BTIG initiates coverage of DarioHealth with Buy rating, $6 price target

DarioHealth (DRIO) secured a contract with a major New Jersey health plan covering 1.5 million lives, via partner Amwell. The deal, part of Dario's channel strategy, is expected to launch and generate revenue in Q1 2027, expanding its reach into large health plan populations.

DarioHealth Corp. discussed its Q2 2026 earnings call, saying it is shifting from an investment phase to compounding growth via account depth, partner distribution, AI (DarioIQ), and value chain participation. It exited lower-quality pharma services for higher-margin B2B2C revenue. Contracted/late-stage ARR of $13.1M should convert in H2 2026, mainly 2027. Pro forma cash is $36.8M after a $22.8M registered direct financing.

DarioHealth (NASDAQ:DRIO) said in its Q2 earnings call that sequential revenue fell due to post-transformation cleanup and closure of its pharmaceutical channel, with management expecting momentum to build in Q3-Q4 and accelerate in Q1 2027. The company highlighted channel-partner account growth, AI DarioIQ potential to lift recurring revenue 10%-15%, and $14M cash at June 30 plus $22.8M net proceeds from July financing.

DarioHealth Corp. (NASDAQ: DRIO) reported Q2 2026 revenue of $5.2 million, down from $5.6 million in Q1 2026, citing discontinuation of some pharmaceutical-related business. Gross margin rose to 62% (from 57% in Q1 2026). Operating loss improved 30% YoY and 11% QoQ. Pro forma cash was $36.8 million after July 2026 at-the-market financing.

A healthcare sector roundup highlights biotech stock moves. Zhongchao (ZCMD) rose about 192% after a 1-for-3 reverse split for Nasdaq compliance. Lakewood-Amedex (LABT) gained about 83% on positive Nu-3 Phase 2-ready updates. Arrowhead (ARWR) jumped about 19% after SHASTA-3/4 topline results for Plozasiran. Other gainers included MSLE, DRIO, and LBRX.

DarioHealth Corp. (NASDAQ: DRIO) said a Fortune 50 employer selected its AI-powered digital cardiometabolic care platform for diabetes and/or hypertension for over 100,000 eligible employees. The program is expected to launch in Fall 2026, with annual recurring revenue starting by year-end and increasing through 2027, according to the company.