DarioHealth expects revenue growth to accelerate by the end of 2026 and into 2027.
The company expects new programs to begin contributing revenue in Q4 2026.
DarioHealth sees expanded contracts and its provider-backed care strategy increasing future revenue.
Result drivers
Business transition - The company said the revenue decline was mainly due to discontinuing certain pharmaceutical-related business.
Gross margin improvement - The company attributed higher gross margin to improved product mix and lower cost of revenues, including a one-time tariff refund.
Operating cost discipline - The decline in operating expenses was linked to operating discipline and use of AI to expand operational capability while holding the cost base.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy".
Wall Street's median 12-month price target for DarioHealth Corp is $11.50, about 50.1% above its August 10 closing price of $7.66.
Q2 revenue falls as company exits pharma-related business
AI healthcare tech firm's Q2 revenue declined year over year, reflecting an exit from pharma-related business.
Gross margin rose to 62% from 55% a year ago, driven by improved product mix and lower costs.
Operating loss and expenses both fell year over year as the company improved operating discipline.
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