Share count
4Mpeak FY2023
← All companies ← DRI Manual DRS → ← DCTH Medical Devices & Equipment DXCM →
DRIO, DarioHealth Corp.
We are a vertically integrated health intelligence platform with a mission to power the behavior changes that drive better health.
Unlike software-only digital health platforms, Dario owns the complete chain of value in chronic care management - connected FDA-cleared hardware devices that generate continuous physiological data, AI built on that proprietary data, and a behavior change and coaching layer validated through over 100 peer-reviewed clinical studies.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$22M
−17.3% YoY · 24% 5-yr CAGR
Vital signs · TTM
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- Situation
- Unprofitable. No meaningful revenue yet; the record is the cash on hand against the burn. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
- What moves the needle
- Operating margin has run around −276% through the cycle on a 29% gross margin, the operating line deeply negative — so the lever is the path to a margin at all: revenue growth against the cost curve and the cash runway, not the level of a margin that isn't there yet. The cash cycle has run negative through the cycle (a median of −100 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. Read this kind of business on the installed base and what follows it. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has rarely cleared the cost of capital (median −83%, above 15% in 0 of 6 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2016–2025
realized figures from each filing · older years to the left| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| $3M | $5M | $7M | $8M | $8M | $21M | $28M | $20M | $27M | $22M | $21M | RevenueRevenue |
| −20% | 25% | 24% | 34% | 33% | 19% | 35% | 29% | 49% | 57% | 57% | Gross marginGross mgn |
| 121% | 91% | 74% | 73% | 168% | 115% | 60% | 89% | 76% | 68% | 71% | SG&A / revenueSG&A/rev |
| 77% | 64% | 50% | 49% | 59% | 84% | 71% | 99% | 89% | 62% | 57% | R&D / revenueR&D/rev |
| ($11M) | ($14M) | ($18M) | ($18M) | ($30M) | ($76M) | ($57M) | ($56M) | ($58M) | ($37M) | ($35M) | Operating incomeOp. inc. |
| −396.0% | −278.9% | −239.2% | −234.2% | −394.7% | −372.9% | −205.4% | −276.1% | −213.6% | −163.9% | −163.1% | Operating marginOp. mgn |
| ($11M) | ($16M) | ($18M) | ($18M) | ($29M) | ($77M) | ($62M) | ($59M) | ($43M) | ($42M) | ($41M) | Net incomeNet inc. |
| Cash flow & returns | |||||||||||
| ($8M) | ($11M) | ($11M) | ($16M) | ($18M) | ($50M) | ($48M) | ($30M) | ($39M) | ($26M) | ($25M) | Operating cash flowOp. cash |
| $387K | $195K | $207K | $183K | $190K | $282K | $356K | $473K | $1M | $307K | $274K | DepreciationDeprec. |
| $2M | $5M | $6M | $2M | $12M | $26M | $14M | $29M | $3M | $15M | $15M | Working capital & otherWC & other |
| $808K | $195K | $71K | $98K | $118K | $261K | $442K | $584K | $138K | $142K | $142K | CapexCapex |
| 28.8% | 3.8% | 1.0% | 1.3% | 1.6% | 1.3% | 1.6% | 2.9% | 0.5% | 0.6% | 0.7% | Capex / revenueCapex/rev |
| ($9M) | ($11M) | ($12M) | ($16M) | ($18M) | ($51M) | ($48M) | ($31M) | ($39M) | ($26M) | ($25M) | Owner earningsOwner earn. |
| −312.7% | −209.2% | −156.1% | −209.3% | −235.7% | −247.0% | −174.6% | −152.1% | −143.1% | −116.7% | −120.0% | Owner earnings marginOE mgn |
| ($9M) | ($11M) | ($12M) | ($16M) | ($18M) | ($51M) | ($48M) | ($31M) | ($39M) | ($26M) | ($25M) | Free cash flowFCF |
| −327.8% | −209.2% | −156.1% | −209.3% | −235.7% | −247.0% | −174.6% | −152.1% | −143.1% | −116.7% | −120.0% | Free cash flow marginFCF mgn |
| — | -5108% | — | — | — | -121% | -78% | -89% | -62% | -38% | -31% | ROICROIC |
| — | -399% | -199% | -94% | -105% | -90% | -78% | -102% | -59% | -61% | -65% | Return on equityROE |
| — | −399% | −199% | −94% | −105% | −90% | −78% | −102% | −59% | −61% | −65% | Retained to equityRetained/eq |
| Balance sheet | |||||||||||
| $1M | $4M | $11M | $20M | $29M | $36M | $49M | $37M | $28M | $22M | $20M | Cash & investmentsCash+inv |
| $888K | $1M | $1M | $1M | $2M | $6M | $8M | $5M | $5M | $4M | $4M | InventoryInvent. |
| $2M | $2M | $3M | $2M | $2M | $5M | $2M | $1M | $3M | $3M | $3M | Accounts payablePayables |
| ($924K) | ($668K) | ($1M) | ($242K) | ($187K) | $1M | $6M | $4M | $2M | $1M | $704K | Operating working capitalOper. WC |
| $3M | $6M | $13M | $23M | $34M | $46M | $66M | $47M | $41M | $35M | $29M | Current assetsCur. assets |
| $3M | $3M | $5M | $5M | $7M | $14M | $19M | $12M | $17M | $9M | $9M | Current liabilitiesCur. liab. |
| 1.0× | 2.0× | 2.5× | 4.4× | 4.9× | 3.2× | 3.4× | 3.8× | 2.4× | 3.8× | 3.1× | Current ratioCurr. ratio |
| — | — | — | — | $0 | $42M | $42M | $42M | $57M | $57M | $57M | GoodwillGoodwill |
| $4M | $7M | $14M | $25M | $35M | $101M | $119M | $96M | $119M | $110M | $103M | Total assetsAssets |
| — | — | — | — | — | $0 | $27M | $29M | $29M | $31M | $41M | Total debtDebt |
| — | — | — | — | — | ($36M) | ($22M) | ($8M) | $1M | $9M | $21M | Net debt / (cash)Net debt |
| ($7M) | $4M | $9M | $19M | $28M | $86M | $80M | $58M | $72M | $68M | $62M | Shareholders’ equityEquity |
| Per share | |||||||||||
| 5.2M | 9.6M | 1.2M | 2.3M | 6.0M | 16.6M | 23.6M | 28.4M | 2.5M | 4.0M | 6.6M | Shares out (diluted)Shares |
| $0.54 | $0.54 | $6.32 | $3.34 | $1.27 | $1.24 | $1.17 | $0.72 | $11.03 | $5.61 | $3.22 | Revenue / shareRev/sh |
| $-2.09 | $-1.64 | $-15.21 | $-7.83 | $-4.94 | $-4.63 | $-2.63 | $-2.09 | $-17.43 | $-10.47 | $-6.19 | EPS (diluted)EPS |
| $-1.68 | $-1.12 | $-9.86 | $-6.98 | $-2.99 | $-3.05 | $-2.04 | $-1.09 | $-15.78 | $-6.55 | $-3.86 | Owner earnings / shareOE/sh |
| $-1.77 | $-1.12 | $-9.86 | $-6.98 | $-2.99 | $-3.05 | $-2.04 | $-1.09 | $-15.78 | $-6.55 | $-3.86 | Free cash flow / shareFCF/sh |
| $0.16 | $0.02 | $0.06 | $0.04 | $0.02 | $0.02 | $0.02 | $0.02 | $0.06 | $0.04 | $0.02 | Cap. spending / shareCapex/sh |
| $-1.26 | $0.41 | $7.62 | $8.34 | $4.72 | $5.16 | $3.38 | $2.05 | $29.37 | $17.05 | $9.48 | Book value / shareBVPS |
The diluted share count moved ×1.85 into 2017 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1/8.22 into 2018 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1.94 into 2019 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×2.63 into 2020 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×2.78 into 2021 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1.42 into 2022 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1/11.57 into 2024 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1.62 into 2025 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1.65 into TTM — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
Per-share growththe realized rate an owner's share compounded
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +29.7%/yr | +34.6%/yr |
| Capital spending / share | −15.1%/yr | +12.5%/yr |
| Book value / share | — | +29.3%/yr |
The record, charted
FY2016–2025Each measure over its full record; the current point and the worst year marked.
ROIC
−38%low FY2017
Gross margin
57%low FY2016
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
($26M)owner earningsvs.($42M)net incomelow FY2021
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business turned a $42M loss into ($26M) of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | ($42M) | ($43M) | ($59M) | ($62M) | ($77M) |
| Depreciation & amortizationnon-cash charge added back | +$307K | +$1M | +$473K | +$356K | +$282K |
| Stock-based compensationreal costnon-cash, but a real cost | — | +$46K | — | — | — |
| Working capital & othertiming of cash in and out, other non-cash items | +$15M | +$3M | +$29M | +$14M | +$26M |
| Cash from operations | ($26M) | ($39M) | ($30M) | ($48M) | ($50M) |
| Capital expenditurecash put back in to keep running and to grow | −$142K | −$138K | −$584K | −$442K | −$261K |
| Owner earnings | ($26M) | ($39M) | ($31M) | ($48M) | ($51M) |
| Owner-earnings marginowner earnings ÷ revenue | -117% | -143% | -152% | -175% | -247% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Will it survive?
- Can it pay its interest? -12.1×Does not cover its interestOperating income ($37M) ÷ interest expense $3M
What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
- Net debt against an operating lossCash $22M + ST investments $258K − debt $36M
What this means
Netting $22M of cash and short-term investments against $36M of debt leaves $14M owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- TightDSO 0 + DIO 163 − DPO 110 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.
Is it a good business?
- Below average through the cycle6-yr median, range -5108%–-38%; -35% latest = NOPAT ($29M) ÷ invested capital $82MIndustry peers: median -127%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 6 years (it ran -35% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- Owner-earnings margin -209%Consumes cash through the cycle10-yr median margin, range -313%–-117%; latest ($26M) = operating cash ($26M) − maintenance capex $142KIndustry peers: median -76%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -117% of revenue this year, a -209% median across 10 years. Treating stock comp as the real expense it is (less $46K of SBC) leaves ($26M).
- Are earnings backed by cash? ($26M)Loss, and burning cashNet income ($42M) · cash from operations ($26M)
What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did not.
How is the cash used?
- No surplus to allocate
What this means
The business didn't generate positive Owner Earnings this year, so any distributions came from the balance sheet or borrowing, not from operations.
- Investing or harvesting? 0.46×HarvestingCapex $142K ÷ depreciation $307K
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 1 of 5 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size MissRevenue ≥ $2B · $22M
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 3.76×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt NearDebt ≤ working capital · $36M vs $26M WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Earnings stability MissA profit every year (10-yr record) · 10 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth —Earnings +33% over the record · —
What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-6.56/share (latest year $-5.70), the averaged base the calculator's gate runs on, and book value is $9.29/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2016–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 0 of 10
What this means
Lost money in 10 year(s), look at what happened there before trusting the average.
- Return on capital ≥ 15% 0 of 5 yrs
What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
- Operating margin −305% → −218% (3-yr avg ends)
What this means
Through the cycle the operating margin widened — about −305% early to −218% lately, median −276% — pricing power intact or improving.
- Reinvestment, incremental ROIC returns capital
What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
- Worst year 2016 · −396.0% op. margin
What this means
Operations went underwater in 2016, understand why before trusting the good years.
- Share count −2.9%/yr
What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Raised, but not as a competitor
The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product; it frames AI mainly as a capability.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$29M
- Cash & short-term investments$20M
- Inventory$4M
- Other current assets$5M
Current liabilities$9M
- Debt due within a year$10M
- Accounts payable$3M
Current ratio3.07×all current assets ÷ what's due · Graham looked for 2×
Quick ratio2.62×stricter: inventory excluded
Cash ratio2.14×strictest: cash alone against what's due
Working capital$19Mthe cushion left after near-term bills
Debt due this year vs. cash$10M due · $20M cash
covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet
Cash runway0.8 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate
Revenue, latest quarter vs. a year ago−17.3%the freshest read on whether the business is still growing
Current ratio, recent quarters2.3× → 3.1×
Deeper floors
Tangible book value($11M)equity stripped of goodwill & intangibles
Debt incl. operating leases$42M$885K of it operating leases
Deferred revenue$501Kcustomer cash collected before delivery; operating float
From the company's latest filing.
Acquisitions & goodwill
from the balance sheet & the 10-year cash-flow recordGoodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.
Goodwill & intangibles$73M67% of all assets; the premium carried on the balance sheet for businesses acquired
Against book equity85%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital
Cash spent acquiring$9Mover 10 years buying other businesses, against $3M of capital spent building
None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.
Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid.
- Stock-based compensation$46K
The slice of the business handed to employees in shares this year, 0% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Peers, Medical Devices & Equipment
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| BBNXBeta Bionics Inc. | $100M | 55% | -71.5% | -22% | -76% |
| NPCENeuropace Inc. | $100M | 74% | -36.6% | -32% | -42% |
| DCTHDelcath Systems Inc. | $85M | 81% | -690.0% | -127% | -640% |
| ELMDElectromed Inc. | $64M | 77% | 10.8% | 11% | 7% |
| CLPTClearPoint Neuro Inc. | $37M | 63% | -75.4% | -228% | -65% |
| DRIODarioHealth Corp. | $22M | 31% | -257.7% | -83% | -192% |
| PROFProfound Medical Corp. | $16M | 63% | -339.4% | -257% | -238% |
| CVCapsoVision Inc. | $14M | 53% | -188.3% | -152% | -169% |
| Group median | — | 63% | -131.8% | -105% | -123% |
The price
What a price has to assume.
What the price implies
reverse-DCFDarioHealth Corp. is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.
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The assumptions
Revenue, delivered18%/yr’20→’25
Enter a price to run it.
Owner earnings it must reach—
Margin the price demands—
Owner-earnings margin today−120%
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.
Cite: Owner Scorecard, "DarioHealth Corp. (DRIO), the owner's record," https://ownerscorecard.com/c/DRIO, data as of 2026-07-09.
Manual order: ← DRI its page in the Manual DRS →
Industry order: ← DCTH the Medical Devices & Equipment chapter DXCM →