DarioHealth Reports Second Quarter 2026 Financial Results

• Second quarter 2026 revenue was $5.2 million, reflecting the Company's strategic decision to discontinue certain pharmaceutical-related business

• Gross margin increased to 62%, compared to 57% in the first quarter of 2026 and 55% in the second quarter of 2025; non-GAAP B2B2C gross margin was approximately 80% for the 10th consecutive quarter

• Operating loss decreased by 30% year-over-year and 11% quarter-over-quarter

• Operating expenses declined by 21% year-over-year and 8% quarter-over-quarter

• Multi-condition strategy compounding: more than 80% of the $13.1 million in contracted and late-stage annual recurring revenue ("ARR") is multi-condition

• Commercial momentum with three significant wins in recent weeks, led by a top-5 national health plan expansion with the potential to approximately triple Dario's potential revenue opportunity — its third such expansion — plus a 5th Fortune 50 client and a new health insurer via the Amwell channel

• Expanded into provider-backed clinical care delivery, accessing a larger portion of the healthcare value chain and increasing the potential revenue opportunity per client

• Pro forma cash of $36.8 million following $22.8 million net proceeds from at-the-market registered direct financing with participation from existing long-term shareholders and new fundamental institutional investors completed in July 2026

• Conference call today, August 11, 2026 at 8:30 am ET

NEW YORK, Aug. 11, 2026 /PRNewswire/ -- DarioHealth Corp. (NASDAQ: DRIO) (the "Company", "DarioHealth" or "Dario"), a leading AI-powered healthcare technology company transforming the management of chronic conditions, today announced financial results for the second quarter ended June 30, 2026.

"We believe that Dario has reached an important stage where the investments made in our technology, product, and distribution infrastructure are compounding positive momentum," said Erez Raphael, Chief Executive Officer of Dario. "Over the past decade, we have built a comprehensive multi-condition platform supported by robust clinical evidence, enterprise distribution generating ARR and, more recently, AI-powered capabilities that have the potential to increase the recurring revenue we generate from customers we have already won. Our strategy is translating into execution as new customers are increasingly adopting our multi-condition solutions and existing customers expand into additional conditions. Today, we believe provider-backed care is the natural extension of our platform, positioning us to capture a larger share of the healthcare value chain. We believe we have built an end-to-end chronic care platform that is unique in the market and positions us to accelerate revenue growth by the end of 2026 and into 2027."

Dario has served more than a dozen health plans over the last 4 quarters, including 3 national carriers, across more than 6 chronic condition solutions, with 5 Fortune 50 clients and approximately 25% of B2B2C clients drawn from the Fortune 500. Growth compounds across three layers: channel partners add accounts at lower acquisition cost, multi-condition expansion and provider-based care increase revenue per account with no incremental acquisition spend, and DarioIQ™ powers both.

• Signed new Fortune 50 client representing more than 100,000 eligible employees, Dario's 5th Fortune 50 client; the Company expects ARR contribution to begin at the end of 2026 and ramp into 2027

• Signed a major health insurer with a stronghold in Arizona, representing hundreds of thousands of lives, through the Amwell channel partnership

• Top 5 national health plan extended its behavioral health agreement and added Dario's hypertension solution, the third such plan to expand number of conditions; the expansion has the potential to approximately triple Dario's potential revenue opportunity under this relationship, with contribution expected in 2026 and higher impact in 2027 and onward, demonstrating Dario's land-and-expand strategy

• Channel partner Solera expanded its contract to add Dario's hypertension program across its existing member base, addressing an additional 500,000+ new eligible lives, approximately doubling Dario's addressable eligible population through Solera

• The Company expects the new programs to begin revenue contribution in the fourth quarter of 2026

• Dario Women supports members navigating perimenopause and menopause, life stages frequently associated with weight changes, sleep disruption, metabolic changes and increased cardiometabolic risk

• Dario Sleep addresses obstructive sleep apnea ("OSA"), a significant contributor to cardiometabolic disease and rising healthcare costs

• Expanded into provider-backed care through Beluga Health's care delivery infrastructure, adding 50-state embedded clinical delivery, expanding Dario's platform beyond digital engagement to include provider-led care capabilities

• Launched the first provider-backed offering, Dario's Integrated GLP-1 Program, combining the digital platform with GLP-1 medical evaluation, prescribing and oversight

• More than 13 billion proprietary longitudinal data points from FDA-cleared connected devices power a vertically integrated device-to-data-to-AI stack, and support delivery of integrated multi-condition care

• Broad deployment of DarioIQ, which the Company believes could contribute an increase of 10-15% in B2B2C ARR from existing customers through higher engagement, retention and clinical outcomes

• Applied within Dario's own operations, AI has helped expand operational capability while holding the cost base, contributing to the reduction in operating expenses and operating loss this quarter

Lara Dodo, Dario's Chief Operating Officer, commented, "Commercial execution remained strong during the second quarter of 2026 as we continued advancing enterprise customer implementations, expanding relationships with channel partners and broadening adoption of our integrated multi-condition platform. We swiftly advanced our provider-backed care strategy and implementation, expanding our ability to increase long-term customer value."

• Revenue was $5.2 million, compared with $5.6 million in the first quarter of 2026 and $5.4 million in the second quarter of 2025. The year-over-year comparison primarily reflected the Company's strategic decision to discontinue certain pharmaceutical-related business, partially offset by continued growth from channel partners and direct-to-consumer programs.

• Gross profit increased to $3.2 million, up approximately 8% year-over-year and substantially consistent quarter-over-quarter

• Gross margin increased to 62%, compared with 57% in the first quarter of 2026 and 55% in the second quarter of 2025; Non-GAAP B2B2C gross margins remain at approximately 80% for the 10 th consecutive quarter

• Operating expenses declined to $9.7 million, down 8% quarter-over-quarter and 21% year-over-year, while operating loss improved 11% quarter-over-quarter and 30% year-over-year

• Balance sheet strengthened with $36.8 million pro forma cash, cash equivalents and short-term deposits; $14.0 million as of June 30, 2026, plus $22.8 million, raised through registered direct financing in July 2026, net of offering expenses.

"Our second quarter results reflect continued progress in improving the efficiency of our business, with improvements in gross margin, operating expenses and net loss, year-over-year," stated Chen Franco Yehuda, Dario's Chief Financial Officer. "Following quarter end, we strengthened our balance sheet through a successful $23.5 million registered direct financing priced at-the-market, with participation from both existing long-term shareholders and new fundamental institutional investors. This financing enhances our financial flexibility as we continue executing on commercial opportunities created by our AI-powered integrated care platform."

Revenue was $5.2 million for the second quarter of 2026, compared with $5.4 million in the second quarter of 2025 and $5.6 million in the first quarter of 2026. The year-over-year decrease primarily reflects the absence of one-time pharmaceutical services revenue recognized in the prior-year period, as the Company transitions to a B2B2C ARR model, partially offset by growth in revenue from enterprise B2B2C revenues and direct to consumer sales.

Gross profit was $3.2 million, compared with $3.0 million in the second quarter of 2025 and $3.2 million in the first quarter of 2026. Gross margin improved to 61.7%, compared with 55.2% in the second quarter of 2025 and 57.3% in the first quarter of 2026, reflecting improved product mix and the benefit of lower cost of revenues, including the impact of an International Emergency Economic Powers Act (IEEPA) tariff refund recognized during the quarter.

Operating expenses declined to $9.7 million, compared with $12.2 million in the second quarter of 2025 and $10.5 million in the first quarter of 2026, reflecting continued operating discipline. Operating loss improved to $6.5 million, compared with $9.2 million in the second quarter of 2025 and $7.3 million in the first quarter of 2026.

Net loss was $7.9 million, compared with $13.0 million in the second quarter of 2025, and $8.2 million in the first quarter of 2026.

Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the three months ended June 30, 2026 was $5.3 million compared to a Non-GAAP operating loss of $6.4 million for the three months ended June 30, 2025, and Non-GAAP operating loss of $5.3 million for the three months ended March 31, 2026.

A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Revenue for the first six months of 2026 was $10.8 million, compared with $12.1 million for the first six months of 2025. The decrease primarily reflected a transition away from one-time pharmaceutical services, partially offset by growth in revenue from enterprise B2B2C revenues and direct to consumer sales.

Gross profit was $6.4 million for the first six months of 2026, compared with $6.8 million in the prior-year period. Gross margin improved to 59.4%, compared with 56.5% for the first six months of 2025, primarily reflecting lower cost of revenues, including the benefit of an IEEPA tariff refund recognized during the period.

Operating expenses decreased to $20.2 million for the first six months of 2026, compared with $25.5 million for the first six months of 2025, reflecting lower research and development, sales and marketing, and general and administrative expenses. Operating loss improved to $13.8 million, compared with $18.6 million in the first six months of 2025.

Net loss improved to $16.2 million, for the first six months of 2026, compared with $22.2 million, for the first six months of 2025.

Non-GAAP operating loss (excluding stock-based compensation, acquisition related expenses, depreciation and amortization expenses) for the six months ended June 30, 2026 was $10.7 million compared to a Non-GAAP operating loss of $12.2 million for the six months ended June 30, 2025.

A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Date: Tuesday, August 11 th, 2026, 8:30 a.m. Eastern Time

Dial-in Number: 1-800-717-1738 (domestic) or 1-646-307-1865 (international)

Call me™: https://emportal.ink/4vKeztO

Participants can use the dial-in numbers above and be answered by an operator OR click the Call me™ link for instant telephone access to the event. This link will be made active 15 minutes prior to the scheduled start time.

Webcast link: https://viavid.webcasts.com/starthere.jsp?ei=1767650&tp_key=4cfb9bb10d

Participants are asked to dial in approximately 10 minutes prior to the start of the event. A replay of the call will be available approximately three hours after completion of the conference call through Tuesday, August 25 th, 2026. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 1188083.

DarioHealth (Nasdaq: DRIO) is an AI-powered healthcare technology company helping health plans, health systems and employers improve health outcomes while lowering the cost of care. The Company's integrated platform combines connected devices, personalized member engagement, AI-driven insights and provider-backed clinical care to support people living with conditions including diabetes, hypertension, weight management, musculoskeletal and behavioral health needs.

Powered by more than 13 billion proprietary longitudinal healthcare data points collected over more than a decade, Dario's AI platform personalizes care at the individual member level by analyzing biometric, clinical and behavioral data to deliver more timely and effective interventions. By combining engagement, clinical intelligence and care delivery within a single platform, Dario helps customers address multiple chronic conditions through one solution.

This news release and the statements of representatives and partners of DarioHealth Corp. related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, the Company is using forward-looking statements in this press release when it discusses its expected revenue growth and commercial momentum, the expected timing and contribution of ARR, the anticipated implementation and expansion of customer relationships, including the top-5 national health plan expansion and new Fortune 50 client, the potential revenue opportunity associated with customer expansions, the expected launch and revenue contribution of new product offerings, the anticipated benefits of its provider-backed care strategy and DarioIQ™ platform, the expected impact of AI on customer engagement, retention, clinical outcomes and operating efficiency, the Company's ability to accelerate revenue growth by the end of 2026 and into 2027, and the Company's future financial performance and business strategy. Without limiting the generality of the foregoing, words such as "plan," "project," "potential," "seek," "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Factors that may affect the Company's results include, but are not limited to, regulatory approvals, product demand, market acceptance, impact of competitive products and prices, product development, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks, and the risks associated with the adequacy of existing cash resources. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements include, but are not limited to, those risks discussed in the Company's filings with the U.S. Securities and Exchange Commission. Readers are cautioned that actual results (including, without limitation, the timing for and results of the Company's commercial and regulatory plans for Dario™ as described herein) may differ significantly from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

This release includes financial measures that are not prepared in accordance with U.S. GAAP. Management uses these non-GAAP measures internally to evaluate ongoing operating performance and believes they provide investors with additional insight when used as a supplement to GAAP measures. Non-GAAP measures should not be considered in isolation from, or as a substitute for, GAAP measures. A reconciliation of GAAP to non-GAAP measures is provided in the financial tables included in this release.

Operating expenses (non-GAAP). Our presentation of non-GAAP operating expenses excludes stock-based compensation expenses, amortization of acquisition-related expenses and depreciation of fixed assets. Due to varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company's non-cash operating expenses, we believe that providing non-GAAP financial measures that exclude non-cash expenses provides us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.

Net loss (non-GAAP). Our presentation of adjusted net loss excludes the effect of certain items that are non-GAAP financial measures. Adjusted net loss represents net loss determined under GAAP without regard to stock-based compensation expenses, depreciation and impairment expense, amortization of acquired technology and brand, financial (income) expenses, net, income tax, and acquisition costs. We believe these measures provide useful information to management and investors for analysis of our operating results.

Michael Lipari SVP Corporate Development [email protected] +1-201-785-6310

Zoe Harrison VP, Accounting and Corporate Development [email protected]

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

6,634

$

21,803

Short-term bank deposits

7,327

4,214

Short-term restricted bank deposits

293

229

Trade receivables, net

1,549

2,144

Inventories

3,719

4,316

Other accounts receivable and prepaid expenses

2,604

2,361

Total current assets

22,126

35,067

NON-CURRENT ASSETS:

Deposits

119

80

Operating lease right of use assets

1,029

717

Long-term assets

386

304

Property and equipment, net

503

549

Intangible assets, net

15,000

15,931

Goodwill

57,427

57,427

Total non-current assets

74,464

75,008

Total assets

$

96,590

$

110,075

The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Trade payables

$

3,173

$

2,928

Deferred revenues

521

714

Operating lease liabilities

572

430

Other accounts payable and accrued expenses

5,312

5,251

Total current liabilities

9,578

9,323

NON-CURRENT LIABILITIES

Operating lease liabilities

777

571

Long-term loan

31,064

30,747

Warrant liability

15

1,466

Other long-term liabilities

68

46

Total non-current liabilities

31,924

32,830

STOCKHOLDERS' EQUITY **

Common stock of $0.0001 par value - authorized: 400,000,000 shares; issued and outstanding: 7,341,866 and 6,905,948 shares on June 30, 2026 and December 31, 2025, respectively

4

4

Additional paid-in capital

523,335

519,996

Accumulated deficit

(468,251)

(452,078)

Total stockholders' equity

55,088

67,922

Total liabilities and stockholders' equity

$

96,590

$

110,075

The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.

Revenues:

Services

$

2,585

$

3,661

$

5,410

$

8,536

Consumer hardware

2,592

1,708

5,350

3,585

Total revenues

5,177

5,369

10,760

12,121

Cost of revenues:

Services

440

821

1,002

1,686

Consumer hardware

1,367

1,151

3,010

2,281

Amortization of acquired intangible assets

178

433

354

1,308

Total cost of revenues

1,985

2,405

4,366

5,275

Gross profit

3,192

2,964

6,394

6,846

Operating expenses:

Research and development

$

2,100

$

3,721

$

4,485

$

7,829

Sales and marketing

4,971

5,231

9,870

11,104

General and administrative

2,600

3,212

5,826

6,522

Total operating expenses

9,671

12,164

20,181

25,455

Operating loss

6,479

9,200

13,787

18,609

Interest expenses

1,123

—

2,273

—

Other financial expenses (income), net

(6)

3,790

(271)

3,586

Total financial expenses, net

1,117

3,790

2,002

3,586

Loss before taxes

7,596

12,990

15,789

22,195

Income tax

328

—

384

22

Net loss

$

7,924

$

12,990

$

16,173

$

22,217

Deemed dividend

$

—

$

5,572

$

—

$

10,411

Net loss attributable to common shareholders

$

7,924

$

18,562

$

16,173

$

32,628

Net loss per share:

Basic and diluted loss per share of common stock

$

0.85

$

3.54

$

1.75

$

6.50

Weighted average number of common stock used in computing basic and diluted net loss per share**

9,343,618

2,481,548

9,238,133

2,425,039

The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.

Cash flows from operating activities:

Net loss

$

(16,173)

$

(22,217)

Adjustments required to reconcile net loss to net cash used in operating activities:

Stock-based compensation

2,073

4,377

Change in operating lease right of use assets

237

204

Amortization of acquired intangible assets

931

1,884

Depreciation and impairment

108

174

Change in fair value of warrant liability

(185)

(825)

Accrued interest on short term bank deposits

(63)

—

Non-cash financial expenses

265

2,665

Changes in operating assets and liabilities:

Decrease in trade receivables, net

595

2,248

Increase in other accounts receivable, prepaid expense and long-term assets

(364)

(484)

Decrease in inventories

597

143

Increase in trade payables

232

334

Increase (decrease) in other accounts payable and accrued expenses

83

(858)

Decrease in deferred revenues

(193)

(856)

Decrease in operating lease liabilities

(201)

(147)

Other

(50)

654

Net cash used in operating activities

(12,108)

(12,704)

Cash flows from investing activities:

Investment in short term bank deposit

(9,250)

—

Proceeds from maturity of short-term bank deposit

6,200

—

Purchase of property and equipment

(69)

(75)

Disposals of property and equipment

6

—

Net cash used in investing activities

(3,113)

(75)

Cash flows from financing activities:

Proceeds from ATM Equity Offerings

104

—

Issuance costs related to ATM Equity Offerings

(104)

—

Proceeds from issuance of common stock and preferred stock, net of issuance costs

—

6,754

Proceeds from borrowings on credit agreement

—

31,700

Repayment of long-term loan

—

(31,515)

Net cash provided by financing activities

—

6,939

Decrease in cash, cash equivalents and restricted cash and cash equivalents

(15,221)

(5,840)

Effect of exchange rate differences on cash, cash equivalents and restricted cash and cash equivalents

52

30

Cash, cash equivalents and restricted cash and cash equivalents at beginning of period

21,803

27,764

Cash, cash equivalents and restricted cash and cash equivalents at end of period

$

6,634

$

21,954

Supplemental disclosure of cash flow information:

Cash paid during the period for interest on long-term loan

$

1,930

$

1,250

Non-cash activities:

Exercise of pre-funded warrants to common stock

$

1,266

$

1,750

Right-of-use assets obtained in exchange for lease liabilities

$

549

$

—

Purchase of property and equipment on credit

$

13

$

—

The accompanying notes are an integral part of the unaudited condensed consolidated interim financial statements.

Cost of Revenues

$

1,985

(2)

(180)

1,803

Gross Profit

3,192

2

180

3,374

Research and development

2,100

134

(24)

2,210

Sales and Marketing

4,971

(308)

(299)

4,364

General and Administrative

2,600

(456)

(12)

2,132

Total Operating Expenses

9,671

(630)

(355)

8,706

Operating Loss

$

(6,479)

632

515

(5,332)

Financing expenses

1,117

-

-

1,117

Income Tax

328

-

-

328

Net Loss

$

(7,924)

632

515

(6,777)

Cost of Revenues

$

2,405

(6)

(447)

1,952

Gross Profit

2,964

6

447

3,417

Research and development

3,721

(441)

(34)

3,246

Sales and Marketing

5,231

(583)

(307)

4,341

General and Administrative

3,212

(1,005)

(14)

2,193

Total Operating Expenses

12,164

(2,029)

(355)

9,780

Operating Loss

$

(9,200)

2,035

802

(6,363)

Financing expenses

3,790

-

-

3,790

Net Loss

$

(12,990)

2,035

802

(10,153)

Cost of Revenues

$

4,366

(7)

(360)

3,999

Gross Profit

6,394

7

360

6,761

Research and development

4,485

42

(56)

4,471

Sales and Marketing

9,870

(441)

(598)

8,831

General and Administrative

5,826

(1,667)

(25)

4,134

Total Operating Expenses

20,181

(2,066)

(679)

17,436

Operating Loss

$

(13,787)

2,073

1,039

(10,675)

Financing expenses

2,002

-

-

2,002

Income Tax

384

-

-

384

Net Loss

$

(16,173)

2,073

1,039

(13,061)

Cost of Revenues

$

5,275

(16)

(1,337)

3,922

Gross Profit

6,846

16

1,337

8,199

Research and development

7,829

(967)

(74)

6,788

Sales and Marketing

11,104

(1,398)

(618)

9,088

General and Administrative

6,522

(1,996)

(29)

4,497

Total Operating Expenses

25,455

(4,361)

(721)

20,373

Operating Loss

$

(18,609)

4,377

2,058

(12,174)

Financing expenses

3,586

-

-

3,586

Income Tax

22

-

-

22

Net Loss

$

(22,217)

4,377

2,058

(15,782)