DarioHealth Corp. announced that it has signed 34 new employer clients in the two weeks leading up to December 2 2025, bringing its year‑to‑date total to 79 contracts. The new agreements are expected to generate revenue beginning in the first quarter of 2026 and cover tens of thousands of covered lives, all focused on cardiometabolic conditions.
The win pushes the company well beyond its 2025 target of 40 new clients, a 98% exceedance that underscores the strength of its B2B2C model. DarioHealth’s core business consistently delivers non‑GAAP gross margins above 80%, a figure that has remained stable even as the company scales its recurring revenue base. The additional contracts are projected to add materially to the company’s recurring revenue stream and support its goal of cash‑flow breakeven in late 2026 to early 2027.
Despite the client‑win momentum, DarioHealth’s most recent quarterly results show a revenue decline to $5.0 million in Q3 2025, down from $7.4 million in Q3 2024 and $5.4 million in Q2 2025. The drop reflects a transition away from one‑time and non‑recurring revenue streams toward a higher‑margin, subscription‑based model. The company’s GAAP gross margin fell to 60% in Q3 2025, while non‑GAAP gross margins on the core B2B2C business remained above 80%—a testament to the pricing power and operational efficiency of the platform.
Management highlighted the clinical impact of the new contracts. President and Chief Commercial Officer Steven Nelson said the employers chose DarioHealth because of its proven ability to reduce HbA1c, lower blood pressure, and cut BMI in participants—outcomes that translate into lower health costs for employers. CEO Erez Raphael emphasized that the company is “building a business that is fully aligned with the most important trends in healthcare,” noting that the GLP‑1 companion program is a key growth lever as the company expands its weight‑management portfolio.
The client wins also reinforce DarioHealth’s strategic focus on integrated, multi‑condition digital therapeutics. The company’s AI‑powered platform has demonstrated superior engagement and clinical outcomes across metabolic, behavioral, musculoskeletal, and sleep health, positioning it to capture a larger share of the growing market for whole‑person solutions. The addition of 34 employers adds tens of thousands of covered lives, accelerating the transition to a recurring revenue model and bringing the company closer to its profitability targets.
DarioHealth completed an oversubscribed $17.5 million private placement in September 2025, bringing its pro‑forma cash position to roughly $40 million. The capital infusion, combined with the new contracts, provides a runway that supports the company’s strategic review and potential M&A activity, while also giving management flexibility to invest in product development and market expansion.
The company’s board has initiated a comprehensive strategic review following unsolicited expressions of interest, indicating that DarioHealth is exploring options to maximize shareholder value. The new employer contracts, coupled with the company’s high‑margin model and AI capabilities, strengthen its competitive position and may influence future strategic decisions.
Overall, the client acquisition milestone is a positive development that signals strong demand for DarioHealth’s cardiometabolic platform and supports its long‑term path to profitability, even as the company navigates a transition in its revenue mix and continues to invest in growth initiatives.
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