First quarter 2026 revenues increased to $5.6 million, marking the second consecutive quarter of sequential growth
Operating expenses decreased by 21% year-over-year and decreased by 8% quarter-over-quarter
Operating loss decreased by 22% year-over-year and decreased by 15% quarter-over-quarter; Non-GAAP operating loss decreased by 8% year-over-year and decreased by 11% quarter-over-quarter
Channel partnerships through Solera, Amwell and other blue-chip partners provide access to over 116 million covered lives
Now in contracting phase with new channel partner that, upon finalization, would extend Dario's reach to a combined 175+ million covered lives and add one of the largest hospital networks in the northeastern U.S. as a day-one anchor account
10 new accounts added during the first quarter ended March 31, 2026 — all outside the normal benefit cycle; Approximately $127 million pipeline across 241 active potential opportunities

NEW YORK, May 13, 2026 /PRNewswire/ -- DarioHealth Corp. (NASDAQ:DRIO) ("Dario" or the "Company"), a leader in the global digital health market, today announced financial results for the first quarter ended March 31, 2026.

"The first quarter of 2026 was our second consecutive quarter of sequential revenue growth, alongside continued reductions in operating expenses. Our channel partner ecosystem now provides access to more than 116 million covered lives through blue-chip partners such as Solera and Amwell. These relationships are expanding our reach into leading national and regional payer organizations across the U.S., while strengthening our ability to scale through trusted, established market access channels," said Erez Raphael, Dario's Chief Executive Officer.

"In a strategic move, we are also moving closer to care, backed by more than 100 peer-reviewed clinical studies, which we believe expands both our role and our revenue model into claims-based and outcomes-driven payments. This move broadens our platform toward clinical gap closure and care delivery, with the potential of positioning Dario across a larger share of the healthcare workflow and associated spend, while continuing to grow our subscription-based annual recurring revenue contracts," Raphael added.

Underpinning this strategy, DarioIQ™ — Dario's proprietary artificial intelligence ("AI") layer, operating on 13 billion real-world data points generated through U.S. Food and Drug Administration-cleared connected devices — continued to show meaningful performance during the first quarter of 2026, with behavior-triggered engagement programs now delivering up to a 40% improvement in member retention and up to a 57% lift in active sessions versus control. The combination of proprietary data, a regulated device-to-data pipeline, and a continuously learning AI layer represents a competitive moat that is difficult to replicate.

Steven Nelson, Dario's President and Chief Commercial Officer, commented, "Our channel-led commercial model is producing the compounding effect we built it for. With 10 new accounts all off cycle already added in the first quarter of 2026 and several large, contracted enterprise implementations coming in the second half of the year, we believe that we are reaching the phase where our 2025 sales execution translates into meaningful scale."

First Quarter 2026 Financial Highlights

Revenue of $5.6 million, increased from $5.2 million in the fourth quarter of 2025 — the second consecutive quarter of sequential growth
GAAP gross margin of 57%; Non-GAAP business-to-business-to-consumer ("B2B2C") gross margin of approximately 80% for the ninth consecutive quarter
Operating expenses of $10.5 million, decreased by 21% year-over-year and decreased by 8% sequentially; operating loss of $7.3 million, decreased by 22% year-over-year and decreased by 15% sequentially
Cash and short-term deposits of $20 million; net cash used in operations of $6 million, decreased by 10% year-over-year.

"We delivered a second consecutive quarter of sequential revenue growth with sustained B2B2C gross margins, while further reducing operating expenses. With our cash position and continued cost discipline, we believe that we are well positioned to expand our operating leverage," said Chen Franco Yehuda, Dario's Chief Financial Officer.

Financial Results for the Three Months Ended March 31, 2026

Revenue for the three months ended March 31, 2026 was $5.6 million, compared to $6.8 million, for the three months ended March 31, 2025, and $5.2 million for the three months ended December 31, 2025. The year-over-year decrease was primarily attributable to the non-recurrence of $1.3 million in revenues from a pharmaceutical customer recognized in the prior-year period before Dario transitioned away from one-time and non-recurring revenues to its focus on building annual recurring revenues from its core B2B2C business. The decline was partially offset by growth in channel partner revenues — including increased contributions from Solera — and continued expansion in direct to consumer musculoskeletal ("MSK") product sales. On a sequential basis, revenues increased by 6.7% from the fourth quarter of 2025, driven by onboarding of new clients coming from channel partners and increased sales of MSK product, marking the second consecutive quarter of quarter-over-quarter revenue growth.

Gross profit for the three months ended March 31, 2026 was $3.2 million, compared to gross profit of $3.9 million for the three months ended March 31, 2025, and gross profit of $2.8 million for the three months ended December 31, 2025. Gross margin remained substantially stable year-over-year, resulting mainly from the change in revenue, offset by lower amortization of technology expenses recorded in the cost of revenues. On a sequential basis, gross margin improved from the fourth quarter of 2025, driven mainly by higher revenues and lower hosting and server expenses. Gross profit as a percentage of revenue was 57% in the three months ended March 31, 2026, compared to 58% in the three months ended March 31, 2025, and up from 54% in the three months ended December 31, 2025.

Non-GAAP gross profit, excluding $0.2 million of amortization, stock-based compensation and depreciation, was $3.4 million, or 61% of revenues, for the three months ended March 31, 2026, compared to non-GAAP gross profit of $4.8 million, or 71% of revenues, for the three months ended March 31, 2025, and non-GAAP gross profit of $3.0 million, or 57% of revenues, for the three months ended December 31, 2025.

Total operating expenses for the three months ended March 31, 2026, were $10.5 million compared to $13.3 million for the three months ended March 31, 2025, and $11.4 million for the three months ended December 31, 2025, representing a decrease of $2.8 million, or 21%, compared to the three months ended March 31, 2025, and a decrease of $0.9 million, or 8%, compared to the three months ended December 31, 2025. The year-over-year and sequential decrease in operating expenses resulted mainly from increased operational efficiency.

Non-GAAP operating expenses (excluding stock-based compensation, depreciation and amortization expenses) for the three months ended March 31, 2026, were $8.7 million compared to $10.6 million for the three months ended March 31, 2025, and $9.0 million for the three months ended December 31, 2025, representing a decrease of 18% and 3%, respectively.

Operating loss for the three months ended March 31, 2026 was $7.3 million, a decrease of $2.1 million, or 22%, compared to $9.4 million for the three months ended March 31, 2025, and a decrease of $1.3 million or 15% from $8.6 million for the three months ended December 31, 2025. The decrease in operating loss year-over-year and quarter-over-quarter was mainly due to an increase in operational efficiencies and post-merger integration activities.

Non-GAAP operating loss (excluding stock-based compensation, and depreciation and amortization) for the three months ended March 31, 2026 was $5.3 million, representing an 8% decrease compared to a Non-GAAP operating loss of $5.8 million for the three months ended March 31, 2025, and 11% compared to a Non-GAAP operating loss of $6.0 million for the three months ended December 31, 2025.

Net loss was $8.2 million for the three months ended March 31, 2026, a decrease of $1 million or 11% compared to a net loss of $9.2 million for the three months ended March 31, 2025, and a decline of $0.8 million or 9% from $9.0 million for three months ended December 31, 2025. Net loss decreased year-over-year and quarter-over-quarter due to lower operating expenses, partially offset by financial income that related to the revaluation of warrants.

Non-GAAP net loss (excluding stock-based compensation, depreciation and amortization expenses) for the three months ended March 31, 2026 increased by 12% to $6.3 million compared to a non-GAAP net loss of $5.6 million for the three months ended March 31, 2025, and decreased by 3% quarter-over-quarter from a Non-GAAP net loss of $6.5 million in the three months ended December 31, 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."

Conference Call Details

Date: Wednesday, May 13^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/4seOwJK

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=1756269&tp_key=7306dc53e7

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 Wednesday, May 27^th, 2026. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 1111468.

About DarioHealth Corp. (NASDAQ:DRIO)

DarioHealth Corp. (NASDAQ:DRIO) is a leading digital health company revolutionizing how people with chronic conditions manage their health through a user-centric, multi-chronic condition digital therapeutics platform. Dario's platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain and behavioral health.

Dario's user-centric platform offers people continuous and customized care for their health, disrupting the traditional episodic approach to healthcare. This approach empowers people to holistically adapt their lifestyles for sustainable behavior change, driving exceptional user satisfaction, retention and results and making the right thing to do the easy thing to do.

Dario provides its highly user-rated solutions globally to health plans and other payers, self-insured employers, providers of care and consumers. To learn more about Dario and its digital health solutions, or for more information, visit http://dariohealth.com.

Cautionary Note Regarding Forward-Looking Statements

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 expectations regarding recurring revenue contribution from agreements signed in 2025, potential future growth trajectory and scaling opportunities, the expected expansion of channel partner reach and covered lives, the potential addition of a major northeastern U.S. hospital network as an anchor account, expectations regarding the conversion of pipeline opportunities into revenue, expectations for continued sequential revenue growth, the belief that DarioIQ™ engagement programs may improve member retention and active sessions, expectations regarding expansion into claims-based and outcomes-driven payment models, expectations regarding continued growth in subscription-based annual recurring revenue contracts, the belief that channel-led commercial strategy may drive increased scale and operating leverage, and the belief that it is well positioned to expand its operating leverage due to its cash position and continued cost discipline. 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.

Non-GAAP Financial Measures

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.

DarioHealth Corporate Contact

Zoe Harrison

VP, Accounting and Corporate Development

irteam@dariohealth.com

DarioHealth Investor Relations Contact

Michael Lipari

SVP Corporate Development

irteam@dariohealth.com

+1-201-785-6310

DARIOHEALTH CORP. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (except stock and per share data)


	March 31,		December 31,
	2026		2025
ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	14,977	$	21,803
Short-term bank deposits		5,035		4,214
Short-term restricted bank deposits		252		229
Trade receivables, net		2,219		2,144
Inventories		4,172		4,316
Other accounts receivable and prepaid expenses		2,079		2,361

Total current assets		28,734		35,067

NON-CURRENT ASSETS:
Deposits		80		80
Operating lease right of use assets		607		717
Long-term assets		454		304
Property and equipment, net		511		549
Intangible assets, net		15,468		15,931
Goodwill		57,427		57,427

Total non-current assets		74,547		75,008

Total assets	$	103,281	$	110,075

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

DARIOHEALTH CORP. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (except stock and per share data)


	March 31,		December 31,
	2026		2025
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade payables	$	3,468	$	2,928
Deferred revenues		501		714
Operating lease liabilities		378		430
Other accounts payable and accrued expenses		5,010		5,251

Total current liabilities		9,357		9,323

NON-CURRENT LIABILITIES
Operating lease liabilities		507		571
Long-term loan		30,931		30,747
Warrant liability		23		1,466
Other long-term liabilities		83		46

Total non-current liabilities		31,544		32,830

STOCKHOLDERS' EQUITY **
Common stock of $0.0001 par value - authorized: 400,000,000 shares; issued and outstanding: 7,299,026 and 6,905,948 shares on March 31, 2026 and December 31, 2025, respectively		4		4
Additional paid-in capital		522,703		519,996
Accumulated deficit		(460,327)		(452,078)

Total stockholders' equity		62,380		67,922

Total liabilities and stockholders' equity	$	103,281	$	110,075

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

DARIOHEALTH CORP. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS U.S. dollars in thousands (except stock and per share data)


	Three months ended
	March 31,
	2026		2025
Revenues:
Services	$	2,826	$	4,875
Consumer hardware		2,758		1,877
Total revenues		5,584		6,752

Cost of revenues:
Services		563		865
Consumer hardware		1,644		1,130
Amortization of acquired intangible assets		177		875
Total cost of revenues		2,384		2,870

Gross profit		3,200		3,882

Operating expenses:
Research and development	$	2,385	$	4,108
Sales and marketing		4,898		5,873
General and administrative		3,226		3,310

Total operating expenses		10,509		13,291

Operating loss		7,309		9,409

Interest expenses		1,149		—
Other financial income, net		(266)		(204)

Total financial expenses (income), net		883		(204)

Loss before taxes		8,192		9,205

Income tax (benefit)		57		22

Net loss	$	8,249	$	9,227

Deemed dividend	$	—	$	4,839

Net loss attributable to common shareholders	$	8,249	$	14,066

Net loss per share:

Basic and diluted loss per share of common stock	$	1.25	$	2.87
Weighted average number of common stock used in computing basic and diluted net loss per share**		6,582,297		2,368,516

DARIOHEALTH CORP. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands


	Three months ended
	March 31,
	2026		2025
Cash flows from operating activities:
Net loss	$	(8,249)	$	(9,227)
Adjustments required to reconcile net loss to net cash used in operating activities:
Stock-based compensation		1,441		2,342
Change in operating lease right of use assets		110		110
Amortization of acquired intangible assets		463		1,162
Depreciation and impairment		61		94
Change in fair value of warrant liability		(177)		(1,115)
Accrued interest on short term bank deposits		(21)		—
Non-cash financial expenses		159		293
Changes in operating assets and liabilities:
Decrease (increase) in trade receivables, net		(75)		1,597
Decrease (increase) in other accounts receivable, prepaid expense and long-term assets		269		(369)
Decrease in inventories		144		130
Increase (decrease) in trade payables		535		(300)
Decrease in other accounts payable and accrued expenses		(341)		(1,666)
Decrease in deferred revenues		(213)		(278)
Decrease in operating lease liabilities		(116)		(126)
Other		(15)		680

Net cash used in operating activities		(6,025)		(6,673)

Cash flows from investing activities:
Investment in short term bank deposit		(5,000)		—
Proceeds from maturity of short-term bank deposit		4,200		—
Purchase of property and equipment		(31)		(31)
Disposals of property and equipment		5		—

Net cash used in investing activities		(826)		(31)

Cash flows from financing activities:
Proceeds from issuance of preferred stock, net of issuance costs		—		6,815

Net cash provided by financing activities		—		6,815

Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents		(6,851)		111
Effect of exchange rate differences on cash, cash equivalents and restricted cash and cash equivalents		25		(21)
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	$	14,977	$	27,854
Supplemental disclosure of cash flow information:
Cash paid during the period for interest on long-term loan	$	965	$	937
Non-cash activities:
Exercise of pre-funded warrants to common stock	$	1,266	$	1,750
Deferred cost related to ATM offering	$	137	$	—
Purchase of property and equipment on credit	$	5	$	—

Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted
Operating Loss, Net Loss and Operating Expenses (Non-GAAP)
U.S. dollars in thousands

Three months ended March 31, 2026

	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
Cost of Revenues	$	2,384		(5)		(180)		2,199
Gross Profit		3,200		5		180		3,385

Research and development		2,385		(92)		(32)		2,261
Sales and Marketing		4,898		(133)		(299)		4,466
General and Administrative		3,226		(1,211)		(13)		2,002
Total Operating Expenses		10,509		(1,436)		(351)		8,722
Operating Loss	$	(7,309)		1,441		524		(5,344)
Financing expenses		883		-		-		883
Income Tax		57						57
Net Loss	$	(8,249)		1,441		524		(6,284)

Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted
Operating Loss, Net Loss and Operating Expenses (Non-GAAP)
U.S. dollars in thousands

Three months ended March 31, 2025

	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
Cost of Revenues	$	2,870		(10)		(890)		1,970
Gross Profit		3,882		10		890		4,782

Research and development		4,108		(526)		(40)		3,542
Sales and Marketing		5,873		(815)		(311)		4,747
General and Administrative		3,310		(991)		(15)		2,304
Total Operating Expenses		13,291		(2,332)		(366)		10,593
Operating Loss	$	(9,409)		2,342		1,256		(5,811)
Financing expenses		(204)		-		-		(204)
Income Tax		22						22
Net Loss	$	(9,227)		2,342		1,256		(5,629)

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SOURCE DarioHealth Corp.

DarioHealth Reports First Quarter 2026 Financial and Operating Results