DarioHealth (DRIO) Q1 2026 earnings summary

Executive summary

• Achieved second consecutive quarter of sequential revenue growth, with Q1 2026 revenue at $5.6 million, driven by expanded channel partnerships and improved operational efficiency.

• Added 10 new accounts in Q1 2026, contributing to a strong commercial pipeline of $127 million across 241 open opportunities.

• Multi-condition digital health platform leverages AI-powered coaching, connected devices, and proprietary data to support outcomes-based and claims-based revenue models.

• Client base includes 160+ clients, with high retention rates and Fortune 100 employers and national health plans among customers.

• Net loss for Q1 2026 was $8.2 million, a 10.6% improvement year-over-year, reflecting lower operating expenses.

Financial highlights

• Q1 2026 revenue was $5.6 million, up 6.7% sequentially but down from $6.8 million year-over-year due to non-recurring pharma revenue.

• GAAP gross margin was 57% and non-GAAP B2B2C gross margin held at approximately 80% for the ninth consecutive quarter.

• Total operating expenses were $10.5 million, down 21% year-over-year and 8% sequentially; non-GAAP OpEx was $8.7 million, down 18% year-over-year.

• Operating loss was $7.3 million (GAAP), a 22% improvement year-over-year; non-GAAP operating loss was $5.3 million, improving 8% year-over-year.

• Cash and short-term deposits totaled $20 million at quarter end; net cash used in operations was $6 million, a 10% reduction year-over-year.

Outlook and guidance

• $127 million pipeline of 241 commercial opportunities, with employer and health plan segments representing $54 million and $60 million in potential value, respectively.

• Revenue acceleration expected in the second half of 2026 as 2025-signed accounts convert to recognized revenue.

• Management targets continued expansion through channel partners, new condition offerings, and improved engagement technology.

• Expansion into care delivery and outcomes-based models expected to drive new revenue streams.

• Management notes substantial doubt about the ability to continue as a going concern for 12 months from the report date due to insufficient cash to fund projected operating requirements.