DarioHealth partners with benefits administrator to expand employer services

NEW YORK - DarioHealth Corp. (NASDAQ:DRIO), a digital health company with a market capitalization of $29.1 million, has entered into a strategic partnership with a national benefit plan administrator to provide its AI-driven digital health solutions to employers. The company’s stock, which InvestingPro analysis suggests is currently undervalued, has shown strong momentum with a 25.9% gain over the past week. This collaboration, which began contributing to Dario’s recurring revenues since January 2025, includes a GLP-1 support program tailored to cardiometabolic conditions such as diabetes and hypertension.

The partnership is designed to meet the increasing demand for GLP-1 medication support and to address the high costs associated with managing metabolic conditions. By integrating Dario’s digital health suite with the benefit administrator’s offerings, the partnership aims to ensure sustainable health outcomes and economic benefits for employers and their members. The company has demonstrated strong revenue growth of 32.86% over the last twelve months, though InvestingPro data indicates it is currently not profitable.

Dario’s solution focuses on the full lifecycle management of cardiometabolic diseases, offering personalized coaching and AI-driven monitoring to promote long-term behavior change and medication adherence. Research suggests that without such support, a significant percentage of patients discontinue GLP-1 medications within the first year.

Steven Nelson, Chief Commercial Officer at Dario, expressed enthusiasm for the partnership’s potential to reduce healthcare costs and improve chronic condition management. He emphasized the partnership’s role in expanding Dario’s distribution channels and its alignment with payer-driven models.

The partnership is seen as a foundational step for Dario in a growth segment, with the GLP-1 market expected to reach $100 billion by 2030 and the broader cardiometabolic disease market projected to surpass $1.2 trillion by 2033. Dario views this agreement as a model that can be replicated across other administrators and payer channels, reinforcing its B2B2C strategy.

DarioHealth’s digital health platform offers multi-chronic condition management solutions, including diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company’s user-centric approach has disrupted the traditional episodic healthcare model by providing continuous, customized care.

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

In other recent news, DarioHealth Corp. reported its fourth-quarter 2024 earnings, surpassing expectations with an earnings per share (EPS) of -$0.08 compared to the forecast of -$0.2267, and revenue of $7.6 million, slightly exceeding the anticipated $7.51 million. The company experienced a year-over-year revenue growth of 110% in the fourth quarter and a notable increase in B2B2C recurring revenue by 400%. Additionally, DarioHealth has been granted an extension by Nasdaq to meet its minimum bid price requirement, allowing the company until September 15, 2025, to maintain a minimum closing bid price of $1.00 per share for ten consecutive trading days.

Stifel analysts recently revised their price target for DarioHealth to $2.00 from $3.50 while maintaining a Buy rating, reflecting the company’s modest sequential revenue growth. DarioHealth is negotiating two significant contracts that are expected to contribute to revenue in the latter half of 2025. The company aims for operational cash flow breakeven by the end of 2025, supported by a projected operating expense reduction of over 20%.

DarioHealth’s strategic efforts include signing 36 new B2B2B clients for 2025, with a focus on expanding its digital health solutions. The company is also exploring options to address its Nasdaq compliance, including a potential stock split. Analysts from Stifel remain optimistic about DarioHealth’s position in the digital health sector, despite its smaller size compared to competitors.

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