Heart Test Laboratories, Inc. (HSCS) AI Stock Analysis

• Market Cap: $8.12M
• Dividend Yield: N/A
• Average Volume (3M): 58.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: -41.03%
• EPS Growth: 35.71%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.63
• Shares Outstanding: 3,184,700
• 10 Day Avg. Volume: 93,774
• 30 Day Avg. Volume: 58,857
• PEG Ratio: <0.01
• Price to Book (P/B): 16.05
• Price to Sales (P/S): 757.08
• P/FCF Ratio: -0.44
• Enterprise Value/Market Cap: 58.57
• Enterprise Value/Revenue: 54.86K
• Enterprise Value/Gross Profit: -5.17K
• Enterprise Value/Ebitda: -62.12
• 1Y Price Target: $10.60
• Price Target Upside: 216.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -3.82
• Revenue Forecast (FY): $50.00K

• Rating: 40 Underperform
• Price Target: $2.50 ▼(-25.37% Downside)
• Action: Downgraded Date: 03/17/26
• Date: Action: Downgraded 03/17/26

The score is driven primarily by very weak financial performance (minimal revenue, massive losses, and heavy cash burn) and a stressed capital structure with high leverage. Technical indicators add further pressure with the stock trading below major moving averages and negative MACD, while valuation provides little support due to a negative P/E and no dividend yield.

Positive Factors

Balance-sheet cushion

Positive TTM equity and a sizable asset base provide a tangible balance-sheet cushion versus firms with negative equity. That asset stock can be used for collateral, asset sales, or restructuring to extend runway and support recovery efforts over months, improving creditor negotiation leverage.

Access to institutional financing

Securing a private note with $3.0M gross proceeds demonstrates the company can attract institutional capital despite weak operations. This non-dilutive financing provides immediate runway, evidences investor willingness to provide credit, and supports near-term execution or structured restructuring efforts.

Lean operating footprint

A very small headcount (15 employees) implies a lean cost base and operational flexibility. Low fixed payroll commitments make it easier to cut spend, outsource development or commercialization, and stretch scarce cash while executing targeted pivots or restructuring over the medium term.

Negative Factors

Minimal revenue & deep losses

Extremely small and volatile revenue alongside massive operating and net losses indicate lack of product-market traction and that core operations don't cover direct costs. Without a durable revenue inflection, the business model cannot sustain itself or support investment in commercialization.

Severe cash burn

Consistently deeply negative operating cash flow (~-$5.75B TTM) and negative free cash flow show the company cannot self-fund operations. Persistent cash burn forces reliance on external financing, elevating liquidity and continuity risk over the coming months.

Stressed capital structure

Materially higher debt versus equity and historical swings (including periods of negative equity) point to a stressed capital structure. High leverage constrains strategic options, increases default/refinancing risk, and makes long-term recovery more dependent on dilutive financing or restructuring.

Heart Test Laboratories, Inc. Business Overview & Revenue Model

Company Description

HeartSciences Inc., a medical technology company, focuses on applying AI-based technology to an ECG to expand and improve clinical usefulness. It develops artificial intelligence-enhanced electrocardiography (AI-ECG) solutions, an algorithm to detect impaired cardiac relaxation or cardiac dysfunction caused by heart disease and/or age-related cardiac dysfunction; MyoVista wavECG device, a resting 12-lead ECG that provides diagnostic information related to cardiac dysfunction, as well as conventional ECG information in the same test; and MyoVista Insights, a cloud-based platform to host AI-ECG algorithms on an ECG hardware agnostic basis. The company was formerly known as Heart Test Laboratories, Inc. and changed its name to HeartSciences Inc. in October 2024. HeartSciences Inc. was incorporated in 2007 and is headquartered in Southlake, Texas.

How the Company Makes Money

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Heart Test Laboratories, Inc. Financial Statement Overview

Summary

Financials indicate severe distress: extremely small and volatile revenue (~$8.7K TTM), deeply negative profitability (TTM net loss ~$2.0B) with negative gross profit, and very large cash burn (operating cash flow about -$5.75B TTM). Balance sheet risk is elevated with high leverage (debt ~$3.87B vs equity ~$2.65B), despite positive TTM equity and sizable assets.

Income Statement

Results are extremely weak. Revenue is very small and volatile (TTM (Trailing-Twelve-Months) revenue ~$8.7K; down sharply versus prior annual periods), while profitability is deeply negative with persistently negative gross profit and very large operating and net losses (TTM net loss ~$2.0B). Margins are heavily negative across the stack, indicating the business is far from covering its core cost structure. Limited positives: none evident in the provided revenue/profit trajectory beyond occasional revenue spikes in earlier years.

Balance Sheet

Balance sheet risk is elevated. Leverage increased materially in TTM (Trailing-Twelve-Months) with total debt ~$3.87B against equity ~$2.65B (debt meaningfully higher than equity), and returns to shareholders are sharply negative given the scale of losses. Historical annual balance sheets show large swings (including periods of negative equity and very high debt relative to equity), which adds uncertainty and suggests financing structure instability. Strength: TTM equity is positive and assets are sizable, but the capital structure still looks stressed relative to earnings power.

Cash Flow

Cash generation is very poor. Operating cash flow is deeply negative in TTM (Trailing-Twelve-Months) (about -$5.75B) and free cash flow is similarly negative, implying substantial cash burn with no sign of self-funding operations. While free cash flow moves can look better or worse year-to-year, the consistent pattern is negative operating cash flow across all periods provided, meaning the business likely depends on external financing to continue operations.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	8.67K	4.35K	18.60K	5.15K	14.37K	25.60K
Gross Profit	-91.91K	-125.48K	-82.61K	-24.56K	-20.08K	-18.67K
EBITDA	-7.66M	-8.14M	-6.16M	-6.08M	-4.43M	-2.29M
Net Income	-8.49M	-8.77M	-6.61M	-6.35M	-4.83M	-2.45M
Balance Sheet
Total Assets	7.55B	4.22M	9.50M	3.29M	2.09M	1.93M
Cash, Cash Equivalents and Short-Term Investments	3.40B	1.10M	5.81M	1.66M	918.26K	723.48K
Total Debt	3.87B	2.99M	1.04M	1.57M	6.16M	3.08M
Total Liabilities	4.90M	4.02M	2.19M	3.06M	8.15M	3.84M
Stockholders Equity	2.65M	205.17K	7.32M	230.56K	-6.06M	-1.91M
Cash Flow
Free Cash Flow	-5.76B	-7.44M	-6.20M	-5.79M	-3.65M	-2.45M
Operating Cash Flow	-5.75B	-7.41M	-6.07M	-5.77M	-3.64M	-2.45M
Investing Cash Flow	-15.81M	-30.19K	-125.27K	-18.31K	-1.93K	-712.00
Financing Cash Flow	1.52B	2.73M	10.34M	6.53M	3.84M	2.68M

Heart Test Laboratories, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSCS, the sentiment is Negative. The current price of 3.35 is above the 20-day moving average (MA) of 2.67, above the 50-day MA of 2.97, and above the 200-day MA of 3.25, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 37.88 is Neutral, neither overbought nor oversold. The STOCH value of 22.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HSCS.

Heart Test Laboratories, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PAVM	49 Neutral	$14.76M	-0.43	20.03%	―	-99.28%	-46.17%
TNON	49 Neutral	$8.91M	-0.56	-197.65%	―	-2.47%	91.23%
BMRA	47 Neutral	$6.61M	-1.24	-84.30%	―	-20.05%	41.89%
SSKN	46 Neutral	$1.59M	-14.23	-476.74%	―	-5.19%	-0.81%
HSCS	40 Underperform	$8.12M	>-0.01	-220.42%	―	-41.03%	35.71%
AMIX	40 Underperform	$5.24M	-0.38	-228.82%	―	―	63.87%

Heart Test Laboratories, Inc. Corporate Events

HeartSciences Secures New Private Financing Through Note Issuance

On January 13, 2026, HeartSciences Inc. entered into a private Note Purchase Agreement with institutional investor Streeterville Capital, LLC, issuing an unsecured promissory note of $3.605 million that includes a $600,000 original issue discount and $5,000 in transaction expense reimbursement, providing the company with $3 million in gross proceeds. The note carries a 12% annual interest rate, matures in 18 months, allows Streeterville to require monthly redemptions up to $405,000 starting six months after issuance, and includes a 5% automatic increase in the outstanding balance if at least $1.25 million has not been repaid by the 12‑month mark, with higher default interest and immediate payment triggers upon certain covenant breaches, underscoring both the company’s need for non‑dilutive financing and the stringent protections secured by the lender.

The most recent analyst rating on (HSCS) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Heart Test Laboratories, Inc. stock, see the HSCS Stock Forecast page.