DarioHealth Corp. (DRIO): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how DarioHealth Corp. is structuring its business for high-margin growth, right? Honestly, the shift to a B2B2C Annual Recurring Revenue model is the headline here, especially when you see they are targeting 80%+ non-GAAP gross margins while already covering 116 million lives through payer partnerships. This canvas breaks down the mechanics-from their proprietary AI platform to the estimated $5,077 in potential annual savings per engaged user-showing you the precise levers driving their strategy as of late 2025. Dive in to see the full picture.

DarioHealth Corp. (DRIO) - Canvas Business Model: Key Partnerships

You're looking at how DarioHealth Corp. builds its reach through other established players in the healthcare ecosystem. These alliances are crucial because they provide immediate access to large, covered populations, which is the engine for their B2B2C revenue stream. Honestly, in digital health, your distribution partners are often more important than your direct sales team in the near term.

Channel Partners for Health Plan Access

Channel partners like Amwell are key to getting DarioHealth Corp.'s cardiometabolic solution in front of payers and their members. This kind of integration supports a more connected member journey by placing the digital therapeutic within a broader care portfolio. The partnership with Amwell, for instance, was designed to make Dario's solution available to Amwell's existing customers.

The Amwell partnership, announced in March 2023, targets members with conditions like diabetes, high blood pressure, and weight management challenges. At the time of that announcement, Amwell was noted as a leader in digital care delivery enablement, covering approximately 90 million lives through its client footprint.

Strategic Collaboration for Fall Risk Assessment

DarioHealth Corp. is actively enhancing its platform through strategic integrations, such as the one announced with OneStep on October 6, 2025. This collaboration brings in OneStep's smartphone-only, clinical-grade fall risk assessment technology. This is a direct response to a major cost driver in healthcare; falls generate more than $50 billion annually in direct medical costs in the U.S.

The goal here is clear: use this new capability to proactively identify at-risk members, especially those with obesity or frailty common in Medicare Advantage populations. By combining OneStep's gait monitoring with DarioHealth Corp.'s existing programs, plans aim to reduce downstream costs from falls and improve performance on Star measures tied to physical function.

Health Plan Partners

The health plan segment is a core part of DarioHealth Corp.'s B2B2C strategy, driving recurring revenue. You need to track the velocity of these signings, as they represent access to tens of thousands of covered lives. The company set a goal to add 40 new clients in 2025.

Here's a snapshot of the health plan footprint based on recent reports:

• Total client count reached 97 at the end of Q1 2025, up from 83 at the end of 2024.
• In Q1 2025 year-to-date, DarioHealth Corp. signed 1 national and 1 regional health plan.
• As of early 2025, the roster included a total of nine health plan clients, including a Blue Cross Blue Shield plan launched in January 2025.
• DarioHealth Corp. had three Medicaid clients as of late 2024.
• Two new health plan clients, including a full-suite national plan launching in the second half of 2025, are expected to be multi-million-dollar opportunities.

Pharmaceutical Partners and Benefit Administrators

DarioHealth Corp. is also scaling its presence across pharmaceutical companies and through benefit administrators and consultants who drive B2B2C sales to self-insured employers. The pipeline for commercial opportunities across employers, health plans, and pharma was robust at $67 million as of September 2025.

The shift in the pharma channel is notable; in late 2024, DarioHealth Corp. secured a new platform services subscription contract with a top six U.S. pharma client, marking a move from milestone-based revenue to recurring revenue in that channel.

The employer side of the B2B2C channel is showing strong momentum, with 34 new employer clients signed in the last two weeks of 2025, bringing the year-to-date total to 79 new accounts, which is 98% over the 2025 target of 40.

You can see the client base growth across these channels in the table below:

Finance: draft 13-week cash view by Friday.

DarioHealth Corp. (DRIO) - Canvas Business Model: Key Activities

You're looking at the core engine driving DarioHealth Corp.'s strategy right now, which is heavily focused on shifting to high-quality, recurring revenue streams. Here's the breakdown of the key activities based on the latest figures we have through the third quarter of 2025.

Developing and enhancing the AI-powered multi-condition platform

The platform development is centered on integration and predictive power. DarioHealth Corp. is seeing its multi-condition approach gain traction with new clients.

• More than 50% of DarioHealth Corp.'s new clients are choosing the multi-condition offering as of the third quarter of 2025.
• The platform combines personalization across diabetes, hypertension, weight management, musculoskeletal, and mental health.
• Research shows an 89% accuracy in predicting next-month blood glucose levels using a machine learning model informed by user behavior.
• Published clinical outcomes for participants include a 1.4% reduction in eHbA1c and an average 10% Body Mass Index reduction.

Executing the B2B2C sales strategy to employers and payers

The commercial focus is clearly on the Business-to-Business-to-Consumer (B2B2C) channel, which drives the high-margin Annual Recurring Revenue (ARR). The sales execution is showing success in client acquisition, even as revenue reflects a transition period.

DarioHealth Corp. exceeded its 2025 goal for new accounts, securing 45 new signed accounts to date (as of Q3 2025). More recently, by early December 2025, the total reached 79 new employer clients year-to-date, which is 98% over the initial 2025 target of 40 new clients. The average employer customer size has nearly doubled what was projected.

Optimizing operations and driving AI-enabled cost efficiencies

Operational optimization is a major activity, directly impacting the path to profitability. You can see the discipline in the margin expansion and expense control.

• GAAP gross margin reached 60% in the third quarter of 2025.
• The core B2B2C business has maintained non-GAAP gross margins of 80% plus for 7 consecutive quarters as of Q3 2025.
• Operating expenses were reduced by $17.2 million, or 31%, for the first nine months of 2025 compared to the same period in 2024.
• For the third quarter of 2025 alone, operating expenses decreased by $3.4 million, or 21%, year-over-year.
• Cash and cash equivalents on the balance sheet as of September 30, 2025, stood at $31.9 million.

This efficiency drive is intended to help DarioHealth Corp. reach cash flow breakeven by late 2026 to early 2027.

Conducting clinical validation and publishing ROI data for payers

Validating the economic impact is key to securing payer contracts. DarioHealth Corp. has a substantial body of peer-reviewed data supporting its Return on Investment (ROI) claims.

• A study published in the Journal of Medical Internet Research (JMIR) found DarioHealth Corp. users had 23% lower hospitalization rates and 26% lower all-cause charges compared to usual care.
• Another study demonstrated an estimated $5,077 medical cost savings per user per year.
• For hypertension, users receiving digital nudges saw a statistically significant reduction in monthly average systolic blood pressure of 2.09 mmHg after three months.
• DarioHealth Corp. has published research representing its 25th study at the American Diabetes Association (ADA) Scientific Sessions over the last decade.

Onboarding and implementing new client contracts for ARR growth

The focus is on converting pipeline opportunities into high-quality, long-term ARR. The company is targeting new business that will contribute significantly in the following year.

DarioHealth Corp. is targeting $12.4 million in new business, which reflects both Committed Annual Recurring Revenue (CARR) and late-stage opportunities nearing completion as of Q3 2025. The pipeline for 2026 expanded to $69 million.

The company is building visibility into future revenue with multi-year B2B2C contracts that carry a 90% client retention rate. Revenue from the 34 new employer clients signed in the weeks leading up to the Q3 2025 report is expected to start in the first quarter of 2026.

Finance: draft 13-week cash view by Friday.

DarioHealth Corp. (DRIO) - Canvas Business Model: Key Resources

You're looking at the core assets DarioHealth Corp. (DRIO) relies on to deliver its value proposition. Honestly, in this sector, your data and regulatory standing are everything, so let's break down what they have locked down as of late 2025.

Proprietary AI-powered Multi-Condition Digital Health Platform

The platform itself is a key asset, especially its breadth. It's not just for one thing; it's designed to be a unified solution. You see this reflected in their recent client choices.

• Platform addresses diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health.
• More than 50% of Company's new clients in 2025 selected the multi-condition offering.
• The platform leverages a massive dataset of over 13 billion user data points to refine its services.

Massive Dataset of Over 13 Billion User Data Points

This data advantage is what fuels the AI engine, making the personalization dynamic. Here's the quick math on how that data translates into tangible outcomes that payers value.

What this estimate hides is the ongoing cost of data governance, but the sheer volume is a significant barrier to entry for competitors.

Financial Strength and Liquidity

You always need to check the balance sheet to see how long the runway is. DarioHealth Corp. took steps to shore this up in the third quarter of 2025.

As of September 30, 2025, DarioHealth Corp. reported cash and cash equivalents of $31.9 million. This followed an oversubscribed private placement of $17.5 million during that same quarter. Also, keep an eye on their efficiency metrics, which are improving as they shift revenue mix.

• Cash and cash equivalents (as of September 30, 2025): $31.9 million.
• Operating expenses reduced by $17.2 million or 31% in the first 9 months of 2025 versus the prior year period.
• GAAP gross margin reached 60% in Q3 2025.
• Non-GAAP gross margins on the core B2B2C business sustained 80% plus for 7 consecutive quarters.

Clinical and Coaching Staff for Human-Enabled Interventions

While the AI is central, the human element is a required resource for delivering the full intervention. They combine the tech with real people.

DarioHealth Corp. integrates data analytics with one-on-one coaching to deliver personalized care. This is paired with access to professional care teams to ensure a comprehensive, virtual clinical care experience. This hybrid model is a key differentiator from purely automated solutions.

Intellectual Property and FDA-Cleared Medical Devices

Regulatory clearance is a non-negotiable key resource in digital therapeutics. Their core product line has the necessary approvals to operate in major markets.

The world leading Dario Blood Glucose Monitoring System has US FDA clearance. Furthermore, their products have approval from the European CE, Health Canada, and Australia's TGA. They are actively moving into new conditions like hypertension and obesity, which requires expanding this IP portfolio. They also hold registered trademarks for "Dario" in several countries, including the United States, China, and Japan. Finance: draft 13-week cash view by Friday.

DarioHealth Corp. (DRIO) - Canvas Business Model: Value Propositions

You're looking at the core reasons why payers and employers choose DarioHealth Corp. (DRIO) now, late in 2025. It's all about delivering measurable financial return alongside clinical improvement through a unified digital health platform. The strategy is clearly shifting toward high-quality, recurring revenue, and these value propositions are what drive that shift.

The platform's primary draw is its ability to manage multiple chronic conditions from a single interface. This isn't just a collection of separate apps; it's an integrated system. DarioHealth Corp. offers a unified platform that addresses up to 5+ chronic conditions, specifically combining AI-driven personalization across diabetes, hypertension, weight management, musculoskeletal (MSK) pain, and behavioral health (BH). Over 50% of the Company's new clients are choosing this multi-condition offering.

For the payer or self-insured employer, the value proposition translates directly to the bottom line. A recent study published in the Journal of Medical Internet Research (JMIR) demonstrated an estimated medical cost savings of up to $5,077 per engaged user per year when compared to matched individuals receiving usual care. This is supported by clinical findings showing users had 23% lower hospitalization rates and 26% lower all-cause charges.

The unit economics of this business are becoming exceptionally strong as DarioHealth Corp. focuses on its core B2B2C channel. The core Business-to-Business-to-Consumer (B2B2C) business has sustained non-GAAP gross margins of 80%+ for seven consecutive quarters as of the third quarter of 2025. This high margin is a key indicator of the scalable nature of their AI-powered model.

The pricing structure for this comprehensive care is designed to be competitive against single-condition vendors. The bundled multi-condition offering for up to 5+ conditions is priced at $69-$74 Per Engaged Member Per Month (PEMPM), which compares favorably to single-condition vendors priced between $70-$79 PEMPM. This bundling strategy is clearly resonating, as DarioHealth Corp. has already exceeded its 2025 goal of 40 new signed accounts, securing 45 new signed accounts to date, with over 80% of these new contracts being multi-condition wins.

The personalization aspect is what helps drive the sustainable behavior change that underpins these cost savings. This is achieved through data analytics, connected devices, and human coaching, leading to measurable clinical improvements. For example, users saw a 1.4% reduction in eHbA1c, a 38% reduction in blood pressure by one stage, and an average 10% Body Mass Index (BMI) reduction among participants.

Here's a quick summary of the key financial and outcome metrics underpinning the value proposition as of late 2025:

The platform's ability to deliver these results is tied to its AI-powered engine, DarioIQ, which transforms insights into personalized experiences. This focus on measurable outcomes is what allows DarioHealth Corp. to command a premium for its bundled service over single-condition competitors.

You're looking at a platform designed for holistic, continuous care, not episodic fixes. The value is in the integration and the proven ROI for large B2B clients.

Finance: draft 13-week cash view by Friday.

DarioHealth Corp. (DRIO) - Canvas Business Model: Customer Relationships

You're looking at how DarioHealth Corp. (DRIO) keeps its B2B clients happy and engaged, which is the engine for their recurring revenue. Honestly, the relationship side is all about proving value fast and then locking in that partnership for the long haul. They aren't just selling an app; they're selling measurable health improvements and cost reductions to self-insured employers and payers.

Dedicated B2B account management for long-term contracts is the backbone here. DarioHealth is clearly prioritizing deep, sticky relationships over one-off sales. This is evident in their 2025 commercial success, where they announced five new employer contracts in Q2/Q3 2025 alone, including securing their largest employer to date. They are building a pipeline that, as of September 2025, stood at a robust $67 million in commercial opportunities. The focus is on multi-condition deals, too; over 80% of the accounts signed in 2025 were for their full cardiometabolic suite, which suggests longer, more integrated contracts.

The stickiness of these relationships is key. While the exact late-2025 figure isn't public, DarioHealth reported that their client renewal rate remained above 90% following 2024, which is definitely the standard they are maintaining. This high retention supports their B2B2C core business, which has been operating at non-GAAP gross margins of 80%+ since Q1 2024. You can see the success in their client acquisition numbers: year-to-date in December 2025, they secured 79 new accounts, which blew past their 2025 target of 40 new clients by 98%. Also, the average employer customer size nearly doubled what was projected as of Q3 2025, showing they are landing bigger, more committed partners.

The relationship is sustained through a blend of high-touch and high-tech support for the end-members. This involves one-on-one coaching and personalized support for members, which works hand-in-hand with their self-service digital tools and continuous user engagement. The platform itself is powered by data from over 13 billion data points and has served more than 5 million cumulative users over time. For instance, their behavioral health component, Dario Mind, has shown a 28-30% decrease in anxiety and depression over eight weeks, which keeps members engaged and seeing results.

Finally, the entire relationship is cemented by data-driven outcomes reporting to demonstrate payer ROI. DarioHealth maintains a highly substantial body of peer-reviewed data to show payers the financial benefit. For the new employer contracts launched in Q2/Q3 2025, the reported results included a 23% reduction in hospitalizations and a $5,000 reduction in employer costs per user. A separate Sanofi study, published in JMIR, demonstrated an estimated $5,077 medical cost savings per user per year. These hard numbers are what drive adoption and contract renewal, frankly.

Here's a quick look at the measurable impact driving these customer relationships:

The continuous engagement model relies on several interaction points:

• Dedicated B2B account management for long-term contracts.
• High client retention rate of approximately 90%.
• One-on-one coaching and personalized support for members.
• Self-service digital tools and continuous user engagement.
• Data-driven outcomes reporting to demonstrate payer ROI.

If onboarding takes 14+ days, churn risk rises, so speed to value is critical for these relationships.

Finance: draft 13-week cash view by Friday.

DarioHealth Corp. (DRIO) - Canvas Business Model: Channels

You're looking at how DarioHealth Corp. (DRIO) gets its digital therapeutic platform into the hands of users, which is heavily weighted toward the Business-to-Business-to-Consumer (B2B2C) side as of late 2025. The strategy focuses on large-scale distribution through established payers and employers, but the Direct-to-Consumer (D2C) element still plays a role, particularly with hardware sales.

Direct B2B sales force targeting self-insured employers

The sales force is clearly driving significant momentum in the employer segment. DarioHealth Corp. far exceeded its 2025 new client target, signing a total of 79 new employer clients year-to-date as of early December 2025, which is a 98% over-achievement against the initial target of 40 new clients. These new agreements represent tens of thousands of covered lives. To be fair, the revenue from these specific 34 clients signed in the last two weeks of November 2025 won't hit until the first quarter of 2026, but the pipeline is strong. The average employer customer size nearly doubled what was projected by the third quarter of 2025. Furthermore, the focus is shifting to integrated care, with 80% of the new accounts signed in 2025 being for multi-condition programs. The total client base, including Fortune 100 companies, reached over 125 as of the third quarter of 2025.

Health plan partnerships (national and regional carriers)

Health plan partnerships are a core component of the B2B2C engine, providing access to massive covered populations. The company's top-tier channel partnerships, which include these health plans, collectively reach over 116 million lives as of the third quarter of 2025. This channel is crucial for recurring revenue; for instance, B2B2C recurring revenues hit $4.74 million in the first quarter of 2025, a 36.5% increase year-over-year. The strategic wins in this area include two new health plan clients described as among the most sizable and strategic in DarioHealth Corp.'s history, with one national health plan scheduled for launch in the second half of 2025.

Here's a look at the revenue segmentation for the third quarter of 2025:

The GAAP gross margin for the entire business in Q3 2025 expanded to 60%, reinforcing the high-margin nature of the services portion.

Channel partners and consultants for broader market reach

The success in employer acquisition is explicitly linked to the effectiveness of the channel strategy. The recent surge in employer signings is called a testament to the power and efficacy of the company's one-to-many channel partner strategy. This channel activity fuels the commercial pipeline, which was robust at $67 million as of September 2025. Looking ahead, the 2026 pipeline expanded to $69 million, targeting $12.4 million in new business from committed Annual Recurring Revenue (CARR) and late-stage opportunities.

Direct-to-Consumer (D2C) marketplace for innovation and sales

While the primary focus is B2B2C, the D2C channel, represented by consumer hardware sales, provides a measurable revenue stream. In the third quarter of 2025, revenue generated specifically from consumer hardware was $1.80 million. This segment accounted for approximately 36% of the total Q3 2025 revenue of $5.0 million. Furthermore, DarioHealth Corp. is using partnerships, like the one with MediOrbis announced in January 2025, to expand its GLP-1 solution into D2C markets.

Digital distribution via mobile app stores for end-users

Digital distribution through mobile app stores is the mechanism for end-user engagement, though specific download or active user metrics for late 2025 aren't itemized separately from the overall service delivery. The platform delivers personalized interventions driven by data analytics and one-on-one coaching across multiple conditions. The platform's success in driving engagement is implied by the clinical outcomes reported, such as a 1.4% reduction in eHbA1c and an average 10% Body Mass Index reduction among participants. The company is also integrating new technology, like smartphone-only, clinical-grade fall risk assessment, directly into the digital health platform.

Key Channel Performance Indicators (Late 2025 Data Points):

• 79 new employer clients signed year-to-date 2025, exceeding target by 98%.
• Channel partnerships reach over 116 million lives.
• 45 new signed accounts year-to-date 2025, aiming for 2026 revenue.
• Consumer Hardware (D2C proxy) revenue was $1.80 million in Q3 2025.
• More than 50% of new clients select the multi-condition offering.

Finance: draft 13-week cash view by Friday.

DarioHealth Corp. (DRIO) - Canvas Business Model: Customer Segments

You're looking at the core of DarioHealth Corp.'s revenue engine, which is heavily weighted toward the Business-to-Business-to-Consumer (B2B2C) channel, representing three-fourths of current revenues as of the March 2025 10-K filing. The customer base is segmented across several key areas, all focused on managing chronic conditions with measurable outcomes.

The primary focus for new client acquisition in 2025 has been on employers, where DarioHealth Corp. has seen significant momentum.

• Self-insured employers seeking cost reduction, with DarioHealth Corp. having 79 new employer clients signed year-to-date as of December 2, 2025, exceeding the 2025 target of 40 new clients by 98%.
• Health plans/Payers, which the outline suggests cover 116 million lives, with DarioHealth Corp. having secured 14 new clients in Q1 2025 alone, bringing the total client base to 97 from 83 at the end of 2024.

The size and scope of these B2B relationships are substantial, with new employer agreements representing tens of thousands of covered lives as of late 2025. The commercial pipeline across all segments, including employers, health plans, and pharmaceutical clients, was reported as a robust $67 million in September 2025.

Here's a quick look at the segments and the clinical validation that drives their adoption:

DarioHealth Corp. also targets specific patient groups whose high utilization drives significant costs for payers and employers. The platform's multi-condition approach means these populations are served across multiple product lines simultaneously. You see this reflected in the clinical efficacy data that supports the value proposition.

• High-risk populations driving the majority of healthcare spending.
• Users showed a 26% reduction in all-cause charges versus matched individuals receiving usual care.
• 54% reduction in severe pain reported for MSK health users.
• 6 weeks to reduced depression and anxiety for behavioral health users.

The company's platform delivers personalized interventions based on billions of data insights from ten years of consumer engagement. Honestly, the focus on measurable ROI, like the estimated $5,077 medical cost savings per user per year from a Sanofi/Symphony Health study, is what closes these large contracts.

Finance: draft 13-week cash view by Friday.

DarioHealth Corp. (DRIO) - Canvas Business Model: Cost Structure

You're looking at the cost side of DarioHealth Corp. (DRIO)'s business model as of late 2025. The focus here is clearly on driving down the burn rate while transitioning to a high-margin, recurring revenue model. This means costs associated with the old way of doing business are shrinking, which is a key part of their strategy to reach cashflow breakeven by late 2026 to early 2027.

The most significant cost control measure reported is the reduction in overall operating expenses. DarioHealth achieved a $17.2 million, or 31%, reduction in operating expenses for the first nine months of 2025 compared to the same period in 2024. This efficiency drive is central to their current financial structure.

The cost structure is broken down into several key areas, which you can see detailed below using the latest granular data available from the second quarter of 2025:

Significant investment in R&D for AI and platform development is ongoing, even amidst cost-cutting. The R&D spend for the second quarter of 2025 was $3.721 million. This investment supports the integrated whole-person digital health platform, which now sees more than 50% of new clients choosing the multi-condition offering, combining AI-driven personalization across diabetes, hypertension, weight management, musculoskeletal, and mental health.

Costs of revenue are directly tied to service delivery, including connected devices and coaching services. The company is seeing strong gross margins, with GAAP gross margin increasing to 60% in the third quarter of 2025. Furthermore, the core Business-to-Business-to-Consumer (B2B2C) segment has maintained approximately 80%+ non-GAAP gross margins for 7 consecutive quarters. For the second quarter of 2025, the Cost of Revenues was $2.405 million on revenues of $5.37 million.

Sales and marketing expenses are dedicated to B2B2C client acquisition, which is a major focus for future growth. In Q2 2025, Sales and Marketing expenses totaled $5.231 million. The company exceeded its 2025 goal, signing 79 new employer clients year-to-date, which is 98% over the target of 40. Revenue from these new signings is expected to start in the first quarter of 2026.

General and administrative costs reflect the expenses of running a public company and post-merger integration activities. For the second quarter of 2025, G&A costs were reported at $3.212 million. The overall reduction in operating expenses is partly attributed to increased operational efficiency and these integration activities.

• GAAP gross profit for the nine months ended September 30, 2025, was $9.9 million.
• Non-GAAP gross profit for the nine months ended September 30, 2025, was $11.4 million, or 67% of revenues.
• The company is backed by $31.9 million in cash and cash equivalents as of September 30, 2025.
• The accumulated deficit stood at $(422,971) as of June 30, 2025.

DarioHealth Corp. (DRIO) - Canvas Business Model: Revenue Streams

You're looking at how DarioHealth Corp. (DRIO) is bringing in money as we move toward the end of 2025, focusing on the shift to high-quality, recurring revenue. The core of the model is the B2B2C channel, which means selling access to their digital health platform through payers (like health plans) and self-insured employers.

The most recent reported top-line number is the Q3 2025 total revenue, which came in at $5.0 million. This figure reflects the ongoing, deliberate transition away from one-time, non-recurring revenue streams. For context, the revenue for the nine months ended September 30, 2025, was $17.1 million, and the trailing twelve-month revenue as of September 30, 2025, stood at $24.7M.

The company is heavily focused on building Annual Recurring Revenue (ARR) from B2B2C contracts. This recurring revenue stream is high-margin; the core B2B2C business has been achieving approximately 80% non-GAAP gross margins for seven consecutive quarters as of Q3 2025. The GAAP gross margin for the third quarter of 2025 specifically increased to 60%.

The structure for these B2B2C contracts is based on fees tied to usage and population size, specifically Per Engaged Member Per Month (PEMPM) fees from payers/employers for access to the platform. While a specific PEMPM dollar amount isn't public, the value is demonstrated by the fact that new clients are increasingly choosing the multi-condition offering, with over 50% of new clients selecting this integrated suite.

To fuel future growth, DarioHealth Corp. (DRIO) is tracking a significant amount of potential business. The company is Targeted new business (CARR and pipeline) of $12.4 million. Furthermore, the commercial pipeline expanded to $69 million for 2026 opportunities, up sharply from the prior quarter. The commercial team has been successful, exceeding the 2025 goal of 40 new signed accounts by reaching 79 new accounts signed year-to-date as of December 2, 2025, though revenue from these specific new signings is expected to begin in the first quarter of 2026.

The final component of the revenue mix is Revenue from D2C sales of devices and subscriptions. Honestly, this channel remains at its consistent run rate, meaning the primary growth engine is clearly the B2B2C recurring model.

Here's a quick look at the key financial snapshots around the revenue focus:

You can see the focus is on securing those high-margin, long-term contracts, which is why the pipeline metrics are so important right now. The fact that new client sizes have nearly doubled what was projected shows the market is valuing the integrated platform more highly. If onboarding for these new clients takes longer than expected, churn risk rises, but the current momentum is strong.

The revenue streams are clearly segmenting:

• Primary Driver: B2B2C recurring revenue from health plans and employers.
• Margin Profile: High, with non-GAAP gross margins consistently over 80% on the core business.
• Secondary/Stable: Direct-to-Consumer (D2C) sales maintaining a consistent run rate.

Finance: review the Q4 revenue forecast against the current pipeline conversion rate by next Tuesday.