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

• Market Cap: $9.77M
• Dividend Yield: N/A
• Average Volume (3M): 91.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -66.40%
• EPS Growth: 65.99%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -1.58
• Shares Outstanding: 2,647,712
• 10 Day Avg. Volume: 137,939
• 30 Day Avg. Volume: 91,701
• 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: 0.33
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 2.74
• Enterprise Value/Ebitda: >-0.01
• 1Y Price Target: $7.75
• Price Target Upside: 112.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 41 Neutral
• Price Target: $3.50 ▼(-4.11% Downside)

Heart Test Laboratories, Inc. is facing significant financial challenges, with substantial losses and declining revenue impacting its financial performance. Technical analysis shows mixed signals, with bearish momentum and lack of strong upward trends. The valuation is poor, with a negative P/E ratio and no dividend yield, indicating struggles in delivering shareholder value. These factors contribute to a low overall stock score.

Positive Factors

Innovative Product Offering

The focus on innovative cardiac testing solutions positions HSCS as a leader in non-invasive heart diagnostics, offering a competitive edge in the healthcare sector.

Recurring Revenue Streams

Recurring revenue from subscription services enhances financial stability and predictability, supporting long-term growth and customer retention.

Strategic Partnerships

Strategic partnerships expand market reach and facilitate product adoption, strengthening HSCS's market position and driving sustainable revenue growth.

Negative Factors

High Leverage

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

Negative Cash Flows

Negative cash flows indicate operational inefficiencies and a potential inability to fund operations without external financing, threatening long-term viability.

Declining Revenue

Declining revenue reflects challenges in market demand or competitive positioning, which could hinder the company's ability to achieve sustainable growth and profitability.

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 diagnostic devices and associated software solutions to hospitals, clinics, and other healthcare facilities. Additionally, the company may offer subscription-based services for software updates and data management, creating recurring revenue streams. Partnerships with healthcare providers and insurance companies are crucial, as they facilitate broader access to HSCS's products and services, enhancing market reach. Revenue is also bolstered by potential licensing agreements and collaborations with research institutions for the development of new technologies.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.90M	4.35K	18.60K	5.15K	14.37K	25.60K
Gross Profit	1.18M	2.47K	12.52K	2.35K	6.48K	14.94K
EBITDA	-1.99B	-8.14M	-6.16M	-6.08M	-4.43M	-2.29M
Net Income	-2.54B	-8.77M	-6.61M	-490.85M	-4.58M	-2.58M
Balance Sheet
Total Assets	6.44B	4.22M	9.50M	3.29M	2.09M	1.93M
Cash, Cash Equivalents and Short-Term Investments	2.79B	1.10M	5.81M	1.66M	918.26K	723.48K
Total Debt	1.95B	2.99M	1.04M	1.57M	6.16M	3.08M
Total Liabilities	3.30M	4.02M	2.19M	3.06M	8.15M	3.84M
Stockholders Equity	3.14M	205.17K	7.32M	230.56K	-6.06M	-1.91M
Cash Flow
Free Cash Flow	-6.16B	-7.44M	-6.20M	-5.79M	-3.65M	-2.45M
Operating Cash Flow	-1.96B	-7.41M	-6.07M	-5.77M	-3.64M	-2.45M
Investing Cash Flow	-843.36K	-30.19K	-125.27K	-18.31K	-1.93K	-712.00
Financing Cash Flow	3.65B	2.73M	10.34M	6.53M	3.84M	2.68M

Heart Test Laboratories, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSCS, the sentiment is Positive. The current price of 3.65 is above the 20-day moving average (MA) of 3.44, above the 50-day MA of 3.52, and above the 200-day MA of 3.52, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 83.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSCS.

Heart Test Laboratories, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NUWE	44 Neutral	3.14M	-0.10	-162.70%	―	-7.72%	99.54%
SINT	42 Neutral	12.53M	-0.44	-283.10%	―	-40.47%	96.14%
HSCS	41 Neutral	$9.77M	―	-193.24%	―	-66.40%	65.99%
VERO	40 Underperform	4.31M	-0.05	-1776.32%	―	-13.90%	44.89%
AMIX	40 Underperform	6.50M	-0.17	―	―	―	65.72%
HIND	37 Underperform	3.48M	-0.01	―	―	-19.81%	93.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Heart Test Laboratories, Inc. Corporate Events

Heart Test Laboratories Executes Debt Exchange Strategy

HeartSciences, Inc. has been actively involved in a Regulation A offering, which was qualified by the SEC on March 10, 2025, to raise up to $15 million through the sale of units comprising Series D Preferred Stock and warrants. As of August 22, 2025, the company has raised $5.2 million, with a significant portion of preferred stock being converted into common stock. Additionally, HeartSciences has executed a debt exchange, converting $1,655,000 of an unsecured promissory note into common stock, resulting in a total of 2,535,066 shares of common stock outstanding. These financial maneuvers reflect the company’s strategic efforts to strengthen its capital structure and enhance its market positioning.

The most recent analyst rating on (HSCS) stock is a Hold with a $4.00 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 Enters Equity Distribution Agreement

Heart Test Laboratories, Inc. has entered into an Equity Distribution Agreement with Maxim Group LLC, allowing the company to offer and sell up to $25 million of its common stock in an ‘at the market’ offering. This agreement, amended several times since its inception in September 2023, outlines compensation terms for Maxim Group and ensures compliance with Form S-3 eligibility requirements. As of July 31, 2025, the company’s market value of outstanding shares held by non-affiliates was $14,737,609, and no shares have been sold under this agreement in the past 12 months.

The most recent analyst rating on (HSCS) stock is a Buy with a $12.00 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 Raises $4.3 Million in Offering

HeartSciences, Inc. announced that as of July 29, 2025, it has successfully raised $4.3 million through its Regulation A Offering, issuing 1,241,188 Units, each comprising one share of Series D Preferred Stock and a warrant for common stock. Additionally, the company has completed a debt exchange, converting $1,105,000 of an unsecured promissory note into 301,111 shares of common stock, leading to a total of 2,244,247 shares of common stock outstanding as of the same date.

The most recent analyst rating on (HSCS) stock is a Buy with a $12.00 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 Raises $2.8 Million in Offering

Heart Test Laboratories, Inc. announced that it filed an Offering Statement on Form 1-A with the SEC, which was qualified on March 10, 2025, to offer up to 4,285,714 units at $3.50 per unit, aiming to raise $15 million. As of July 16, 2025, the company has raised $2.8 million through several closings, issuing 797,452 units. Holders of 486,815 shares of Series D Preferred Stock have converted their shares into common stock, contributing to a total of 1,797,914 shares of common stock issued and outstanding.

The most recent analyst rating on (HSCS) stock is a Buy with a $12.00 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 Raises $1.7M in Regulation A Offering

Heart Test Laboratories, Inc. announced on July 9, 2025, that its Board of Directors approved an amendment to its 2023 Equity Incentive Plan to increase the maximum number of shares of common stock that can be issued. The Compensation Committee granted restricted stock units and stock options to executive officers and non-employee directors, with vesting contingent upon FDA clearance of the MyoVista Device or the MyoVista Insights platform. Additionally, the company filed a Regulation A Offering with the SEC, raising $1.7 million in gross proceeds as of July 11, 2025, and exchanged $855,000 of debt for common stock, resulting in 1,555,049 shares outstanding.

The most recent analyst rating on (HSCS) stock is a Buy with a $12.00 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 Updates Bylaws to Align with Texas Law

On June 27, 2025, HeartSciences Inc. amended its Bylaws in response to changes in the Texas Business Organizations Code. These amendments include a jury trial waiver for internal entity claims, an ownership threshold for shareholders to initiate derivative proceedings, and clarifications to the exclusive forum provision. The changes aim to align with Texas law and took effect immediately.

The most recent analyst rating on (HSCS) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Heart Test Laboratories, Inc. stock, see the HSCS Stock Forecast page.