarter of2026, reflecting improved product mix and the benefit of lower cost of revenues, including the impact of an InternationalEmergency 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 inthe first quarter of 2026, reflecting continued operating discipline. Operating loss improved to $6.5 million, compared with $9.2million 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 of2026. Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortizationexpenses) for the three months ended June 30, 2026 was $5.3 million compared to a Non-GAAP operating loss of $6.4million for the three months ended June 30, 2025, and Non-GAAP operating loss of $5.3 million for the three months endedMarch 31, 2026. A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this pressrelease. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Page 3
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. Thedecrease primarily reflected a transition away from one-time pharmaceutical services, partially offset by growth in revenuefrom 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. Grossmargin 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 sixmonths 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 of2025. Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortizationexpenses) for the six months ended June 30, 2026 was $10.7 million compared to a Non-GAAP operating loss of $12.2 millionfor 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 pressrelease. 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 instanttelephone 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 andemployers improve health outcomes while lowering the cost of care. The Company's integrated platform combines connecteddevices, personalized member engagement, AI-driven insights and provider-backed clinical care to support people living withconditions 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 AIplatform personalizes care at the individual member level by analyzing biometric, clinical and behavioral data to deliver moretimely 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 maycontain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statementsthat are not statements of historical fact may be deemed to be forward-looking statements. For example, the Company is usingforward-looking statements in this press release when it discusses its expected revenue growth and commercial momentum, theexpected timing and contribution of ARR, the anticipated implementation and expansion of customer relationships, includingthe top-5 national health plan expansion and new Fortune 50 client, the potential revenue opportunity associated with customerexpansions, 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 outcomesand operating efficiency, the Company's ability to accelerate revenue growth by the end of 2026 and into 2027, and theCompany'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 affectthe Company's actual results and could cause such results to differ materially from any forward-looking statements that may bemade in this news release. Factors that may affect the Company's results include, but are not limited to, regulatory approvals,
Page 4
product demand, market acceptance, impact of competitive products and prices, product development, commercialization ortechnological difficulties, the success or failure of negotiations and trade, legal, social and economic risks, and the risksassociated with the adequacy of existing cash resources. Additional factors that could cause or contribute to differencesbetween the Company's actual results and forward-looking statements include, but are not limited to, those risks discussed inthe 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 describedherein) may differ significantly from those set forth in the forward-looking statements. The Company undertakes no obligationto publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, exceptas 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 additionalinsight when used as a supplement to GAAP measures. Non-GAAP measures should not be considered in isolation from, or asa substitute for, GAAP measures. A reconciliation of GAAP to non-GAAP measures is provided in the financial tables includedin this release. Operating expenses (non-GAAP). Our presentation of non-GAAP operating expenses excludes stock-based compensationexpenses, amortization of acquisition-related expenses and depreciation of fixed assets. Due to varying available valuationmethodologies, subjective assumptions, and the variety of equity instruments that can impact a company's non-cash operatingexpenses, we believe that providing non-GAAP financial measures that exclude non-cash expenses provides us with animportant tool for financial and operational decision making and for evaluating our own core business operating results overdifferent periods of time. Net loss (non-GAAP). Our presentation of adjusted net loss excludes the effect of certain items that are non-GAAP financialmeasures. 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, incometax, and acquisition costs. We believe these measures provide useful information to management and investors for analysis ofour operating results. DarioHealth Corporate Contacts Michael LipariSVP Corporate Developmentirteam@dariohealth.com+1-201-785-6310 Zoe HarrisonVP, Accounting and Corporate Developmentirteam@dariohealth.com CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)U.S. dollars in thousands June 30, December 31, 2026 2025ASSETS CURRENT ASSETS:Cash and cash equivalents $ 6,634$ 21,803Short-term bank deposits 7,327 4,214Short-term restricted bank deposits 293 229Trade receivables, net 1,549 2,144Inventories 3,719 4,316Other accounts receivable and prepaid expenses 2,604 2,361 Total current assets 22,126 35,067 NON-CURRENT ASSETS:Deposits 119 80Operating lease right of use assets 1,029 717Long-term assets 386 304Property and equipment, net 503 549Intangible assets, net 15,000 15,931
Page 5
Goodwill 57,427 57,427 Total non-current assets 74,464 75,008 Total assets $ 96,590$ 110,075The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements. CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)U.S. dollars in thousands (except stock and per share data) June 30, December 31, 2026 2025LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES:Trade payables $ 3,173$ 2,928Deferred revenues 521 714Operating lease liabilities 572 430Other accounts payable and accrued expenses 5,312 5,251 Total current liabilities 9,578 9,323 NON-CURRENT LIABILITIESOperating lease liabilities 777 571Long-term loan 31,064 30,747Warrant liability 15 1,466Other long-term liabilities 68 46 Total non-current liabilities 31,924 32,830 STOCKHOLDERS' EQUITY **Common stock of $0.0001 par value - authorized: 400,000,000 shares;issued and outstanding: 7,341,866 and 6,905,948 shares on June 30, 2026and December 31, 2025, respectively 4 4Additional paid-in capital 523,335 519,996Accumulated deficit (468,251) (452,078) Total stockholders' equity 55,088 67,922 Total liabilities and stockholders' equity $ 96,590$ 110,075The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)U.S. dollars in thousands (except stock and per share data) Three months endedSix months endedJune 30, June 30, 2026 2025 2026 2025Revenues:Services $ 2,585$ 3,661$ 5,410$ 8,536Consumer hardware 2,592 1,708 5,350 3,585Total revenues 5,177 5,369 10,760 12,121 Cost of revenues:Services 440 821 1,002 1,686Consumer hardware 1,367 1,151 3,010 2,281Amortization of acquired intangible assets 178 433 354 1,308Total cost of revenues 1,985 2,405 4,366 5,275 Gross profit 3,192 2,964 6,394 6,846
Page 6
Operating expenses:Research and development $ 2,100$ 3,721$ 4,485$ 7,829Sales and marketing 4,971 5,231 9,870 11,104General and administrative 2,600 3,212 5,826 6,522 Total operating expenses 9,671 12,164 20,181 25,455 Operating loss 6,479 9,200 13,787 18,609 Interest expenses 1,123 — 2,273 —Other financial expenses (income), net (6) 3,790 (271) 3,586 Total financial expenses, net 1,117 3,790 2,002 3,586 Loss before taxes 7,596 12,990 15,789 22,195 Income tax 328 — 384 22 Net loss $ 7,924$ 12,990$ 16,173$ 22,217 Deemed dividend $ —$ 5,572$ —$ 10,411 Net loss attributable to common shareholders$ 7,924$ 18,562$ 16,173$ 32,628 Net loss per share: Basic and diluted loss per share of common stock$ 0.85$ 3.54$ 1.75$ 6.50Weighted average number of common stockused in computing basic and diluted net loss pershare** 9,343,6182,481,5489,238,1332,425,039The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)U.S. dollars in thousands Six months endedJune 30, 2026 2025Cash flows from operating activities:Net loss $(16,173)$(22,217)Adjustments required to reconcile net loss to net cash used in operating activities:Stock-based compensation 2,073 4,377Change in operating lease right of use assets 237 204Amortization of acquired intangible assets 931 1,884Depreciation and impairment 108 174Change in fair value of warrant liability (185) (825)Accrued interest on short term bank deposits (63) —Non-cash financial expenses 265 2,665Changes in operating assets and liabilities:Decrease in trade receivables, net 595 2,248Increase in other accounts receivable, prepaid expense and long-term assets (364) (484)Decrease in inventories 597 143Increase in trade payables 232 334Increase (decrease) in other accounts payable and accrued expenses83 (858)Decrease in deferred revenues (193) (856)Decrease in operating lease liabilities (201) (147)Other (50) 654 Net cash used in operating activities (12,108)(12,704) Cash flows from investing activities:Investment in short term bank deposit (9,250) —Proceeds from maturity of short-term bank deposit 6,200 —
Page 7
Purchase of property and equipment (69) (75)Disposals of property and equipment 6 — Net cash used in investing activities (3,113) (75) Cash flows from financing activities:Proceeds from ATM Equity Offerings 104 —Issuance costs related to ATM Equity Offerings (104) —Proceeds from issuance of common stock and preferred stock, net of issuance costs— 6,754Proceeds from borrowings on credit agreement — 31,700Repayment of long-term loan — (31,515) Net cash provided by financing activities — 6,939 Decrease in cash, cash equivalents and restricted cash and cash equivalents(15,221)(5,840)Effect of exchange rate differences on cash, cash equivalents and restricted cash and cashequivalents 52 30Cash, cash equivalents and restricted cash and cash equivalents at beginning of period21,803 27,764Cash, cash equivalents and restricted cash and cash equivalents at end of period$ 6,634$ 21,954Supplemental disclosure of cash flow information:Cash paid during the period for interest on long-term loan $ 1,930$ 1,250Non-cash activities:Exercise of pre-funded warrants to common stock $ 1,266$ 1,750Right-of-use assets obtained in exchange for lease liabilities$ 549$ —Purchase of property and equipment on credit $ 13$ —The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements. Reconciliation of Operating Loss, Net Loss and Operating Expenses to AdjustedOperating Loss, Net Loss and Operating Expenses (Non-GAAP)U.S. dollars in thousands Three months ended June 30, 2026 GAAPStock-BasedCompensationExpenses Amortization ofacquisitionrelated expensesand depreciationof fixed assets Non-GAAP Cost of Revenues $ 1,985 (2) (180) 1,803Gross Profit 3,192 2 180 3,374 Research and development2,100 134 (24) 2,210Sales and Marketing4,971 (308) (299) 4,364General and Administrative2,600 (456) (12) 2,132Total Operating Expenses9,671 (630) (355) 8,706Operating Loss $(6,479) 632 515 (5,332)Financing expenses 1,117 - - 1,117Income Tax 328 - - 328Net Loss $(7,924) 632 515 (6,777) Reconciliation of Operating Loss, Net Loss and Operating Expenses to AdjustedOperating Loss, Net Loss and Operating Expenses (Non-GAAP)U.S. dollars in thousands Three months ended June 30, 2025 GAAPStock-BasedCompensationExpenses Amortization ofacquisitionrelated expenses Non-GAAP
Page 8
and depreciationof fixed assetsCost of Revenues $ 2,405 (6) (447) 1,952Gross Profit 2,964 6 447 3,417 Research and development3,721 (441) (34) 3,246Sales and Marketing 5,231 (583) (307) 4,341General and Administrative3,212 (1,005) (14) 2,193Total Operating Expenses12,164 (2,029) (355) 9,780Operating Loss $ (9,200) 2,035 802 (6,363)Financing expenses 3,790 - - 3,790Net Loss $(12,990) 2,035 802 (10,153) Reconciliation of Operating Loss, Net Loss and Operating Expenses to AdjustedOperating Loss, Net Loss and Operating Expenses (Non-GAAP)U.S. dollars in thousands Six months ended June 30, 2026 GAAPStock-BasedCompensationExpenses Amortization ofacquisitionrelated expensesand depreciationof fixed assets Non-GAAP Cost of Revenues $ 4,366 (7) (360) 3,999Gross Profit 6,394 7 360 6,761 Research and development4,485 42 (56) 4,471Sales and Marketing 9,870 (441) (598) 8,831General and Administrative5,826 (1,667) (25) 4,134Total Operating Expenses20,181 (2,066) (679) 17,436Operating Loss $(13,787) 2,073 1,039 (10,675)Financing expenses 2,002 - - 2,002Income Tax 384 - - 384Net Loss $(16,173) 2,073 1,039 (13,061) Reconciliation of Operating Loss, Net Loss and Operating Expenses to AdjustedOperating Loss, Net Loss and Operating Expenses (Non-GAAP)U.S. dollars in thousands Six months ended June 30, 2025 GAAPStock-BasedCompensationExpenses Amortization ofacquisitionrelated expensesand depreciationof fixed assets Non-GAAP Cost of Revenues $ 5,275 (16) (1,337) 3,922Gross Profit 6,846 16 1,337 8,199 Research and development7,829 (967) (74) 6,788Sales and Marketing11,104 (1,398) (618) 9,088General and Administrative6,522 (1,996) (29) 4,497Total Operating Expenses25,455 (4,361) (721) 20,373Operating Loss $(18,609) 4,377 2,058 (12,174)Financing expenses 3,586 - - 3,586Income Tax 22 - - 22Net Loss $(22,217) 4,377 2,058 (15,782)
Page 9
Logo - https://mma.prnewswire.com/media/2866807/6031067/Dario_Logo.jpg SOURCE DarioHealth Corp. https://dariohealth.investorroom.com/2026-08-11-DarioHealth-Reports-Second-Quarter-2026-Financial-Results