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

• Market Cap: $10.07M
• Dividend Yield: N/A
• Average Volume (3M): 58.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• 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: -105.85
• Enterprise Value/Revenue: -123.01K
• Enterprise Value/Gross Profit: 18.17K
• Enterprise Value/Ebitda: 131.84
• 1Y Price Target: $10.60
• Price Target Upside: 216.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $3.50 ▲(4.48% Upside)

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

Regulatory progress - FDA 510(k)

A 510(k) submission for the MyoVista wavECG is a structural step toward US market access. Advancing device clearance separately from the AI algorithm simplifies regulatory complexity, accelerating device commercialization and enabling future deployment of AI across platforms.

Commercial product release - MyoVista Insights v1.1

Releasing a cloud-native, vendor-agnostic ECG management platform establishes a scalable product for recurring revenue, partner integrations, and clinical workflow adoption. Interoperability and AI hosting increase stickiness with hospitals and supports long-term SaaS/commercial growth.

Modest reported leverage

A low nominal debt position relative to reported equity reduces near-term solvency pressure and gives management flexibility to pursue regulatory and commercial milestones without immediate heavy interest burdens, supporting strategic options over the coming months.

Negative Factors

Severe cash burn

Extremely negative operating and free cash flow indicates the company cannot self-fund operations or commercialization. This creates persistent financing and dilution risk, constrains investment pacing, and pressures management to secure external capital within the medium term.

Negligible revenue & negative gross profit

Revenue at a few thousand dollars and negative gross profit show the business remains effectively pre-commercial. With operating expenses far outpacing sales, there is no visible path to sustainable margins absent significant revenue ramps or cost structure changes.

Increased dilution risk from equity plan

Expanding the equity incentive plan and issuing restricted awards increases potential share issuance and dilution over time. While useful for attracting talent, larger equity compensation pools materially affect per-share economics and raise long-term dilution risk for existing shareholders.

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: Positive
• Last Price: 3.35
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 3.35 is above the 20-day moving average (MA) of 2.85, above the 50-day MA of 2.79, and below the 200-day MA of 3.35, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 27.97 is Neutral, 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
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TNON	49 Neutral	$10.59M	-0.35	-197.26%	―	-2.47%	91.23%
HSCS	46 Neutral	$10.07M	-0.44	-220.42%	―	-41.03%	35.71%
SSKN	46 Neutral	$7.67M	-0.49	-207.19%	―	-5.19%	-0.81%
PAVM	45 Neutral	$8.64M	-0.48	20.03%	―	-99.28%	-46.16%
AMIX	40 Underperform	$3.49M	-0.10	-352.39%	―	―	63.87%
BMRA	38 Underperform	$7.90M	-1.77	-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.

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.

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.

The most recent analyst rating on (HSCS) stock is a Hold 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.