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HeartBeam (BEAT)
NASDAQ:BEAT
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HeartBeam
(NASDAQ:BEAT)
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Rating:43Neutral
Price Target:
$1.50
▼(-41.41% Downside)
Action:ReiteratedDate:01/30/26
The score is primarily constrained by very weak financial performance (no revenue, widening losses, and heavy cash burn) and bearish technicals (below major moving averages with negative MACD). Earnings-call catalysts around FDA clearance and commercial launch provide some upside support, but near-term funding and execution risks remain significant; valuation signals are limited due to negative earnings and no dividend.
Positive Factors
Clinical Performance & Validation
A 93.4% diagnostic agreement versus standard 12-lead ECG provides durable clinical credibility for HeartBeam’s synthesized ECG approach. Strong trial performance supports clinician trust, eases adoption by cardiology practices, and underpins long-term reimbursement and partnership opportunities.
Regulatory Momentum
Progress toward an additional FDA 510(k) builds on previous clearance and materially de-risks market entry. Regulatory approval is a structural enabler for U.S. commercial launch, payer engagement, and institutional procurement, improving long-term revenue prospects if achieved on schedule.
Low Financial Leverage
Zero reported debt reduces solvency pressure and interest obligations, giving the company structural flexibility during commercialization. While equity is depleted, the lack of leverage lowers fixed financial burden and preserves options for financing via equity or non-debt instruments.
Negative Factors
No Revenue & Widening Losses
Absence of revenue means the business has not yet proven commercial product-market fit; widening operating losses imply rising burn before commercial cash flow. This structural gap increases financing dependency and heightens execution risk during the transition to paid adoption.
High Cash Burn and Tight Liquidity
Persistent ~-$15M annual cash consumption against a ~$1.9M cash balance creates a structural funding shortfall ahead of planned commercialization. This elevates dilution risk and could force strategic trade-offs, potentially delaying sales scale-up and partner rollouts if financing isn't secured.
Eroded Equity Cushion
A collapsing equity base weakens the company’s shock-absorption capacity and limits borrowing alternatives. With minimal capital cushion, operational setbacks or FDA delays would more quickly force dilutive financing or cutbacks, making long-term execution and scaling more precarious.
HeartBeam (BEAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.56M
Dividend YieldN/A
Average Volume (3M)89.04K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue GrowthN/A
EPS Growth4.31%
CountryUS
Employees21
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.14
Shares Outstanding40,117,405
10 Day Avg. Volume76,817
30 Day Avg. Volume89,039
Financial Highlights & Ratios
PEG Ratio-2.27
Price to Book (P/B)37.05
Price to Sales (P/S)0.00
P/FCF Ratio-4.18
Enterprise Value/Market Cap0.85
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-5.78K
Enterprise Value/Ebitda-2.23
Forecast
1Y Price Target
$4.75Price Target Upside85.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.53
Revenue Forecast (FY)$2.67M
HeartBeam Business Overview & Revenue Model
Company DescriptionHeartBeam, Inc., a medical technology company, primarily focuses on telemedicine solutions for the detection and monitoring of cardiac disease outside a healthcare facility setting. The company also focuses on providing diagnostic data to physicians with care management of patients with cardiovascular disease. Its telehealth product comprises a credit card sized electrocardiogram machine and a cloud-based diagnostic software system to address the rapidly growing field of remote patient monitoring. The company was incorporated in 2015 and is headquartered in Santa Clara, California.
How the Company Makes MoneyHeartBeam generates revenue primarily through the sale of its heart monitoring products and related services. The company's revenue model includes direct sales to healthcare providers and institutions, as well as partnerships with medical device distributors. Additionally, HeartBeam may engage in licensing agreements for its proprietary technology, enabling other companies to integrate HeartBeam's solutions into their own offerings. Service fees for data analysis and remote monitoring support also contribute to its revenue streams.
HeartBeam Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2025)
| Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The call conveyed meaningful de‑risking of the underlying technology (two FDA 510(k) clearances, working patch prototype, ALIGN ACS pilot enrollment, AI collaboration with Mount Sinai, and an initial commercial partner) and a disciplined cost posture. However, these operational and clinical achievements are balanced by material near‑term financial risk (only $4.4M cash on hand vs. projected $17M–$19M burn in 2026), uncertain regulatory pathway for the ACS indication, and the need to validate commercial adoption beyond a small concierge initial market. Overall, the company demonstrated strong technical and strategic progress but faces significant execution and funding risks that temper the outlook.Q4-2025 Updates
Positive Updates
Regulatory Milestones — FDA Clearances
Received FDA 510(k) clearance in December 2025 for the 12-lead synthesis software for arrhythmia assessment and previously secured foundational 510(k) clearance for the HeartBeam system (Dec 2024); overturned an NSE in ~2.5 weeks demonstrating productive FDA engagement.
Product Development — Working 12‑Lead Patch Prototype
Unveiled a working on‑demand 12‑lead extended‑wear patch prototype; prospective clinical studies underway; patch integrates continuous single‑lead monitoring with instant 12‑lead capture via finger electrodes.
Commercial Launch and Early Go‑To‑Market Plan
Initiated limited commercial launch targeting concierge and preventive cardiology practices; hired CCO Brian Humbarger; signed first commercial partner ClearCardio; target price per patient $500–$1,000/year with goal of breakeven at ~30,000 patients and payback period of 3–5 months in accounts.
Clinical Validation — ALIGN ACS Pilot Study Started
Began enrollment in the ALIGN ACS European pilot study (~100 patients) comparing HeartBeam ECG to standard 12‑lead for heart attack detection; expected to inform design of a U.S. FDA pivotal study and projected pilot completion in 2026 (company expects rapid enrollment).
Market Research Supporting Patch Opportunity
Third‑party physician survey: 86% would shift some patches to a 12‑lead patch, averaging a 61% shift of prescriptions; 94% would shift other cardiac monitoring devices; 64% would prescribe more patches (avg +45%) — implying potential ~30% immediate market growth.
AI & Data Partnerships
Assembled AI team led by former Google Verily AI head and announced strategic collaboration with Mount Sinai to develop clinically annotated algorithms (initial focus includes heart attack assessment and wellness/ screening/prediction models).
Improved Cash‑flow Discipline
Net cash used in operating activities below $14.0M for full year 2025 and $2.9M in Q4 2025; company reports a 3% decrease year‑over‑year and a 30% decrease compared to the same quarter last year in operating cash usage, highlighting lower cash burn and a capital‑efficient operating model.
Negative Updates
Limited Cash on Hand and Funding Needs
Cash and cash equivalents plus restricted cash were $4.4M at 12/31/2025, while projected 2026 gross operating cash outflows are ~$17M–$19M — indicating a material near‑term funding requirement despite access to capital markets and ATM/shelf facilities.
Full‑Year Net Loss and Ongoing Losses
Full‑year 2025 net loss of $21.0M (‑$0.62 per share) and Q4 net loss of $5.3M (‑$0.15 per share); net loss is materially impacted by stock‑based compensation (non‑cash), but losses remain significant while commercialization scales.
Regulatory Pathway Uncertainty for Heart Attack Indication
Regulatory pathway for heart attack detection is not finalized (could be 510(k) or de novo); a pivotal study will be required following the pilot and additional FDA discussions — adding timing and execution risk to the ischemia/ACS indication.
Commercial Scale and Market Concentration Risk
Initial commercial strategy relies heavily on a niche, premium concierge market (targeting top ~10% of ~1.5M concierge patients ≈150k), which may limit near‑term revenue scale and makes the business sensitive to adoption in a relatively small addressable segment before broader expansion.
Clinical & Commercial Timelines Are Uncertain
Key milestones (pilot completion, pivotal study design, patch go‑to‑market timing, broader commercialization beyond concierge accounts) have optimistic target windows but remain dependent on enrollment, regulatory decisions, and potential partner negotiations—introducing timing risk.
Dependence on Future Reimbursement & Partnerships
Current GTM focuses on patient‑pay/concieirge revenue; reimbursement pathways (CPT codes, Medicare/ACO adoption) are described as optionality and longer‑term, creating uncertain upside from payor reimbursement near term and reliance on partnerships for patch scale.
Company Guidance
Guidance from the call: for 2026 HeartBeam expects baseline operating cash outflows of about $14M plus incremental, milestone-driven investments of $3M–$5M, implying gross operating cash outflows of roughly $17M–$19M; cash and cash equivalents were $4.4M at 12/31/2025 and the company has access to capital via a shelf registration, an ATM facility and supportive long‑term stakeholders. 2025 results included a net loss of $21.0M (‑$0.62/share) and Q4 net loss of $5.3M (‑$0.15/share); net cash used in operations was < $14M for the year and $2.9M in Q4 (a 3% year‑over‑year decrease and a 30% decrease versus the same quarter last year). Commercial and clinical targets include a limited rollout into concierge/executive health (1.5M concierge patients, top 10% ≈150k target), a price per patient of $500–$1,000/year, expected 70% adoption within accounts, a 3–5 month payback on onboarding, and breakeven at ~30,000 patients; operational milestones: first customer ClearCardio and new CCO hired, ALIGN ACS pilot (~100 patients) enrolling with expected completion by end‑Q3 2026 to inform a pivotal FDA study, a working 12‑lead patch prototype in clinical studies, and an AI collaboration with Mount Sinai.HeartBeam Financial Statement Overview
Summary
Income statement and cash flow are very weak: no recorded revenue, widening losses (about -$19.4M in 2024 and -$20.6M TTM), and persistent cash burn (FCF about -$15.4M TTM). Balance sheet leverage is low (no reported debt), but equity has eroded sharply (to about $0.41M TTM), increasing reliance on external funding.Income Statement
Results remain heavily loss-making with no recorded revenue across the historical periods provided. Losses have widened over time, with net income declining from about -$1.1M (2020) to -$19.4M (2024) and -$20.6M in TTM (Trailing-Twelve-Months), indicating rising operating cost intensity. While the pace of loss expansion from 2024 to TTM (Trailing-Twelve-Months) is modest, profitability is still far from breakeven and there is no visible top-line traction in the dataset.12
Very Negative
Balance Sheet
Leverage appears low in the periods shown (total debt reported as $0 in 2021–TTM), which reduces solvency risk versus highly levered peers. However, equity has compressed sharply—from $15.9M (2023) to $1.65M (2024) and just $0.41M in TTM (Trailing-Twelve-Months)—reflecting sustained losses and a weakened capital cushion; return on equity is deeply negative in recent periods. Total assets have also stepped down meaningfully versus 2023, suggesting reduced financial flexibility.48
Neutral
Cash Flow
Cash burn is substantial and persistent, with operating cash flow at -$14.5M (2024) and -$15.2M in TTM (Trailing-Twelve-Months), and free cash flow similarly negative (-$14.7M in 2024; -$15.4M TTM). Free cash flow deterioration versus 2024 (negative growth in TTM) points to increasing funding needs. A modest positive is that free cash flow broadly tracks net losses (cash losses roughly in line with accounting losses), but the overall cash consumption profile remains high.15
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -8.00K | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| EBITDA | -20.72M | -19.88M | 675.00K | 69.00K | -2.29M | 0.00 |
| Net Income | -20.62M | -19.45M | -14.64M | -12.96M | -4.43M | -1.07M |
Balance Sheet | ||||||
| Total Assets | 2.88M | 3.28M | 17.13M | 4.04M | 14.00M | 51.00K |
| Cash, Cash Equivalents and Short-Term Investments | 1.86M | 2.38M | 16.19M | 3.59M | 13.19M | 24.00K |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 4.29M |
| Total Liabilities | 2.47M | 1.62M | 1.19M | 1.67M | 588.00K | 4.84M |
| Stockholders Equity | 406.00K | 1.65M | 15.94M | 2.37M | 13.41M | -4.79M |
Cash Flow | ||||||
| Free Cash Flow | -15.42M | -14.67M | -12.35M | -9.95M | -3.23M | -600.00K |
| Operating Cash Flow | -15.23M | -14.47M | -12.09M | -9.95M | -3.23M | -600.00K |
| Investing Cash Flow | -184.00K | -201.00K | -256.00K | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 11.51M | 866.00K | 24.99M | 350.00K | 16.40M | 619.00K |
HeartBeam Technical Analysis
Negative
2.56
Price Trends
1.75
Negative
1.71
Negative
1.56
Negative
Market Momentum
-0.07
Negative
41.75
Neutral
13.21
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEAT, the sentiment is Negative. The current price of 2.56 is above the 20-day moving average (MA) of 1.42, above the 50-day MA of 1.75, and above the 200-day MA of 1.56, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 41.75 is Neutral, neither overbought nor oversold. The STOCH value of 13.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BEAT.
HeartBeam Risk Analysis
HeartBeam disclosed 49 risk factors in its most recent earnings report. HeartBeam reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HeartBeam Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
43 Neutral | $54.56M | -2.70 | -792.01% | ― | ― | 4.31% | |
41 Neutral | $3.54M | -0.44 | -112.81% | ― | -21.88% | 68.40% | |
40 Underperform | $505.13K | -2.13 | ― | ― | -8.57% | -52.17% | |
39 Underperform | $5.37K | ― | ― | ― | 31.83% | -25.30% | |
38 Underperform | $12.50M | -8.71 | 336.68% | ― | 187.24% | 82.90% |
* Healthcare Sector Average
BEAT
HeartBeam
1.36
-0.66
-32.67%
MSPR
MSP Recovery
0.04
-12.00
-99.71%
ONMD
OneMedNet
0.76
0.06
8.71%
ICCT
iCoreConnect
0.01
-0.61
-98.39%
HCTI
Healthcare Triangle
3.06
-6,800.62
-99.96%
VSEE
VSee Health
0.29
-1.00
-77.60%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.