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Digital Health Valuations Surge with Omada’s Recent S-1, Highlighting What DarioHealth Might Really be Worth
Dario's Q1 2025 earnings reveal 17 % revenue growth and a 70.5 % non‐GAAP margin, further widening the potential valuation gap opportunity.*
Alpha Catalyst
May 14, 2025
The digital‑health sector is experiencing a significant valuation renaissance as industry leaders prepare to go public. With competitor Omada Health recently filing its S‑1 prospectus and Sword Health securing a staggering $3 billion valuation in its latest financing round, DarioHealth Corp. (Nasdaq: $DRIO ( ▼ 5.09% ) )* appears undervalued by comparison—despite delivering comparable, and in some cases superior, operating metrics. Its latest print (Q1 2025) showed $6.75 million in revenue (+17 % YoY) and a 70.5 % non‑GAAP gross margin.
Benchmark Valuations: What Recent Deals Signal About Revenue Multiples
Two of DarioHealth’s closest peers provide fresh pricing markers that frame where scaled digital‑health platforms clear today—and the numbers are strikingly higher than Dario’s current market cap.
Omada Health (pending IPO) – The May 9 S‑1 shows 2024 revenue of $169.8 million (+38 % YoY) and Q1 2025 revenue of $55 million (+57 % YoY). Bankers are marketing the deal in the 8‑to‑13× sales range, implying an IPO valuation of roughly $1.4 billion to $2.2 billion—about 9‑12× trailing revenue.
Sword Health (May 2025 private round) – A $130 million primary/secondary transaction lifted Sword to a $3 billion valuation, 50 % above its 2021 Series D. Management says revenue has “nearly tripled” in the past year; even on a conservative $300‑350 million 2024 sales estimate, the round values Sword at roughly 9‑10× revenue.
Taken together, these deals pin the going rate for mature, multi‑condition digital‑health platforms at ~9–12× annual revenue—a stark contrast to DarioHealth’s sub‑1× multiple and a key reason the company’s shares could re‑rate sharply as investors benchmark it against these comps.
DarioHealth: Comparable Performance at a Fraction of the Valuation
When comparing these valuations to DarioHealth’s market capitalization of roughly $30 million, the disparity is glaring. The company grew revenue 32.9 % in 2024 and added another 17 % in Q1 2025. B2B2C gross margins continue to exceed 80 %, outpacing Omada’s reported margins.
Applying peer revenue multiples suggests a meaningful uplift: using Omada’s likely IPO range implies a $240–$400 million valuation for Dario (about 700–1,200 % upside). Sword’s framework points to a similar ~800 % undervaluatio
Comprehensive Platform Addressing Multiple Conditions
Like Omada, DarioHealth offers a multi‑condition platform, but with notable differences. Its unified architecture spans cardiometabolic care (diabetes, hypertension, weight management), musculoskeletal health (digital physical therapy), behavioral health, and integrated GLP‑1 medication support.
The platform leverages AI‑driven personalization and real‑time data insights to deliver measurable outcomes, including significant A1C reductions and meaningful improvements in anxiety, depression and pain metrics.
Recent operational achievements further strengthen DarioHealth’s market position:
B2B2C recurring revenue surged 398 % YoY in Q4 2024, and Q1 2025 revenue grew 17 % YoY while maintaining >81 % gross margin in the segment.
Nine health‑plan agreements are now in place, including both regional and national partners.
14 additional enterprise and pharma clients signed year‑to‑date 2025, bringing the total client base to 97 organizations (up from 83 at year‑end 2024).
Strategic debt refinancing of up to $50 million—alongside a preferred‑equity raise—left $27.9 million in cash on March 31 and pushed amortization out to 2028, enhancing financial flexibility.
Unlike many growth‑stage digital‑health companies, DarioHealth has articulated a clear path to operational cash‑flow breakeven by year‑end 2025. GAAP operating expenses fell 35 % YoY in Q1, driving a 47 % YoY reduction in GAAP operating loss to $9.4 million.
Dario as a Digital GLP-1 Play
Both Omada and DarioHealth recognize the sizable opportunity in supporting patients on GLP‑1 medications. With the GLP‑1 market projected to reach $100 billion globally (and $44 billion in U.S. obesity treatment) by 2030, Dario’s comprehensive program—bolstered by its Q1 virtual‑prescribing rollout via MediOrbis—addresses the critical need for behavioral support and sustained adherence.
Research indicates 50–75 % of patients discontinue GLP‑1 therapy within a year without proper coaching. Dario’s integrated approach to medication management, behavioral modification and ongoing monitoring creates substantial value for patients and payers alike.
Looking Ahead
The coming wave of digital‑health IPOs, beginning with Omada and potentially Sword in 2025–26, is poised to spotlight revenue multiples across the sector. For investors seeking exposure to this transformation, DarioHealth offers similar—or better—metrics than its private‑market peers at a deep discount to their implied valuations.
As capital markets absorb this disparity, DarioHealth could be positioned for a significant revaluation driven by improving financial metrics, expanded capabilities and accelerating market adoption.