DarioHealth (NASDAQ:DRIO) Releases Earnings Results, Beats Expectations By $0.23 EPS

DarioHealth (NASDAQ:DRIO) announced its quarterly earnings data on Wednesday. The company reported ($1.25) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($1.48) by $0.23, Zacks reports. DarioHealth had a negative net margin of 186.57% and a negative return on equity of 59.48%. The firm had revenue of $5.58 million during the quarter, compared to analyst estimates of $5.46 million.

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

• Revenue rose sequentially for a second straight quarter to $5.6 million in Q1 2026, while gross margin improved to 57% and operating expenses fell 21% year over year, showing progress toward better operating leverage.
• Management said the company added a largest-ever new channel partner in contracting stage, potentially reaching about 65 million additional covered lives and lifting total distribution reach to more than 175 million covered lives.
• The company reported a $127 million commercial pipeline across 241 opportunities and said the accounts signed in 2025 are moving through implementation, with revenue contribution expected mainly in the second half of 2026.
• DarioHealth is expanding closer to care delivery through partnerships with clinical and provider-enabled organizations, aiming to support outcomes-based and claims-based revenue models rather than relying only on digital engagement fees.
• The company highlighted early results from DarioIQ, saying AI-driven engagement programs have delivered up to 40% better retention and up to 55% higher active sessions versus control groups, which management believes strengthens its data moat.

DarioHealth Stock Performance

NASDAQ:DRIO opened at $8.10 on Thursday. DarioHealth has a 52 week low of $5.93 and a 52 week high of $17.74. The company has a fifty day simple moving average of $8.06 and a two-hundred day simple moving average of $10.57. The company has a quick ratio of 3.30, a current ratio of 3.76 and a debt-to-equity ratio of 0.45. The company has a market cap of $59.13 million, a price-to-earnings ratio of -0.78 and a beta of 1.09.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Geode Capital Management LLC grew its stake in DarioHealth by 167.9% during the 4th quarter. Geode Capital Management LLC now owns 49,567 shares of the company’s stock worth $564,000 after purchasing an additional 31,063 shares in the last quarter. XTX Topco Ltd raised its position in DarioHealth by 229.0% in the 2nd quarter. XTX Topco Ltd now owns 62,511 shares of the company’s stock valued at $42,000 after purchasing an additional 43,513 shares in the last quarter. Finally, Kestra Advisory Services LLC acquired a new stake in DarioHealth in the 4th quarter valued at about $35,000. 33.39% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms have recently weighed in on DRIO. Stifel Nicolaus dropped their price target on shares of DarioHealth from $16.00 to $10.00 and set a “buy” rating for the company in a research note on Friday, March 20th. Wall Street Zen lowered DarioHealth from a “hold” rating to a “sell” rating in a research report on Sunday, January 25th. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, DarioHealth presently has an average rating of “Hold” and a consensus price target of $35.00.

About DarioHealth

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.