DarioHealth (NASDAQ:DRIO) Announces Quarterly Earnings Results, Beats Estimates By $0.22 EPS

DarioHealth (NASDAQ:DRIO) announced its earnings results on Thursday. The company reported ($0.73) EPS for the quarter, topping the consensus estimate of ($0.95) by $0.22, Zacks reports. The firm had revenue of $5.31 million for the quarter, compared to the consensus estimate of $5.21 million. DarioHealth had a negative net margin of 169.87% and a negative return on equity of 54.81%.

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 Stock Performance

DRIO stock traded down $0.21 on Friday, reaching $1.44. 31,028 shares of the company were exchanged, compared to its average volume of 23,284. DarioHealth has a 12 month low of $1.41 and a 12 month high of $14.77. The stock’s fifty day moving average price is $5.15 and its 200 day moving average price is $7.37. The firm has a market capitalization of $14.15 million, a PE ratio of -0.24 and a beta of 1.18. The company has a debt-to-equity ratio of 0.56, a current ratio of 2.31 and a quick ratio of 1.92.

Top DarioHealth Stories

Here are a few of the latest stories about DRIO:

• Positive Sentiment: Consumer revenue reportedly surged 48%, offering a growth signal alongside the broader company results. Q3 earnings call highlights
• Neutral Sentiment: Stifel Nicolaus lowered its price target to $5 but maintained a Buy rating. The target implies substantial upside from recent levels, though the reduction signals a more cautious valuation outlook.
• Negative Sentiment: The company remains unprofitable, and GAAP gross margin edged down to 59% from 60% a year earlier. DRIO shares are also trading near their 12-month low, reflecting continuing investor concerns despite the improving operating trends.

Wall Street Analysts Forecast Growth

DRIO has been the subject of a number of recent analyst reports. Alliance Global Partners initiated coverage on shares of DarioHealth in a report on Wednesday, August 19th. They set a “buy” rating and a $12.00 price target for the company. BTIG Research assumed coverage on DarioHealth in a research note on Tuesday, October 27th. They issued a “buy” rating and a $6.00 price objective on the stock. TD Cowen cut their price objective on DarioHealth from $11.00 to $8.00 and set a “hold” rating for the company in a research report on Wednesday, August 12th. Stifel Nicolaus decreased their target price on DarioHealth to $5.00 and set a “buy” rating for the company in a research note on Friday. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of DarioHealth in a report on Tuesday, October 6th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $7.75.

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.