DarioHealth Corp. Common Stock (DRIO)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits and trade below intrinsic value. DarioHealth fails the first test. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $5.2M and net loss was $7.9M, a negative 153% net margin. In fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $5.4M and net loss was $13.0M. The loss narrowed, but the top line did not grow. For fiscal 2025, revenue was $22.4M and net loss was $41.7M; for fiscal 2024, revenue was $27.0M and net loss was $42.7M. Sales fell while losses remained enormous. The company has lost money in each of the last four years, which is why FairStock's Lynch rule assigns no category. The digital therapeutics platform may address real chronic-care needs, but I see no evidence of a durable moat: scale is tiny, revenue is shrinking, and cash burn is severe. Trailing free cash flow was -$25.5M, a -46.9% FCF yield on the $54.3M market cap at the 2026-10-13 close. FairStock's Piotroski score is 3/9 and Altman Z-score is -6.01, signaling weak financial health. The P/B of 0.74 looks superficially cheap, but book value can be consumed by continued losses. With negative EPS and a negative P/E, there is no meaningful earnings multiple. Graham would demand a margin of safety; here the margin is uncertain because the business may need more capital. I want to see stable revenue, positive cash flow, and a stronger balance sheet before this becomes a serious value candidate.

In plain English: DarioHealth is a digital health company that helps people manage long-term conditions like diabetes and high blood pressure. It is losing money, burning cash, and sales are shrinking, so the business looks weak right now. The share price is low compared with its reported accounting value, but because losses continue, that apparent cheapness may not be reliable.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer