DarioHealth adds major healthcare system to client roster

NEW YORK - DarioHealth Corp. (NASDAQ: DRIO), a global player in digital health with a current market capitalization of $24.82 million, has announced a new partnership with a leading healthcare system, marking a significant addition to its employer book of business. The collaboration, expected to launch in the first quarter of 2025, underscores the increasing acceptance of digital health solutions among healthcare professionals. According to InvestingPro analysis, while the company’s stock has faced challenges with a -61.32% return over the past year, its Fair Value assessment suggests the stock may be undervalued at current levels.

The integration of Dario’s chronic care management solutions into the healthcare system is anticipated to provide a dual benefit to employees and patients, particularly in managing chronic conditions such as diabetes, hypertension, and mental health. This move is part of the company’s broader strategy to position itself at the forefront of the digital health landscape. With a robust gross profit margin of 60.91% and projected revenue growth of 32% for FY2024, the company shows promising operational metrics despite current challenges. For deeper insights into DarioHealth’s financial health and growth potential, including additional ProTips and comprehensive analysis, visit InvestingPro.

According to Dario, their digital health solutions have demonstrated clinical effectiveness, including a reduction in A1C levels for diabetes patients and an improvement in mental health outcomes. The company’s AI-driven personalization and user experience are designed to bridge the gap between traditional care models and scalable digital interventions.

Steven Nelson, Dario’s Chief Commercial Officer, expressed excitement about the partnership, emphasizing the significance of healthcare workers recognizing the clinical importance of Dario’s solutions. He noted that the new contract with the healthcare system represents a meaningful endorsement from a knowledgeable segment of the workforce.

Historically, healthcare systems have been hesitant to adopt digital wellness and self-care therapies due to inconsistent reimbursement models and doubts about engagement and clinical efficacy. However, Dario’s announcement indicates a shift in the industry, with stronger clinical evidence and innovative engagement strategies leading to faster adoption rates.

The digital health company is committed to driving the next wave of digital health adoption, focusing on innovation and clinical rigor to expand access to high-quality, technology-enabled care. This contract is one of the 15 new client signings Dario has secured in 2025, contributing to its net new client goal for the year. With last twelve months revenue of $23.05 million and a healthy current ratio of 1.57, the company maintains operational stability despite rapid expansion efforts. Discover more detailed financial metrics and expert analysis in the comprehensive Pro Research Report, available exclusively on InvestingPro.

DarioHealth, known for its multi-chronic condition digital therapeutics platform, offers data-driven personalized interventions and one-on-one coaching for various chronic conditions. The company’s solutions are available globally to health plans, payers, self-insured employers, care providers, and consumers.

The information in this article is based on a press release statement from DarioHealth Corp.

In other recent news, DarioHealth Corp has announced a notable partnership with a Blue Cross Blue Shield health plan, integrating its AI-powered health solutions into the plan’s offerings. This collaboration is expected to enhance DarioHealth’s annual recurring revenue in the first quarter of 2025, marking a significant expansion in the health insurance market. Additionally, TD Cowen analyst Charles Rhyee has downgraded DarioHealth’s stock rating from Buy to Hold, citing concerns over the company’s revenue growth trajectory and extended timeline for reaching breakeven. The analyst also highlighted limited investment and muted growth in the B2B2C segment as contributing factors to this decision.

In corporate governance developments, DarioHealth has expanded its board with the addition of healthcare veteran Lawrence B. Leisure, aiming to leverage his expertise in health policy and reimbursement. Furthermore, the company confirmed the election of six directors during its 2024 Annual Meeting of Stockholders, alongside the ratification of its independent auditors for the upcoming fiscal year. These strategic moves are expected to influence the company’s direction over the next year. DarioHealth’s recent partnership with Blue Cross Blue Shield and its board enhancements underscore its ongoing efforts to strengthen its position in the digital health sector.

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