DarioHealth Q2 Earnings Call Highlights

• DarioHealth is an AI-Powered Digital Therapeutics Play

DarioHealth (NASDAQ:DRIO) reported second-quarter 2026 gross of $5.2 million, down from $5.6 cardinal successful the archetypal 4th and $5.4 cardinal a twelvemonth earlier, arsenic the institution continued to displacement distant from pharmaceutical services gross toward recurring B2B2C business.

Chief Financial Officer Chen Franco said the modulation affected near-term reported gross but was intended to amended the prime and predictability of the company's gross base. Gross borderline roseate to 62% from 57% successful the anterior 4th and 55% successful the year-earlier period. DarioHealth's non-GAAP B2B2C gross borderline remained astir 80% for the 10th consecutive quarter, according to Franco.

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The institution reduced operating expenses by 8% sequentially and 21% twelvemonth implicit year. Operating nonaccomplishment improved 11% from the archetypal 4th and 30% from the prior-year quarter. Net nonaccomplishment narrowed to $7.9 cardinal from $13 cardinal a twelvemonth earlier.

Contracted Revenue and Implementation Timing

DarioHealth ended the 4th with astir $13.1 cardinal successful contracted and late-stage yearly recurring revenue, with much than 80% tied to multi-condition programs. Chief Operating Officer Lara Dodo said the institution expects that contracted gross to statesman converting much visibly during the 2nd fractional of 2026, with astir of the publication expected successful 2027 arsenic implementations and enrollment mature.

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Dodo said the company's endeavor contracts mostly necessitate a four-to-five-quarter progression from signing to afloat run-rate revenue. Program launches beryllium connected plan-year cycles and open-enrollment windows, portion eligible members enroll implicit consequent quarters.