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."

Commercial Highlights:

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.

Added New Enterprise Accounts Through Channel Partners

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

Expanded Within Existing Customers

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

Added Product Extensions

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

Extended Into Provider-Backed Care

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

DarioIQ: The Engine Underneath

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."

Second Quarter 2026 Financial Highlights:

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."

Second Quarter 2026 Financial Results

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."

Six Months Ended June 30, 2026

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.

Conference Call Details

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.

About DarioHealth Corp. (NASDAQ:DRIO)

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.

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 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.

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 Contacts

Michael Lipari

SVP Corporate Development

irteam@dariohealth.com

+1-201-785-6310

Zoe Harrison

VP, Accounting and Corporate Development

irteam@dariohealth.com

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)
U.S. dollars in thousands

	June 30,		December 31,
	2026		2025
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.

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)
U.S. dollars in thousands (except stock and per share data)

	June 30,		December 31,
	2026		2025
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.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
U.S. dollars in thousands (except stock and per share data)

	Three months ended				Six months ended
	June 30,				June 30,
	2026		2025		2026		2025
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.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)
U.S. dollars in thousands

	Six months ended
	June 30,
	2026		2025
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.

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 June 30, 2026

	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
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)

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 June 30, 2025

	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
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)

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

Six months ended June 30, 2026

	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
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)

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

Six months ended June 30, 2025

	GAAP		Stock-Based Compensation Expenses		Amortization of acquisition related expenses and depreciation of fixed assets		Non-GAAP
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)

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