EchoIQ Limited (EIQ) AI Stock Analysis

• Market Cap: AU$338.81M
• Dividend Yield: N/A
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: 127.89%
• EPS Growth: -107.34%
• Country: US
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 651,562,700
• 10 Day Avg. Volume: 1,343,747
• 30 Day Avg. Volume: 2,496,323
• PEG Ratio: -0.09
• Price to Book (P/B): 5.66
• Price to Sales (P/S): 1270.57
• P/FCF Ratio: -19.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.62
• Price Target Upside: 12.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: AU$0.51 ▼(-7.27% Downside)

The score is held down primarily by weak financial performance (shrinking revenue, negative gross profit, large losses, and ongoing cash burn). Technicals show strong momentum with price above key moving averages, but extremely overbought indicators raise pullback risk. Valuation is constrained by loss-making results (negative P/E) and no dividend support.

Positive Factors

Conservative balance sheet

A virtually debt-free capital structure reduces solvency and interest-rate risk, giving management flexibility to prioritize operations or raise equity rather than service lenders. Over months this supports survival and strategic optionality while losses are addressed.

Equity-supported assets

A strong equity base relative to assets limits leverage-driven distress and preserves borrowing capacity. This capital cushion helps maintain operations during prolonged losses and provides a platform to fund restructuring or product investments without immediate debt pressure.

Transparent cash-to-loss relationship

Free cash flow tracking net losses closely implies reported losses are not heavily driven by non-cash items, improving cash-based visibility. That transparency aids forecasting and capital planning, making funding needs and turnaround sizing clearer to investors and managers.

Negative Factors

Declining revenues

Sustained revenue decline undermines scalable unit economics and market positioning. Persistent top-line shrinkage limits operating leverage, reduces ability to invest in product or sales, and makes profit recovery harder, increasing the structural challenge of returning to growth.

Negative gross margins

Consistently negative gross margins indicate the core business fails to cover direct costs at scale, reflecting structural unit-economics issues. This requires fundamental changes to pricing, delivery, or cost base; without them, profitability is unlikely even if operating expenses are reduced.

Persistent cash burn and losses

Chronic negative operating cash flow and widening net losses necessitate ongoing external funding, increasing dilution risk and limiting strategic investments. Over a multi-month horizon this constrains growth initiatives and heightens solvency sensitivity if capital markets tighten.

EchoIQ Limited Business Overview & Revenue Model

Company Description

Echo IQ Limited provides cardiac diagnostics support solution in Australia. The company offers artificial intelligence-assisted diagnostics technology that enhance the diagnosis of structural heart disease, as well as Aortic Stenosis. It primarily serves physicians, health systems, and patients. The company was formerly known as Houston We Have Limited and changed its name to EchoIQ Limited in December 2021. Echo IQ Limited is based in Sydney, Australia.

How the Company Makes Money

EchoIQ Limited generates revenue primarily through the licensing of its AI-driven software solutions to businesses. The company offers subscription-based models that provide clients with continuous access to its platforms and regular updates. Additionally, EchoIQ engages in strategic partnerships with industry leaders to integrate its technology into broader service offerings, expanding its reach and client base. The company also provides consultancy and customization services, allowing clients to optimize the software for specific needs, which serves as an additional revenue stream.

EchoIQ Limited Financial Statement Overview

Summary

Financials are high-risk: revenue has been shrinking materially, gross profit is consistently negative (poor unit economics), and operating/net losses are large and worsening. Cash flow is persistently negative with significant ongoing burn, though the balance sheet is a stabilizer due to essentially no debt and equity-funded assets.

Income Statement

Revenue has been shrinking over time (down ~22% in FY2025 after prior declines), and profitability is deeply negative. Gross profit is consistently negative (TTM-equivalent annual FY2025 gross margin around -31%), indicating the business is not covering direct costs at current scale. Operating losses are substantial (FY2025 EBIT margin roughly -129%) and net losses widened to about -13.3M in FY2025, pointing to a deteriorating earnings profile despite small revenue fluctuations.

Balance Sheet

The balance sheet is conservatively financed with essentially no debt (debt-to-equity at 0.0 in recent years), which reduces solvency risk and gives flexibility. Total assets (~23.4M) are largely supported by equity (~22.8M) in FY2025. The key weakness is persistent value erosion from losses, reflected in consistently negative returns on equity (around -58% in FY2025), meaning the capital base is not generating returns and could continue to be pressured if losses persist.

Cash Flow

Cash generation remains weak, with operating cash flow negative in every year shown (about -6.5M in FY2025), and free cash flow also negative (about -6.5M in FY2025). While free cash flow “growth” appears positive in FY2025, it is still firmly cash-burning, implying the company likely relies on external funding over time. A modest positive is that free cash flow roughly tracks net loss (free cash flow to net income near ~1.0 in FY2024–FY2025), suggesting losses are not heavily masked by non-cash accounting—but the absolute cash burn remains significant.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	101.41K	101.41K	44.50K	107.33K	251.10K	441.98K
Gross Profit	-3.14M	-3.14M	-2.88M	-7.01M	-3.19M	-1.75M
EBITDA	-12.74M	-12.74M	-4.81M	-7.66M	-5.85M	-3.14M
Net Income	-13.26M	-13.26M	-5.41M	-8.27M	-5.99M	-2.99M
Balance Sheet
Total Assets	23.37M	23.37M	8.26M	10.38M	10.23M	10.93M
Cash, Cash Equivalents and Short-Term Investments	6.62M	6.62M	2.12M	3.28M	2.41M	3.81M
Total Debt	0.00	0.00	0.00	0.00	0.00	43.83K
Total Liabilities	615.41K	615.41K	1.49M	3.00M	2.21M	1.10M
Stockholders Equity	22.76M	22.76M	6.77M	7.38M	8.02M	9.84M
Cash Flow
Free Cash Flow	-6.54M	-6.54M	-3.92M	-5.28M	-2.95M	-2.43M
Operating Cash Flow	-6.51M	-6.51M	-3.92M	-4.94M	-2.58M	-1.43M
Investing Cash Flow	-11.55M	-11.55M	0.00	-59.81K	-367.33K	-1.00M
Financing Cash Flow	22.56M	22.56M	2.77M	5.88M	1.55M	2.77M

EchoIQ Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EIQ, the sentiment is Positive. The current price of 0.55 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.29, and above the 200-day MA of 0.25, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 75.59 is Negative, neither overbought nor oversold. The STOCH value of 87.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EIQ.

EchoIQ Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPG	62 Neutral	AU$151.96M	58.94	5.84%	―	10.40%	-32.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
EIQ	46 Neutral	AU$338.81M	-24.34	-89.84%	―	127.89%	-107.34%
AR9	44 Neutral	AU$57.82M	-6.96	-64.13%	―	-38.03%	-11.27%
PRO	41 Neutral	AU$8.48M	-1.31	-133.07%	―	-4.90%	-52.78%
UBN	40 Underperform	AU$55.24M	-12.87	-38.41%	―	4.16%	-0.74%

EchoIQ Limited Corporate Events

Echo IQ Issues 1.28 Million New Shares via Option Exercise

Echo IQ Limited has issued 1,275,000 fully paid ordinary shares following the exercise of unlisted options priced at $0.25 and expiring on 14 June 2027, with the new shares forming part of its existing class of securities quoted on the ASX. The company confirmed that the issuance was conducted without a prospectus under the Corporations Act’s exemption provisions, and that it remains compliant with its financial reporting and continuous disclosure obligations, indicating a routine capital structure adjustment with no undisclosed information for investors.

The most recent analyst rating on (AU:EIQ) stock is a Hold with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

EchoIQ Seeks ASX Quotation for 1.28 Million New Ordinary Shares

EchoIQ Limited has applied for quotation on the ASX of 1,275,000 new ordinary fully paid shares under its ticker EIQ, with an issue date of 22 January 2026. The additional securities, issued following the exercise or conversion of existing options or other convertible securities, will expand the company’s quoted share base, modestly increasing its equity capital and potentially improving liquidity for existing and new shareholders.

The most recent analyst rating on (AU:EIQ) stock is a Hold with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

EchoIQ Advances US Push With Strong Heart Failure AI Validation and FDA Filing

EchoIQ Limited reported major progress in commercialising its AI-powered heart failure diagnostic platform in the US during the December 2025 quarter, highlighted by the clinical validation of EchoSolv HF through the Mayo Clinic Platform’s Validate program. The study, involving around 17,000 independent echocardiograms, met its primary endpoint and exceeded performance expectations, delivering 99.5% sensitivity and 91.0% specificity in detecting heart failure, and the company has now formally submitted a 510(k) premarket notification to the US Food & Drug Administration, with clearance anticipated in the coming months. EchoIQ positions this as a gateway to a US$60 billion US heart failure market, where only about half of cases are accurately diagnosed and heart failure remains the leading cause of rehospitalisation and a major cost driver for the healthcare system, while EchoSolv AS adoption continues to advance through beta testing, system integrations and partner discussions, supported by the appointment of prominent US cardiologists Dr Philippe Genereux and Dr Asif Ali to strengthen the company’s industry presence.

The most recent analyst rating on (AU:EIQ) stock is a Hold with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

EchoIQ Director Steve Formica Sees Lapse of 625,000 Performance Rights

EchoIQ Limited has disclosed a change in the interests of director Steve Formica, whose holdings are held indirectly through related party entities Stevsand Investments Pty Ltd and Formica Investments Pty Ltd. While the number of fully paid ordinary shares and unlisted options held on his behalf remains unchanged, 625,000 performance rights expiring on 31 March 2028 have lapsed because a specified condition could not be satisfied, reducing his total performance rights from 5,000,000 to 4,375,000, with no consideration involved in the change.

The most recent analyst rating on (AU:EIQ) stock is a Hold with a A$0.26 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

EchoIQ Announces Lapse of 1.6 Million Performance Rights

EchoIQ Limited has notified the market of changes to its issued capital, confirming that 1,625,000 performance rights expiring on 31 March 2028, trading under the ASX code EIQAAP, have ceased. The securities lapsed on 31 December 2025 because the conditions attached to those performance rights were not met or became incapable of being satisfied, slightly reducing the pool of potential future equity and adjusting the company’s long-term incentive structure for eligible holders.

The most recent analyst rating on (AU:EIQ) stock is a Hold with a A$0.26 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

EchoIQ Options Lapse as 30 Million Securities Expire Unexercised

EchoIQ Limited has confirmed that 30 million options, exercisable at $0.25 and due to expire on 31 December 2025 under the ASX code EIQAAH, have lapsed unexercised, resulting in the cessation of these securities. The expiry reduces the company’s pool of outstanding options, simplifying its capital structure and potentially limiting future dilution for existing shareholders, though it does not directly change the number of ordinary shares on issue.

The most recent analyst rating on (AU:EIQ) stock is a Hold with a A$0.26 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

EchoIQ Director’s Securities Interest Update

EchoIQ Limited has announced a change in the interests of its director, Mr. Stephen Picton, in the company’s securities. The change involves the expiration of 2,000,000 unlisted options, which were previously held indirectly through Richmond Bridge Superannuation Pty Ltd. As a result, Mr. Picton’s holdings now consist solely of 23,014,854 fully paid ordinary shares held under a custodian.

The most recent analyst rating on (AU:EIQ) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

EchoIQ Limited Announces Cessation of 10 Million Securities

EchoIQ Limited announced the cessation of 10 million securities due to the expiration of options without exercise or conversion. This development may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and future securities management.

The most recent analyst rating on (AU:EIQ) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

EchoIQ Limited Releases Informational Presentation

EchoIQ Limited has released a presentation providing background information on its current operations. The company emphasizes that the presentation is for informational purposes only and does not constitute investment advice or an offer to sell or buy securities. EchoIQ highlights the risks associated with securities and advises recipients to seek professional advice before making investment decisions. The company also notes that its shares are not registered under the US Securities Act and cannot be offered or sold in the United States without proper registration or exemption.

The most recent analyst rating on (AU:EIQ) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

Echo IQ Achieves Milestone in Heart Failure Detection with Mayo Clinic Collaboration

Echo IQ Limited has successfully completed the clinical validation of its heart failure detection software, EchoSolv HF, in collaboration with the Mayo Clinic Platform. The study, which analyzed 17,000 echocardiograms, demonstrated exceptional accuracy, with a sensitivity of 99.5% and specificity of 91.0%. This milestone paves the way for the company’s FDA 510(k) submission, potentially unlocking a significant market opportunity in the US, where heart failure is a major health issue. Upon FDA clearance, Echo IQ plans to leverage its existing US market presence to promote EchoSolv HF, aiming to improve the early detection and treatment of heart failure, which is currently underdiagnosed and undertreated.

The most recent analyst rating on (AU:EIQ) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

EchoIQ Limited Issues Unquoted Equity Securities for Employee Incentive

EchoIQ Limited announced the issuance of unquoted equity securities, specifically options expiring in November 2028, as part of an employee incentive scheme. This issuance involves 4,000,000 options with different exercise prices, which are not intended to be quoted on the ASX, potentially enhancing employee engagement and aligning their interests with the company’s long-term goals.

The most recent analyst rating on (AU:EIQ) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

Echo IQ Showcases AI Breakthrough in Aortic Stenosis Diagnosis at AHA 2025

Echo IQ Limited has presented compelling data at the AHA Scientific Sessions 2025, highlighting the potential of its AI-powered tool, EchoSolv AS, to enhance the diagnosis and management of severe aortic stenosis (AS). The studies demonstrated that EchoSolv AS outperformed traditional cardiologist methods, particularly in identifying severe AS in women, and improved gender equity in diagnosis. This advancement could significantly impact patient outcomes by reducing delays in diagnosis and treatment, thereby positioning Echo IQ as a leader in AI-driven medical solutions.

The most recent analyst rating on (AU:EIQ) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

EchoIQ Limited Issues Unquoted Equity Securities

EchoIQ Limited has announced the issuance of unquoted equity securities, specifically options expiring in October 2028. This move involves a total of 6,000,000 options with varying exercise prices, as part of previously announced transactions. The issuance of these securities is not intended to be quoted on the ASX, indicating a strategic decision to manage equity and potentially incentivize stakeholders privately.

The most recent analyst rating on (AU:EIQ) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

Echo IQ Issues 500,000 Shares to Bolster Market Position

Echo IQ Limited has announced the issuance of 500,000 fully paid ordinary shares following the exercise of vested Performance Rights. These shares are part of a class of securities quoted on the Australian Securities Exchange. The issuance was conducted without disclosure to investors under specific provisions of the Corporations Act 2001, indicating compliance with relevant legal requirements. This move reflects Echo IQ’s ongoing strategic financial maneuvers to strengthen its market position and operational capabilities.

The most recent analyst rating on (AU:EIQ) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

Echo IQ Limited Releases September 2025 Quarterly Report

Echo IQ Limited has released its quarterly report for the period ending 30 September 2025, highlighting its corporate structure with 647,787,710 ordinary shares and a shareholder base of 4,289. The company emphasizes its commitment to leveraging AI technology to improve cardiology decision-making, which positions it strategically within the healthcare technology sector.

The most recent analyst rating on (AU:EIQ) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

EchoIQ Limited Announces Cessation of Securities

EchoIQ Limited has announced the cessation of 2,000,000 securities due to the expiry of options or other convertible securities without exercise or conversion, effective October 28, 2025. This cessation may impact the company’s capital structure and could have implications for stakeholders, as it reflects a change in the company’s issued capital.

The most recent analyst rating on (AU:EIQ) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.

EchoIQ Limited Announces Proposed Securities Issue

EchoIQ Limited has announced a proposed issue of securities, specifically options expiring in October 2028, as part of a placement or other type of issue. This move could potentially impact the company’s financial strategy by raising capital through the issuance of 6,000,000 options, which may influence its market positioning and stakeholder interests.

The most recent analyst rating on (AU:EIQ) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on EchoIQ Limited stock, see the AU:EIQ Stock Forecast page.