Dear Shareholders,

Today, it’s clear we are operating in a rapidly evolving healthcare landscape – one that demands innovation which delivers both better health outcomes for patients and lower costs for payers. At Dario, we’ve spent the past several years building a differentiated digital health platform focused on delivering meaningful outcomes for our members and their payers including employers, health plans, and pharmaceutical clients. That foundation has never been more valuable because today we are delivering exactly what the market seeks – a multi-condition, easy to onboard turn-key platform that provides value-driven solutions. Three key drivers of our success are:

• Our Multi-Condition Solution which addresses 5 conditions and a $1 trillion market landscape with one highly configurable platform for an easy, personalized user experience
• Our Market Access to large customers has significantly increased as we collaborate with third-party administrators and pharmacy managers that represent 87 million member lives
• Market Demand for Value-Based Care prioritizes high return on investment (“ROI”) solutions that quantify outcomes – exactly what Dario delivers

Combining our multi-condition offering with expanding market access to the largest customers that seek value-based care creates velocity and a multiplier effect that powers us to onboard more members, more rapidly.

UNIQUE COMPETITIVE POSITION WITH MULTI-CONDITION SOLUTION

In the past few years, we have moved to a multi-condition strategy where we can help our self-insured employers and health plan clients consolidate vendors and drive higher ROI. For customers, relying on multi-vendor solutions that underperform is complex and expensive.

Dario’s whole-person health solution addresses 5 conditions including diabetes, hypertension, weight management, musculoskeletal, and behavioral health in one highly configurable platform.

We have a unique competitive position here, as on average, our competitors only serve 2-3 conditions. While Dario is a fraction of the size of our recently public peers, Hinge Health which focuses on musculoskeletal and Omada Health which covers 4 chronic conditions, we serve 5 conditions extremely well through one unified platform. By offering a full suite of indications, Dario optimizes monetization per user, especially relative to our peers who offer only one or few indications.

Based on our commercial pipeline of opportunities today, more than 70% of opportunities are for multiple conditions.  80% of the new accounts we signed this year are for multi-condition programs, demonstrating the success of our multi-condition strategy.

SEAMLESS MARKET ACCESS TO LARGEST CUSTOMERS AND FRICTIONLESS ONBOARDING

Dario’s market access has significantly developed both through direct sales and through collaborations. We are seeing increasing velocity in our commercial pipeline, which has increased to $67 million. A lot of this is coming from our channel collaborations with third-party administrators and pharmacy managers that represent 87 million member lives. By working with these collaborators, such as Solera and American Well, who effectively serve as distributors, we are accelerating our sales cycles and creating frictionless, seamless onboarding of new large employers and health plan clients.

The number of high-volume deals we are signing is increasing this year and many of these are set to launch and contribute annual recurring revenues (“ARR”) next year. Benefit consultant awareness is much higher with significant increases in volume for both request for information (“RFIs”) and request for proposal (“RFPs”).

Today, Dario has over 100 clients, of which 4 are national health plans and 6 are regional health plans. Dario is also in the contracting stage with one of the larger regional health plans in the market for a full metabolic platform for both administrative services only (“ASO”) and fully insured business – this deal alone can secure next year’s growth target. We recently announced the launch of 5 new employer contracts across our cardiometabolic suite including our largest employer client to date. These new customer launches represent over 107,000 lives covered. We remain on track to meet our goal of 40 new client signings by the end of the year.

PROVEN ROI DELIVERS VALUE BASED CARE: A STRONG TAILWIND FOR DARIO

Powerful industry and regulatory shifts are reshaping the healthcare landscape to move toward a more value-driven approach to reimbursement and cost economics. There is a growing demand for value-based care, where outcomes and cost savings – not just service volume – drive reimbursement and provider alignment.

Much of this is driven by new leadership at the U.S. Department of Health and Human Services (“HHS”) and the recently passed One Big Beautiful Bill Act which are both shifting reimbursement standards and seeking new ways to leverage digital health to improve outcomes while reducing costs. At the core of the HHS’s agenda is technology enabled chronic disease prevention.

Specifically, we believe that the digital health agenda described by HHS Secretary Robert F. Kennedy Jr. directly validates Dario’s business model. Our Company’s strengths in providing a comprehensive, clinically validated, multi-condition platform with real-time data and behavioral feedback are precisely the features that Kennedy’s administration is poised to champion. This federal recognition could accelerate market adoption and create a massive opportunity, creating a powerful tailwind for Dario.

With 90 published clinical studies demonstrating improved clinical outcomes and lower costs – more than any other digital health company – we quantify outcomes and deliver clear ROI. In fact, the cost savings for payers per Dario user is over $5,000 annually, with a 23% reduction in hospitalizations and 9% reduction in healthcare utilization. We believe this positions us extremely well in a healthcare market that is increasingly demanding value-based care as traditional healthcare costs continue to rise, and payers seek to reduce their cost burden.

Dario’s fully developed product portfolio delivers proven value to a growing client roster that is choosing Dario over larger, more heavily funded competitors. This is a testament to the maturity of our clinically proven technology. Our ability to quantify outcomes and cost savings puts us ahead as billing and reimbursement requirements for digital care evolve.

IN SUMMARY: DARIO IS WELL POSITIONED IN FINANCIAL MARKETS BULLISH ON DIGITAL HEALTH

Dario stands at a pivotal moment. The market is moving decisively toward value-based, consumer-centric care – demanding integrated platforms with scale, real-world results, and advanced technology. We believe that Dario checks every box.

We also believe we are particularly well positioned in today’s capital markets in which digital health is showing clear signs of momentum. Driven by the latest advancements in AI, healthcare, and the shifting regulatory and reimbursement environment, the very definition of digital health has changed. 2025 has ushered in a new wave of initial public offering (“IPO”) activity, with investor focus shifting decisively toward scaled platforms including Omada which went public in June and Hinge which IPO’d in May. These newcomers to the public markets are trading at valuations of between 6X to 9X revenues, setting favorable valuation metrics that underscore the Dario investment opportunity.

Our powerful AI engine is a significant competitive edge with unmatched data sets. It is built on 13 billion data points, 5 million users across chronic and behavioral conditions, and 25 years of accumulated user journeys. The continued integration of AI into our solutions is expected to further improve outcomes and cost savings.

We are signing more and more contracts with some of the largest employers, health plans, and pharma companies in the world. The way we see it, when a large potential customer is able to sift through the choices and distractions in the marketplace to thoroughly examine and choose a product like ours, which may be misunderstood or undervalued by Wall Street, we believe this can create a reset in the financial markets for value creation potential for our Company. We have observed such indicators that reinforce our belief that Dario possesses one of the leading digital platforms in the healthcare market and we are hopeful that this will soon be recognized in the financial markets.

To our long-time shareholders: thank you. Your support has helped improve the health of over 5 million users. We are confident that Dario’s best lies ahead – and that your loyalty will be rewarded.

With Appreciation,

Erez Raphael

Chief Executive Officer, DarioHealth Corp.

 

 

Cautionary Note Regarding Forward-Looking Statements

This news release and the statements of representatives and partners of the Company related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “plan,” “project,” “potential,” “seek,” “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate” or “continue” are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses the Company’s future committed ARR, pipeline of potential commercial opportunities and the Company’s goal of 40 new clients by year-end. Readers are cautioned that certain important factors may affect the Company’s actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Factors that may affect the Company’s results include, but are not limited to, regulatory approvals, product demand, market acceptance, impact of competitive products and prices, product development, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks, and the risks associated with the adequacy of existing cash resources. Additional factors that could cause or contribute to differences between the Company’s actual results and forward-looking statements include, but are not limited to, those risks discussed in the Company’s filings with the U.S. Securities and Exchange Commission. Readers are cautioned that actual results (including, without limitation, the timing for and results of the Company’s commercial and regulatory plans for Dario™ as described herein) may differ significantly from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.