Healthcare Triangle (HCTI) AI Stock Analysis

• Market Cap: $2.66M
• Dividend Yield: N/A
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.28
• Revenue Growth: -21.88%
• EPS Growth: 68.40%
• Country: US
• Employees: 36
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): N/A
• Shares Outstanding: 5,873,303
• 10 Day Avg. Volume: 1,253,213
• 30 Day Avg. Volume: 1,845,381
• PEG Ratio: 252.94
• Price to Book (P/B): -18.11K
• Price to Sales (P/S): 7916.90
• P/FCF Ratio: -85.66K
• Enterprise Value/Market Cap: 5.88
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 9.22
• Enterprise Value/Ebitda: -3.09
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $0.43 ▼(-20.37% Downside)

The score is weighed down primarily by weak financial performance (persistent losses, sharp margin compression, and heavy negative operating/free cash flow). Technicals also signal a strong downtrend with extreme oversold readings. Corporate events provide some upside optionality from the AI acquisition, but frequent financing actions imply continued funding/dilution risk, and valuation support is limited due to negative earnings and no dividend.

Positive Factors

Revenue Growth Trend

TTM revenue growth shows ongoing demand for HCTI's healthcare IT services, reflecting persistent client adoption of cloud, data and interoperability projects. Sustained top-line growth supports scale potential for higher recurring managed-services mix over the medium term.

Strategic AI Acquisition

The planned Teyame AI asset acquisition adds AI-driven patient engagement and SaaS capabilities, diversifying revenue toward higher-margin, recurring software offerings. If integrated successfully, this materially strengthens product depth and global SaaS scale, altering HCTI's long-term revenue mix.

Core Service Offering Fit

HCTI's service portfolio targets structural healthcare modernization needs—cloud, data and interoperability—areas with multi-year demand. The mix of project work and managed services can create recurring revenue, high client switching costs and durable market positioning in healthcare IT.

Negative Factors

Large Negative Cash Flow

Sustained negative operating and free cash flow indicate material cash burn, forcing reliance on external capital. Over months, this undermines runway, limits reinvestment in sales/product initiatives, and raises the probability of dilutive financings unless operating cash generation materially improves.

Sharp Gross Margin Compression

A steep decline in gross margin signals worsening project economics, pricing pressure, or higher direct costs. Margin erosion reduces the scalability of revenue growth and makes it harder to attain sustainable profitability from services and newly acquired software businesses without structural cost or pricing fixes.

Persistent Net Losses & Financing Reliance

Multi-year net losses and very negative margins erode equity and constrain strategic flexibility. The company has repeatedly resorted to convertible notes and share issuance approvals, indicating structural financing dependence that raises dilution risk and may limit long-term investment capacity.

Healthcare Triangle Business Overview & Revenue Model

Company Description

Healthcare Triangle, Inc., a healthcare information technology company, focuses on developing solutions in the sectors of cloud services, data science, and professional and managed services. It provides a suite of software, solutions, platforms, and services that enables healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to evidence, and enhance the digital transformation. The company's software platforms include CloudEz, an enterprise multi-cloud transformation and management platform that enables customers to manage their cloud infrastructure across private, hybrid, and public cloud infrastructures; and DataEz, a cloud-based data analytics and data science platform for the data analytics and data science requirements of life sciences/pharmaceutical and healthcare provider organizations. It also provides Readabl.AI, a Software-as-a-Service solution that uses public cloud artificial intelligence and machine learning to recognize and extract healthcare information from documents, faxes, and narrative reports. In addition, it offers cloud IT services; and healthcare IT services, such as electronic health records and software implementation, optimization, and extension to community partners, as well as application managed services, and backup and disaster recovery on public cloud. The company primarily serves healthcare delivery organizations, healthcare insurance companies, pharmaceutical and life sciences, biotech companies, and medical device manufacturers. Healthcare Triangle, Inc. was incorporated in 2019 and is based in Pleasanton, California. Healthcare Triangle, Inc. operates as a subsidiary of SecureKloud Technologies, Inc.

How the Company Makes Money

Healthcare Triangle generates revenue primarily through its comprehensive suite of cloud and data services offered to healthcare providers, payers, and life sciences companies. The company makes money by delivering subscription-based cloud services, consulting fees for data analytics and transformation projects, and managed services contracts. Additionally, HCTI partners with major cloud providers like AWS, Google Cloud, and Microsoft Azure, which enhances its service offerings and expands its market reach. These strategic partnerships, along with a focus on innovation and compliance with healthcare regulations, are significant factors contributing to its earnings.

Healthcare Triangle Financial Statement Overview

Summary

Healthcare Triangle is facing significant financial difficulties. The company has been unable to generate positive revenues or profits, and its balance sheet reflects negative equity, indicating financial instability. The cash flow situation is also concerning, with ongoing negative cash flows. Overall, the company is in a precarious financial position.

Income Statement

The company has experienced declining revenues from $45.89M in 2022 to $11.70M in 2024, leading to negative revenue growth rates. Gross profit margins have been low, and both EBIT and EBITDA margins are negative, indicating ongoing operational challenges. Net profit margins are also negative, reflecting persistent losses.

Balance Sheet

The balance sheet shows a negative stockholders' equity of -$5.11M in 2024, indicating financial distress. The equity ratio is negative, and the company has high liabilities relative to its assets. The debt-to-equity ratio cannot be calculated due to negative equity, highlighting potential solvency issues.

Cash Flow

The company has consistently negative operating and free cash flows, indicating cash flow challenges. Free cash flow growth is negative, reflecting an inability to generate cash. The operating cash flow to net income ratio is unfavorable due to negative figures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.94M	11.70M	33.20M	45.89M	35.27M	31.34M
Gross Profit	1.70M	2.89M	6.78M	11.29M	10.52M	8.59M
EBITDA	-5.07M	-3.85M	-4.10M	-5.96M	-3.94M	1.98M
Net Income	-6.32M	-5.97M	-12.34M	-9.61M	-5.95M	2.35M
Balance Sheet
Total Assets	13.84M	1.96M	10.05M	20.76M	24.61M	11.11M
Cash, Cash Equivalents and Short-Term Investments	1.63M	20.00K	1.23M	1.34M	1.77M	1.40M
Total Debt	1.53M	2.65M	4.32M	2.41M	3.45M	754.40K
Total Liabilities	5.11M	7.08M	9.51M	8.38M	8.48M	6.78M
Stockholders Equity	8.74M	-5.11M	538.00K	12.39M	16.13M	4.33M
Cash Flow
Free Cash Flow	-12.26M	-1.08M	-1.63M	-5.92M	-10.24M	-734.67K
Operating Cash Flow	-10.97M	-1.08M	-1.61M	-2.60M	-7.11M	-734.67K
Investing Cash Flow	-1.29M	0.00	-13.00K	-3.32M	-7.63M	-477.46K
Financing Cash Flow	13.86M	-133.00K	1.52M	5.49M	15.11M	1.64M

Healthcare Triangle Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCTI, the sentiment is Negative. The current price of 0.54 is below the 20-day moving average (MA) of 0.84, below the 50-day MA of 1.69, and below the 200-day MA of 18.56, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 19.94 is Positive, neither overbought nor oversold. The STOCH value of 8.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HCTI.

Healthcare Triangle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEAT	52 Neutral	$71.64M	-3.13	-792.01%	―	―	4.31%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HCTI	40 Underperform	$2.66M	>-0.01	-182.56%	―	-21.88%	68.40%
MSPR	39 Underperform	$954.69K	―	―	―	-8.57%	-52.17%
VSEE	38 Underperform	$14.57M	-0.57	―	―	187.24%	82.90%

Healthcare Triangle Corporate Events

Healthcare Triangle Announces Acquisition of Teyame AI Assets

On December 10, 2025, Healthcare Triangle, Inc. announced an Advance Agreement for the acquisition of Teyame AI LLC’s assets, including Teyame 360 SL and Datono Mediacion SL, which are leaders in AI-powered customer experience solutions. This acquisition, expected to close in the first quarter of 2026, aims to enhance Healthcare Triangle’s position as a global leader in AI-driven patient engagement, potentially generating $34 million in annual revenue and $4.2 million in EBITDA for fiscal year 2025. The strategic move is part of Healthcare Triangle’s broader strategy to expand its AI-driven healthcare innovation and global SaaS platforms, creating an integrated ecosystem for intelligent patient engagement.

Healthcare Triangle Approves $70 Million Securities Issuance

On November 28, 2025, Healthcare Triangle, Inc. held a virtual Special Stockholders Meeting where stockholders approved a proposal to issue up to $70 million in securities over the following three months, in accordance with Nasdaq Listing Rule 5635(d). This approval, achieved with a majority vote, allows the company to pursue future issuances within specified Nasdaq parameters, potentially impacting its financial strategy and market positioning.

Healthcare Triangle Secures $15M in Convertible Notes

On November 20, 2025, Healthcare Triangle, Inc. entered into a Securities Purchase Agreement with institutional investors to issue senior unsecured convertible promissory notes totaling up to $15 million. The initial tranche of $7.5 million was closed on the same date, with the company receiving $6 million after a 20% discount. The notes, which mature in 2026, are convertible into common stock and rank senior to future company debts. This financial move is significant for Healthcare Triangle as it secures immediate capital and positions the company for potential growth, while also obligating it to meet specific registration and conversion conditions that could impact its stockholder relations and market operations.

Healthcare Triangle Enters Sales Agreement with Spartan Capital

On November 18, 2025, Healthcare Triangle, Inc. entered into a Sales Agreement with Spartan Capital Securities, LLC to facilitate an ‘at the market offering’ of its common stock, with a market value of up to $20,000,000. This agreement allows the company to sell shares directly on the Nasdaq Capital Market or other trading platforms, providing flexibility in raising capital while Spartan receives a 3% commission on sales, enhancing the company’s financial strategy and market presence.

Healthcare Triangle Holds Virtual Annual Shareholder Meeting

On November 7, 2025, Healthcare Triangle, Inc. held its virtual annual meeting of shareholders, where four directors were elected for a one-year term, and SRCO Professional Corporation was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Approximately 82.80% of the company’s shares were represented at the meeting, reflecting strong shareholder engagement. These decisions are expected to influence the company’s governance and financial oversight positively, potentially impacting its strategic direction and stakeholder confidence.