DarioHealth Q2 revenue falls on pharma exit; gross margin improves

DarioHealth

11/08/2026 11:38

Overview
AI healthcare tech firm's Q2 revenue declined yr/yr, reflecting exit from pharma-related business
Gross margin rose to 62% from 55% a yr ago, driven by improved product mix and lower costs
Operating loss and expenses both fell yr/yr as company improved operating discipline

Outlook
DarioHealth expects revenue growth to accelerate by end-2026 and into 2027
Company expects new programs to begin revenue contribution in Q4 2026
Company sees expanded contracts and provider-backed care strategy increasing future revenue

Result Drivers
BUSINESS TRANSITION - Co said revenue decline was mainly due to discontinuing certain pharmaceutical-related business
GROSS MARGIN IMPROVEMENT - Co attributed higher gross margin to improved product mix and lower cost of revenues, including a one-time tariff refund
OPERATING COST DISCIPLINE - Decline in operating expenses linked to operating discipline and use of AI to expand operational capability while holding cost base

Company press release: ID:nPn25vRSLa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$5.20 mln
$5.92 mln (2 Analysts)
Q2 Net Loss
Beat
$7.90 mln
$8.06 mln (2 Analysts)
Q2 Operating Income
Miss
-$6.50 mln
-$6.03 mln (2 Analysts)
Q2 Gross Profit
 
$3.20 mln
 
Q2 Operating Expenses
 
$9.70 mln
 

Analyst Coverage
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

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)