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

• Market Cap: $7.44M
• Dividend Yield: N/A
• Average Volume (3M): 58.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: -41.03%
• EPS Growth: 35.71%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.84
• 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: -143.39
• Enterprise Value/Revenue: -123.01K
• Enterprise Value/Gross Profit: 18.17K
• Enterprise Value/Ebitda: 131.84
• 1Y Price Target: $10.60
• Price Target Upside: 208.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -4.03
• Revenue Forecast (FY): $52.15K

• Rating: 40 Underperform
• Price Target: $2.50 ▼(-27.33% Downside)

Heart Test Laboratories, Inc. faces significant financial challenges, with substantial losses and high leverage. The technical analysis indicates a bearish trend, and the valuation metrics are unattractive due to negative profitability. While recent corporate events are positive, they do not outweigh the fundamental financial weaknesses.

Positive Factors

Equity Incentive Plan Amendment

The amendment to the equity incentive plan enhances the company's ability to attract and retain talent, aligning stakeholder interests with growth.

Successful Regulation A Offering

The successful offering strengthens the company's financial position, providing capital for strategic initiatives and reducing debt.

Nasdaq Compliance Regained

Regaining Nasdaq compliance improves market credibility and ensures continued access to capital markets, supporting long-term growth.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flows

Negative cash flows indicate operational inefficiencies and challenge the company's ability to sustain operations without external funding.

Declining Revenue

Declining revenue suggests weakening market position and challenges in product adoption, impacting long-term growth prospects.

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

Heart Test Laboratories, Inc. is facing significant financial challenges across all verticals. The income statement reflects substantial losses and declining revenue, while the balance sheet shows high leverage and low equity. Cash flow analysis indicates negative cash flows and declining cash generation. The company needs to address its operational inefficiencies and financial structure to improve its financial health and stability.

Income Statement

Heart Test Laboratories, Inc. shows significant challenges in its income statement. The company has experienced a dramatic decline in revenue, with a negative revenue growth rate in recent years. Gross profit margins have been inconsistent, and the net profit margin is significantly negative, indicating substantial losses. The EBIT and EBITDA margins are also deeply negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The company's return on equity is negative, suggesting that it is not generating profit from its equity base. The equity ratio is low, which could imply vulnerability to financial instability. Overall, the balance sheet shows a company struggling with high debt levels and low equity.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating cash outflows from operations. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow is somewhat aligned with reported losses. However, the operating cash flow coverage ratio is negative, highlighting the company's inability to cover its net income with operating cash flow. The free cash flow growth rate is also negative, pointing to declining cash generation capabilities.

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

Heart Test Laboratories, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.44
• 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 Neutral. The current price of 3.44 is above the 20-day moving average (MA) of 2.54, above the 50-day MA of 2.85, and above the 200-day MA of 3.35, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 50.95 is Neutral, neither overbought nor oversold. The STOCH value of 40.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
TNON	49 Neutral	$12.11M	-0.38	-197.26%	―	-2.47%	91.23%
PAVM	48 Neutral	$8.62M	-0.52	20.03%	―	-99.28%	-46.16%
SSKN	43 Neutral	$7.54M	-0.47	-207.19%	―	-5.19%	-0.81%
HSCS	40 Underperform	$7.44M	-0.38	-220.42%	―	-41.03%	35.71%
AMIX	40 Underperform	$4.45M	-0.12	-352.39%	―	―	63.87%
BMRA	38 Underperform	$6.99M	-1.71	-69.61%	―	-11.31%	47.64%

Heart Test Laboratories, Inc. Corporate Events

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.

Heart Test Laboratories Amends 2023 Equity Incentive Plan

Heart Test Laboratories, Inc. announced on November 28, 2025, that its Board of Directors approved an amendment to the company’s 2023 Equity Incentive Plan. This amendment increases the maximum number of shares of common stock that can be issued under the plan to 1,250,000 shares, subject to shareholder approval. Additionally, the Board approved the grant of restricted shares and restricted stock unit awards to executives, non-employee directors, and employees, with specific vesting conditions. These changes are aimed at enhancing the company’s equity compensation framework and aligning the interests of stakeholders with the company’s growth objectives.

Heart Test Laboratories Announces Successful Regulation A Offering

Heart Test Laboratories, Inc. announced that on September 26, 2025, it entered into Amendment No. 7 to its Loan Agreement with Front Range Ventures LLC, extending the maturity date of its promissory note to September 30, 2026. The company also disclosed a Regulation A Offering, which as of October 1, 2025, has generated $6.7 million in gross proceeds, resulting in the issuance of 1,912,383 units. Additionally, a debt exchange was conducted, reducing the principal and accrued interest by exchanging $2,060,000 in principal and $45,000 in accrued interest for shares of common stock.