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

• Market Cap: $8.45M
• Dividend Yield: N/A
• Average Volume (3M): 58.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: -41.03%
• EPS Growth: 35.71%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.77
• Shares Outstanding: 3,178,207
• 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: 0.57
• Enterprise Value/Revenue: 556.87
• Enterprise Value/Gross Profit: -82.28
• Enterprise Value/Ebitda: -0.60
• 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: 46 Neutral
• Price Target: $2.50 ▼(-25.37% Downside)
• Action: Upgraded Date: 01/09/26
• Date: Action: Upgraded 01/09/26

The score is held down primarily by very weak fundamentals (minimal revenue, large losses, and severe cash burn that increases financing/dilution risk). Technical momentum is comparatively supportive, but it is not enough to offset the financial profile, and valuation is difficult to justify given ongoing losses; the expanded equity incentive plan adds further dilution risk.

Positive Factors

Focused cardiac diagnostics

Heart Test Laboratories has an integrated product focus—hardware monitoring plus diagnostic software—targeting clinical and remote cardiology workflows. That combination supports durable differentiation, easier clinical adoption, and potential for software-derived recurring revenues as telehealth expands.

Established clinical distribution channels

Existing partnerships with hospitals and clinics provide durable go-to-market channels and clinical credibility, lowering customer acquisition costs over time. These relationships can accelerate device adoption, recurring service or subscription sales, and long-term institutional contracts versus one-off buyers.

Modest reported leverage currently

Current low absolute debt reduces immediate insolvency risk and gives operational flexibility compared with highly leveraged peers. This modest leverage supports near-term runway for commercialization activities, although historical volatility in equity levels warrants ongoing monitoring.

Negative Factors

Severe cash burn

The company’s cash generation is deeply negative on a TTM basis, indicating unsustainable burn that eliminates self‑funding capability. Persistent large outflows make the business dependent on external financing, constraining investments in commercialization and raising long-term survival and dilution risk.

Effectively pre‑commercial with negligible revenue

Revenue is effectively negligible relative to operating costs and gross profit is negative, showing the business has not reached scale. Without meaningful and sustained revenue growth, margins cannot normalize and the company lacks a visible path to breakeven over the medium term.

Dilution and costly financing risk

An expanded equity incentive pool increases potential share issuance and dilution pressure as grants vest or are issued. Simultaneously, the recent high‑cost, covenant‑laden note financing introduces expensive, restrictive capital with early redemption mechanics, signaling heightened dilution and financing strain long-term.

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

Heart Test Laboratories, Inc. generates revenue primarily through the sale of its proprietary cardiac testing devices and diagnostic software. The company has established partnerships with hospitals, clinics, and healthcare providers, which serve as key distribution channels for its products. Additionally, HSCS may offer subscription-based services for its software solutions, providing ongoing revenue from healthcare institutions that use its diagnostic tools. Other revenue streams could include training and support services for healthcare professionals, as well as potential licensing agreements with larger medical device companies. Overall, the company's earnings are bolstered by the increasing demand for efficient heart health monitoring solutions in the growing telehealth market.

Heart Test Laboratories, Inc. Financial Statement Overview

Summary

Financial performance is very weak: revenue is effectively negligible, gross profit is negative, and losses are large versus the revenue base. Cash flow is a major concern with extremely negative operating/free cash flow in the TTM period, implying high financing and dilution risk despite a currently modest debt load versus equity.

Income Statement

TTM (Trailing-Twelve-Months) revenue is extremely small ($8.7K) and while it shows a large percentage increase versus the prior period, the business remains effectively pre-commercial. Profitability is very weak: gross profit is negative (loss at the gross level) and operating losses are massive relative to revenue, with net losses deepening in TTM versus the latest annual period. Overall, the income statement reflects heavy ongoing spending with no meaningful revenue base yet, and no visible path to breakeven in the provided periods.

Balance Sheet

The latest TTM (Trailing-Twelve-Months) snapshot shows a healthier capital structure than the most recent annual report: debt is modest ($0.88M) against equity ($4.18M), implying low leverage. However, the history is volatile—prior annual periods include very high leverage (debt far exceeding equity) and even negative equity in earlier years, highlighting dilution/recapitalization risk and balance-sheet instability. Returns on equity are deeply negative in the latest periods, consistent with sustained losses.

Cash Flow

Cash generation is a major weakness. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are extremely negative (both around -$2.3B), far worse than prior annual periods (which were negative but orders of magnitude smaller). Free cash flow also remains negative across all years provided, indicating ongoing cash burn with no self-funding capability evident in the data and heightened financing risk.

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	-58.67K	-125.48K	-82.61K	-24.56K	-20.08K	-18.67K
EBITDA	-8.09M	-8.14M	-6.16M	-6.08M	-4.43M	-2.29M
Net Income	-9.04M	-8.77M	-6.61M	-6.35M	-4.83M	-2.45M
Balance Sheet
Total Assets	6.00M	4.22M	9.50M	3.29M	2.09M	1.93M
Cash, Cash Equivalents and Short-Term Investments	1.95M	1.10M	5.81M	1.66M	918.26K	723.48K
Total Debt	876.24K	2.99M	1.04M	1.57M	6.16M	3.08M
Total Liabilities	1.81M	4.02M	2.19M	3.06M	8.15M	3.84M
Stockholders Equity	4.18M	205.17K	7.32M	230.56K	-6.06M	-1.91M
Cash Flow
Free Cash Flow	-2.35B	-7.44M	-6.20M	-5.79M	-3.65M	-2.45M
Operating Cash Flow	-2.34B	-7.41M	-6.07M	-5.77M	-3.64M	-2.45M
Investing Cash Flow	-15.79M	-30.19K	-125.27K	-18.31K	-1.93K	-712.00
Financing Cash Flow	1.51B	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: Positive
• RSI: Neutral
• STOCH: Positive

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 2.96, above the 50-day MA of 3.02, and above the 200-day MA of 3.33, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 36.55 is Neutral, neither overbought nor oversold. The STOCH value of 11.30 is Positive, 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	$15.06M	-0.59	20.03%	―	-99.28%	-46.17%
TNON	49 Neutral	$8.92M	-0.29	-197.26%	―	-2.47%	91.23%
BMRA	47 Neutral	$6.13M	-1.31	-84.30%	―	-20.05%	41.89%
HSCS	46 Neutral	$8.45M	-0.39	-220.42%	―	-41.03%	35.71%
SSKN	46 Neutral	$1.32M	-0.09	-207.19%	―	-5.19%	-0.81%
AMIX	40 Underperform	$4.63M	-0.10	-352.39%	―	―	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.

Heart Test Laboratories Approves Indemnification Agreement

On December 15, 2025, HeartSciences Inc. announced that its Board of Directors approved an Indemnification Agreement for directors and executive officers. This agreement ensures that the company will indemnify and advance expenses to these individuals to the fullest extent allowed by Texas law, while also maintaining their coverage under the company’s insurance policies.

The most recent analyst rating on (HSCS) stock is a Sell with a $2.50 price target. To see the full list of analyst forecasts on Heart Test Laboratories, Inc. stock, see the HSCS Stock Forecast page.