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…

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,…

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 cost—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 kind of 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,…

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. Theodore Rudd O’Neill: 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. Theodore Rudd O’Neill: Yes, I thought you covered it. I just wanted to ask it explicitly. So thanks very much.

Thank you. Theodore Rudd O’Neill: 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.