Good morning, ladies and gentlemen, and welcome to the DarioHealth Corp. fourth quarter and year-end 2025 results conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press 0 for the operator. This call is being recorded on Thursday, 03/19/2026. I would now like to turn the conference over to Zoe Harrison, VP, Accounting and Corporate Development at DarioHealth Corp. Zoe, please go ahead.

Thank you, Operator, and good morning, everyone. Thank you for joining us today for a discussion of DarioHealth Corp.’s fourth quarter and year-end 2025 financial results. Leading the call today will be Erez Raphael, Chief Executive Officer of DarioHealth Corp. He will be joined by our President and Chief Commercial Officer, Steven C. Nelson, and Chen Franco-Yehuda, our Chief Financial Officer. 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 Thursday, 03/19/2026. This morning, we issued a press release announcing our financial results for the fourth quarter and year-end 2025. A copy of the release can be found on the Investor Relations page of DarioHealth Corp.’s website. I would like to remind you that on this call, we will make forward-looking statements within the meaning of the federal securities laws. For example, the company is using forward-looking statements when it is discussing statements regarding the expected timing and contribution of agreements signed in 2025 to revenue in 2026 and 2027, anticipated revenue growth trends and the timing of acceleration during 2026, the size, composition, and potential conversion of the company’s commercial pipeline, expected onboarding, enrollment, ramp, and expansion of employer, health plan, and channel partner relationships, the anticipated benefits of the company’s multi-condition platform AI capabilities, DarioIQ, expectations regarding future operating efficiencies, margins, and operating expense reduction, the company’s expectation that it may reduce the operating loss by 30% in 2026, reach cash flow breakeven by mid-2027, and future strategic opportunities, including a sale, merger, strategic business combination, or continued execution of the company’s stand-alone strategy. 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 differ materially. 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. With that, I will now turn the call over to Erez Raphael, Chief Executive Officer of DarioHealth Corp.

Good morning, everyone, and thank you for joining us. 2025 was our strongest year on record for new business wins. We signed 85 new agreements against a target of four, more than doubling our goals, with average contract sizes running two to 10 times larger than our historical average. Annual revenue declined due to a single legacy client from the pre-acquisition period that decided not to renew the contract, a one-time situation unrelated to product performance or our value proposition. But the business underneath told a different story. Eighty-five new agreements signed, including wins with Florida Blue, UnitedHealthcare, and Premera Blue Cross, made 2025 our strongest year on record for new business. 2025 returned to sequential revenue growth, the trend we expected. On a year-over-year basis, our core B2B2C business delivered organic revenue growth excluding the revenue headwind related to the single industry client. While we do not provide formal guidance, I want to share how we think about the years ahead. Our existing contracts provide a stable foundation, booking agreements with built-in member growth and expansion opportunities. On top of that are the new clients we signed in 2025, many of which are still ramping enrollment and engagement. That new cohort becomes the growth driver for 2026. The 2025 season, DarioHealth Corp.’s strongest on record, generated $12.9 million in contracted and late-stage ARR, set to contribute revenue in 2026 and 2027. Beyond that, our pipeline of commercial opportunities has expanded to $122 million, establishing both new revenue visibility and a strong foundation for sustained growth. We expect revenue growth to continue in 2026 and build throughout 2026, with the second half of the year expected to show the strongest acceleration. A few years ago, when we defined our growth strategy in an evolving digital health market, we articulated a thesis built on two compounding layers that we believe would become a structural advantage for scale, and we were right. The first layer operates at the client level. Channel partnerships like Solara Health give us access to millions of covered lives through a single commercial relationship, eliminating the account-by-account selling that structurally limits our growth potential and reduces our cost of acquisition. The second layer operates at the member level. Our multi-condition platform means a far greater share of each account’s population qualifies for our solutions. A single-condition solution is relevant only to members with that one condition. Covering five conditions means a materially larger proportion of any account’s population is reachable. More members involved, more revenue generated. Together, one layer multiplies how many accounts we access; the other multiplies how many members we serve within each. That is the compounding. The market is validating this in real time. Employers have moved beyond the point-solution era. They are consolidating vendors and asking for integrated platforms that address multiple conditions with measurable outcomes. Nearly 80% of our pipeline of commercial opportunities now involves multi-condition deployments, and the most common request we receive is to manage diabetes, hypertension, and mental health through a single platform. This is one reason customers increasingly come to us rather than the other way around. The foundation that makes both vectors work is DarioHealth Corp.’s fully vertically integrated platform. In an era of generative and agentic AI, the vertical ownership from the device that generates the data to the AI that acts on it is itself a compounding advantage. The value of AI is driven entirely by the quality of the data it runs on, and DarioHealth Corp. owns this data from the ground up. Our data is generated, continuous, and proprietary. We own the underlying data infrastructure. We do not license it, rent it, or depend on third-party inputs. We believe that this strengthens our competitive position as AI becomes more powerful. DarioIQ, our AI-driven intelligence engine, trained on more than 13 billion real data points, is the product expression of that advantage, purpose-built on data that no competitor can replicate. Our advantage rests on three pillars: proprietary clinical data generated at the point of care, clinical credibility backed by over 100 peer-reviewed studies, and deep integration with employers and the healthcare ecosystem. Together, they create a position that has the potential to compound with scale. This is precisely the model we built. The digital health market is consolidating around platforms that deliver measurable clinical and financial value. With our integrated technology, expanding distribution network, and rapidly growing client base, we believe that we are well positioned to lead the transition. With that, I will turn the call over to Steven.

Thank you, Erez, and good morning, everyone. Erez described two compounding layers at the heart of our growth strategy. What I want to show you this morning is this thesis in action in the distribution partnerships we are scaling and the multi-condition demand we are seeing from employers and health plans. These are not separate dynamics. They are compounding each other, playing out simultaneously across our commercial book. Before walking through the commercial progress we are seeing across the business, I want to briefly step back and highlight what we believe is an important shift occurring across the digital health market. Employers, health plans, and pharmaceutical companies are all facing the same structural challenge: rising healthcare costs driven by chronic disease, combined with increasing complexity in how care is delivered and managed. As a result, buyers are increasingly moving away from fragmented point solutions and toward integrated digital platforms that can address multiple conditions while delivering measurable clinical and financial outcomes. We believe this transition is defining a new category within digital health: vertically integrated, multi-condition digital care platforms, where providers that can combine clinical engagement, behavioral support, and data-driven outcomes across multiple chronic conditions will increasingly become the preferred partners for employers and health plans. This is exactly what DarioHealth Corp. offers. With that context in mind, there are three areas I would like to cover this morning. First, the structural shift we are seeing in our go-to-market model as distribution increasingly moves toward large payer ecosystems and curated digital health networks. Second, the continued expansion of several of our most important channel partnerships and payer deployments. And third, there are several emerging opportunities we are evaluating that could open additional pathways for growth over time, and I will specifically cover one of these significant opportunities today. Taken together, these developments reinforce what we believe is an important inflection point for the company. Let me start by revisiting the theme we introduced during our last few earnings calls: the growing role of one-to-many distribution channels in our business. Historically, much of the digital health market operated through direct employer sales and individual point-solution deployments. What we are seeing now is a shift towards payer ecosystems and curated digital health networks that allow health plans and large employers to deploy integrated platforms across much larger member populations. The commercial model we are building allows DarioHealth Corp. to move from selling individual programs one employer at a time to becoming embedded within payer ecosystems that distribute digital health solutions across entire populations. During our last call, we discussed several examples of this strategy beginning to take hold, including our launch on UnitedHealthcare’s digital marketplace, our deployments through Solara Health supporting plans such as Premera Blue Cross, and our growing partnerships with Amwell supporting payer-sponsored digital health programs. Through these partnerships, DarioHealth Corp. now has access to more than 160 million covered lives through our distribution ecosystem. As these distribution ecosystems expand, each new payer or partner deployment has the potential to bring DarioHealth Corp.’s platform to significantly larger populations without requiring proportional increases in commercial infrastructure. These relationships dramatically expand our reach. A single distribution partner can unlock access to millions of covered lives and significantly accelerate our ability to scale. Importantly, we are also seeing continued commitment from our existing health plan partners. We are currently finalizing a three-year contract extension with Aetna and a four-year contract extension with Centene, reinforcing the long-term value these organizations see in the outcomes delivered through DarioHealth Corp.’s fully vertically integrated platform. What we are seeing now is the next phase of this strategy, where these distribution ecosystems begin to activate across additional health plans. For example, through our partnership with Amwell, Florida Blue selected DarioHealth Corp. as a part of its digital health ecosystem. The program is currently in migration and implementation phases, and we expect revenue from the partnership to begin contributing in 2026 as enrollment ramps, with broader expansion anticipated into the 2027 plan year. Florida Blue represents one of the largest and most influential Blue Cross Blue Shield organizations in the United States, and their selection reinforces the growing demand among major payers for a fully vertically integrated platform that can deliver measurable clinical and financial outcomes. In addition, our channel partner, Solara Health, recently announced that HCSC, the second-largest Blue Cross Blue Shield organization in the United States with approximately 25 million members, will be launching new digital health capabilities through its network beginning in January 2027. DarioHealth Corp. has been selected as a preferred in-network partner within Solara’s curated digital ecosystem supporting that rollout. We are also pleased to share that Amwell is preparing to launch another Blue Cross Blue Shield health plan relationship in July 2026, and DarioHealth Corp. has already been selected to be the preferred partner. We will share additional details as the program moves closer to launch. Finally, we are currently in the final stages of contracting with another distribution partner that we expect will become an important addition to our channel ecosystem. Through that relationship, we anticipate launching what would represent the largest fully insured client in DarioHealth Corp.’s history. Another area where we are seeing encouraging traction is within government-sponsored healthcare programs, particularly through the federal rural health transformation initiatives, a $50 billion program rolling out $10 billion in spending over five years. This program represents a major effort designed to improve healthcare access and outcomes in underserved rural communities across the United States. Today, DarioHealth Corp. is engaged in direct discussions with approximately 10 state offices that are evaluating digital health infrastructure as a part of rural health transformation planning. In parallel, we are working closely with one specific channel partner to ensure DarioHealth Corp.’s platform has exposure within broader proposals supporting these initiatives across the remaining 40 states. Turning now to our employer pipeline of commercial opportunities, demand for integrated digital health solutions continues to strengthen as employers seek measurable outcomes and simplified vendor ecosystems. In 2025, we added 85 new employer accounts, many of which have been onboarding and ramping throughout the first half of this year, providing an expanded base of recurring revenue entering the second half. For the 2026 benefit cycle, we are currently tracking 44 employer opportunities representing roughly $35 million in pipeline value. Looking further ahead to the 2027 cycle, we are already engaged in 58 additional employer opportunities representing approximately $19 million in pipeline value. Taken together, our total employer pipeline represents 102 opportunities totaling approximately $54 million in value. Importantly, the average size of these opportunities entering our employer pipeline today is materially larger than the accounts we have historically pursued—two to 10 times larger. In addition to employer demand, we are also seeing strong momentum across our health plan pipeline of commercial opportunities. Today, our health plan pipeline includes approximately 70 active opportunities representing roughly $33 million in pipeline value across national and regional payer organizations. Looking ahead to the 2027 planning cycle, we are also engaged in 11 additional early-stage health plan opportunities representing approximately $27 million in potential value. Taken together, our health plan pipeline now represents 81 opportunities totaling approximately $60 million in value. As we expand our presence within payer ecosystems, we believe that the scale of these health plan opportunities has the potential to continue to grow. Another area we are beginning to explore is within our pharma services segment. Historically, pharmaceutical companies have focused primarily on direct-to-consumer engagement or provider-based education models. What we are starting to see now is early interest from select pharmaceutical companies in exploring employer-based engagement strategies. Digital health platforms may help support patient identification, therapy adherence, and outcomes measurement. Today, we are in discussions with three pharmaceutical organizations evaluating whether employer-based engagement supported by digital health infrastructure could represent a viable commercial approach. At this stage, we view pharma as an emerging opportunity that we are actively evaluating rather than a core revenue driver today. Stepping back, what we believe is important for investors to understand is that DarioHealth Corp.’s commercial expansion today is being primarily driven by two core growth engines. Layer one, client scale, through channel partnerships that give us ecosystem-level access to millions of covered lives without proportional increases in our commercial infrastructure and related expenses. Layer two, member scale, through our multi-condition platform, which means a far greater share of each account’s population qualifies for DarioHealth Corp., generating more revenue from the same client base without acquiring a single new contract. These two layers compound together exactly as Erez described. One multiplies how many accounts we reach; the other multiplies how many members we serve within each. That compounding is already visible in our fourth-quarter numbers, and it will become increasingly visible as 2026 progresses. As these payer ecosystems activate and employer demand continues to expand, we believe the commercial foundation we have built positions DarioHealth Corp. to scale across significantly larger populations in the years ahead. I will now turn the call over to Chen.

Thank you, Steven, and good morning, everyone. In 2025, we delivered sequential revenue growth to $5.2 million in Q4 and posted our lowest operating expense run rate on both GAAP and non-GAAP bases since the Twill acquisition. That combination—growing revenue and declining costs—is the inflection we have been building towards. Revenue for the twelve months ended 12/31/2025 was $22.4 million, compared to $27.0 million in 2024. As Erez explained, this was driven entirely by a single legacy client non-renewal from the Twill acquisition, partially offset by organic growth. GAAP gross margin expanded from 49% in 2024 to 57% in 2025, primarily reflecting the reduction in technology amortization expenses. Our core B2B2C ARR business has sustained approximately 80% non-GAAP gross margin for two years, which we believe is the most representative measure of the underlying unit economics of our platform. On operating expenses, the improvement is significant and accelerating. For full-year 2025, total operating expenses declined by 31% to $49.3 million compared to 2024, and full-year non-GAAP operating expenses declined by $13.6 million, or 26% year over year, from $52.2 million to $38.6 million. In Q4 alone, GAAP operating expenses declined 28% to $11.4 million, and non-GAAP operating expenses also fell 28% year over year from $12.4 million to $9.0 million. Full-year operating loss improved by $21.0 million, or 37%, on a GAAP basis, and by $9.6 million, or 29%, on a non-GAAP basis. On cash, we ended 2025 with $26.0 million in cash and short-term deposits. Net cash used in operating activities declined from $38.6 million in 2024 to $25.9 million, a 33% reduction driven by the compounding effect of margin expansion, AI utilization, and cost discipline. Based on our contracted and late-stage ARR, growing pipeline of commercial opportunities, and continued OpEx reduction, we expect to narrow our non-GAAP operating loss by approximately 30% in 2026, targeting cash flow breakeven by mid-2027. A reconciliation of GAAP to non-GAAP measures has been provided in the financial statements table included in our earnings press release. An explanation of these measures is also included below under the heading 'Non-GAAP Financial Measures.' With that, I will turn the call over to Erez for closing remarks.

Thank you all for joining us today. 2025 demonstrated something important. The work we did to build a differentiated platform is now reflected in the demand we see, commercially and strategically. We entered 2026 with our strongest commercial pipeline ever, a record new business year behind us, and a fully vertically integrated platform whose competitive position deepens with each new member we add and each data point we generate. As a reminder, in September 2025, in response to multiple unsolicited inbound expressions of interest, DarioHealth Corp. engaged Lazard and established a special committee of our Board of Directors to consider a full range of strategic opportunities, including a sale, merger, strategic business combination, or continued execution of our stand-alone strategy. The process remains active, and we will provide updates when there is a material development to share. What is becoming increasingly clear is that DarioHealth Corp. is positioned to succeed in any scenario it chooses to pursue. We believe that the demand we see from the market—from payers, employers, and strategic partners—reflects what we have built: a platform that owns its data, compounds with scale, and delivers outcomes that no point solution can replicate. Before I hand it over to the Operator, I want to take a moment to thank the people who make this possible. 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. And to our shareholders, thank you for your continued support and confidence in our platform and our mission. We look forward to sharing more progress with you on our next call. I will now turn it over to the Operator for the Q&A session.

Thank you. Ladies and gentlemen, we will now open the call for questions. You will hear a prompt that your hand has been raised. Should you wish to withdraw from the polling process, please press star followed by the number two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Charles Rhyee with TD Cowen. Your line is now open.

Yes, thanks for taking the questions, and congrats on the end of the year here. Obviously, pretty exciting in terms of the pipeline opportunities, obviously some big contracts starting to ramp up as you move through the course of the year. I think you had one big one, I think you just mentioned, starting here in January. Can you give us a little sense on how that is progressing, and maybe in broad strokes, how should we think about revenue growth in 2026? You have a sort of consensus number signaling significant growth here and just kind of get a sense of your comfort with that, and how should we think about the cadence of revenue growth as we go through the year?

Thanks, Charles, for the question. Yes, so as we mentioned on the quarter, we had 85 wins, and we had $12.9 million in contracted and very late-stage opportunities. Obviously, not everything is going to be recognized for the full year. It will take time to implement. What we have already seen in Q1 is that we see growth between Q4 to Q1. Some of the implementation already started, so we are expecting growth. The growth is going to accelerate in the second half of the year. And when I am looking into the consensus of all the analysts that we have today, we feel comfortable with these forecasts that we see out there. We are not providing guidance, but we do think that what exists at the moment is something that the company feels comfortable with. And the way that we are operating is planning, obviously, to at least achieve a little bit above the consensus of the analysts that we have at the moment.

Appreciate that. In terms of the target of breakeven, it seems like that has been slowly getting pushed out a little bit. Can you give us a sense for what is driving that? Is that just trying to take advantage of current pipeline opportunities and trying to stay on top of growth overall? Or anything that you can share regarding that?

Yes, absolutely. It is going to be like 80% of the picture is the growth and 20% is to keep optimizing the OpEx. We did a lot of cost reduction in the last two years, as everyone knows. We think that with the implementation of AI and agentic AI that we are implementing, we will be able to push the cost down by another few percentage points year over year. But the bigger part of why we believe we can get to cash-flow positive is our ability to grow the top line. It is going to be the major part, and with what we have signed so far and what you see in the pipeline, we think that is something that will get us to the cash-flow positive point. The overall top line that we see that will take us there is somewhere in the range of $38 million to $42 million in revenues. That is the point where we think the business is going to be cash-flow positive. Steven, do you want to add something?

Yes. Hi, Charles. Steven here. I just want to add one thing, which is as we have evolved these channel partnerships and brought them on, one-to-many, and as these health plans—you know, they are health plans, so we are dealing with large organizations—how do we weave our way in, and then the platform partners, whether it is Solara, Amwell, or others that we will announce. We have to structurally—and I talked about that in the call—get ourselves organized for that. So there are things that we have to do and prepare—normal ramp-up things, not large expenses, but work. And we need to get focused on what that work is, how we do it in a fluid way, because it needs to be repeatable, and it needs to continue with these channel partners as we move forward. So they have some changes that have altered our business in a good way, definitely noticeable in the contracts that we have won and, therefore, how we implement in an effective manner. But that takes a little bit of a pivot on how we have done it before. Now we are going more one-to-many, and so we are working on that work, being very mindful of OpEx, as the company has historically and as we have shown recently in the results. But we also need to make sure we are making the right investments in that business so those two-, three-, four-year agreements—which is what they come with—are sticky and longitudinal. It is very important that we reflect that as we think about our investment.

Great. And maybe one last question for me. As you know, being a preferred partner, and we think about HCSC, for example—obviously, that by itself is a big opportunity. What is the selection process there? Is it each member within HCSC can make a decision, or is it within even each of the Blue Cross Blue Shield plans within HCSC where their employer customers make a decision? Maybe talk us a little bit through how to take advantage of that opportunity. Is it more RFPs within that as well, or is it people can just select off a menu as they are selecting options? And then what is your assumption in terms of what you will be able to capture?

Yes, so I will try to unpack that. I will probably go beginning to the end in terms of the capture rate. But I will start at the beginning first, which is: with our Solara partner—as you can go to Solara and see in their architecture and their website—we are a preferred partner. Just like using a doctor in a normal health network, there is in-network and there is out-of-network partners, and with Solara and what they bring on board, we are preferred. We are, quote-unquote, as I said in the script, in-network. It is a good way to look at it. Now, if I go to HCSC, the account, HCSC will have decisions that they make with Solara—not with us, but with Solara—when they look at how they want to move their books of business. And then, obviously, ASO or self-insured books of business, they get to make that call. So I am going to take a step up for a second before I round out that thought, which is this: just like any of the digital marketplaces that are coming forward, all the self-insured markets get to make a call. There is no more RFP; there is no more business to win, but they have to decide, do they want to go with something in-network, do they want to go with something out-of-network? Obviously, self-insured employers have to make that call on all their benefit design, just like normal health benefits. In terms of the fully insured book, or what HCSC or other Blues plans control, that is up to them. And so as they form those partnerships, we do get to work with them in that regard—how they want to construct the network, how we can work with them in general. So there are some variations there, Charles, that work across the board on all these. But within Solara’s partnerships, as they come up with recommendations with their partners, we, again, are preferred and in-network, which is important for us because that makes the decision very easy, easy to do business, start it up, run it in-network, and launch it. So we are working with them on that execution. They are a very large plan, both fully insured and self-insured. We think that there is plenty of business to be had there, for sure, and we are hopeful that through our preferred status, we will be able to shore that up and what it looks like for 2027. In terms of a capture rate, I do not say this flippantly, but obviously with that many millions of lives, with that size of share, us being in-network for any portion of that book is meaningful to a company our size, for sure. That also said, anything that they do in their fully insured book—Illinois, Texas, some of their larger states—would also be meaningful in that regard. So we are working across the board. I would close by saying capture rate on self-insured: we do normal predictive modeling accordingly. Nothing really changes in that regard. But keep in mind, with fully insured, we are often built into the product, and as I noted today, we are launching—not HCSC, I might add—but we will be launching our largest fully insured client January 2027 as well. Largest by far. Today, we have three accounts that are fully insured, smaller in nature, but we are moving forward with the fully insured piece of business in January.

Great. I really appreciate the comments. Thanks, guys.

Your next question comes from Theodore Rudd O’Neill with Litchfield Hills Research. Your line is now open.

Thank you, and congratulations on the good quarter. I have two questions this morning. The first is on operating expenses, which are down year over year substantially. How should we think about how that changes in 2026? And my second question is, the commercial pipeline here at $122 million—I looked back at last quarter’s press release, and it was $69 million—so there is a big uptick in the commercial pipeline value. I was wondering, is it changing definitions, or is that adding 2027 onto 2026? I am just wondering what the difference is there.

Could you repeat that first one?

Yes. Good morning, Theodore. Thank you for your question. With regards to operating expenses, indeed, we reduced dramatically the OpEx during this year compared to last year, and we continue to reduce the OpEx. We mentioned several efficiencies—post-merger integrations, AI, etc.—which we expect to continue and see reduction in the OpEx through 2026. We also see that we can project that we can narrow the non-GAAP operating loss by 30% during 2026 compared to the full year of 2025. So that is for your first question. On the second question, I will let Steven respond.

Yes, that is correct, Theodore. We did outline—you covered it at the very end there. What we have done is we are now including the 2027 year, so we are showing the combination of 2026 and 2027 in that regard. Last quarter, we talked about what was just in year 2026; now we are also doing a combined pipeline view. That is why I broke out in detail a little bit of the pipeline as well.

Yes, I thought you covered it. I just wanted to ask it explicitly. So thanks very much.

Thank you.

You bet.

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