DarioHealth Corp. reported third-quarter 2026 revenue of US$5.3 million, up 6% year over year, as the AI-powered digital health company expanded its multi-condition platform and secured additional health plan relationships. Operating expenses declined 10% to US$11.2 million, while its operating loss narrowed to US$8.0 million. The company is positioning its DarioIQ artificial intelligence platform, connected health devices and clinical data infrastructure as the foundation for a broader model combining consumer healthcare access with payer-funded chronic condition management.

DarioHealth is expanding its position in digital chronic care management as employers and health plans increasingly seek integrated healthcare platforms rather than separate programmes for individual conditions.

The Nasdaq-listed company reported revenue of US$5.3 million for the third quarter ended September 30, 2026, representing 6% growth from US$5.0 million in the same period last year. Revenue also increased 3% sequentially from US$5.2 million in Q2.

Operating expenses declined 10% year over year to US$11.2 million, while operating loss improved 15% to US$8.0 million. Net loss narrowed to US$8.8 million from US$10.5 million a year earlier.

The results reflect progress in DarioHealth’s commercial expansion and cost management, although the company remains loss-making. Its strategy centres on combining digital health programmes, connected devices, clinical evidence and AI-driven engagement into a single platform serving consumers, employers and health plans.

Moving beyond single-condition digital health programmes

DarioHealth’s business model initially developed around consumer-facing digital tools and connected devices for managing conditions such as diabetes. It has since expanded into hypertension, weight management, musculoskeletal health and behavioural health.

The company is now extending that model into women’s health and sleep management through Dario Women and Dario Sleep.

Dario Women addresses health needs associated with perimenopause and menopause, while Dario Sleep targets obstructive sleep apnea. These additions are intended to give existing enterprise customers more ways to support employees through a shared digital health platform.

The commercial logic is straightforward: a customer already using Dario for one condition may be able to expand its agreement to cover additional health needs without establishing an entirely new vendor relationship.

Nearly 45% of DarioHealth’s current book of business consists of women over 40, according to the company, creating a potential opportunity for broader adoption of Dario Women.

More than 80% of the company’s US$13.1 million in contracted and late-stage annual recurring revenue relates to multi-condition opportunities. However, contracted and late-stage ARR should not be confused with recognized revenue: implementation schedules, employer activation and member enrollment determine when these agreements translate into reported sales.

Health plan partnerships widen distribution

Channel partnerships are becoming an important part of DarioHealth’s customer acquisition strategy.

During the quarter, the company signed one of New Jersey’s largest health plans through its partnership with Amwell. The agreement represents approximately 1.5 million covered lives, with revenue contribution expected to begin in 2027.

It is the third large state health plan agreement Dario has secured through Amwell in the past 12 months, following arrangements in Arizona and Florida.

The distinction between covered lives and active users is important. The agreement gives Dario access to a large potential population, but revenue will depend on implementation, employer participation, member enrollment and the activation of eligible services.

Approximately 40% of Dario’s contracted and late-stage ARR comes from health plan administrative-services-only agreements. Under this model, a health plan can make services available to its self-insured employer customers, with revenue building as individual employers activate programmes.

Channel-sourced business grew more than twofold year over year, according to DarioHealth. The company is also using direct sales, reseller arrangements, third-party administrators and marketplace distribution to broaden its reach.

GLP-1 therapies create an opportunity for integrated care

One of DarioHealth’s more significant strategic developments involves connecting digital chronic care management with access to prescription therapies.

The company said an existing national health insurer customer is developing a marketplace model that combines consumer choice with payer funding. Dario is working with this customer to extend its relationship beyond a digital health programme to include delivery of GLP-1 therapy through the managed offering.

GLP-1 medicines have become an important part of the treatment landscape for obesity and type 2 diabetes. Their use also creates demand for ongoing support around nutrition, physical activity, medication adherence and related cardiometabolic conditions.

Dario’s proposition is to connect access to these therapies with a broader programme that monitors and supports members managing chronic conditions.

This approach could give health plans a more coordinated way to manage medication access and ongoing member engagement. However, the company’s announcement does not establish the commercial scale or financial contribution of the proposed expansion.

The broader opportunity is significant. The US Centers for Disease Control and Prevention estimates that 90% of the country’s US$5.3 trillion in annual healthcare expenditure is associated with people living with chronic and mental health conditions. CDC

For digital health providers, even modest improvements in prevention, adherence and chronic disease management could have economic value. Demonstrating those improvements across different populations remains essential to securing long-term payer contracts.

DarioIQ turns member data into targeted engagement

Artificial intelligence is central to DarioHealth’s effort to improve engagement and expand the economics of its platform.

Its DarioIQ system is designed to identify members at risk of disengaging from a health programme and trigger targeted interventions. Rather than treating engagement as a series of generic reminders, the system uses member information to determine when additional outreach may be useful.

Dario reported that members contacted early through DarioIQ returned to the platform within one week at 1.7 times the rate of comparable members who were not contacted.

The company believes these results could support an increase of up to approximately 14% in engagement-based B2B2C ARR from existing customers. This remains a company estimate rather than a guaranteed revenue increase.

Dario also says its platform is built on more than 13 billion proprietary data points, supported by connected devices, clinical information and member behaviour. It reports more than 100 published studies and clinical analyses supporting its healthcare programmes.

The commercial challenge is converting these data and engagement capabilities into measurable improvements in health outcomes and lower healthcare costs. Dario cites a third-party analysis of 17 studies estimating potential annual healthcare cost reductions of 2.5% to 7.2%. These estimates should be interpreted in the context of the populations and studies assessed, rather than assumed to apply uniformly to every customer.

Financial performance shows progress, but losses remain

DarioHealth’s financial results reflect a business balancing commercial expansion with ongoing investment.

Third-quarter gross profit increased approximately 4% year over year to US$3.1 million. GAAP gross margin was 59.2%, down from 60.2% in Q3 2025 and 61.7% in Q2 2026.

The company attributed the year-over-year margin movement partly to a higher direct-to-consumer revenue mix, while lower hosting costs provided some offset. The sequential decline also reflected a smaller benefit from tariff refunds than in the previous quarter.

Non-GAAP B2B2C gross margin remained approximately 80% for the 11th consecutive quarter, according to the company.

For the first nine months of 2026, revenue was US$16.1 million, down from US$17.1 million in the corresponding 2025 period. Operating expenses declined 17% to US$31.4 million, while operating loss improved 22% to US$21.8 million.

Cash, cash equivalents and short-term deposits totalled US$31.2 million at September 30, 2026. The company reported a nine-month net loss of US$25.0 million, compared with US$32.7 million a year earlier.

DarioHealth also noted that its November 12 financial announcement corrected certain tables, including non-GAAP reconciliations. The corrected figures should be used when comparing adjusted operating performance.

The next test is converting contracts into recurring revenue

DarioHealth’s strategy reflects a wider shift in digital healthcare toward integrated platforms that connect consumer engagement, clinical services, prescription access and payer-funded programmes.

Its growing health plan network, multi-condition product portfolio and AI engagement tools provide several potential sources of expansion. Yet the company must still demonstrate that signed agreements translate into active users, recurring revenue and sustainable operating improvements.

The New Jersey health plan contract, expanded enterprise relationships and GLP-1 marketplace initiative are important developments to monitor through 2027.

For DarioHealth, the next stage will be measured less by the number of conditions added to its platform and more by its ability to convert those capabilities into commercial growth while narrowing losses.

Market Landscape

Digital healthcare is moving toward integrated chronic care platforms that combine monitoring, digital engagement, clinical support and access to treatment. Employers and health plans are increasingly interested in solutions that can address several interconnected conditions through fewer technology providers.

Market driver	Industry development	Relevance to DarioHealth
Chronic disease costs	Chronic and mental health conditions account for a substantial share of US healthcare expenditure	Creates demand for measurable chronic care management
Multi-condition platforms	Buyers seek integrated solutions across connected health conditions	Supports expansion of Dario Women and Dario Sleep
AI-powered engagement	Predictive analytics can identify disengagement and support targeted interventions	Core function of DarioIQ
GLP-1 treatment integration	Digital support is increasingly connected with medication access and management	Opens opportunities for payer-funded therapy programmes
Channel distribution	Health plans and partners provide access to larger employer populations	Supports the Amwell partnership strategy
Clinical evidence	Buyers seek measurable outcomes and healthcare savings	Supports Dario’s payer and employer sales proposition

Top Insights

• DarioHealth generated US$5.3 million in Q3 revenue, representing 6% year-over-year growth, primarily supported by stronger direct-to-consumer sales.
• Operating expenses declined 10% year over year, while the company’s operating loss narrowed to US$8.0 million.
• The company signed a New Jersey health plan covering approximately 1.5 million lives, with revenue contribution expected from 2027.
• DarioIQ uses predictive engagement capabilities, with early outreach associated with a 1.7-times higher one-week return rate.
• DarioHealth’s US$13.1 million in contracted and late-stage ARR offers growth potential, but activation and implementation timing remain important.

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