DarioHealth Reports 6.7 % Sequential Revenue Growth, Access to 116 Million Covered Lives
DarioHealth posted first-quarter revenue of $5.6 million, a 6.7 % sequential increase, with operating expenses falling 21 % year-over-year and 8 % quarter-over-quarter, narrowing its operating loss to $7.3 million. The company secured access to 116 million covered lives through partnerships and is negotiating to expand to 175 million, supported by a $127 million sales pipeline.
1. Financial Performance
DarioHealth generated $5.6 million in revenue for the first quarter of 2026, up 6.7 % sequentially from $5.2 million but down from $6.8 million year-over-year. GAAP gross margin held at 57 %, while non-GAAP B2B2C gross margin remained near 80 % for the ninth consecutive quarter.
2. Expense Reduction and Profitability Trends
Operating expenses declined to $10.5 million, a 21 % drop year-over-year and an 8 % reduction quarter-over-quarter, cutting the operating loss to $7.3 million. Non-GAAP operating loss fell 8 % year-over-year and 11 % sequentially, with cash reserves of $20 million and net cash used in operations down 10 % to $6 million.
3. Channel Partnerships and Market Reach
Existing partnerships with Solera, Amwell and other blue-chip firms cover 116 million lives, while a pending channel deal would extend reach to over 175 million covered lives and add a major northeastern hospital network as an anchor account. The company added 10 off-cycle accounts in Q1 and maintains a $127 million pipeline across 241 active opportunities.
4. AI Platform and Strategic Direction
DarioIQ, the proprietary AI layer processing 13 billion real-world data points from FDA-cleared devices, delivered up to a 40 % improvement in member retention and a 57 % lift in active sessions. The company is pivoting towards claims-based, outcomes-driven payment models and clinical gap closure to broaden its revenue streams beyond subscription-based contracts.