Should You Buy This Mid Cap Biotechnology Stock-HTFL
Acrobull UK Advisory Services Ltd.
February 03
2025
Name
Ticker
Sector/Industry
Market Cap
Risk Factor
Heartflow, Inc.
HTFL-NASDAQ
Biotechnology
$2.45 Billion
Medium
HeartFlow, Inc. is a global medical technology company that delivers non-invasive solutions for the diagnosis and management of coronary artery disease. Its HeartFlow Platform combines artificial intelligence and computational fluid dynamics to generate a personalized three-dimensional model of a patient’s heart from a single coronary CT angiography scan.
Recent Highlights
HeartFlow strengthened its financial position through a successful public offering, significantly increasing cash reserves and reducing balance sheet risk. The company continues investing aggressively in research, regulatory approvals, and international expansion to accelerate adoption of its AI-powered cardiac diagnostic technology.
Operating losses persist as HeartFlow prioritizes long-term growth over near-term profitability. High spending on sales, marketing, and product development reflects a deliberate scaling strategy, supported by strong liquidity and minimal leverage, positioning the company well for future market expansion.
Quarterly Financial Report
Income Statement- HeartFlow generated revenue of $161.9 million, representing approximately 86% year-over-year growth. Gross profit totaled $122.4 million, equal to a gross margin of about 76%. Despite strong top-line growth and margins, operating expenses exceeded gross profit, resulting in a net operating loss.
Balance Sheet- Revenue of $161.9 million supports growing accounts receivable and deferred revenue balances. Gross profit of $122.4 million (76% margin) reflects strong unit economics. The balance sheet is anchored by substantial cash reserves, while liabilities remain modest, allowing HeartFlow to sustain losses while scaling revenue growth.
Cash Flow Statement- Revenue of $161.9 million contributes recurring cash inflows, while gross profit of $122.4 million (76%) helps limit operating cash burn. However, negative operating cash flow persists due to high spending. Financing cash inflows, primarily equity-related, offset losses and support ongoing growth initiatives.
Statement of Shareholders’ Equity- Strong revenue growth to $161.9 million (+86%) and gross profit of $122.4 million improved investor confidence. Equity increased significantly following stock issuance. Although accumulated deficits remain due to losses exceeding gross profit, the expanded equity base supports future revenue expansion and long-term profitability objectives.
Financial Performance Summary- HeartFlow demonstrates rapid scaling with $161.9 million in revenue, growing approximately 86% annually. Gross profit of $122.4 million reflects a 76% gross margin, indicating highly scalable technology. While losses persist due to expenses exceeding gross profit, liquidity and growth momentum remain strong.
Stock Observation-Building on revenue of $161.9 million and approximately 86% year-over-year growth, HeartFlow expects continued expansion driven by increasing clinical adoption, broader reimbursement coverage, and ongoing innovation, positioning the company for sustained top-line growth as demand for non-invasive cardiac diagnostics continues to rise.
Risk Involved- Financial performance of the company may have an impact on the company stock performance.
Considering all the factors and financials of the company Acrobull UK maintains Buy for the stock.
Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.
It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.
