DarioHealth Announces Third Quarter 2026 Financial Results: Revenue Up 6% Year-on-Year, Operating Expenses Decline

New York, November 12, 2026 / PRNewswire / — DarioHealth Corp. ( NASDAQ : DRIO, hereinafter referred to as "the Company" or " DarioHealth ") is an artificial intelligence-driven medical technology company focused on chronic disease management. The Company today announced its financial results for the third quarter ending September 30, 2026.

The company stated that in the third quarter of 2026, revenue increased by 6% year-over-year and 3% quarter-over-quarter, reaching $5.3 million.

The gross profit margin for GAAP is 59%, compared to 60% in the same period last year; the gross profit margin for non-GAAP B2B2C (business-to-business-to-consumer) has remained at around 80% for the 11th consecutive quarter.

The company expects that with the conversion of the committed annual recurring revenue ( ARR ), including new corporate customers and multi-disease expansion projects (such as Dario Women ™ and Dario Sleep ), the revenue growth rate will accelerate from the end of 2026 to 2027.

The company stated that its collaboration with payers is expanding from digital health behavior initiatives to integrated clinical care and medication management; currently, it is working with a national health insurance plan client to incorporate the delivery of the GLP-1 therapy into their member market platform.

The company also stated that it has signed one of the largest health insurance plans in New Jersey, covering approximately 1.5 million participants. This is the third state-level health plan signed through the Amwell channel in the past 12 months.

In the third quarter, operating losses decreased by 15% year-on-year, and operating expenses decreased by 10% year-on-year. As of September 30, 2026, cash, cash equivalents, and short-term deposits totaled $31.2 million.

The company stated that it currently has over 180 contracted accounts in the fields of employers and health plans, with the contracted and later-stage ARR amounting to 13.1 million US dollars, of which more than 80% are related to multi-disease coverage opportunities.

The company will hold a teleconference at 8:30 a.m. Eastern Time on November 12, 2026.

DarioHealth CEO Erez Raphael stated: "In the second quarter of 2026, we explained that Dario's business model was designed to support growth. We believe that the third quarter of 2026 has shown that this model is working, as evidenced by the expansion of multiple services among existing customers, as well as the acquisition of new health plan agreements through channel partners."

At the same time, he stated, "The market is moving in the direction of an integrated platform that we have been working on for over a decade. For many years, the industry has viewed consumer health and payer-funded chronic disease care as two separate businesses. We believe that these two are converging, and Dario is at the intersection of those two. Payers are shifting from purchasing projects centered around single therapies to buying integrated platforms for multiple diseases, as well as therapies delivered within managed programs. We believe this will significantly expand the range of services that Dario can offer to payers and their members."

The company stated that nowadays, consumers are increasingly choosing their own entry points into the healthcare system, while payers continue to foot the bill for the chronic disease management that comes with it; Dario believes that market value will shift towards those participants who control the path between the two. The company mentioned that one of its existing clients, one of the largest national health insurers in the United States, plans to implement a market model that combines consumer choices with payer funding. This client is collaborating with Dario to extend their relationship from digital projects to the delivery of GLP-1 therapies themselves. Dario sees the integration of markets around the acquisition of specific therapies, and embedding them into managed and measurable projects, as an important opportunity.

The company stated that this transition will drive the management of chronic diseases from a focus on individual diseases to a system based on a single member record, driven by AI and governed by clinical evidence. Dario claims that it may be one of the few platforms that possess both consumer engagement capabilities and payer-level evidence, all built upon the same member record; this platform is founded on over a decade of accumulation, encompassing consumer base information, family-connected devices approved by FDA, more than 13 billion unique data points, over 100 published studies, as well as payer-saving analyses compiled by third parties. As payers begin to include specific therapies in their benefit packages, starting with GLP-1, Dario aims to link the access to these therapies with the chronic diseases they are already managing, supported by existing member engagement capabilities and clinical and economic evidence.

Business Highlights

Add new corporate customers through channel partners and expand cooperation among existing customers.

• Signed a partnership through the Amwell channel with one of New Jersey's largest health plans, covering approximately 1.5 million people, with expected revenue contributions to begin in 2027.
• Approximately 40% of the company's contracted and later-stage ARR come from health plan ASO agreements, such as new customers in New Jersey. These agreements can open up access to the self-insured employer customer base of these health plans, and revenue will accumulate over multiple years as various employers gradually implement them.
• Business from this channel has increased by more than 2 times year-on-year, with growth covering various signing channels, including direct signing, reselling, health plans ASO or TPA, as well as the market platform model.
• Expanded the existing contract with a leading regional chain grocery retailer. This retailer operates over 200 stores and employs 19,000 people. A new Dario Women ™ program has been added, which is expected to be available to eligible insured employees in 2027.

Multi-disease platform expansion

• Launched Dario Women ™ and Dario Sleep, expanding the company's integrated platform to the fields of menopause, perimenopause, and obstructive sleep apnea.
• In the company's current business, nearly 45% of its employees are women over the age of 40, which provides an opportunity for it to promote Dario Women ™ among more existing corporate customers.
• The company believes that women's health, along with men's health, will become an additional driving force for growth, enabling its multi-disease platform to extend to diseases closely related to cardiometabolic risks, and to sell these services to its existing customers with whom it has established partnerships.

Dario Verification of the Clinical and Economic Value of the Platform

• Analysis by third parties of 17 studies supports the estimate that annual total medical costs can be reduced by 2.5% to 7.2%; calculated for a representative population of 20,000 people, this equates to savings of approximately $3.8 million to $10.8 million per year.
• The analysis also includes the following findings: Users with type 2 diabetes can save $5,077 in medical expenses per person per year, and compared to matched non-users, there is a 23.5% reduction in the number of hospital admissions and discharges.

DarioIQ: Underlying Engine

• DarioIQ ™ has evolved from a discrete participation project into an integrated AI system, aimed at predicting member churn and triggering targeted interventions: among members who were reached in the early stages, the proportion of those who returned within 1 week was 1.7 times that of members who were not reached.
• The results measured this quarter currently support the company's expectations, that is, DarioIQ may drive an increase of up to approximately 14% in B2B2C ARR among existing customers based on their level of participation.
• The company stated that as its generative AI layer, DarioIQ has now been deployed throughout the organization, which is also one of the factors contributing to a 10% decrease in operating expenses year-on-year.

DarioHealth Chief Operating Officer Lara Dodo stated: "We are introducing large-scale health programs through channel partners and expanding cooperation within our existing service accounts. The rapid adoption of new solutions like Dario Women reflects the growing interest among customers in more personalized and integrated care. We are meeting this demand by addressing interrelated chronic diseases with approaches that have proven to lead to better health outcomes."

Financial Highlights of the Third Quarter of 2026

• Revenues increased to 5.3 million US dollars, 5.2 million US dollars in the second quarter of 2026, and 5 million US dollars in the third quarter of 2025. There was a year-on-year increase of 6%, mainly driven by the continuous growth in direct sales to consumers, with this business segment growing by about 48% year-on-year. B2B and B2B2C revenues decreased compared to 2025, reflecting that several historical contracts of Twill were not renewed, which was partially offset by growth from channel partners.
• Gross profit increased to $3.1 million, a year-on-year increase of about 4%, and a month-on-month decrease of about 2%.
• The gross profit margin was 59% in GAAP, 60% in the third quarter of 2025, and 62% in the second quarter of 2026. The decline is mainly due to the fact that the tariff refund revenue in the third quarter of 2026 was lower than that in the second quarter. Compared to the third quarter of 2025, the decrease reflects an increase in the proportion of business directly targeting consumers, which was partly offset by lower hosting costs. The non-GAAP B2B2C gross profit margin has remained at around 80% for the 11th consecutive quarter.
• Operating expenses amounted to $11.2 million, a year-on-year decrease of 10% and a month-on-month increase of 16%; operating losses improved by 15% year-on-year and increased by 24% month-on-month. The month-on-month increase mainly reflects an increase in equity incentive expenditures, which were $2.2 million in the third quarter and $600,000 in the second quarter.
• As of September 30, 2026, the total amount of cash, cash equivalents, and short-term deposits was 31.2 million US dollars.

DarioHealth Chief Financial Officer Chen Franco - Yehuda stated: "While our revenue increased by 6% year-over-year, we managed to reduce operating expenses by 10% and cut operating losses by 15%. Our B2B2C gross margin remains strong, and we are focused on expanding this model. With $31.2 million in cash, cash equivalents, and short-term deposits, we believe we have the resources necessary to execute our key strategies."

Financial Performance for the Third Quarter of 2026

Revenues in the third quarter of 2026 were $5.3 million, compared to $5 million in the third quarter of 2025, and $5.2 million in the second quarter of 2026, representing growth of 6% and 3% respectively. The year-over-year increase mainly reflects growth in sales directly to consumers.

Gross profit was $3.1 million in the third quarter of 2025, $3 million in the second quarter of 2026, and $3.2 million in the third quarter of 2026. The gross margin was 59.2% in the third quarter of 2025, 60.2% in the same quarter of 2026, and 61.7% in the second quarter of 2026. This change is mainly reflected in the shift in revenue structure, including an increase in sales directly to consumers, which was partially offset by lower hosting costs. The gross margin for the second quarter included approximately $400,000 in IEEPA tariff refund earnings, while in the third quarter, it was around $100,000.

Operating expenses decreased year-over-year to $11.2 million, to $12.5 million in the third quarter of 2025, and to $9.7 million in the second quarter of 2026, reflecting a reduction in research and development expenses as well as general and administrative expenses. However, compared to the same period last year, sales and marketing expenses increased. Operating losses improved to $8 million, to $9.5 million in the third quarter of 2025, and to $6.5 million in the second quarter of 2026.

Net loss decreased year-on-year to $8.8 million, to $10.5 million in the third quarter of 2025, and to $7.9 million in the second quarter of 2026.

For the three months ending September 30, 2026, the operating loss of non-GAAP (excluding equity incentives, merger and acquisition-related expenses, depreciation, and amortization) was $5.3 million; for the same period in 2025, the operating loss of non-GAAP was $6 million, and for the three months ending June 30, 2026, it was also $5.3 million.

The financial statement tables attached to this press release provide a reconciliation of GAAP with non-GAAP indicators; relevant explanations are also listed in the following section "Non-GAAP Financial Indicators".

The first nine months up to September 30, 2026

Revenues for the first nine months of 2026 were $16.1 million, compared to $17.1 million for the first nine months of 2025. The decline mainly reflects a one-time income from a pharmaceutical partner recognized in the same period last year, which was partially offset by growth in B2B2C income from channel partners and growth in direct sales to consumers.

In the first nine months of 2026, the gross profit was 9.5 million US dollars, compared to 9.9 million US dollars in the same period of the previous year. The gross margin increased to 59.4%, from 57.6% in the first nine months of 2025. This increase is mainly due to reduced technology amortization and hosting costs, as well as a tariff refund income of approximately 400,000 US dollars related to IEEPA.

Operating expenses decreased by 17% in the first nine months of 2026 to $31.4 million; in the first nine months of 2025, they were $38 million, reflecting reductions in research and development, sales and marketing, as well as general and administrative expenses. The operating loss improved by 22% to $21.8 million; in the first nine months of 2025, it was $28.1 million.

Net loss improved by 23% in the first nine months of 2026 to $25 million; it was $32.7 million in the first nine months of 2025.

For the first nine months up to September 30, 2026, the operating loss (excluding equity incentives, merger and acquisition-related expenses, depreciation, and amortization) for non-GAAP was 16 million US dollars; for the same period in 2025, it was 18.2 million US dollars.

The financial statement tables attached to this press release provide a comparison of GAAP with non-GAAP indicators; relevant explanations are also listed in the following section "Non-GAAP Financial Indicators".

Telephone Conference Details

Date: Thursday, November 12, 2026, 8:30 a.m. Eastern Time, USA

Dialing number: 1-800-717-1738 (within the United States) or 1-646-307-1865 (international)

Call me ™: https :// emportal.ink /4623c5K

Participants can use the above dial-in numbers to be connected by a operator, or click on the link Call me ™ to connect to the event via instant phone. This link will become available 15 minutes before the scheduled start time.

Live streaming link: https :// viavid.webcasts.com / starthere.jsp ? ei =1775359&tp_key=4596015d94

The company requests that participants dial in about 10 minutes before the event begins. The replay of the teleconference can be listened to for approximately three hours after the conference ends until November 26, 2026 (Thursday). Replay numbers are: 1-844-512-2921 (for calls within the United States) or 1-412-317-6671 (for international calls), and the replay password is 1139413.

Regarding DarioHealth Corp.

DarioHealth ( Nasdaq : DRIO ) is a medical technology company driven by AI, helping health plans, medical systems, and employers to improve health outcomes and reduce healthcare costs. The company's integrated platform combines connected devices, personalized member interactions, AI-driven insights, and clinical care supported by healthcare providers to support people with needs such as diabetes, hypertension, weight management, musculoskeletal health, and behavioral health.

The company stated that its AI platform, based on over 13 billion proprietary long-term medical data points collected over more than a decade, achieves personalized care at the individual member level by analyzing biometric, clinical, and behavioral data, thereby providing more timely and effective interventions. By integrating interaction, clinical intelligence, and care delivery into a single platform, Dario helps customers address multiple chronic diseases with a single solution.

Note on Forward-Looking Statements

This press release, as well as the statements made by DarioHealth Corp and its partners herein, contain or may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts may be considered forward-looking statements. For example, the company uses forward-looking statements in this press release regarding revenue growth and acceleration, the timing and progress of converting contracted and later-stage annual recurring revenues into recognized revenues, the acquisition of new business and healthy plan customers, the implementation and activation thereof, the expansion of existing customer relationships, the expected benefits and business opportunities related to Dario Women™, Dario Sleep and DarioIQ™, the potential impact of artificial intelligence on operational efficiency and member engagement (including DarioIQ™ to identify and predict member churn, provide targeted interventions, enhance member re-engagement, and the ability to drive an increase in annual recurring revenues from existing customers of up to approximately 14% based on engagement), the expected operational efficiency and cost savings resulting from the deployment and expanded use of DarioIQ™ in company operations, the expected benefits of channel partnerships, the development and commercialization of integrated clinical care and GLP-1 drug access and management products, the anticipated integration of consumer-driven and payer-funded healthcare models, the potential clinical and economic benefits of the company's solutions (including estimated cost savings in healthcare), as well as the company's liquidity, financial resources, and ability to execute its business strategy.

Without limiting the foregoing generalities, terms such as "plan," "project," "potential," "seek," "possible," "will," "expect," "believe," "estimate," "intend," "able to," "estimate," or "continue" are intended to identify forward-looking statements. The company reminds readers that certain important factors may affect the company's actual results and may lead to significant differences between the actual results and any forward-looking statements contained in this press release. Factors that may affect the company's performance include, but are not limited to: regulatory approval, product demand, market acceptance, the impact of competitive products and prices, product development, commercialization or technical difficulties, the success or failure of negotiations and trade, legal, social, and economic risks, as well as risks related to whether there are sufficient existing cash resources. Other factors that may cause the company's actual results to differ from the forward-looking statements or contribute to such differences also include the risks discussed in the documents submitted by the company to the U.S. Securities and Exchange Commission. The company reminds readers that actual results (including but not limited to the timing and results of the Dario ™ business and regulatory plans described herein) may differ significantly from those stated in the forward-looking statements. Except as required by applicable law, the company does not undertake any obligation to publicly update any forward-looking statements due to new information, future events, or other reasons.

DarioHealth Company Contact Person

Michael Lipari

Zoe Harrison