DarioHealth Corp. Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- DarioHealth reported second quarter 2026 revenue of $5.2 million, down from $5.6 million in the first quarter and $5.4 million in the second quarter of 2025, reflecting timing of implementations and a strategic shift away from pharmaceutical services revenue toward higher quality recurring B2B2C revenue.
- Gross margin increased to 62% from 57% in the prior quarter and 55% a year ago, with non-GAAP B2B2C gross margin steady at approximately 80% for the tenth consecutive quarter.
- Operating expenses declined 8% sequentially and 21% year over year, leading to an 11% quarter-over-quarter and 30% year-over-year improvement in operating loss.
- Net loss was $7.9 million, a 39% improvement from $13 million in the second quarter of 2025.
- DarioHealth ended the quarter with approximately $13.1 million in contracted and late-stage annual recurring revenue, over 80% of which is multi-condition.
- The company has more than 180 signed accounts across employers and health plans, including five Fortune 50 companies, with about 25% of the B2B2C client base from the Fortune 500.
- Approximately 75% of new accounts now come through channel partners, expanding reach to small businesses and reducing customer acquisition costs.
- Recent wins include a fifth Fortune 50 employer covering over 100,000 eligible employees and a major health insurer in Arizona through a channel partnership with Amwell.
- DarioHealth launched an integrated GLP-1 program combining AI-powered engagement with licensed provider evaluation and access to FDA-approved therapies, available through multiple channels.
- Two new programs addressing perimenopause/menopause and obstructive sleep apnea were introduced, expected to contribute revenue starting in Q4 2026.
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Transcript
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Good morning, ladies and gentlemen, and welcome to the DarioHealth Second Quarter 2026 Results Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, August 11, 2026. I would now like to turn the conference over to Zoe Harrison, VP Accounting and Corporate Development at DarioHealth.
Zoe, please go ahead. Thank you, operator, and good morning everyone.
Thank you for joining us today for a discussion of DarioHealth's second quarter of 2026 financial results. Leading the call today will be Erez Raphael, Chief Executive Officer of DarioHealth, who will be joined by Chen Franco-Yehuda, our Chief Financial Officer, and our Chief Operating Officer, Lara Dodo. Steven Nelson, the company's President and Chief Commercial Officer, is on medical leave. An audio recording and webcast replay for today's call will also be available online, as detailed in the press release invite for this call. For the benefit of those who may be listening to the replay or archived webcast, this call is being held on Tuesday, August 11, 2026. This morning, we issued a press release announcing our financial results for the second quarter of 2026. A copy of the release can be found on the investor relations page of DarioHealth's website.
I would like to remind you that on this call, management will make forward-looking statements within the meaning of the federal securities law.
For example, the company is using forward-looking statements when it discusses expected revenue growth and contribution from signed accounts, its path to profitability and positive cash flow, the continued reduction in operating expenses and losses, its expansion of channel partnerships and distribution, expected revenue and scaling from partner-led opportunities, expected onboarding, implementation, and enrollment of large enterprise accounts, expected conversion of contracted annual recurring revenue into recognized revenue, expected expansion into care delivery, claims-based and outcomes-based models, expected benefits from care delivery participants, expected growth in recurring revenue and operating leverage, expected advantages and future impacts of DarioIQ and proprietary data assets, expected improvements in member engagement, retention, and outcomes, the anticipated benefits of artificial intelligence across the company's commercial operations and internal operations, the anticipated expansion of existing customer relationships into additional chronic conditions, the expected timing and contribution of new product offerings, the company's ability to increase revenue per customer through its multi-condition strategy, the expected benefits of provider-backed clinical care, and beliefs regarding competitive positioning and market opportunity.
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