Q2 2026 DarioHealth Corp Earnings Call

August 11, 2026

Speaker #1: Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star 0 for the operator.

Speaker #1: This call is being recorded on Tuesday, August 11, 2026. I would now like to conference over to Zoe Harrison, VP Accounting and Corporate Development at DarioHealth.

Speaker #1: Zoe, please go ahead.

Speaker #2: Thank you, operator, and good morning, everyone. Thank you for joining us today for a discussion of DarioHealth's second quarter 2026 financial results. Leading the call today will be Erez Raphael, Chief Executive Officer of DarioHealth.

Zoe Harrison: Thank you, operator, and good morning, everyone. Thank you for joining us today for a discussion of DarioHealth's second quarter of 2026 financial results. Leading the call today will be Erez Raphael, Chief Executive Officer of DarioHealth, who will be joined by Chen Franco-Yehuda, our Chief Financial Officer, and our Chief Operating Officer, Lara Dodo, as Steven Nelson, the company's President and Chief Commercial Officer, is on medical leave. An audio recording and webcast replay for today's call will also be available online, as detailed in the press release invite for this call. For the benefit of those who may be listening to the replay or archived webcast, this call is being held on Tuesday, 11 August 2026. This morning, we issued a press release announcing our financial results for the second quarter of 2026. A copy of the release can be found on the investor relations page of DarioHealth website.

Zoe Harrison: Thank you, operator, and good morning, everyone. Thank you for joining us today for a discussion of DarioHealth's second quarter of 2026 financial results. Leading the call today will be Erez Raphael, Chief Executive Officer of DarioHealth, who will be joined by Chen Franco, our Chief Financial Officer, and our Chief Operating Officer, Lara Dodo, as Steven Nelson, the company's President and Chief Commercial Officer, is on medical leave. An audio recording and webcast replay for today's call will also be available online, as detailed in the press release invite for this call. For the benefit of those who may be listening to the replay or archived webcast, this call is being held on Tuesday, 11 August 2026.

Speaker #2: He'll be joined by Chen Franco, our Chief Financial Officer, and our Chief Operating Officer, Laura Derder, as Steven Nelson, the company's President and Chief Commercial Officer, is on medical leave.

Speaker #2: An audio recording and webcast replay for today's call will also be available online as detailed in the press release invite for this call. The benefit of those who may be listening to the replay or archived webcast: this call is being held on Tuesday, August 11, 2026.

Speaker #2: This morning, we issued a press release announcing our financial results for the second quarter of 2026. The copy of the release can be found on the Investor Relations page of DarioHealth's website.

Zoe Harrison: This morning, we issued a press release announcing our financial results for the second quarter of 2026. A copy of the release can be found on the investor relations page of DarioHealth website.

Speaker #2: I'd like to remind you that on this call, management will make forward-looking statements within the meaning of the Federal Securities Law. For example, the company is using forward-looking statements when it discusses expected revenue growth and contribution from signed accounts; its past profitability and positive cash flow; the continued reduction in operating expenses and losses; its expansion of channel partnerships and distribution; expected revenue and scaling from partner-led opportunities; expected onboarding, implementation, and enrollment of large enterprise accounts; expected conversion of contracted annual recurring revenue into recognized revenue; expected expansion into care delivery, claims-based, and outcomes-based models; expected benefits from care delivery participants; expected growth in recurring revenue and operating leverage; expected advantages and future impacts of DarioIQ; and proprietary data assets.

Zoe Harrison: I would like to remind you that on this call, management will make forward-looking statements within the meaning of the federal securities law. For example, the company is using forward-looking statements when it discusses expected revenue growth and contribution from signed accounts, its path to profitability and positive cash flow, the continued reduction in operating expenses and losses, its expansion of channel partnerships and distribution, expected revenue and scaling from partner-led opportunities, expected onboarding, implementation, and enrollment of large enterprise accounts, expected conversion of contracted annual recurring revenue into recognized revenue, expected expansion into care delivery, claims-based, and outcomes-based models, expected benefits from care delivery participants, expected growth in recurring revenue and operating leverage, expected advantages and future impacts of DarioIQ and proprietary data assets, expected improvements in member engagement, retention, and outcome, the anticipated benefits of artificial intelligence across the company's commercial operations and internal operations.

Speaker #2: Expected improvements in member engagement, retention, and outcomes; the anticipated benefits of artificial intelligence across the company's commercial operations and internal operations; the anticipated expansion of existing customer relationships into additional chronic conditions; the expected timing and contribution of new product offerings; the company's ability to increase revenue per customer through its multi-condition strategy; the expected benefits of provider-backed clinical care; and beliefs regarding competitive positioning and market opportunity.

Zoe Harrison: The anticipated expansion of existing customer relationships into additional chronic conditions. The expected timing and contribution of new product offerings. The company's ability to increase revenue per customer through its multi-condition strategy. The expected benefits of provider-backed clinical care, and beliefs regarding competitive positioning and market opportunity. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, including the risks described from time to time in its SEC filings. The company's results may differ materially from those projections. These statements involve material risks and uncertainties that could cause actual results or events to materially differ. Accordingly, you should not place undue reliance on these statements.

Speaker #2: Forward-looking statements are subject to numerous risks and uncertainties. Many of which are beyond the company's control, including the risk described from time to time in its SEC filings.

Speaker #2: The company's results may differ materially from those projections. These statements involve material risks and uncertainties that could cause actual results or events to materially differ.

Speaker #2: Accordingly, you should not place undue reliance on these statements. I encourage you to review the company's filings with the SEC, including without limitation, the company's annual report on Form 10-K, which identifies specific factors that may cause actual results or events to differ materially, from those described in the forward-looking statements.

Zoe Harrison: I encourage you to review the company's filings with the SEC, including, without limitation, the company's annual report on Form 10-K, which identifies specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. With that, I will hand it over to Erez Raphael, Chief Executive Officer of DarioHealth.

Speaker #2: With that, I'll hand it over to Erez Raphael, Chief Executive Officer of DarioHealth.

Speaker #3: Good morning, everyone. Thank you for taking the time to be with us today. Before reviewing the quarter, I would like to step back and discuss where Dario is today and, more importantly, how we believe the business's position going forward.

Erez Raphael: Good morning, everyone. Thank you for taking the time to be with us today. Before reviewing the quarter, I would like to step back and discuss where Dario is today, and more importantly, how we believe the business is positioned going forward. For more than a decade, we have been building the foundation of this company. We built a digital health platform connected to our FDA-cleared devices. We built one of the industry's first comprehensive multi-condition platforms. We expanded from diabetes into hypertension, musculoskeletal health, behavioral health, weight management, and additional chronic conditions. We generated extensive clinical validations with more than 100 published studies, built proprietary longitudinal data sets comprising approximately 13 billion proprietary data points, developed our AI capabilities, established national channel partnerships, and most recently, moved into provider-backed clinical care.

Speaker #3: For more than a decade, we have been building the foundation of this company. We've built a digital health platform connected to our FDA-cleared devices.

Speaker #3: We've built one of the industry's first comprehensive multi-condition platforms. We expanded from diabetes into hypertension, musculoskeletal health, behavioral health, weight management, and additional chronic conditions.

Speaker #3: We generated extensive clinical validations with more than 100 published studies, built proprietary longitudinal datasets comprising approximately 13 billion proprietary data points, developed our AI capabilities, established national channel partnerships, and most recently, moved into provider-backed clinical care.

Speaker #3: We have created a scalable enterprise platform capable of serving employers and health plans by delivering an end-to-end patient journey that is designed to optimize care for members while improving return on investment for employers and insurers.

Erez Raphael: We have created a scalable enterprise platform capable of serving employers and health plans by delivering an end-to-end patient journey that is designed to optimize care for members while improving return on investment for employers and insurers. That investment phase has created something we believe the market is only beginning to recognize now. Today, we are leveraging a platform that has reached a level of maturity where we view each new commercial success as strengthening the value of everything already in place. The best way to think about Dario today is through the lens of compounding growth. Four drivers, each acting on a different part of the economics, and each one multiplying what the others produce. Account depth increases the revenue we generate from a customer we have already won. Distribution efficiency lowers what it costs us and how long it takes to win the next one.

Speaker #3: That investment phase has created something we believe the market is only beginning to recognize now. Today, we are leveraging a platform that has reached a level of maturity where we view each new commercial success as a strengthening the value of everything already in place.

Speaker #3: The best way to think about Dario today is through the lens of compounding growth. Four drivers, each acting on a different part of the economics, and each one multiplying what the others produce.

Speaker #3: Account depth increases the revenue we generate from a customer. We have already won. Distribution efficiency lowers what it costs us and how long it takes to win the next one.

Speaker #3: AI leverage raises the revenue we generate per member, while reducing our cost to serve. And value chain participation gives us access to leverage the pool of healthcare spend from the same member base.

Erez Raphael: AI leverage raises the revenue we generate per member while reducing our cost to serve, and value chain participation gives us the access to leverage pool of healthcare spend from the same member base. More revenue per account, more accounts, faster for less, more from every member and lower cost, and more of the value chain. Three of those four are operating across our business today. The fourth is now beginning. Let me take them one at a time. The first is account depth. More revenue per account. Healthcare purchasers increasingly want pure vendors. They want integrated solutions capable of managing multiple chronic conditions on one platform, one member experience, and one implementation. We recognized this shift years ago and deliberately built Dario as a multi-condition platform.

Speaker #3: More revenue per account, more accounts, faster for less, more from every member, and lower cost. And more of the value chain. Three of those four are operating across our business today, the fourth is now beginning.

Speaker #3: Let me take them one at a time. The first is account depth. More revenue per account. Healthcare purchases increasingly want fewer vendors. They want integrated solutions capable of managing multiple chronic conditions in one platform, one member experience, and one implementation.

Speaker #3: We recognize this shift years ago, and deliberately built Dario as a multi-condition platform. Every additional condition increases the eligible population within the existing customer, while leveraging the same commercial relationships.

Erez Raphael: Every additional condition increases the eligible population within the existing customer while leveraging the same commercial relationships, the same implementation, and the same technology platform. That has the potential to generate 2 to 5 times more revenue from the same account while delivering a greater clinical value through a more integrated approach to care. The value we deliver is supported by more than 100 published studies demonstrating improved clinical outcomes across multiple conditions and significant healthcare cost savings for our customers. Published research also shows that members managing 3 chronic conditions achieved better outcomes than those managing one. Better clinical results and more revenue from the same member is a rare alignment in this industry. The second is distribution efficiency. More accounts, faster, with less dependency on Dario sales resources. Over the past several years, we transformed our commercial model from primarily direct selling into channel-enabled distribution.

Erez Raphael: Every additional condition increases the eligible population within the existing customer while leveraging the same commercial relationships, the same implementation, and the same technology platform. That has the potential to generate two to 5x more revenue from the same account while delivering a greater clinical value through a more integrated approach to care. The value we deliver is supported by more than 100 published studies demonstrating improved clinical outcomes across multiple conditions and significant healthcare cost savings for our customers. Published research also shows that members managing three chronic conditions achieved better outcomes than those managing one. Better clinical results and more revenue from the same member is a rare alignment in this industry. The second is distribution efficiency. More accounts, faster, with less dependency on Dario sales resources. Over the past several years, we transformed our commercial model from primarily direct selling into channel-enabled distribution.

Speaker #3: The same implementation and the same technology platform—that has the potential to generate 2 to 5 times more revenue from the same account, while delivering greater clinical value through a more integrated approach to care.

Speaker #3: The value we deliver is supported by more than 100 published studies demonstrating improved clinical outcomes across multiple conditions and significant healthcare cost savings for our customers.

Speaker #3: Published research also shows that members managing three chronic conditions achieved better outcomes than those managing one. Better one clinical results and more revenue from the same member is a rare alignment in this industry.

Speaker #3: The second is distribution efficiency. More accounts, faster, with less dependency on Dario's health resources. Over the past several years, we transformed our commercial model from primarily direct selling into channel-enabled distribution.

Speaker #3: Throughout channel partners, we reached substantially more customers without proportionally increasing our sales organization. We spend less to acquire new business. We close it faster, and our reach expands while our cost-based holds.

Erez Raphael: Through our channel partners, we reached substantially more customers without proportionally increasing our sales organization. We spend less to acquire new business, we close it faster, and our reach expands while our cost base holds. The third is AI leverage. More revenue per member at a lower cost to serve. The foundation underneath everything I have described is what we have always said, it is the data. Dario is a data company that leverages generative and agentic AI on top of what we believe is one of the industry's most extensive proprietary longitudinal clinical datasets. The reason we are confident in that position is structural. We are fully vertically integrated. We design and manufacture our own FDA-cleared connected devices. Those devices generate continuous clinical data directly from the members in real time. That data flows into our platform, our analytics and AI run on top of it.

Speaker #3: The third is AI leverage. More revenue per member at a lower cost to serve. The foundation underneath everything I have described is what we have always said it is the data.

Speaker #3: Dario is a data company that leverages generative and agentic AI on top of what we believe is one of the industry's most extensive proprietary longitudinal clinical datasets.

Speaker #3: And the reason we are confident in that position is structural. We are fully vertically integrated. We design and manufacture our own FDA-cleared connected devices.

Speaker #3: Those devices generate continuous clinical data directly from the members in real time. That data flows into our platform, our analytics, and AI run on top of it, from hardware to AI, the stack is ours.

Erez Raphael: From hardware to AI, the stack is ours. We do not license it, rent it, or depend on third-party inputs. Today, we hold over 13 billion proprietary real-world data points tied to actual clinical outcomes across multiple conditions at individual member level. We believe dataset of that depth would be difficult to replicate in a short period of time. DarioIQ, our proprietary AI agent trained on that dataset, is the product expression of that advantage. It delivers personalized real-time clinical recommendations that a general-purpose model cannot match because, to our knowledge, no general-purpose model has access to longitudinal data of this depth tied to a real outcome. DarioIQ is also what makes account depth work operationally. A member managing 3 conditions require one current clinical experience rather than 3 parallel programs. DarioIQ is what resolves that into a single intervention path.

Erez Raphael: From hardware to AI, the stack is ours. We do not license it, rent it, or depend on third-party inputs. Today, we hold over 13 billion proprietary real-world data points tied to actual clinical outcomes across multiple conditions at individual member level. We believe dataset of that depth would be difficult to replicate in a short period of time. DarioIQ, our proprietary AI agent trained on that dataset, is the product expression of that advantage. It delivers personalized real-time clinical recommendations that a general-purpose model cannot match because, to our knowledge, no general-purpose model has access to longitudinal data of this depth tied to a real outcome. DarioIQ is also what makes account depth work operationally. A member managing three conditions require one current clinical experience rather than 3 parallel programs. DarioIQ is what resolves that into a single intervention path.

Speaker #3: We do not license it, rent it, or depend on third-party inputs. Today, we hold over 13 billion proprietary real-world data points tied to actual clinical outcomes across multiple conditions, at the individual member level.

Speaker #3: We believe datasets of that depth could be difficult to replicate in a short period of time. DarioIQ, our proprietary AI agent trained on that dataset, is the product expression of that advantage.

Speaker #3: It delivers personalized, real-time clinical recommendations that a general-purpose model cannot match, because to our knowledge, no general-purpose model has access to longitudinal data of this depth tied to a real outcome.

Speaker #3: DarioIQ is also what makes account depth work operationally. A member managing three conditions requires one current clinical experience, rather than three parallel programs. And DarioIQ is what resolves that into a single intervention path.

Speaker #3: DarioIQ is an active deployment across our existing book of business, and we measure it where it matters commercially—the recurring revenue it produces from customers we have already won.

Erez Raphael: DarioIQ is in active deployment across existing book of business, and we measure it where it matters commercially. The recurring revenue it produces from customers we have already won. Based on current experience, we believe DarioIQ could contribute an increase of approximately 10% to 15% in recurring revenues from existing customers over time through a higher engagement, utilization, and overall customer value. The same capabilities run inside our own operations, expanding what we can do while holding our cost base. That is a direct contributor to the reduction in OpEx and operating loss, and will work with full. This is also where four drivers connect. Every new member deepens the dataset. A deeper dataset makes DarioIQ more precise. A more precise DarioIQ produces better outcomes and a higher engagement, and that is what wins the next account and expands the last one.

Speaker #3: Based on current experience, we believe DarioIQ could contribute an increase of approximately 10% to 15% in recurring revenues from existing customers over time.

Speaker #3: Through higher engagement, utilization, and overall customer value. The same capabilities run inside our own operations, expanding what we can do while holding our cost base. That is a direct contributor to the reduction in operating expenses and the operating loss trend we'll walk you through.

Speaker #3: This is also where four drivers connect. Every new member deepens the dataset. A deeper dataset makes DarioIQ more precise. A more precise DarioIQ produces better outcomes, and higher engagement.

Speaker #3: And that is what wins the next account and expands the last one. We believe the advantage in DarioIQ capabilities may further enhance the value of our platform and datasets.

Erez Raphael: We believe the advantage in DarioIQ capabilities may further enhance the value of our platform and dataset. Every advance in AI raises the value of the underlying data, and we own the data. The moat is not static asset, it compounds with every member we add. The fourth is the value chain participation, access to more of the healthcare dollar. I want to emphasize that we do not view this as a new strategy. It is a natural extension of the platform we have spent the past decade building. The market is moving beyond digital engagement alone towards integrated models that connect monitoring, AI-driven insights, and clinical intervention. Our provider-backed care capabilities allows us to extend from helping members manage chronic conditions between physician visits to closing care gaps, to diagnosis, prescribing, and clinical services where appropriate.

Speaker #3: Every advance in AI raises the value of the underlying data, and we own the data. The moat is not a static asset—it compounds with every member we add.

Speaker #3: The fourth is the value chain participation. Access to more of the healthcare dollar. I want to emphasize that we do not view this as a new strategy.

Speaker #3: It is a natural extension of the platform we have spent the past decade building. The market is moving beyond digital engagement alone toward integrated models that connect monitoring AI-driven insights and clinical intervention.

Speaker #3: Our provider-backed care capabilities allow us to extend from helping members manage chronic conditions between physician visits to closing care gaps through diagnosis to scribing and clinical services where appropriate.

Speaker #3: Most companies in this market can tell health plan what is happening with the member. We can now treat that member and can be reimbursed for their treatment.

Erez Raphael: Most companies in this market can tell health plan what is happening with the member. We can now treat that member and can be reimbursed for that treatment. The layer works because the first three already exist. Without the multi-condition platform, the clinical evidence, the AI capabilities, the enterprise relationship, and the channel infrastructure, provider-backed care could not create the same value. It is additive. It builds on business that is already compounding today. These four layers create a business that we believe is fundamentally different than it was only a year ago. We believe Dario is uniquely positioned in offering an integrated platform that spans the entire patient journey, from continuous monitoring and personalized engagement to high risk identification, to coaching, clinical decision support, and now provider-backed clinical care where needed.

Speaker #3: The layer works because the first three already exist. Without the multi-condition platform, the clinical evidence, the AI capabilities, the enterprise relationships, and the channel infrastructure, provider-backed care could not create the same value.

Speaker #3: It is additive, it builds on business that is already compounding today. There's four layers create business that we believe is fundamentally different than it was only a year ago.

Speaker #3: We believe Dario is uniquely positioned in offering an integrated platform that spans the entire patient journey—from continuous monitoring and personalized engagements, to high-risk identification, to coaching, clinical decision support, and now provider-backed clinical care when needed.

Speaker #3: By bringing those capabilities together on a single multi-condition platform, we help customers improve outcomes, simplify care delivery, reduce vendor fragmentation, and generate a stronger return on the healthcare investment.

Erez Raphael: By bringing those capabilities together on a single multi-condition platform, we help customer improve outcomes, simplify care delivery, reduce vendor fragmentation, and generate a stronger return on the healthcare investment. With that, let me turn the call over to Lara, who will discuss the strong commercial momentum we are seeing across our business and how we are executing on those opportunities.

Speaker #3: With that, let me turn the call over to Lara, who will discuss the strong commercial momentum we are seeing across our business and how we are executing on those opportunities.

Speaker #1: Thank you, Erez. Our commercial organization executed well during the quarter, and I want to walk through what we are seeing across three areas. How we are winning new accounts, how we are growing the accounts we already have, and how quickly we are able to bring new capabilities to market.

Lara Dodo: Thank you, Erez. Our commercial organization executed well during the quarter. I want to walk through what we are seeing across three areas: how we are winning new accounts, how we are growing the accounts we already have, and how quickly we are able to bring new capabilities to market. We have been serving more than a dozen health plan customers over the past four quarters, three of them national carriers. As of the end of the Q2, we have more than 180 signed accounts across employers and health plans. Five of those are Fortune 50 companies, and approximately 25% of our B2B2C client base is drawn from the Fortune 500. I will start with new accounts. Approximately 75% of our new accounts now come through channel partners. That is a structural shift in our commercial model.

Speaker #1: We have been serving more than a dozen health plan customers over the past four quarters, three of them national carriers. As of the end of the second quarter, we have more than 180 signed accounts across employers and health plans.

Speaker #1: Five of those are Fortune 50 companies, and approximately 25 percent of our B2B to C client base is drawn from the Fortune 500. I'll start with new accounts.

Speaker #1: Approximately 75 percent of our new accounts now country channel partners. That is a structural shift in our commercial model. It means we are gaining access to employers and plan populations we have not previously reached.

Lara Dodo: It means we are gaining access to employers and plan populations we have not previously reached, with shorter sales cycles and materially lower customer acquisition costs than a direct sales model. Nearly half of all private sector employees in the United States work for small businesses. That market is very difficult to reach economically through a direct enterprise sales model. Our growing network of channel partners gives us access to those same employers at scale, diversifying our client base and further expanding our target markets. As a result, our commercial reach continues to expand while sales and marketing spend continues to decline. All at the same time, we are efficiently signing and serving channel partners that we are activating through and with, and to some of the largest employers and health plans in the US. Two examples from recent weeks.

Speaker #1: With shorter sales cycles and materially lower customer acquisition costs than a direct sales model. Nearly half of all private sector employees in the United States work for small businesses. That market is very difficult to reach economically through a direct enterprise sales model.

Speaker #1: Our growing network of channel partners gives us access to those same employers at scale, diversifying our client base and further expanding our target markets.

Speaker #1: As a result, our commercial reach continues to expand, while sales and marketing spend continues to decline. All at the same time, we are efficiently signing and serving channel partners, that we are activating through and with, and to some of the largest employers and health plans in the US.

Speaker #1: Two examples from recent weeks. The first: we signed another Fortune 50 employer, covering more than 100,000 eligible employees, for diabetes and hypertension. That is our fifth Fortune 50 client.

Lara Dodo: The first, we signed another Fortune 50 employer covering more than 100,000 eligible employees for diabetes and hypertension. That is our fifth Fortune 50 client. Another example is through our channel partnership with Amwell, we signed a major health insurer with a stronghold in Arizona, opening that insurer's entire administrative services book, the ASO, to our cardiometabolic solution. Instead of signing employer by employer, this relationship gives us access to a broader employer population through a single enterprise channel, creating significant potential for scaled adoption across diabetes, hypertension, and weight management. Aligned with the growth of our client base through channel partners, we are in the final stages of adding a new channel partner with a broad reach across employers, health plans, and health systems. We look forward to sharing more details and the early impact of this relationship as it progresses.

Speaker #1: Another example is through our channel partnership with Amwell, we signed a major health insurer with a stronghold in Arizona, opening that insurer's entire administrative services book, the ASO, to our cardiometabolic solution.

Speaker #1: Instead of selling employer by employer, this relationship gives us access to a broader employer population through a single enterprise channel, creating significant potential for scaled adoption across diabetes, hypertension, and weight management.

Speaker #1: Aligned with the growth of our client base through channel partners, we are in the final stages of adding a new channel partner with a broad reach across employers, health plans, and health systems.

Speaker #1: We look forward to sharing more details and the early impact of this relationship as it progresses. The second area to discuss is growth inside the accounts we already have, and this is where our multi-condition strategy shows up most clearly.

Lara Dodo: The second area to discuss is growth inside the accounts we already have, and this is where our multi-condition strategy shows up most clearly. This works in two ways. We land with one condition and expand, and increasingly, we win multi-condition from the first day of the relationship. Today, nearly all of our new enterprise opportunities involve multiple conditions. During the quarter, one of the five largest health insurers in the United States expanded its relationship with us by adding hypertension to the behavioral health program it was already running. We stated publicly that this expansion has the potential to approximately triple our revenue opportunity. It is the third health plan customer to expand beyond an initial deployment with Dario. We also expanded our reach through our channel partnership with Solera by extending our hypertension program across the full spectrum of severity.

Speaker #1: This works in two ways. We land with one condition and expand, and increasingly we win multi-condition from the first day of the relationship. Today, nearly all of our new enterprise opportunities involve multiple conditions.

Speaker #1: During the quarter, one of the five largest health insurers in the United States expanded its relationship with us by adding hypertension to the behavioral health program it was already running.

Speaker #1: We stated publicly that this expansion has the potential to approximately triple our revenue opportunity. It is the third health plan customer to expand beyond an initial deployment of Dario.

Speaker #1: We also expanded our reach through our channel partnership with Solera by extending our hypertension program across the full spectrum of severity. This expands our addressable population—from lower acuity patients who can benefit from earlier intervention, to higher acuity patients requiring more intensive management.

Lara Dodo: This expands our addressable population from lower acuity patients who can benefit from early intervention to higher acuity patients requiring more intensive management. This is exactly what we built the multi-condition platform to do. Once a customer experiences the value of the platform, adding conditions and reaching members across the full acuity spectrum becomes the natural and logical next step. They serve more members through a single integrated solution while simplifying contracting, implementation, reporting, and vendor management. Every additional condition broadens the eligible member population and has the potential to create meaningful recurring revenue without the need to require or acquire a new customer. The result is visible in the composition of our books. More than 80% of our contracted and late-stage recurring revenue is now multi-condition.

Speaker #1: This is exactly what we built the multi-condition platform to do. Once a customer experiences the value of the platform, adding conditions and reaching members across the full acuity spectrum becomes the natural and logical next step.

Speaker #1: They serve more members through a single integrated solution, while simplifying contracting, implementation, reporting, and vendor management. Every additional condition broadens the eligible member population, and has the potential to create meaningful recurring revenue without the need to require or acquire a new customer.

Speaker #1: The result is visible in the composition of our book. More than 80% of our contracted and late-stage recurring revenue is now multi-condition. That is the clearest metric of how this strategy is compounding.

Lara Dodo: That is the clearest metric of how this strategy is compounding, and it is why we are increasingly confident in the revenue per account that we can generate going forward. The third area to discuss is speed, how quickly we can turn a new capability into something commercial. Only weeks after announcing our provider-backed care strategy, we launched our integrated GLP-1 program, combining Dario's AI-powered engagement platform with licensed provider evaluation and access to FDA-approved GLP-1 therapies when clinically appropriate. The program will be available through three channels, including Dario's direct-to-consumer shop, B2B2C employer programs, as well as health plan marketplaces, which extend our reach into new distribution channels. This rapid launch was possible because the technology platform, the AI infrastructure, and the commercial relationships are already in place, which means new offerings can be introduced and commercialized across our existing customer base quickly.

Speaker #1: And it is why we are increasingly confident in the revenue per account that we can generate going forward. The third area to discuss is speed.

Speaker #1: How quickly we can turn a new capability into something commercial. Only weeks after announcing our provider-backed care strategy, we launched our integrated GLP-1 program—combining Dario's AI-powered engagement platform with licensed provider evaluation and access to FDA-approved GLP-1 therapies when clinically appropriate.

Speaker #1: The program will be available through three channels, including Dario's direct-to-consumer shop, B2B to C employer programs, as well as health plan marketplaces, which extend our reach into new distribution channels.

Speaker #1: This rapid launch was possible because the technology platform, the AI infrastructure, and the commercial relationships are already in place. This means new offerings can be introduced and commercialized across our existing customer base quickly.

Speaker #1: We also broadened the platform itself during the quarter with two new programs: Dario Women supports members navigating perimenopause and menopause, life stages frequently associated with weight changes, sleep disruption, and increased cardiometabolic risk.

Lara Dodo: We also broadened the platform itself during the quarter with two new programs. Dario Women supports members navigating perimenopause and menopause, life stages frequently associated with weight changes, sleep disruption, and increased cardiometabolic risk. Dario Sleep addresses obstructive sleep apnea, a significant contributor to cardiometabolic disease and rising healthcare costs. Both are expected to begin contributing revenue in Q4, and both are conditions we can sell into accounts we already hold. Looking ahead, our focus remains on execution. A signed account is just the beginning of the revenue opportunity. As activations progress and eligible members enroll over time, the same enterprise customer generates increasing recurring revenue quarter after quarter. Many of the customer wins and contract expansions announced over the past several quarters are currently progressing through activation and enrollment.

Speaker #1: Dario's sleep addresses obstructive sleep apnea, a significant contributor to cardiometabolic disease and rising healthcare costs. Both are expected to begin contributing revenue in the fourth quarter, and both are conditions we can sell into accounts we already hold.

Speaker #1: Looking ahead, our focus remains on execution. An assigned account is just the beginning of the revenue opportunity. As activations progress and eligible members enroll over time, the same enterprise customer generates increasing recurring revenue quarter after quarter.

Speaker #1: Many of the customer wins and contract expansions announced are currently progressing through activation and enrollment. I want to spend a moment on how that translates into revenue, because it is part of our model most often misread.

Lara Dodo: I want to spend a moment on how that translates into revenue, because it is part of our model most often misread. Contracted annual recurring revenue does not convert on the day an agreement is signed. Three things happen in sequence. First, the program launches, and launch timing is set by the plan year cycles and open enrollment windows rather than by the signature date. Secondly, eligible members enroll progressively over the quarters that follow as benefit communications reach them. Third, customers expand into additional conditions and across the acuity spectrum, broadening the eligible population. This process progressively unlocks recurring revenues from the signed contract. From signature to full run rate revenue, the sequence may typically take four to five quarters. We ended the quarter with approximately $13.1 million in contracted and late-stage annual recurring revenue, more than 80% of which is multi-condition.

Speaker #1: Contracted annual recurring revenue does not convert on the day an agreement is signed. Three things happen in sequence. First, the program launches, and launch timing is set by the planned year cycles and open enrollment windows rather than by the signature date.

Speaker #1: Secondly, eligible members enroll progressively over the quarters that follow, as benefit communications reach them. Third, customers expand into additional conditions and across the acuity spectrum, broadening the eligible population.

Speaker #1: This process progressively unlocks recurring revenues from the signed contract. From signature to full run-rate revenue, the sequence may typically take four to five quarters.

Speaker #1: We ended the quarter with approximately $13.1 million in contracted and late-stage annual recurring revenue, more than 80 percent of which is multi-condition. Applying that four- to five-quarter cycle, we expect to begin seeing this convert into revenue in the second half of this year, with the majority of the contribution showing up in 2027, as implementations mature and enrollment ramps across the base.

Lara Dodo: Applying that four-to-five-quarter cycle, we expect to begin seeing this convert into revenue in the H2 of this year, with the majority of the contribution showing up in 2027 as implementations mature and enrollment ramps across the base. What I'd like to leave you with is this: customers are no longer evaluating individual point solutions. They are looking for integrated platforms that manage multiple chronic conditions, use AI to improve engagement and outcomes, and increasingly connect members to clinical care when appropriate. That is precisely the platform that Dario has built. With that, I'll turn the call over to Chen to review our financial results.

Speaker #1: What I'd like to leave you with is this. Customers are no longer evaluating individual point solutions. They are looking for integrated platforms that manage multiple chronic conditions, use AI to improve engagement and outcomes, and increasingly connect members to clinical care when appropriate.

Speaker #1: That is precisely the platform that Dario has built. With that, I'll turn the call over to Chen to review our financial results.

Speaker #2: Thank you, Lara. Our second quarter results reflect our continued progress in building a more efficient and scalable business, while positioning Dario for the next phase of commercial growth.

Chen Franco-Yehuda: Thank you, Lara. Our Q2 results reflect our continuous progress in building a more efficient and scalable business while positioning Dario for the next phase of commercial growth. The underlying financial trends during the quarter were particularly encouraging. Revenue for the quarter was $5.2 million, compared with $5.6 million in the Q1 of 2026 and $5.4 million in the Q2 of last year. As we discussed, this reflects the timing of implementations as well as our strategic decision to move away from pharmaceutical services revenue in favor of higher quality recurring B2B2C revenue. While that transition has impacted near-term reported revenue, we believe it strengthens the quality and long-term predictability of our business. Gross margin increased to 62%, up from 57% in the Q1 and 55% a year ago, where our non-GAAP B2B2C gross margin remained approximately at 80% for the 10th consecutive quarter.

Chen Franco: Thank you, Lara. Our Q2 results reflect our continuous progress in building a more efficient and scalable business while positioning Dario for the next phase of commercial growth. The underlying financial trends during the quarter were particularly encouraging. Revenue for the quarter was $5.2 million, compared with $5.6 million in the Q1 of 2026 and $5.4 million in the Q2 of last year. As we discussed, this reflects the timing of implementations as well as our strategic decision to move away from pharmaceutical services revenue in favor of higher quality recurring B2B2C revenue. While that transition has impacted near-term reported revenue, we believe it strengthens the quality and long-term predictability of our business. Gross margin increased to 62%, up from 57% in the Q1 and 55% a year ago, where our non-GAAP B2B2C gross margin remained approximately at 80% for the 10th consecutive quarter.

Speaker #2: The underlying financial trends during the quarter were particularly encouraging. Revenue for the quarter was $5.2 million, compared with $5.6 million in the first quarter of 2026 and $5.4 million in the second quarter of last year.

Speaker #2: As we discussed, this reflects the timing of implementations, as well as our strategic decision to move away from pharmaceutical services revenue in favor of higher quality, recurring B2B2C revenue.

Speaker #2: While that transition has impacted near-term reported revenue, we believe it's strengthened the quality and long-term predictability of our business. Gross margin increased to 62%, up from 57% in the first quarter and 55% a year ago.

Speaker #2: While unknown gap, B2B to C gross margin remained approximately at 80 percent for the 10th consecutive quarter. At the same time, we continued to improve operating efficiency, reducing operating expenses by 8 percent sequentially and 21 percent year over year.

Chen Franco-Yehuda: At the same time, we continued to improve operating efficiency, reducing operating expenses by 8% sequentially and 21% year over year, while improving operating loss by 11% quarter over quarter and 30% year over year. Net loss for the quarter was $7.9 million, compared with $13 million in the Q2 of last year, a 39% improvement. A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement table included in our earnings press release. We're also increasingly applying AI within our own operation, which is helping us hold the line on costs even as we scale the business. That is a direct contributor to the expense discipline I just described. These results demonstrate continued focus on disciplined expense management while investing in areas that will drive future growth. From a financial perspective, what excites us most is the operating leverage embedded in our business model.

Chen Franco: At the same time, we continued to improve operating efficiency, reducing operating expenses by 8% sequentially and 21% year over year, while improving operating loss by 11% quarter over quarter and 30% year over year. Net loss for the quarter was $7.9 million, compared with $13 million in the Q2 of last year, a 39% improvement. A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement table included in our earnings press release. We're also increasingly applying AI within our own operation, which is helping us hold the line on costs even as we scale the business. That is a direct contributor to the expense discipline I just described. These results demonstrate continued focus on disciplined expense management while investing in areas that will drive future growth. From a financial perspective, what excites us most is the operating leverage embedded in our business model.

Speaker #2: While improving operating loss by 11 percent quarter over quarter and 30 percent year over year. Net loss for the quarter was $7.9 million, compared with $13 million in the second quarter of last year.

Speaker #2: A 39 percent improvement. A reconciliation of GAAP to non-GAAP measures has been provided in the financial statements table, included in our earnings press release.

Speaker #2: We also increased the application of AI within our own operations, which is helping us hold the line on costs even as we scale the business.

Speaker #2: That is a direct contributor to the expense discipline I just described. These results demonstrate continued focus on disciplined expense management, while investing in areas that will drive future growth.

Speaker #2: From a financial perspective, what excites us most is the operating leverage embedded in our business model. Much of our infrastructure needed to support future growth has already been built.

Chen Franco-Yehuda: Much of our infrastructure needed to support future growth has already been built. As new enterprise customers are implemented, existing customers expand into additional conditions, AI drives higher engagement and retention, and new provider-backed care offerings are commercialized. We expect those revenues opportunities to leverage our existing technology platform, commercial organization, and operating infrastructure. We believe that positions us to deliver improving financial performance as revenue accelerates. We also significantly strengthened our balance sheet during the quarter. As of 30 June 2026, our pro forma cash position is $36.8 million. As we ended the Q2 with $14 million in cash equivalent, and short-term deposits, plus $22.8 million net of offering expenses from the registered direct financing we closed in July. This offering was priced at the market with participation from both existing long-term shareholders and new fundamental institutional investors.

Chen Franco: Much of our infrastructure needed to support future growth has already been built. As new enterprise customers are implemented, existing customers expand into additional conditions, AI drives higher engagement and retention, and new provider-backed care offerings are commercialized. We expect those revenues opportunities to leverage our existing technology platform, commercial organization, and operating infrastructure. We believe that positions us to deliver improving financial performance as revenue accelerates. We also significantly strengthened our balance sheet during the quarter. As of 30 June 2026, our pro forma cash position is $36.8 million. As we ended the Q2 with $14 million in cash equivalent, and short-term deposits, plus $22.8 million net of offering expenses from the registered direct financing we closed in July. This offering was priced at the market with participation from both existing long-term shareholders and new fundamental institutional investors.

Speaker #2: As new enterprise customers are implemented, existing customers spend into additional conditions. AI drives higher engagement and retention. And new provider-backed care offerings are commercialized.

Speaker #2: We expect those revenue opportunities to leverage our existing technology platforms, commercial organization, and operating infrastructure. We believe that positions us to deliver improving financial performance as revenue accelerates.

Speaker #2: We also significantly threatened our balance sheet during the quarter. As of June 30, 2026, our pro forma cash position is $36.8 million. As we ended the second quarter with $14 million in cash, cash equivalent, and short-term deposits, plus $22.8 million net of offering expenses, from the registered direct financing we closed in July.

Speaker #2: This offering was priced at the market, with participation from both existing long-term shareholders and new fundamental institutional investors. We believe that financing reflects confidence in our strategy and, importantly, it provides the cash run rate to execute on the commercial opportunities we've discussed today.

Chen Franco-Yehuda: We believe that financing reflects confidence in our strategy, and importantly, it provides the cash runway to execute on the commercial opportunities we've discussed today, advancing our path to cash flow positive. As Lara noted, many of the new customer implementations and existing customer condition expansions announced over the past several quarters are expected to begin contributing more meaningfully at the end of 2026 and continue ramping throughout 2027. Combined with the anticipated benefit of DarioIQ and our provider care initiatives, we believe we are well-positioned to continue improving both the scale and quality of our revenue over time.

Chen Franco: We believe that financing reflects confidence in our strategy, and importantly, it provides the cash runway to execute on the commercial opportunities we've discussed today, advancing our path to cash flow positive. As Lara noted, many of the new customer implementations and existing customer condition expansions announced over the past several quarters are expected to begin contributing more meaningfully at the end of 2026 and continue ramping throughout 2027. Combined with the anticipated benefit of DarioIQ and our provider care initiatives, we believe we are well-positioned to continue improving both the scale and quality of our revenue over time.

Speaker #2: Advancing our path to cash flow positive. As Lara noted, many of the new customer implementations and existing customer contract expansions announced over the past several quarters are expected to begin contributing more meaningfully at the end of 2026 and continue ramping throughout 2027.

Speaker #2: Combined with the anticipated benefit of DarioIQ and our provider-backed care initiatives, we believe we are well positioned to continue improving both the scale and quality of our revenue over time.

Speaker #3: Thank you all for joining us today. I want to close where I started. Dario compounds across four drivers. Account depth is generating more revenue from customers we have already gained.

Erez Raphael: Thank you all for joining us today. I want to close where I started. Dario compounds across four drivers. Account depth is generating more revenue from customers we have already gained. You saw that this quarter in a top 5 health plan expansion, with the potential to approximately triple our opportunity under that relationship. Distribution efficiency is bringing us more accounts faster for less, with roughly three-quarters of our new accounts now arriving through channel partners. AI leverage is raising the value of every member while lowering our cost to serve, and it is a direct contributor to the OpEx and loss reduction Chen just walked through. Value chain participation now allows us to participate more broadly in clinical care delivery and reimbursement. Three of those four are operating in the business today. The fourth is now beginning.

Speaker #3: And you saw that this quarter in the top five health plan expansion. With the potential to approximately triple our opportunity under that relationship. Distribution efficiency is bringing us more accounts, faster for less, with roughly three quarters of our new accounts now arriving through channel partners.

Speaker #3: AI leverage is raising the value of every member while lowering our cost to serve, and it is a direct contributor to operating expense and loss reduction. Let me just walk you through.

Speaker #3: And value chain participation now allows us to participate more broadly in clinical care delivery and reimbursement. Three of those four are operating in a business today.

Speaker #3: The fourth is now beginning. That is why we believe the composition of our revenue is stronger than it has been, even in a quarter where the top line came down.

Erez Raphael: That is why we believe the composition of our revenue is stronger than it has been, even in a quarter where the top line came down. What is increasingly clear is this: We own our hardware, our data, and AI capabilities that run on top of them. We have commercial engine designed to compound over time, and we have a clinical foundation, more than 100 peer-reviewed studies that powers our expansion from digital engagement into care delivery. Before I hand it back to the operator, I want to thank the people who make this possible. To our employees, your dedication to our members and to each other is that drives everything we do. To our partners and channel ecosystem, your trust and collaboration are central to how we scale. To our shareholders, thank you for your continued support and confidence in our platform and in our mission.

Speaker #3: What is increasingly clear is this. We own our hardware, our data, and AI capabilities that run on top of them. We have commercial engine designed to compound over time.

Speaker #3: And we have a clinical foundation—more than 100 peer-reviewed studies—that powers our expansion from digital engagement into care delivery. Before I hand it back to the operator, I want to thank the people who make this possible.

Speaker #3: To our employees, your dedication to our members and to each other is what drives everything we do. To our partners and channel ecosystem, your trust and collaboration are central to how we scale.

Speaker #3: And to our shareholders, thank you for your continued support and confidence in our platform and in our mission. I will now turn the call over to the operator for Q&A.

Erez Raphael: I will now turn the call over to the operator for Q&A.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the 1 on your touch tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any keys. Your first question comes from David Grossman with Stifel. Your line is now open.

Speaker #1: Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press star followed by the one on your touchtone phone.

Speaker #1: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two.

Speaker #1: If you are using a speakerphone, please let the hands up before pressing any keys. And your first question comes from David Grossman with Stifel.

Speaker #1: Your line is now open.

Speaker #3: Hi all. This is Aiden Knef on for David. Thanks for taking the question. I just wanted to start on the top line revenue, with the sequential decline in the B2B to C, is there any incremental details you can kind of give there?

Aidan Conniff: Hi, all. This is Aidan Conniff on for David. Thanks for taking the question. I just wanted to start on the top-line revenue with the sequential decline, in the B2B2C. Is there any incremental details you can give there? What led to that decline? With the recent wins you guys have had, how should we think about the magnitude of the acceleration in the back half, from the health plans?

Speaker #3: What kind of led to that decline? And then with the recent wins you guys have had, how should we think about the kind of magnitude of the acceleration in the back half from the health plans?

Speaker #4: Yes. Thanks for the question.

Erez Raphael: Yes. Thanks for the question. As we stated on the call, we signed accounts with contracted ARR of $13.1 million that we believe that in a few quarters, we are going to gain this ARR in actual revenues. The slight decline is coming from additional cleanup that we did post all the transformation and after closing the pharma channel. Just in the last 2 to 3 months, we announced on a large expansion of a national health plan from behavioral health to cardiometabolic. We have a huge employer that we signed on, and we have more that are coming in. So we think that in the H2, we are going to start to see this revenue starting to gain traction, and we are going to see the growth between Q3 to Q4 with more momentum into Q1 of next year. That is how we expect things to happen.

Speaker #3: So as we stated on the call, we signed accounts with contracted AR of $13.1 million that we believe, in a few quarters, we're going to gain this AR in actual revenues.

Speaker #3: The slight decline is coming from additional cleanup that we did post all the transformation and after closing the pharma channel. Just in the last two to three months, we announced on a large expansion of national health plans from the overall health to cardiometabolic.

Speaker #3: We have a huge employer that we signed on. And we have more that are coming in. So we think that in the second half, we're going to start to see this revenue starting to gain traction.

Speaker #3: And we're going to see the growth between Q3 to Q4 with a more momentum into Q1 of next year. That's how we expect things to happen.

Speaker #3: Meanwhile, we made the entire P&L much more efficient from a gross margin perspective, OPEX perspective, so we expect that every additional dollar that will be added from accounts that we already signed on is going to be extremely efficient in its ability to go to the bottom line and reduce the loss.

Erez Raphael: Meanwhile, we made the entire P&L much more efficient from a gross margin perspective, OpEx perspective. So we expect that every additional dollar that will be added from accounts that we are already signed on is going to be extremely efficient in its ability to go to the bottom line and reduce the loss.

Speaker #4: I appreciate that. And then just as a follow-up on DarioIQ, you talked about the 10 to 15 percent increase in the B2B to C ARR from existing customers.

Aidan Conniff: I appreciate that. Then just as a follow-up on DarioIQ, you talked about the 10% to 15% increase in the B2B2C ARR from existing customers. Can you give us a sense of how that actually shows up commercially? Is it pricing or a PMPM increase that is negotiated at, like, a renewal? Is that included in the $13.1 million ARR?

Speaker #4: Can you give us a sense of how that actually shows up commercially? Is it pricing, or is it a PMPM increase that's negotiated at, like, a renewal?

Speaker #4: And is that included in the 13.1 million ARR?

Speaker #3: Yeah, thank you. Very good question. So the way that AI is being implemented is that we optimize the way that we are engaging with members.

Erez Raphael: Yeah, thank you. Very good question. The way that AI is being implemented is that we optimize the way that we are engaging with members. It means that we are improving the retention, and we are also improving the way that members are interacting with the platform. We see direct impact on the clinical outcomes that is being generated. This is one area. We think that more revenue can be recognized from the existing book of business and members, and this is purely something that should be generated, in addition to the contracted ARR of $13.1 million because it is not on the existing book of business. The 13.1 is either a new book of business or expansion of the existing book of business for additional conditions. This is one part.

Speaker #3: It means that we are improving the retention and we also improving the way that members are interacting with the platform. And we see direct impact on the clinical outcomes that is being generated.

Speaker #3: So this is one area. So we think that more revenue can be recognized from the existing book of business and members. And this is purely something that should be generated in addition to the contracted ARR of 13.1 million dollar because it's on the existing book of business.

Speaker #3: The $13.1 million is either a new book of business or an expansion of the existing book of business for additional conditions. So this is one part.

Speaker #3: The other part that is already reflected in our ability to reduce OPEX is how we are leveraging agentic AI to be utilized in order to take specific roles in the value chain, from the win of the client to the enrollment of the member, and end-to-end managing the member on the platform.

Erez Raphael: The other part that is already reflected in our ability to reduce OpEx is how we are leveraging agentic AI to be utilized in order to take specific roles in the value chain, from the win of the client to the enrollment of the member and end-to-end managing the member on the platform. That is another side of the AI implementation. But the majority of the value is going to come from members more engaged on the platform, more retained on the platform, and with better clinical outcomes. That is something that we are already seeing the numbers, and the more we are going to implement it, the more we are going to see these results in the existing book of business.

Speaker #3: That's another side of the AI implementation, but the majority of the value is going to come from members who are more engaged on the platform, more retained on the platform, and have better clinical outcomes.

Speaker #3: That's something that we already see in the numbers. And the more we're going to implement it, the more we're going to see these results on the existing book of business.

Speaker #4: Great. Thank you.

Aidan Conniff: Great. Thank you.

Speaker #1: Your next question comes from Aaron Kimpson with Citizens Bank. Your line is now open.

Operator: Your next question comes from Aaron Kimson with Citizens Bank. Your line is now open.

Speaker #4: Great, thanks for the questions. It's good to hear that 75% of new accounts now come through channel partners. Is there a way to quantify how implementation time and time to ROI differ for a client that's landed through a channel partner for an enterprise customer, versus when you sell an enterprise customer directly?

Aaron Kimson: Great. Thanks for the questions. It is good to hear 75% of new accounts now come through channel partners. Is there a way to quantify how implementation time and time to ROI differ for a client that is landed through a channel partner for an enterprise customer versus when you sell an enterprise customer directly?

Erez Raphael: Yes. Actually, the main difference is whether we are signing with a client that is employer or a client that is a health plan. It is less depending on the channel partner, and it is more depending on the profile of the client. So usually, employers are being enrolled into the next year, like in January of the next year, in most of the cases, like 75% of the cases. And health plans is something that is usually getting enrolled 3 to 6 months from the point that we are signing on an agreement. This is for the few that we already signed, and this is what we see practically in the field. I think that there is a difference to some of the channel partners that we work with, in the way that we are enrolling the members to the platform.

Speaker #3: Yes. Actually, the main difference is whether we are signing with a client that is employer or a client that is a health plan. It's less depending on the channel partner, and it's more depending on the profile of the client.

Speaker #3: So usually, employers are being rolled into the next year, like in January, of the next year. In most of the cases, like 75% of the cases, and health plans is something that is usually getting enrolled three to six months from the point that we are signing on an agreement.

Speaker #3: This is for the few that we already signed, and this is what we see practically in the field. I think that there is a difference to some of the channel partners that we work with in the way that we are enrolling the members.

Speaker #3: To the platform, for some of them, they are taking responsibility also for the enrollment. And this is something that is actually creating a better ROI for us because we don't need to spend sales and marketing or resources on enrollment in order to get to the revenues.

Erez Raphael: For some of them, they are taking responsibility also for the enrollment, and this is something that is actually creating a better ROI for us because, we do not need to spend sales and marketing or resources on enrollment in order to get to the revenues. And we believe that once these kind of accounts are going to be with more volume, we are going to see a more strong PNL profile that will continue and improve. Because practically, for some of the channel partners, we have almost zero spend for the win and then for the enrollment of the members.

Speaker #3: And we believe that once this kind of accounts are going to be with more volume, we're going to see a more strong P&L profile that we'll continue and improve.

Speaker #3: Because practically, for some of the channel partners, we have almost zero spend for the win and then for the enrollment of the members.

Speaker #4: Great. And then one on DarioIQ. Can you help us think about what percentage of the 13 billion data points underlying it are first-party data from your own devices versus third-party data from insurers and employers?

Aaron Kimson: Great. Then one on DarioIQ. Can you help us think about what percentage of the 13 billion data points underlying it are first-party data from your own devices versus third-party data from insurers and employers? How well do you think you realize the value of that data today? Thanks.

Speaker #4: And how well do you think you realize the value of that data today? Thanks.

Speaker #3: Yeah. So Dario is operating side by side B2C and B2B. There are a lot of elements that are related to compliance on how the data can be utilized.

Erez Raphael: Yeah. Dario is operating side by side, B2C and B2B. There are a lot of elements that are related to compliance on how the data can be utilized. One of the big advantages that Dario has is that we are operating the entire B2C business. When we are talking about data, the 13 billion is something that is between B2C and the B2B. For most of what we do on the R&D side, training models and so on, we are doing it purely on the B2C because of compliance aspects. This is something that is very important for us. The data, practically the majority is coming from the B2C. Whenever we have a new feature or additional capabilities, including multi-condition, it goes first into the B2C. This is where we are learning the patterns.

Speaker #3: And one of the big advantages that Dario have is that we are operating the entire B2C business. And when we are talking about data, the 13 billion is something that is between B2C and the B2B.

Speaker #3: But for most of what we do on the R&D side, training models and so on, we are doing it purely on the B2C. Because of compliance aspects.

Speaker #3: And this is something that is very important for us. The data practically the majority is coming from the B2C. And whenever we have a new feature or additional capabilities, including multi-condition, it goes first into the B2C.

Speaker #3: This is where we are learning the patterns. We are improving the user journey, especially when we are running multi-condition, because a big part of our story today is the multi-condition and managing comorbidities between the conditions.

Erez Raphael: We are improving the user journey, especially when we are running multi-condition, because a big part of our story today is the multi-condition and managing comorbidities between the conditions. We are doing everything first on the B2C training models, then we are moving it into the B2B. Practically, we developed a very unique and innovative way to implement AI capabilities in a highly regulated market.

Speaker #3: And we are doing everything first on the B2C, training models and then we are moving it into the B2B. So practically, we developed a very unique and innovative way to implement AI capabilities in a highly regulated market.

Speaker #4: Understood. Thank you.

Aaron Kimson: Understood. Thank you.

Speaker #3: Thank you, Aaron.

Erez Raphael: Thank you, Aaron.

Speaker #1: Ladies and gentlemen, as a reminder, should you have a question, please press star one. There are no further questions at this time. I will now turn the call back to management for closing remarks.

Operator: Ladies and gentlemen, as a reminder, should you have a question, please press star one. There are no further questions at this time. I will now turn the call back to management for closing remarks.

Speaker #3: Thank you, everyone. We appreciate it. Have a good day.

Erez Raphael: Thank you, everyone. We appreciate it, and have a good day.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

Q2 2026 DarioHealth Corp Earnings Call

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