DarioHealth (NASDAQ:DRIO) Posts Earnings Results, Beats Estimates 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. The company had revenue of $5.58 million during the quarter, compared to the consensus estimate of $5.46 million. DarioHealth had a negative return on equity of 59.48% and a negative net margin of 186.57%.

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 Trading Up 2.8%

Shares of NASDAQ DRIO traded up $0.23 during trading hours on Thursday, hitting $8.33. 346 shares of the company traded hands, compared to its average volume of 14,160. The stock has a market capitalization of $60.81 million, a price-to-earnings ratio of -0.80 and a beta of 1.09. The company has a current ratio of 3.76, a quick ratio of 3.30 and a debt-to-equity ratio of 0.45. The company’s 50 day moving average price is $8.06 and its 200 day moving average price is $10.57. DarioHealth has a 12 month low of $5.93 and a 12 month high of $17.74.

Hedge Funds Weigh In On DarioHealth

Several large investors have recently modified their holdings of the stock. XTX Topco Ltd increased its position in shares of DarioHealth by 229.0% during 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 during the last quarter. Geode Capital Management LLC increased its position in shares of DarioHealth by 167.9% during the 4th quarter. Geode Capital Management LLC now owns 49,567 shares of the company’s stock valued at $564,000 after purchasing an additional 31,063 shares during the last quarter. Finally, Kestra Advisory Services LLC bought a new position in shares of DarioHealth during the 4th quarter valued at approximately $35,000. Institutional investors own 33.39% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on DRIO shares. Wall Street Zen downgraded DarioHealth from a “hold” rating to a “sell” rating in a research note on Sunday, January 25th. Stifel Nicolaus lowered their price target on DarioHealth from $16.00 to $10.00 and set a “buy” rating on the stock in a report on Friday, March 20th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average 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.