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iCAD Inc (ICAD)
NASDAQ:ICAD
US Market

iCAD (ICAD) AI Stock Analysis

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iCAD

(NASDAQ:ICAD)

60Neutral
iCAD's overall stock score of 60 reflects a mixed outlook. Significant financial challenges are offset by positive corporate developments, including a strategic merger with RadNet, which is expected to enhance growth. Technical indicators show strong momentum, although valuation remains weak due to ongoing losses.
Positive Factors
Acquisition Benefits
The ICAD acquisition will give RadNet the ability to scale and expand the reach of the most comprehensive Breast AI portfolio.
Financial Performance
ICAD reported preliminary Q4 revenue beating consensus and estimates.
Partnerships
ICAD has a partnership with Google Health for the ProFound Detection for 2D algorithm, indicating collaboration with a major technology company.
Negative Factors
Competitive Interest
There is no anticipation of other bidders for ICAD, suggesting limited competitive interest in the acquisition.
Stock Downgrade
ICAD shares are being downgraded to Neutral following the announced acquisition by RadNet.

iCAD (ICAD) vs. S&P 500 (SPY)

iCAD Business Overview & Revenue Model

Company DescriptioniCAD, Inc. provides image analysis, workflow solutions, and radiation therapy for the treatment of cancer in the United States. It operates through two segments, Cancer Detection and Cancer Therapy. The company offers PowerLook platform, which hosts the AI algorithm solutions and manages the communications between imaging acquisition systems, and image storage and review systems; SecondLook, a machine learning-based cancer detection algorithm that analyzes 2D full-field digital mammography images to identify and mark suspicious masses and calcifications; and automated density assessment solutions, which provides automated, consistent, and standardized density assessment. It also offers ProFound AI, a deep-learning algorithm designed to detect malignant soft-tissue densities and calcifications in digital breast tomosynthesis; ProFound AI Risk, a tool that provides breast cancer risk estimation based on a screening mammogram; and magnetic resonance imaging applications, a tool to detect breast and prostate cancer. In addition, the company offers VeraLook, a solution designed to support the detection of colonic polyps in conjunction with CT Colonography. Further, it provides Xoft Axxent electronic brachytherapy systems for the treatment of early stage breast, non-melanoma skin, and gynecological cancers to university research and community hospitals, cancer care clinics, veterinary facilities, and dermatology offices. The company sells its products through direct sales organizations, as well as through various original equipment manufacturer partners, distributors, technology platform partners, and resellers. It also exports its products in Europe, Taiwan, Canada, China, and internationally. The company was formerly known as Howtek, Inc. and changed its name to iCAD, Inc. in June 2002. iCAD, Inc. was incorporated in 1984 and is headquartered in Nashua, New Hampshire.
How the Company Makes MoneyiCAD generates revenue through the sale of its diagnostic and therapeutic products and solutions to healthcare facilities worldwide. Key revenue streams include the sale of software and hardware products for cancer detection and therapy, recurring revenue from service contracts and software upgrades, and sales of consumables related to its therapy systems. Significant partnerships with hospitals, clinics, and research institutions also contribute to its earnings by expanding its market reach and adoption of its technologies. Additionally, iCAD may receive revenue through licensing agreements and collaborations that help enhance its product offerings and market presence.

iCAD Financial Statement Overview

Summary
iCAD shows a strong gross profit margin and a solid equity position, indicating potential for future recovery. However, persistent operating losses, negative cash flows, and declining revenue trends highlight ongoing operational and financial challenges. The company must focus on improving operational efficiency and stabilizing revenue to enhance its financial health.
Income Statement
40
Negative
The company has struggled with profitability, as indicated by negative EBIT, EBITDA, and net income over multiple periods. The gross profit margin for TTM is strong at 85.3%, but net profit margin remains negative due to high operating costs. Revenue has declined from 2020 to 2023 but saw slight growth in the TTM period, indicating potential stabilization.
Balance Sheet
55
Neutral
iCAD maintains a strong equity position with an equity ratio of 79.1% in the TTM period, suggesting a stable financial structure. The debt-to-equity ratio is low at 0.014, indicating minimal leverage and low financial risk. However, the company has consistently reported negative net income, impacting the return on equity, which remains negative.
Cash Flow
35
Negative
The company has experienced negative operating and free cash flows, reflecting challenges in generating cash from operations. There is a slight improvement in free cash flow growth in TTM compared to the previous year, but it remains negative. The operating cash flow to net income ratio is below 1, indicating cash flow issues relative to accounting net income.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
17.32M27.94M33.64M29.70M31.34M
Gross Profit
14.54M19.81M24.24M21.35M24.23M
EBIT
-7.69M-13.93M-10.73M-9.39M-6.40M
EBITDA
-6.57M-9.50M-10.55M-16.52M-12.05M
Net Income Common Stockholders
-4.85M-13.66M-11.24M-17.61M-13.55M
Balance SheetCash, Cash Equivalents and Short-Term Investments
21.67M21.31M34.28M27.19M15.31M
Total Assets
41.42M51.70M62.19M55.58M41.75M
Total Debt
461.00K3.38M1.16M8.76M22.49M
Net Debt
-21.21M-17.93M-33.13M-18.43M7.18M
Total Liabilities
8.00M16.80M15.67M25.06M36.68M
Stockholders Equity
33.42M34.90M46.52M30.52M5.07M
Cash FlowFree Cash Flow
-6.23M-13.32M-9.99M-7.46M-7.41M
Operating Cash Flow
-4.96M-12.79M-9.41M-6.99M-7.11M
Investing Cash Flow
3.27M-534.00K-587.00K-474.00K-306.00K
Financing Cash Flow
2.05M355.00K17.09M19.33M10.54M

iCAD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.42
Price Trends
50DMA
2.43
Positive
100DMA
2.43
Positive
200DMA
2.01
Positive
Market Momentum
MACD
0.35
Negative
RSI
74.92
Negative
STOCH
87.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICAD, the sentiment is Positive. The current price of 3.42 is above the 20-day moving average (MA) of 2.67, above the 50-day MA of 2.43, and above the 200-day MA of 2.01, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 74.92 is Negative, neither overbought nor oversold. The STOCH value of 87.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICAD.

iCAD Risk Analysis

iCAD disclosed 48 risk factors in its most recent earnings report. iCAD reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

iCAD Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$96.06M-18.09%-4.15%3.49%
54
Neutral
$2.00B32.034.87%8.33%256.54%
53
Neutral
$65.64M-34.88%28.44%-61600.00%
52
Neutral
$5.36B3.88-42.93%2.87%17.85%1.45%
50
Neutral
$83.01M-51.63%11.26%-14.21%
47
Neutral
$47.24M-114.70%-8.11%-23.04%
45
Neutral
$53.71M-61.03%16.84%9.43%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ICAD
iCAD
3.50
2.07
144.76%
APYX
Apyx Medical
1.25
-0.15
-10.71%
EDAP
EDAP TMS
2.22
-4.86
-68.64%
LIVN
LivaNova
36.78
-25.82
-41.25%
XTNT
Xtant Medical Holdings
0.47
-0.41
-46.59%
HYPR
Hyperfine
0.69
-0.14
-16.87%

iCAD Earnings Call Summary

Earnings Call Date:Mar 19, 2025
(Q4-2024)
|
% Change Since: 38.46%|
Next Earnings Date:May 19, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for iCAD with strong revenue growth, successful SaaS transition, and significant advancements in AI technology and global partnerships. However, financial challenges such as increased operating expenses and net losses are present due to strategic investments and the SaaS transition.
Q4-2024 Updates
Positive Updates
Revenue Growth
Fourth quarter revenue reached $5.4 million, marking a 14% increase over the fourth quarter of 2023. Full-year revenue for 2024 was $19.6 million, up from $17.3 million in 2023.
Annual Recurring Revenue (ARR) Increase
Total ARR increased to $9.8 million at the end of the fourth quarter of 2024, up from $8.8 million at the end of the fourth quarter of 2023. Subscription ARR increased from $1.7 million to $2.6 million year-over-year.
Successful SaaS Transition
iCAD made significant progress in transitioning to a SaaS-based model, reporting strong cloud adoption with 19 cloud deals in Q4, up from 13 in Q3 and 10 in Q2.
FDA Clearance of ProFound Detection Version 4.0
The new version offers a 22% improvement in detecting aggressive cancers, with a 50% increase in sensitivity for dense breast tissue and a 60% improvement in identifying invasive lobular cancers.
Global Expansion and Partnerships
Signed new distribution agreements in South Africa and Portugal, and a significant deal with Sectra in the UK. Also secured regulatory approval in Jordan.
Negative Updates
Operating Expenses Increase
Total operating expenses for Q4 2024 were $5.5 million, a 10% increase year-over-year, driven by investments in R&D and regulatory expansions.
GAAP Net Loss
GAAP net loss from continuing operations for Q4 2024 was $0.9 million, compared with a $0.5 million loss in Q4 2023. The full-year 2024 GAAP net loss was $5.6 million, compared to $7 million in 2023.
Cash Position Decline
Cash and cash equivalents dropped to $17.2 million as of December 31, 2024, down from $21.7 million at the end of 2023.
Impact of SaaS Transition on Short-term Revenue
The transition to SaaS is expected to cause short-term headwinds to both GAAP revenue and cash flow due to the shift from upfront revenue recognition to a recurring model.
Company Guidance
During the iCAD Inc. Fourth Quarter and Full Year 2024 Financial Results Conference Call, Dana Brown, the CEO, reported a strong quarter with revenue surpassing expectations at $5.4 million, leading to an annual revenue of $19.6 million and an annual recurring revenue (ARR) of $9.8 million. The company achieved significant milestones, such as receiving FDA clearance for ProFound Detection version 4.0, which improved cancer detection by 22% and reduced false positives by 18%. The transition to a software-as-a-service model is reshaping revenue generation, with 19 cloud deals closed in Q4, compared to previous quarters. The company's SaaS transition is expected to enhance financial predictability, with ARR growing 11% year-over-year. Despite some lumpiness in revenue recognition due to the SaaS transition, iCAD reported a GAAP net loss of $0.9 million for Q4 while maintaining a strong cash position of $17.2 million. The company is focused on expanding its SaaS footprint, driving innovation, and leveraging partnerships to continue its growth trajectory in 2025.

iCAD Corporate Events

M&A Transactions
iCAD Announces Merger Agreement with RadNet
Positive
Apr 15, 2025

On April 15, 2025, iCAD, Inc. entered into a merger agreement with RadNet, Inc., under which RadNet will acquire iCAD in an all-stock transaction valued at approximately $103 million. This merger is expected to enhance RadNet’s AI-powered breast cancer detection capabilities by integrating iCAD’s ProFound Breast Health Suite into RadNet’s DeepHealth portfolio. The transaction, which offers a 98% premium to iCAD stockholders, aims to accelerate RadNet’s growth and leadership in cancer screening and AI solutions, with the merger expected to close in the second or third quarter of 2025, pending customary approvals.

Spark’s Take on ICAD Stock

According to Spark, TipRanks’ AI Analyst, ICAD is a Neutral.

iCAD’s stock is hindered by significant financial challenges, including declining revenue and persistent losses. Despite a solid equity position and a promising SaaS transition, the stock’s technical indicators and valuation are weak. Improvements in operational efficiency and revenue stabilization are essential for better prospects.

To see Spark’s full report on ICAD stock, click here.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.