DarioHealth (NASDAQ:DRIO) Releases Quarterly Earnings Results, Beats Estimates By $0.51 EPS

DarioHealth (NASDAQ:DRIO) posted its earnings results on Thursday. The company reported ($0.44) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.95) by $0.51, FiscalAI reports. DarioHealth had a negative net margin of 169.87% and a negative return on equity of 54.81%. The company had revenue of $5.31 million during the quarter, compared to analysts’ expectations of $5.21 million.

Here are the key takeaways from DarioHealth’s conference call:

• Revenue rose 6% year over year to $5.3 million, while direct-to-consumer revenue grew about 48% and increased to 53% of total revenue. The company still posted an $8.8 million net loss.
• Contracted and late-stage ARR was approximately $13.1 million, with management expecting a gradual conversion into revenue through 2027 and 2028; about 40% is tied to health-plan ASO agreements, which can take longer to activate. Management said it remains on a path to break-even in 2028.
• Channel partners generated about 75% of new accounts, including a third state health-plan win through Amwell, covering roughly 1.5 million lives. However, the New Jersey ASO opportunity is not expected to contribute significantly until the second half of 2027.
• Operating expenses fell 10% year over year to $11.2 million, and operating loss narrowed 15% to $8.0 million. Dario ended the quarter with $31.2 million in cash and short-term deposits, following a July registered direct offering.
• Management said DarioIQ’s engagement results support up to an approximately 14% increase in engagement-based ARR at existing customers, and cited AI as one contributor to lower operating costs. The company is also pursuing GLP-1, women’s health, and sleep offerings, though their revenue contribution and rollout pace remain uncertain.

DarioHealth Trading Down 21.6%

Shares of DarioHealth stock traded down $0.46 during trading on Thursday, hitting $1.67. The company’s stock had a trading volume of 147,964 shares, compared to its average volume of 23,272. The company has a debt-to-equity ratio of 0.56, a current ratio of 2.31 and a quick ratio of 1.92. DarioHealth has a 52 week low of $1.45 and a 52 week high of $14.77. The stock has a market cap of $16.37 million, a price-to-earnings ratio of -0.27 and a beta of 1.18. The stock has a 50-day moving average price of $5.26 and a two-hundred day moving average price of $7.42.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of DarioHealth in a report on Tuesday, October 6th. BTIG Research began coverage on DarioHealth in a report on Tuesday, October 27th. They set a “buy” rating and a $6.00 target price on the stock. Alliance Global Partners started coverage on DarioHealth in a research report on Wednesday, August 19th. They issued a “buy” rating and a $12.00 price target on the stock. Finally, TD Cowen decreased their price target on DarioHealth from $11.00 to $8.00 and set a “hold” rating on the stock in a research report on Wednesday, August 12th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $9.00.

About DarioHealth

DarioHealth Corp. is a digital health company that develops technology-enabled solutions for managing chronic conditions. Its platform combines connected medical devices, mobile applications, data analytics and personalized coaching to help individuals monitor and improve their health. The company’s offerings have focused on conditions including diabetes, hypertension, musculoskeletal disorders and behavioral health. Products and services may include connected blood glucose and blood pressure monitoring, digital programs for pain and mobility management, health coaching, educational content and tools that support healthier daily habits.