📊 DRIO Key Takeaways
Is DarioHealth Corp. (DRIO) a Good Investment?
DarioHealth demonstrates severe financial distress with negative operating margins of -163.9% and net margins of -186.6%, indicating the company is burning cash faster than generating revenue. Despite a healthy gross margin of 56.6%, operating losses of $36.7M far exceed revenue of $22.4M, while negative free cash flow of $26.1M and declining revenue (-17.3% YoY) signal deteriorating business fundamentals. The company's cash runway of less than one year at current burn rates combined with continued operating losses creates critical solvency concerns.
DarioHealth's fundamentals are weak: revenue declined 17.3% year over year while operating and net losses remained extremely large relative to sales, indicating the business has not demonstrated operating leverage. Although liquidity is currently adequate, persistent negative operating cash flow and deeply negative free cash flow materially weaken financial flexibility if growth does not stabilize and losses narrow.
Why Buy DarioHealth Corp. Stock? DRIO Key Strengths
- Positive gross margin of 56.6% demonstrates underlying unit economics are viable
- Strong liquidity position with current ratio of 3.76x and $21.8M cash on hand provides near-term operational flexibility
- Moderate leverage with debt-to-equity of 0.45x suggests balance sheet capacity exists for restructuring
- Gross margin of 56.6% suggests the core product/service mix can support attractive unit economics before overhead
- Current ratio of 3.76x and quick ratio of 3.30x indicate solid near-term liquidity
- Debt/equity of 0.45x is not excessive relative to equity, leaving some balance-sheet capacity
DRIO Stock Risks: DarioHealth Corp. Investment Risks
- Catastrophic operating losses with operating margin of -163.9% indicate business model is fundamentally unprofitable at current scale
- Severe negative free cash flow of -$26.1M annually with only $21.8M cash reserves means 10 months of cash runway at current burn rate
- Revenue declining 17.3% year-over-year while operating losses accelerate suggests deteriorating market conditions and inability to achieve scale
- Negative interest coverage of -19.1x indicates inability to service debt from operations, increasing refinancing and default risk
- Revenue contraction of 17.3% raises concern about demand durability and growth quality
- Operating margin of -163.9% and net margin of -186.6% show an unsustainably unprofitable cost structure
- Operating cash flow of -25.94M and free cash flow of -26.08M imply continued cash burn and potential future financing risk
Key Metrics to Watch
- Quarterly revenue trends and path to profitability - need evidence of gross margin maintenance with operating expense reduction
- Monthly cash burn rate and cash runway - critical for near-term survival assessment
- Customer acquisition cost relative to lifetime value and retention rates - validate if revenue decline reflects market dynamics or unit economics failure
- Revenue growth trajectory and customer retention/expansion trends
- Operating cash burn and the pace of improvement in operating margin
DarioHealth Corp. (DRIO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.76x current ratio provides a solid financial cushion.
DRIO Profit Margin, ROE & Profitability Analysis
DRIO vs Healthcare Sector: How DarioHealth Corp. Compares
How DarioHealth Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DarioHealth Corp. Stock Overvalued? DRIO Valuation Analysis 2026
Based on fundamental analysis, DarioHealth Corp. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DarioHealth Corp. Balance Sheet: DRIO Debt, Cash & Liquidity
DRIO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: DarioHealth Corp.'s revenue has grown significantly by 32% over the 5-year period, indicating strong business expansion. The most recent EPS of $12.27 reflects profitable operations.
DRIO Revenue Growth, EPS Growth & YoY Performance
DRIO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $5.0M | -$10.5M | $2.96 |
| Q2 2025 | $5.4M | -$13.0M | $0.08 |
| Q1 2025 | $5.8M | -$7.2M | $0.14 |
| Q3 2024 | $3.5M | -$12.3M | $0.25 |
| Q2 2024 | $6.2M | -$13.6M | $0.08 |
| Q1 2024 | $5.8M | -$7.2M | $0.20 |
| Q3 2023 | $3.5M | -$15.6M | $0.49 |
| Q2 2023 | $6.2M | -$16.6M | $0.58 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DarioHealth Corp. Dividends, Buybacks & Capital Allocation
DRIO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for DarioHealth Corp. (CIK: 0001533998)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DRIO
What is the AI rating for DRIO?
DarioHealth Corp. (DRIO) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DRIO's key strengths?
Claude: Positive gross margin of 56.6% demonstrates underlying unit economics are viable. Strong liquidity position with current ratio of 3.76x and $21.8M cash on hand provides near-term operational flexibility. ChatGPT: Gross margin of 56.6% suggests the core product/service mix can support attractive unit economics before overhead. Current ratio of 3.76x and quick ratio of 3.30x indicate solid near-term liquidity.
What are the risks of investing in DRIO?
Claude: Catastrophic operating losses with operating margin of -163.9% indicate business model is fundamentally unprofitable at current scale. Severe negative free cash flow of -$26.1M annually with only $21.8M cash reserves means 10 months of cash runway at current burn rate. ChatGPT: Revenue contraction of 17.3% raises concern about demand durability and growth quality. Operating margin of -163.9% and net margin of -186.6% show an unsustainably unprofitable cost structure.
What is DRIO's revenue and growth?
DarioHealth Corp. reported revenue of $22.4M.
Does DRIO pay dividends?
DarioHealth Corp. does not currently pay dividends.
Where can I find DRIO SEC filings?
Official SEC filings for DarioHealth Corp. (CIK: 0001533998) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DRIO's EPS?
DarioHealth Corp. has a diluted EPS of $10.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DRIO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, DarioHealth Corp. has a STRONG SELL rating with 90% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DRIO stock overvalued or undervalued?
Valuation metrics for DRIO: ROE of -61.4% (sector avg: 15%), net margin of -186.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy DRIO stock in 2026?
Our dual AI analysis gives DarioHealth Corp. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DRIO's free cash flow?
DarioHealth Corp.'s operating cash flow is $-25.9M, with capital expenditures of $142.0K. FCF margin is -116.7%.
How does DRIO compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -186.6% (avg: 12%), ROE -61.4% (avg: 15%), current ratio 3.76 (avg: 2).