DarioHealth Corp. (DRIO) AI Stock Analysis
DRIO AI stock analysis summary
AI ResearchDarioHealth Corp. (DRIO) is a digital therapeutics company providing chronic condition management solutions across metabolic, musculoskeletal, and behavioral health. In FY2025, revenue contracted 17.3% to $22.4M alongside a net income of -$41.7M. The stock closed at $4.82, down 63.0% over the trailing 12 months.
- Market cap
- $47.2M
- Revenue (TTM)
- $21.0M
- P/E
- — fwd 10.6x
- 1Y return
- -63.0% S&P 500 16.8%
- Avg. target
- $13.60 182.2% vs last close
Bull case
- Wall Street analysts maintain an optimistic posture with 4 Strong Buy ratings and a mean price target of $13.60, representing 182.2% upside from the last close.
- Gross margin expanded to 56.6% in FY2025, improving from 49.1% in FY2024 and 29.4% in FY2023.
- Consensus estimates project next fiscal year revenue to grow 38.8% to $30.4M.
Bear case
- The business remains deeply unprofitable, reporting a trailing twelve month net profit margin of -169.9% and an EPS of -$2.28.
- DarioHealth generated -$26.1M in free cash flow in FY2025, while cash and short-term investments stood at $14.3M as of June 30, 2026.
- Revenue contracted 17.3% in FY2025 and dropped 3.6% year-over-year in the quarter ended June 30, 2026.
What DarioHealth does
DarioHealth Corp. is a digital therapeutics company headquartered in New York, New York. It provides metabolic health solutions addressing conditions such as diabetes, hypertension, and weight management under the Dario brand. Its portfolio features Dario Musculoskeletal solutions and behavioral health offerings, alongside the proprietary DarioEngage care management platform for self-care and remote monitoring. The company also supplies connected medical devices, including smart glucose meters, Bluetooth blood pressure cuffs, digital scales, and biofeedback sensors. These tools support diabetes management programs combining lifestyle adjustments, tracking, and personalized coaching.
Growth and profitability
DarioHealth delivered a 5-year revenue CAGR of 24.2% between FY2020 and FY2025. Annual revenue fluctuated, growing 32.9% to $27.0M in FY2024 before falling 17.3% to $22.4M in FY2025. Gross margin expanded to 56.6% in FY2025, up from 49.1% in FY2024 and 29.4% in FY2023. Operating margins remained deeply negative, recording -163.9% in FY2025 alongside a net loss of -$41.7M and EPS of -$9.46. In the latest quarter ended June 30, 2026, revenue fell 3.6% year-over-year. Over the trailing twelve months, revenue reached $21.0M with a profit margin of -169.9% and an operating margin of -125.2%.
Balance sheet and cash flow
As of June 30, 2026, DarioHealth held $14.3M in cash and short-term investments against total debt of $32.4M, resulting in net debt of $18.2M. Total assets stood at $96.6M against shareholders' equity of $55.1M, yielding a debt-to-equity ratio of 0.59 and a current ratio of 2.31. Free cash flow was -$26.1M in FY2025, an improvement from -$38.7M in FY2024. Capital expenditures totaled $142,000 in FY2025, while the share count decreased 40.5% over five years.
Valuation and performance
At a closing price of $4.82, DarioHealth has a market capitalization of $47.2M and an enterprise value of $84.7M. The stock trades at a price-to-sales ratio of 2.2x, below the 4.1x median of its US-listed Healthcare peers. Its forward P/E ratio stands at 10.6x compared to the peer median of 17.3x, while its EV-to-revenue multiple is 4.0x. DarioHealth has declined 63.0% over the trailing 12 months and 57.6% year-to-date, trailing the S&P 500 return of 16.8% over the past year.
What analysts expect
Wall Street coverage consists of 4 Strong Buy ratings and 1 Hold rating. The mean price target is $13.60, representing a 182.2% premium over the last close of $4.82. For the fiscal year ending December 31, 2026, analysts estimate revenue of $21.9M and an EPS of -$2.46. For the next fiscal year, estimates project revenue of $30.4M and an EPS of -$1.12. The company beat EPS estimates in 3 of the last 4 quarters, with its next earnings report scheduled for November 12, 2026.
Key risks and what to watch
- Net debt of $18.2M against $14.3M in cash leaves liquidity exposed if negative operating cash flow of -$25.9M persists.
- The stock is trading at its 52-week low of $4.82 and sits 40.9% below its 200-day moving average.
- Quarterly revenue fell 3.6% year-over-year as of June 30, 2026, indicating near-term top-line headwinds.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DRIO AI stock analysis
This page is an AI-written research summary of DarioHealth Corp. (DRIO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DRIO income statement, DRIO balance sheet, DRIO key metrics, DRIO analyst forecast, DRIO chart. See the DRIO stock overview for the latest quote and news.
DRIO AI stock analysis FAQ
Does DarioHealth pay a dividend?
No, DarioHealth does not pay a dividend.
When is DarioHealth's next earnings report?
DarioHealth is scheduled to report earnings on November 12, 2026.
What is DarioHealth's net debt?
As of June 30, 2026, DarioHealth had $32.4M in total debt and $14.3M in cash and short-term investments, resulting in net debt of $18.2M.
What is the consensus analyst price target for DRIO?
The mean analyst price target is $13.60, which is 182.2% above the last close of $4.82.