Company Overview
Heartflow, Inc. operates as a medical technology company that provides non-invasive solutions for diagnosing and managing coronary artery diseases both in the United States and worldwide. The company's HeartFlow Platform leverages artificial intelligence and computational fluid dynamics to generate a personalized three-dimensional model of a patient's heart derived from a single catheter-based computed tomography angiogram. This specific operational model places the organization within the Healthcare sector, specifically the Health Information Services industry, where it focuses on advanced data processing for clinical decision-making. The company holds a market capitalization of $2.22B and reported annual revenue of $176.03M based on trailing twelve-month figures, supporting a workforce of 843 employees. These valuation and revenue metrics indicate that Heartflow, Inc. occupies a significant position in the specialized healthcare technology landscape, commanding a substantial market presence relative to its operational scale and employee count.
Financial Health
The company reported revenue of $176.03M over the trailing twelve months, yet it recorded a net income of $-116,791,000 and an EBITDA of $-62,626,000. The substantial gap between the positive revenue figure and the significant negative net income reveals a cost structure where operating expenses and non-operating costs exceed total earnings before interest and taxes. Free cash flow stands at $-30,882,376, which indicates that the company is currently burning cash rather than generating liquidity, thereby limiting immediate financial flexibility for expansion or debt reduction without external capital. Despite these operational losses, the balance sheet maintains a cash reserve of $176.79M against total debt of $22.05M, creating a net cash position that provides a substantial buffer against obligations. The debt-to-equity ratio is 7.34, while the current ratio is 5.20, indicating that the company has strong short-term liquidity and the ability to cover current liabilities with current assets more than five times over. However, the return on equity is -111.4% and the return on assets is -16.7%, metrics that reveal management is currently reducing the value of shareholder equity and utilizing assets to generate negative returns. The gross margin is 76.8%, suggesting high pricing power or low cost of goods sold relative to revenue, whereas the operating margin is -36.1% and profit margin is -66.3%, highlighting that operating inefficiencies or high overhead are eroding profitability significantly.
Valuation Assessment
The trailing twelve-month P/E ratio is N/A because the company reports a net loss, while the forward P/E is -86.67, implying that the market expects earnings to remain negative or turn positive in the future, though the current data does not confirm a specific trajectory. The price-to-book ratio is 7.38, indicating that the stock trades at a significant premium to its book value, which often suggests high growth expectations or intangible asset valuation rather than tangible asset backing. The price-to-sales ratio is 12.59 and the EV/EBITDA is -33.16, suggesting that investors are valuing the company based on revenue multiples and market capitalization rather than current earnings power, a common practice for high-growth, unprofitable firms. The stock has a 52-week high of $41.22 and a 52-week low of $20.13, providing the trading range within which the current share price fluctuates based on market sentiment and liquidity conditions. The beta is N/A, meaning there is insufficient data provided to calculate the stock's volatility relative to the broader market index. These alternative valuation metrics and price ranges collectively suggest that the market is pricing in future potential rather than current profitability.
Growth & Income
Revenue growth year over year is 40.5%, demonstrating a robust expansion in top-line sales, while earnings growth is N/A due to the company's unprofitable status. Because earnings are negative, they are growing at a rate that cannot be compared directly to revenue in a traditional sense, implying that the company is prioritizing market share and platform development over immediate profit generation. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, indicating that all available cash flow is reinvested into the business operations and growth initiatives rather than distributed to shareholders. The overall growth and income profile reflects a high-growth, zero-income stage where capital allocation focuses entirely on scaling the HeartFlow Platform and achieving profitability targets in the future.