Structural cash burn remains a critical concern, evidenced by a 2026Q1 free cash flow margin of -108.5% and a persistent inability to generate positive operating cash flow.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | -25.29M | -25.94M | -38.56M | -30.38M | -47.84M | -50.41M | -17.74M | -15.72M | -11.47M | -10.62M | -8.38M | -6.28M | -8.58M | -7.6M | -2.98M |
| Operating CF Margin % | - | -116.02% | -142.61% | -149.27% | -173% | -245.74% | -234.11% | -208.03% | -155.13% | -205.4% | -298.93% | -762.7% | -16825.49% | - | - |
| Operating CF Growth % | 69.28% | 32.73% | -26.94% | 36.51% | 5.09% | -184.22% | -12.79% | -37.1% | -8.01% | -26.73% | -33.49% | 26.85% | -12.91% | -154.8% | - |
| Net Income | 62.71M | -41.71M | -42.75M | -59.43M | -62.19M | -76.76M | -29.45M | -17.74M | -17.8M | -15.74M | -10.89M | -7.14M | -12.88M | -13.93M | -5.69M |
| Depreciation & Amortization | 2.04M | 2.83M | 7.43M | 4.99M | 4.72M | 4.46M | 457K | 183K | 207K | 195K | 387K | 335K | 549K | 839.25K | 24.32K |
| Stock-Based Compensation | 5.51M | 9.37M | 15.8M | 19.7M | 16.98M | 24.97M | 11.1M | 2.26M | 3.76M | 3.82M | 1.04M | 1.72M | 1.69M | 4.22M | 1M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.69M | 0 | 0 | 0 | 0 | 1.42M | 293.54K | 1.61M |
| Other Non-Cash Items | -1.51M | 1.37M | -16.57M | 288K | 3.56M | -503K | 0 | 4.69M | -1K | 1.18M | 9K | -579K | 533K | 98.21K | 101.26K |
| Working Capital Changes | 1.01M | 2.21M | -2.47M | 4.07M | -10.9M | -2.57M | 150K | -429K | 2.37M | -77K | 1.07M | -614K | 103K | 876.42K | -29.71K |
| Change in Receivables | 1.61M | 2.64M | 1.6M | 2.83M | -5.11M | -367K | -604K | -504K | 114K | -56K | -226K | -649K | 158K | 1.55K | -391.75K |
| Change in Inventory | 451K | 437K | 308K | 2.89M | -1.73M | -2.23M | -879K | -37K | -193K | -295K | -287K | -366K | -234K | -820.29K | 0 |
| Change in Payables | 713K | -122K | -496K | -1.19M | -2.79M | 1.08M | 824K | -918K | 722K | 39K | 834K | 292K | -186K | 271.46K | 133.95K |
| Cash from Investing | -5.14M | -4.34M | -8.93M | -547K | -573K | -8.13M | -1.62M | -113K | 6K | -219K | -947K | -113K | -429K | -1.64M | -564.53K |
| Capital Expenditures | -142K | -142K | -138K | -584K | -442K | -261K | -118K | -98K | -71K | -195K | -808K | -110K | -563K | -1.4M | -534.63K |
| CapEx % of Revenue | 0.67% | 0.64% | 0.51% | 2.87% | 1.6% | 1.27% | 1.56% | 1.3% | 0.96% | 3.77% | 28.83% | 13.37% | 1103.92% | - | - |
| Acquisitions | 5K | 0 | -8.8M | 0 | 0 | -7.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -131K | -400K | -1.5M | 0 | -1K | -7K | 6K | -6K | -6K | -92.3K | -22.81K |
| Cash from Financing | 17.5M | 24.31M | 38.53M | 18.25M | 61.94M | 65.77M | 27.55M | 25.25M | 18.74M | 13.46M | 7.75M | 7.61M | 8.2M | 10.27M | 3.87M |
| Debt Issued (Net) | 0 | 185K | 0 | 1.77M | 23.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 17.31M | 24.13M | 38.53M | 16.48M | 38.15M | 64.88M | 27.55M | 25.25M | 18.74M | 13.46M | 7.54M | 7.08M | 7.85M | 9.98M | 3.87M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -134K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 185K | 0 | 0 | 0 | 0 | 889K | 0 | 0 | 0 | 0 | 210K | 533K | 350K | 292.54K | 0 |
| Net Change in Cash | -12.87M | -5.96M | -9.03M | -12.67M | 13.52M | 7.22M | 8.19M | 9.41M | 7.28M | 2.63M | -1.58M | 1.22M | -810K | 1.03M | 321.27K |
| Free Cash Flow | -25.43M | -26.08M | -38.7M | -30.96M | -48.42M | -50.67M | -17.85M | -15.82M | -11.54M | -10.81M | -9.19M | -6.39M | -9.14M | -9M | -3.52M |
| FCF Margin % | -120.03% | -116.66% | -143.12% | -152.14% | -175.07% | -247.01% | -235.67% | -209.33% | -156.09% | -209.17% | -327.76% | -776.06% | -17929.41% | - | - |
| FCF Growth % | 21.1% | 32.6% | -24.99% | 36.05% | 4.44% | -183.8% | -12.84% | -37.1% | -6.72% | -17.71% | -43.84% | 30.15% | -1.6% | -155.88% | - |
| FCF per Share | -0.51 | -0.53 | -0.96 | -1.09 | -2.05 | -3.05 | -2.99 | -6.98 | -9.86 | -22.46 | -35.31 | -67.31 | -379.29 | -884.62 | -317.13 |
| FCF Conversion (FCF/Net Income) | -0.41x | 0.62x | 0.90x | 0.51x | 0.77x | 0.66x | 0.60x | 0.89x | 0.64x | 0.67x | 0.77x | 0.88x | 0.67x | 0.55x | 0.52x |
| Interest Paid | 313K | 0 | 3.93M | 4.03M | 1.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insufficient capital runway
As reported in recent financial statements, DarioHealth's operating cash flow consistently trails net income, with the company recording a negative $6.0M in operating cash flow against a net loss of $8.2M in 2026Q1, suggesting that accounting accruals are failing to bridge the gap to cash generation.
The persistent negative operating cash flow indicates that the company's accrual-based net income does not reflect the underlying cash burn required to sustain operations. Investors should monitor whether this divergence stems from aggressive revenue recognition or simply the high cash costs of maintaining a B2B platform that has yet to reach scale.
Based on historical cash flow data, DarioHealth has maintained a negative free cash flow trajectory for ten consecutive quarters, with the 2026Q1 FCF margin of -108.5% highlighting the company's ongoing struggle to achieve self-sustaining operations despite its strategic pivot toward a recurring revenue model.
The consistent FCF burn suggests that the company's current business model is fundamentally capital-intensive and requires external funding to cover operating deficits. The lack of a clear path toward positive FCF margins warrants further investigation into whether the current cost structure is too rigid for the company's declining revenue base.
According to quarterly cash flow filings, working capital changes have been highly erratic, swinging from a $1.5M inflow in 2025Q2 to a $902K outflow in 2025Q1, which suggests that the company's cash conversion cycle is currently unstable and potentially sensitive to timing differences in B2B contract payments.
The volatility in working capital appears to reflect the challenges of managing a transition from transactional B2C sales to longer-cycle B2B contracts. This inconsistency in cash collection cycles may indicate that the company lacks the leverage to enforce favorable payment terms with its health plan and employer partners.
As disclosed in recent SEC filings, DarioHealth has utilized significant stock-based compensation, totaling $1.4M in 2026Q1 alone, which serves to mask the true extent of the company's cash burn by reducing the immediate impact of personnel costs on the reported operating cash flow figures.
While stock-based compensation is a non-cash expense, it represents a real economic cost to shareholders through dilution and should be factored into the company's total cash burn analysis. Investors should consider that the reliance on equity-based incentives may be a necessary strategy to preserve limited cash reserves, though it does not address the underlying operational losses.
Quick answers to the most common questions about buying DRIO stock.
DarioHealth Corp. (DRIO) generated $-25.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
DarioHealth Corp. (DRIO) reported negative free cash flow of $26.1M in 2025, indicating capital requirements exceeded cash from operations.
DarioHealth Corp. (DRIO) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.