DarioHealth Raises $25.6M to Accelerate Path to Profitability

Digital health company DarioHealth (Nasdaq: DRIO) has raised $25.6 million through the private placement of convertible preferred stock.

Dario, which offers behavioral health care, among other services, plans to use the funds to achieve its goal of being cash flow positive by the end of 2025, according to the company.

“Today, we are happy to announce the completion of a major milestone in this strategic plan that we believe can secure our projected operational cash flow positive run rate by the end of 2025,”  Erez Raphael, CEO of Dario, said in a statement. “We are particularly pleased that more than half of the newly issued convertible preferred shares were purchased by our existing shareholders, which we believe is a strong vote of confidence in our strategy and performance. The remaining funds came from prominent accredited healthcare investors that we are thrilled to have onboard as shareholders as well.”

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New York City-based Dario partners with payers and employers to provide virtual care for various chronic conditions, including behavioral health services. In 2024, Dario acquired digital behavioral therapeutic Twill. Its behavioral offerings include self-guided tools, coaching and peer support. The company touts a 26% improvement rate in depression and anxiety symptoms among its patients. 

Earlier this month, the company expanded its service lines and began offering GLP-1 prescriptions – after which its stock price increased nearly 14%.

As part of the equity offering, Dario issued 18,805 shares of preferred stock sold at $1,000 per share with a $0.73 conversion price and 6,800 shares of preferred stock sold at $1,000 per share with a conversion price of $0.83.

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Dario last closed a round in February 2024, when it raised $22.4 million

Other behavioral health companies have also knitted up sizable notable funding rounds thus far in 2025. So far this month, Mindful Health raised $12 million and Slingshot AI raised $40 million.

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