Thank you. . . . © transcript Emily Beynon 1.

Good morning, ladies and gentlemen, and welcome to the Dario Health Third Quarter 2026 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 star zero for the operator. This call is being recorded on Thursday, November 12, 2026. I would now like to turn the conference over to Zoe Harrison, VP, Accounting and Corporate Development at Dario Health. Zoe, please go ahead.

Thank you, operator, and good morning, everyone. Thank you for joining us today for a discussion of Dario Health's third quarter of 2026 financial results. Leading the call today will be Erez Raphael, Chief Executive Officer of Dario Health. He'll be followed by John Palomo, Chairman of the Board, Lara Dodo, our Chief Operating Officer, and Hen Franco, 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, November 12, 2026. This morning we issued a press release announcing our financial results for the third quarter of 2026. A copy of the release can be found on the Investor Relations page of Dario Health website. I'd like to remind you that on this call, management will make forward-looking statements within the meaning of the federal securities laws. For example, the company is using forward-looking statements when it discusses expected revenue growth and contributions from signed accounts, the timing and extent of revenue recognition under existing customer agreements, the company's revenue outlook and financial performance expectations, its path to profitability and positive cash flow, the continued reduction in operating expenses and losses, its expansion of channel partnerships and distribution, expected revenue and scaling from partner-led opportunities, expected onboarding, implementation and enrollment of large enterprise accounts, expected conversion of contracted annual recurring revenue into recognized revenue, expected expansion into care delivery, claims-based and outcomes-based models, expected benefits from care delivery partnerships, Thank you for joining us today. the anticipated expansion of existing customer relationships into additional chronic conditions, the expected timing and contribution of new product offerings, the company's ability to increase revenue per customer through its multi-condition strategy, the expected benefits of provider-backed clinical care, the expected timing of revenue acceleration, and of activation under health plan agreement. Beliefs regarding the convergence of consumer and payer-funded healthcare, and the re-platforming of chronic care management, the expected delivery of GLP-1 and other therapies within payer programs and marketplaces, the expected contribution of women and men's health programs, and beliefs regarding competitive positioning and market opportunity. 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. Companies' results may differ materially from those projections. These statements involve material risks and uncertainties that could cause actual results or events to materially differ. 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'll hand it over to Erez Raphael, Chief Executive Officer of Dario Health.

Good morning, everyone, and thank you for joining us. Before we get into the quarter, I want to start with the leadership change I'm very excited about. We recently announced that John Palombo has become a chairman of our board. John joined our board in April of 2026, and since then, he has worked closely with our management team week after week on our commercial strategy, execution, and on where this market is going. On its first call as a chairman, John will share the board's view on the market and the dollar's position in it. In the second quarter of 2026, we described how dollar compounds across four drivers, each acting on a different part of the economics. Account depth, distribution efficiency, AI leverage, and value chain participation. Let me give you a quick update on each one of them. Account depth means more revenue from the customers we already want. Healthcare purchasers want fewer vendors and want integrated platform across conditions. And that is how we build Dario. More than 80% of our contracted and late-stage recurring revenue is now multi-conditioned. Every additional condition have the potential to generate two to five times more revenue from the same account for the same implementation and the same relationship. And members managing multi-conditions on our platform achieve better outcomes than those managing one. Better clinical results and more revenue from the same client are a rare alignment in this industry. Distribution efficiency means more accounts faster for less. Our channel partners continue to open large populations for us, including our third state health plan, this one in New Jersey, to MWEL this quarter, without proportional increase in our sales organization. AI leverage means more revenue per member at a lower cost to serve. We are fully vertically integrated from our own FDA clear devices to more than 13 billion proprietary data points. To WIQ, the AI engine that leverages our proprietary data and technology infrastructure. Every new member deepens the dataset and every advance in AI raises the value of the data we own. That advantage compounds. This quarter, WIQ moved from individual engagement program to an integrated system that predicts which members are about to disengage and act before they do. Lara will share more about those results. Value chain participation means access to more of the healthcare dollar. During the second quarter of 2026, we said this fourth driver was just beginning. Since then, the market has moved even faster than we expected toward Pairs funding, the therapy itself, and not only the digital We believe that this quarter shows the model is working. With revenue up 6% year-over-year, existing customers expanding into additional conditions, and a new state health plan signed through our channel. Lara and Penn will take you through the details. We continue to expect revenue to accelerate at the end of 2026 into 2027, driven by the conversion of contracted and late-stage annual recurring revenue. At the same time, something bigger is happening in our market. For years, the industry treated consumer health and payer-funded chronic care as two different businesses. We believe that they are becoming one, and value sits exactly where they meet. John Palombo, our new chairman, have spent his career inside the payers, providers, and health services organization that are shaping this shift. So I've asked John to walk you through this change. John?

Thank you, Erez, and good morning, everyone. Before I go further, I want to thank Yoav Shaked for his service as chairman. Yoav helped guide this company through a formative period, and I'm glad he continues to serve on the board as we move into this next chapter. I want to start by telling you why I accepted the role. I have spent more than 40 years in healthcare from early stage companies to Fortune 50 enterprises. I led the provider business at AmerisourceBergen. I served as chief operating officer of Allscripts. And I sit on the boards of companies across care delivery, medical device and diagnostics, conversational AI, and digital health. I have seen a lot of platforms. Very few have what Dario has built and the market trends now underway are moving toward what Dario already does. When I joined the board in April of 2026, I expected to help with commercial strategy. What I found working alongside Erez and this team was a company that had built over more than a decade The capabilities the market is now moving toward. And a strong team with a culture focused on execution, consumer experience, and trusted outcomes. I am confident in this leadership team, the company's capabilities, and the direction it is going. Let me explain what I mean by where the market is going. For a decade, consumer-paid health and payer-paid chronic care were separate markets, served by separate companies with separate economics. The consumer companies won the consumer's choice. Point solutions won a place in health plans' benefit. Almost no one did both. That wall is coming down, and I see four forces pulling it down at the same time. consumers now choose their own front door. Consumers are increasingly using digital tools, including AI-enabled services to access health information and navigate care options before engaging with healthcare providers. At home, people have easy access to self-diagnose and self-care. Easy access has never been more essential in health and care management due to our growing shortage of caregivers. Second, Pharma is going direct to consumers. Manufacturers now sell branded GLP-1 health and weight therapies straight to consumers. Third, payers are redefining how they engage the members and redesigning benefit plans. Several of the largest insurers are launching plan designs with fixed upfront costs instead of deductibles. And those plans need proven programs to attract, navigate, and retain members and to optimize care resources. Fourth, payers are bringing consumer choice inside the benefit. We see this directly with one of the largest national insurers has publicly repositioned itself as a consumer health company. Across our health plan relationships, we are in active discussions about extending from behavioral digital programming into clinical provider services. including access to FDA approved, branded GLP-1 prescription medications prescribed by licensed healthcare providers. The Dario platform has been built to support this market model convergence and that all the major players are moving toward. That last point is the one I would ask you to remember. The convergence of business-to-consumer B2C and business-to-business-to-consumer B2B2C is accelerating and bringing two large, previously separate markets together. Payers are moving from buying programs that sit around a therapy to buying the therapy itself, delivered inside a managed and measured program. For Dario, that translates into a much larger share of the healthcare dollar. and we are already seeing it in our own results. In the third quarter, consumer revenue grew approximately 48% year over year and represented 53% of total revenue compared with 38% a year ago. So here's how I think about it. The consumer picks the door. The payer pays for the chronic condition behind it. The value moves to whoever owns the path between the two. Owning that path requires two things at once. You have to be chosen by the consumer, and you have to be trusted by the payer. Consumer telehealth companies have proven the demand, but most lack consumer acquisition, retention assets, validated payer-grade evidence, and a chronic care engine in front of and behind the prescription. Point Solutions have the payer contracts, but consumers rarely choose them. and here is what is essential to understand. Dario has both. It started as a consumer company, selling FDA cleared connected devices directly to people living with diabetes. It grew into an enterprise platform with 184 customers as of September 30th, 2026. It holds more than 13 billion proprietary data points and more than 100 peer-reviewed published studies. And an independent third-party analysis estimates meaningful healthcare cost savings for our users. That is very hard to replicate and it becomes more valuable as AI improves. Dario is also multi-conditioned by design. One platform and one member experience across diabetes, hypertension, weight management, Musculoskeletal and Behavioral Health, and more recently, Sleep and Women's Health, all supported by an evidence base built across our established cardiometabolic and behavioral health programs. That is exactly what payers consolidating their vendors are asking for, and it is what makes Dario a natural partner as payers bring specific therapies into the benefit. This is why I believe chronic care management is being reshaped so that it is reachable from either the consumer door or the payer door. Dario did not pivot into this model. It built it before the market asked for it, and it is the expansion the platform is built for. It also changes how I look at new categories. Women's and men's health are not lifestyle side bets. They are chronic care in disguise and can be early indicators across multiple conditions, including cardiometabolic risk. They are natural consumer entry points into the conditions Dario already manages. These also sell into the employer and health plan relationships Dario already holds. Dario Women is the first example. Let me say a word about how the board approaches this. Our focus is on converting the contracts Dario has already signed, scaling through channel partners, and building the capabilities that let payers fund what consumers choose. Our job is to make sure the company captures the full strategic value of the position it has built. For more than a decade, the industry treated consumer health and chronic care as two different businesses. They are becoming one. The Convergence Flywheel is our differentiated value, and I believe Dario was built for exactly that moment. And this is a large and growing area of need. According to the Partnership to Fight Chronic Disease, chronic disease is projected to cost about $2.2 trillion a year in medical spending, roughly 40% of the nation's more than $5 trillion in annual healthcare spending, and 93% of Medicare spending goes to beneficiaries with chronic conditions. I look forward to sharing our progress with you. With that, I will hand it to Lara to walk you through our commercial execution.

Thanks, John. At Dario, we have more than 180 signed accounts across employers and health plans. Five are Fortune 50 companies. and approximately 25% of our B2B2C client base comes from Fortune 500. I want to focus on four areas we are refining in our strategy to accelerate revenue. Winning new accounts, growing existing accounts, converting health plan agreements into revenue and bringing new capabilities to market. First, let's discuss new account growth. Channel Partners continue to account for about 75% of our new accounts. expanding our access to self-insured employers and health plan populations with shorter sales cycles and lower customer acquisition costs and a direct sales model. Importantly, we now have multiple sales teams supporting the strategy rather than lying on a single team. A good example of this traction is our in-call-to-win-through AmWell channel partnership. We were selected by one of New Jersey's largest health plans, representing about 1.5 million covered lives. This is our third state health plan signed through Amwell in the past 12 months, following Arizona and Florida. Other significant channel wins during the third quarter of 2026 include a commercial opportunity covering more than 100,000 lives, and a regional health plan at administrative services only opportunity representing approximately 250,000 lives. Launch planning is expected to begin in mid Q1, 2027 and will extend through 2027. These opportunities serve geographically dispersed employer populations, potentially nationwide. Our channel model is designed to repeat. In fact, our channel market revenue is on track to deliver two times growth, 2x for year over year, with the potential to replicate that performance again in 2027. We are actively developing additional innovative channel partnerships and expect channel distribution to remain the primary engine of our growth into 2027 and beyond. We have also made Dario easier to buy. Self-insured employers can contract with us directly through a reseller, through their health plan or TPA, or through a marketplace. By simplifying selection and contracting and with automated SSO implementations already established with various channel partners, we are making it easier for consultants, brokers, and clients to activate Dario. This is one of our most practical growth levers. A second focus is growing the accounts we already have. This is where multi-condition strategy is most evident. We grow accounts in two ways. We land with one condition and expand. And increasingly, we win multi-condition contracts from the beginning. Most of our new enterprise opportunities now involve multiple conditions. These results are reflected in the composition of our business. More than 80% of our contracted and late stage recurring revenue is multi-condition. This demonstrates how the strategy is compounding. An in-courtier example is a leading regional grocery retailer, an existing self-insured employer client, which expanded its contract to include Daria Women, our program supporting women navigating perimenopause and menopause. A third focus area is converting health plan agreements into revenue. We ended the quarter with approximately $13.1 million in contracted and late-stage annual recurring revenue, approximately 40% of which comes from health plan ASO agreements. An ASO, or administrative services only agreement, gives us access to a health plan self-insured employer book. Revenue builds as individual employers activate, their members enroll, and eligible populations expand. While conversion takes longer than a direct employer contract, it provides access to a substantially larger population and the potential for a stickier revenue stream. To accelerate this process, our channel sales efforts are increasingly moving towards co-selling, working alongside our health plan partners to engage local employers and consultants directly and drive ASO activation. The fourth area of focus is our speed to market, turning new capabilities into commercial opportunities. Our integrated GLP-1 program spans three channels, our direct-to-consumer shop, employer programs, and health plan marketplaces. Spring goes beyond digital health support for members taking GLP-1 medications. It provides a digital front door to clinical providers and medication access and management alongside innovative employer program designs. These include narrow networks, GLB-1 carve-outs, and alternative employer subsidies that extend beyond traditional PBM carve-out models, including approaches that provide access to directly sourced FDA-branded medication. In the second quarter, we also launched Dario Woman and Dario Sleep. both are designed as add-on programs to our existing Cartier metabolic platform, which addresses diabetes, hypertension, and weight management. With one in three women developing metabolic syndrome during the menopause transition, and nearly 45% of our book of business represented by women over the age of 14, this represents a relevant market opportunity and a natural cross-sell opportunity within our existing customer base and the broader commercial market. DarioSleep enables eligible members to complete a one-night clinical-grade home sleep test with real-time data transmitted directly to licensed healthcare providers for evaluation. Data shows that cardiometabolic patients with obstructive sleep apnea generate approximately 50% higher annual medical costs. This creates a logical opportunity for existing cardiometabolic customers to add our C program with the potential to enhance in-year medical cost savings while addressing a broader commercial population. Technology and clinical evidence also further strengthen our commercial opportunity. Dario Appiu, our proprietary AI layer, built on more than 13 billion real-world data points, advanced this quarter from individual engagement programs to an integrated system that predicts which members are about to disengage and acts before they do. The early results are strong. Members that it flags as at risk for disengagement are disengaging at maybe three times the rate of other members. This gives us time to act. Members we reach early in their laps come back within a week at 1.7 times the rate of those members that we do not reach. We have also started a randomized trial of AR behavior agents with encouraging early signals. Last quarter, we said Dario IQ could add 10% to 15% to our B2B2C annual recurring revenue from existing customers. The results we measured this quarter now support that, up to approximately 14% in engagement-based ARR. Last quarter, it was an expectation. Today, it is both on measured results. Dario IQ is now deployed across the organization and is one of the several contributors to an approximately 10% year-over-year reduction in operating expenses. Clinical evidence and in-year medical cost savings also contribute to strengthen our commercial position. Dario now has more than 100 studies and scientific publications, including 27 through the American Diabetes Association, Additionally, we announced in October 6 the press release of a third-party analysis that evaluated 17 published Dario studies and showed an estimated 2.5% to 7.2% annual reduction in total healthcare costs across the COVID population. We will continue to use real-world health outcomes and claims-based data to demonstrate how Dario delivers in-year savings and clinically significant health improvements. Finally, I want to leave you with one broader market observation. We are increasingly hearing from our health plan, employer, and marketplace clients that employer-sponsored benefits are moving toward a hybrid model, combining traditional benefits with direct-to-consumer access for services and medications that may be better suited to a carve-out offering. The objective is to help offset payer costs are providing members with quality alternative care options and greater flexibility. Dario is well-positioned to address this opportunity with an established direct-to-consumer channel that has served more than 1 million consumers alongside our growing B2B2C business. At the core of this model is strengthening member self-agency, helping individuals take greater ownership of their health through behavior change while ensuring appropriate escalation to care That is precisely the platform that Daria has built. With that, I will turn the call over to Jen to review our financial results.

Thank you, Lara. Our third quarter results reflect continued progress in building a more efficient business. Revenue for the quarter was $5.3 million, up 6% from $5 million in the third quarter of 2025, and up 3% from $5.2 million in the second quarter of 2026. Gross margin was 59% compared with 60% in the third quarter of 2025 and 62% in the second quarter of 2026, primarily reflecting the lower tariff refund benefit in the third quarter and a higher direct-to-consumer mix partially offset by lower hosting costs. Our non-GAAP B2B2C gross margin remained at approximately 80% for the 11th consecutive quarter. Operating expenses were $11.2 million, down 10% from $12.5 million in the third quarter of 2025. Sequentially, operating expenses increased, primarily reflecting higher stock-based compensation, mainly in general and administrative expenses. Operating loss improved 15% year-over-year to $8 million and net loss improved to $8.8 million compared with $10.5 million in the third quarter of last year. Non-GAAP operating loss narrowed to $5.3 million compared to $6 million in the third quarter of 2025. A reconciliation of gap to non-gap measures is included in our earnings press release. For the first nine months of 2026, operating expenses declined 17% and operating loss improved 22% compared with the same period last year. We continue to apply AI inside our own operations, and it is one of several contributors to lower operating costs alongside lower headcounts, lower stock-based compensation, and post-merger integration savings. As of September 30, 2026, we had $31.2 million in cash, cash equivalents, and short-term deposits, following our July 2026 registered direct offering priced at the market under NASA COOLS. We believe we have the resources to execute on our priorities as contracted revenue is recognized and our new programs are implemented. From a financial perspective, we believe that what matters most is the operating leverage in our model. The platform, the commercial infrastructure, and the clinical evidence are already built. Assigned accounts activate an existing customer at conditions We expect each additional dollar of B2B2C revenue to carry a high gross margin and to contribute to narrowing our operating loss and cash burn. With that, I will hand it back to Erez.

Thank you, Ken. Let me close with two things. First, the model we described last quarter is working, account depth, distribution efficiency, and AI Leverage are compounding in the business today, and the fall driver, value chain participation, is moving faster as payers bring therapies into the benefit. We remain on track, as we said, for revenue acceleration in 2027, as late-stage and compacted ARR across our accounts converts. Second, the market is moving toward us. both are bringing consumer choice inside the benefit. They are moving from buying programs around therapy to buying the therapy itself delivered inside a managed program. Very few companies can serve both the consumer and the payer on the same platform. Now you can. I want to thank our employees for their dedication to our members and to each other, our channel partners for their trust and our shareholders for their continued support. And I want to thank John for stepping into the chair and Yoav Shakad for his years of leadership as a chairman. I will now turn the call to the operator for a Q&A session.

Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press the star key followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star key followed by the number two. One moment, please, while we assemble the queue. Your first question comes from Charles Rhee of TD Cowen. Please go ahead.

Yeah, thanks for taking the questions. I just wanted to understand a little bit about, I think last quarter, I guess, I'm sorry, let me start this way. In the press release, you talked about contract and late stage AR about $13 million. Can you talk a little bit about sort of the timeline for how we should expect that implemented? I think last quarter, you noted we should start converting some of this to revenue in the fourth quarter. Is that still the right trajectory? And maybe give us a sense for how much of a step up we should see You know, going into fourth quarter and then into the next year. Thanks.

Yeah, thank you, Charles. So as we mentioned on the earning call, we think that this $13.1 million will be converted into 2027 and also some of it in 2028. What we disclosed is that some of the $13.1 million is an ESO business. Usually the ESO business is something that is taking longer to build and to implement. More than 50% is not an ESO business. So we think that what we're going to see is gradual ramp up toward the end of the year. mainly the beginning of next year, and then during 2027 and into 2028. We did have more wins this quarter. The Jersey is one of them, but we didn't count it on top of the $13.1 million for now because it is also an ISO business and we wanted to play conservative with the total contractor there that we are counting in. When we are looking into the concerns of the analysts for 2027, we think that it's aligned with the statement that I just provided.

Okay, so if we look at where consensus is for 27, you feel that's a comfortable range to think of based on what you're seeing right now?

Yes, the answer is yes.

Okay. And then obviously expenses, you know, you've managed that very well. Maybe talk about sort of are we still on track for reaching a breakeven as we get into 2028?

Yes. I mean, if we are looking into the contract that they allow, plus the additional things that are getting in, including what we signed this year, I think that we're in the trajectory to hit breakeven in 2028. Yes.

And maybe a question around sort of this GLP-1 support. Can you talk about what are your clients looking to do, maybe on the health plan side in terms of covering GLP-1s? Because a lot of the anecdotes and discussions when we speak with consultants is that employers are slowly actually pulling back from coverage. And just so, just want to understand what you're seeing right now in terms of GLP-1 coverage overall and what that kind of means for sort of a GLP-1 support program.

Hi, it's Lara here. I'll take that. The first thing is the space is changing. It's a consistent change of flight. So what we've seen and we're hearing is almost from some of the largest consulting houses is that there's almost a divide of about 50% in the market, 50% of employers in more traditional industries like financial services who are choosing to actually move away from traditional and many, many more. and then there's a whole other group as well who are choosing not to reimburse and what they're wanting to do and this is where the space is really interesting is they're looking for tutorials for alternative strategies of saying as an example we want to provide some kind of employee funding and looking to either direct to consumer offering or bringing in alternative ways of subsidizing that could include subsidizing or incentivizing members to do a behavioral-based program and then go with more of a hybrid PBM, which is emerging out as well that would have more direct access to FDA branded drugs. There's a lot going on. There's not a conversation we have with a client, existing client, that doesn't include looking at their strategy. But those are the three things, either having a more gated access to the drug through traditional PBM, carving it out with no reimbursement, but having some type of a subsidy support, or looking at a hybrid opportunity that could go as creative as direct-to-consumer.

And can you talk about how the Nadario, how you guys would support customers if they are choosing more of a direct-to-consumer approach? And I know, John, you had mentioned that one of the trends that you're seeing is obviously the shift to direct-to-consumer, and we are seeing pharma in their development of new drugs also looking, you know, mainly not increasingly, but are starting to look at a direct-to-consumer approach in their development plans as well. Maybe talk about how Daria could be supportive in that shift.

Would you like to take it?

Yeah, absolutely. So from that end, what we're seeing is, so when the discussions come in, a lot of it has to do with the subsidy of how they're going to subsidize it. There's a couple of flavors. So for the employee who is wanting to say, you know, they could even be in discussion on narrow network. So it could be a case of they're wanting to have direct access to a branded drug, but they actually want to make sure there's a really rigorous clinical protocol in place. And so Dario is stepping up creating a rigorous clinical protocol that would have a The other pathway is in the marketplace where we're working through various solutions where a member would come in through a marketplace. I'm going to have the option through that provider care to send scripts to really a pharmacy of their choice. So we're answering that call in a few ways. It's providing rigorous care for those who want to make sure that protocol's in place, providing choice of access of where the member can get their drugs from, whether it be their pharmacy or direct to a branded group. And there are emerging new groups that we'll be talking about in the next several weeks on hybrid PBMs who have other options for such types of employer arrangements.

But if an employer does uncover, is there anything that you can work with them? Or is that just, that's the one area where then?

No, not at all. Actually, that's exactly, in fact, that's a great question because that's exactly where we're stepping up. So for those employees, and we know now statistically it's about 50%, there's a few things. Number one, the price differential on going directly to Lillianova is quite substantial. for the employer who wants to take on that option by funding a program like Dario to really work on the behavioral side and then allowing Dario to work with either a designated provider network through the employer or through the member's own practitioner. But those scripts can be sent directly to Lilianova. So that oftentimes is actually a far less expensive route for a member than through any deductible they may be accountable for. These employers are also then able to provide other savings, HSA, FSA savings through alternative PBM arrangements or direct buy through a direct to consumer channel. So we absolutely are working very much so with those employers who are saying we want to carve it out. That's probably about 80% of our commercial conversations at the moment.

If that makes sense, I'm happy to go into more detail if needed.

Are we still connected?

Yes, I don't see any action on his line. I think he might have dropped the call.

Okay, got it. I was like, oh dear, I have not answered sufficiently. Anyway, if anyone has any more follow-up questions on that, it's a passion topic, it's a hot topic, and we have a lot of detail to share on that.

All right. Your next question comes from David Grossman from Stiefel. Please go ahead.

Hi, all. Good morning. This is Aidan Kniff on for David. Thanks for taking my questions. I wanted to start with the new women's and Sleep Solutions, you're adding to the multi-condition platform. How should we think about the incremental revenue opportunity coming from those? Is it primarily just larger eligible populations can use the solution or an increase in revenue per member? And when should we start seeing those kind of contributions hit the model?

Great. Another two really exciting chapters in Dario's evolution. So the first thing, David, just to ground it, is we are firmly rooted in cardiometabolic health. And it is our thesis based on data that perimenopause and menopause, as well as sleep disturbances like obstructive sleep apnea, compound to really impact worsened, if you will, cardiometabolic outcomes. It basically makes care more expensive. Our fastest track to be able to help those members and to add revenue to Dario is to look within our existing book of business. We, in a very early go-to-market strategy, already have two early adopters going live, 1-1-27. So the opportunity is as follows. Existing book of business, it's an easy, rooted pathway to add on. Thank you for joining us. So from a revenue perspective, the opportunity is an existing book of business as either a retention tool, which we've seen actively happen, or as an expander, part of our land and expand strategy. And for net new clients, there's a tremendous demand out there, both on, I'd bucket it for just simplicity, unaddressed women's health. where we know that one in three women who are at that stage of middle-life change, menopause, premenopause, are at risk of metabolic diseases. So there's a tremendous call to get involved to, again, avert the cost curve. And on the sleep side, just one data point as an example, CPAPs, approximately $2,500, have a very low adherence rate, very, very low. So for our plan members or payers out there who are providing CPAPs that are going unutilized, you're getting hit on unutilized equipment. and worse in cardiometabolic outcomes. So it's just a lose-lose versus having an at-home, really easy to experience sleep test and having a therapeutic that's appropriate that the member's part of selecting. That could be a GLP-1 drug, it could be an oral device, it could be a positional pillow, all significantly less expensive than a CPAP and will have a high adherence rate. And then and a number of others. So, we're going to be scripting CTAP where it's absolutely appropriate. So, these are the pathways we've designed. We'll be actively taking them to market in Q1 for sales cycle. We are prep, we're already in the back end and early indication discussions through existing clients where we kind of trial socialize it, have come back with tremendous enthusiasm about the offering.

Great. Thank you. I appreciate the kind of. incremental detail there. And then just on a follow-up on the channel partner business, how much of the growth opportunity is coming from existing channel partners versus adding new relationships? And then is there a way to quantify how much implementation time is needed and the time to ROI landing from different clients versus just direct sales motion?

Mm-hmm.

So we already have the channel partner strategy in place and also the partner themselves in place. And we keep disclosing the names. It's Solera, it's American Whale. And we are expanding through existing channel partners. So to make a long story short, we do have them in place and this is why and the time is going to be sooner than later. We do have another big channel partner that is just about to be signed and that one is going to add more. That one is going to be signed alongside with a health plan that is going to be announced alongside this channel partner. but in general, all the channel partners agreements are in place. With all of them, we already have clients that we want and it's just a matter of getting more clients and implementing it. As we disclosed on the earning call, on the script, we have like 75% of our clients are coming from the channel partners and this is why we think that it's going to be fast and scalable.

Great. Thank you for that. Thanks, Steven.

Your next question comes from David Larson of BTIG. Please go ahead.

Hi. Congratulations on the inflection to year-over-year revenue growth. That's great to see. Can you talk a little bit about this health plan win in New Jersey? I mean, that looks pretty big to me. and typically what percentage of lives, so if they have 1.5 million lives, what percent would typically convert onto the platform or perhaps be like, you know, good members to basically get benefit from the platform? Thanks.

Thanks, David. There is indicated we're taking a conservative approach. We really are trying to work more on our preciseness and predictability. So I really want to underscore that. It's an administrative services only opportunity. So, I mean, the upside is tremendous with 1.5 million members. The timeframe, realistically, we aren't anticipating a lot in the first two halves of 27. It's probably in the back half of 2027 because the full socialization with the employees has not begun yet. So that's the first part. The second part, our pathway we're going to take is very much on the full cardiometabolic bundle. We are aware that some of the existing employees have, I've called it old school point solutions in place. and so we really are working on our strategy to make sure that we are exact in positioning the value contribution we bring with compounded savings to those employers by activating what they can with a very simple, literally just activation through American Well, the full cardio metabolic offering. So I would be cautious to make any prediction right now on what the revenue will be. I think if we chat about this in Q1, by the end of Q1 we'll have much more indication of where the upside will be on this account.

Okay, when you say ASO, I mean, I would think an ASO account would have more incentive to basically use Dario because the employer group is paying their own healthcare bills for their employees. So if you can improve trend, I would think that there would be more incentive to get on the platform. Just, I guess, another quick one for direct-to-consumer, the revenue growth in the quarter. Can you just remind me, what is the difference between, like, your direct-to-consumer growth versus, I guess, B2B to C, and why was it so significant this quarter?

Can I just quickly answer your comment first? I think it was basically on the comment of the ASO, then I'll hand it to Erez. I wanted to just say, David, before handing over, I, we, Dario, a thousand percent agree that these employers should definitely be looking into the savings from a Dario standpoint. That is probably what keeps us up at night, is that we know we have the anecdote to their cost situation. And that's a big part of the value prop of how we're trying to figure out exactly how to best communicate with each of these various accounts in the ASO, because that's 100% the case. We do represent cost savings reduction, and we do bring about innovation for them. So I just wanted to underscore we're 1,000% aligned, and that's the strategy for the ASO. Erez, over to you.

Yeah, in terms of direct-to-consumer versus what we are calling B2B2C, so some terminology, at the end of the day, Dio started as a direct-to-consumer, and we are a very consumer-centric company. At the end of the day, we do the best for our consumers, the best experience, and eventually we help them to be engaged, and with engagement, we're improving outcomes, and eventually we're also saving money to pay us. So when we are saying direct to consumer is what we are selling them directly through multiple platforms like Amazon, Meta, and others. And when we are saying B2B2C, we refer to our main two clients that are insuring members, which is self-insured employers, or health plans or health systems that eventually are buying the solution from us. And then we are getting The opportunity to enroll members through multiple channels that we are getting from the payer. Today, Dario has around 11 different payers and around 175 different self-insured employers that bought our solution for their members.

Okay, congrats on a nice quarter. Thanks very much.

Thank you, David, and welcome to our earning course.

Your next question comes from Scott Henry of Alliance Global Partners. Please go ahead.

Thank you. Good morning or afternoon, depending on your location. I appreciate John with his opening remarks as well. That was really helpful to hear that outlook. I guess starting in the GLP-1 category, obviously GLP-1s have many indications well beyond weight loss. Do you think, you know, for your platform, would you be more involved with, say, the sleep apnea, the cardiovascular, the women's health, overall patient conditions, as opposed to weight loss, or would you do both? Thank you.

Hi, Scott. It's Lara. Thank you so much. Yes, the short answer is yes. So going back to our grounding, we are being very deliberate about how we take on expansion. So again, everything we're doing is rooted in cardiometabolic, but with appropriate extenders. So the sleep apnea GLP-1 is an excellent indication of of Appropriateness for Treatment there. Obviously, there's a wait. There's a lot more coming up on some other topics as well. So, for sure, stay tuned. We're working closely with our clinical team to make logical expansion, and GLP-1 is part of that.

Okay, great. And, you know, at the risk of oversimplifying it, but we've heard a lot about this channel. Could you just walk through, you know, how this procedure will work, as simple as possible, The patient, I assume they're already a member of your portal. And then do they go to the physician and then go back to the portal, just connecting from the patient to receiving the GLP-1? Thank you. And if you could talk about where your value add comes into the equation. Thank you.

Yeah. I would describe this configurable, again, depending on each individual. as request of Dario. So I would think of it in the thinking of before GLP-1, during GLP-1, and post GLP-1. So we have some employers who want Dario to be a part of that before a member is rooted to care for GLP-1, looking to see appropriateness, or having some kind of behavioral programming component before they will essentially approved reimbursement. So there's before care. During, we have many employers and payers who work with us to ask to support their members who are already taking a GLP-1. In fact, we're in discussion with a group on quite a large study to demonstrate members who are taking GLP-1 with a digital health program exhibit better outcomes than those that don't. So there's this whole support component, and then there's also the off-boarding for folks who may be due to cost side effects or various other pieces, want to come off the GLP-1, working with them to lock in and the weight loss, if you will, that they've had and make sure they're sustainable when they stop the drug. So there's kind of three pathways. On the pure access to prescription, again, different ways to do it. We can bring a narrow network, so where all members who want to be reimbursed will be pushed to a Dario network. There are other options where it could be, Dario, can you, we're going to carve out reimbursement, can you bring an opportunity again of your prescribers or anyone, and have access to different Medicaid, direct needs in it, really and over. but the protocol that I think you're angling at, I'll share with you an example of where we are doing the digital front dooring. So members access Dario through a digital front door. They are screened as eligible by FDA guidelines. They are offered the option of, of course, going through a behavioral route only. But should they meet the clinical guidelines that are appropriate, they would then be routed onto our provider network. Providers would then have a session with them to, again, go through their medical history and all other relevant topics. And should they be appropriate, they would then provide a script. And it's a whole dosage regimen. It starts at certain dosage, and it has a whole titration route. they'll work with that member directly on where to send the script, if there's a preference of a brand of medication or maybe based on again their medical history and then that script is routed off to the pharmacy and what Dario is doing in the back end from our digital perspective is we are continuing on reminders of appointments, we're continuing on education digitally, coaching where is desired to really gain support and wrap around services on the GLP-1 journey. So we are offering behavioral support, There's always support to provide a networked care team for medical reasons and to make sure that if there's any side effect, it's correctly and clinically managed. I hope that answers the question.

Yeah. Yeah, that was great. Thank you for that color. And if I could just shift gears, when we think about modeling for 2027, how many account ads would one expect to have in that year? Obviously, there are different size accounts and they're not all valued the same, but just from a sense of sheer number.

Yeah, you know, it's a bit of a nebulous question because it depends on the size of the one, right? So when we, you know, we've got a couple of accounts coming onboarding next year that could be, once we add independence, up to 10,000 folks, that's going to, you don't need as many of those than if some of our accounts are coming in at 5,000 to 10,000. So a bit of a nebulous question, but we are anticipating You know, there will be a significant coming in through again as we get into these ASOs. Some of the ASO networks have a larger average employee size than others. So, again, a question I think is better asked in Q1 when we have our arms around more what the final stage launch is going to look like.

Okay, great. Thank you. And thank you for taking the questions.

Of course.

Thank you.

Thank you so much.

There are no further questions at this time. Ladies and gentlemen that concludes today's conference call. Thank you for your participation. You may now disconnect.