📊 DRIO Key Takeaways
Is DRIO a Good Investment? Thesis Analysis
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.
Why Buy 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
DRIO Investment Risks to Consider
- 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
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
DRIO Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.76x current ratio provides a solid financial cushion.
DRIO Profitability Ratios
DRIO vs Healthcare Sector
How DarioHealth Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DRIO Overvalued or Undervalued?
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.
DRIO Balance Sheet & Liquidity
DRIO 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
DRIO Quarterly 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.
DRIO Capital Allocation
DRIO SEC 10-K & 10-Q Filing 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 an AI rating of STRONG SELL with 92% 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.
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.
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 March 2026, DarioHealth Corp. has a STRONG SELL rating with 92% 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).