Ontrak (OTRK) AI Stock Analysis

• Market Cap: $512.92K
• Dividend Yield: N/A
• Average Volume (3M): 7.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -21.03%
• EPS Growth: 47.41%
• Country: US
• Employees: 104
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Healthcare Information Services
• EPS (TTM): N/A
• Shares Outstanding: 7,084,537
• 10 Day Avg. Volume: 417,121
• 30 Day Avg. Volume: 7,449,230
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 20.16
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 1.76
• Enterprise Value/Ebitda: -0.43
• 1Y Price Target: $3.00
• Price Target Upside: 4185.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 37 Underperform
• Price Target: $0.00 ▼(-100.00% Downside)

Ontrak's overall stock score is extremely low due to severe financial distress, negative technical indicators, poor valuation metrics, and critical corporate events such as bankruptcy filing. Despite some positive strategic initiatives, the overwhelming financial and operational challenges dominate the outlook.

Ontrak Business Overview & Revenue Model

Company Description

Ontrak, Inc. operates as an artificial intelligence powered, telehealth-enabled, and virtualized healthcare company that provides in-person services to health plans and other third-party payors in the United States. Its technology-enabled platform predicts people whose chronic disease will improve with behavior change, recommends effective care pathways that people are willing to follow, and engages and guides them to and through the care they need. The company's technology-enabled OnTrak program provides healthcare solutions to members with behavioral conditions that cause or exacerbate chronic medical conditions, such as diabetes, hypertension, coronary artery disease, chronic obstructive pulmonary disease, and congestive heart failure. The OnTrak integrates evidence-based psychosocial and medical interventions delivered in-person or via telehealth along with care coaching and in-market community care coordinators, who address the social and environmental determinants of health. The company was formerly known as Catasys, Inc. and changed its name to Ontrak, Inc. in July 2020. The company was incorporated in 2003 and is headquartered in Henderson, Nevada.

How the Company Makes Money

Ontrak generates revenue primarily through its performance-based contracts with health plans and insurers. The company earns fees for its services, which are contingent upon achieving specific health outcomes and cost savings for its clients. Key revenue streams include payments for enrollment in its care management programs, ongoing monthly fees for continued support, and bonuses tied to successful patient outcomes. Additionally, Ontrak has formed strategic partnerships with various health insurers to expand its reach and improve service offerings, contributing significantly to its earnings potential.

Ontrak Financial Statement Overview

Summary

Ontrak's financial performance is severely challenged, with declining revenues, negative profitability, and high leverage. The income statement, balance sheet, and cash flow all indicate significant financial distress, with negative margins and cash flow issues.

Income Statement

Ontrak's income statement shows significant challenges with declining revenue and negative margins. The company has experienced a substantial decrease in revenue from previous years, with a negative revenue growth rate. Gross profit margin is moderately positive, but the net profit margin is deeply negative, indicating a struggle to achieve profitability. EBIT and EBITDA margins are also negative, highlighting ongoing operational inefficiencies.

Balance Sheet

The balance sheet reflects a mixed financial position with high leverage and minimal equity. The debt-to-equity ratio is concerning, indicating potential risks associated with high leverage. Stockholders' equity has decreased significantly, affecting the equity ratio negatively. The return on equity is negative, further pointing to profitability challenges. On a positive note, the company has maintained some level of cash reserves, although these have declined over time.

Cash Flow

Ontrak's cash flow statement reveals consistent negative free cash flow and operating cash flow, indicating cash burn and potential liquidity issues. The free cash flow growth is negative, and the operating cash flow to net income ratio is unfavorable due to negative cash flow and net income. Financing activities have provided some relief, but the sustainability of such reliance is uncertain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.18M	10.85M	12.74M	14.51M	84.13M	82.84M
Gross Profit	5.87M	6.82M	8.80M	7.05M	52.92M	39.23M
EBITDA	-23.91M	-22.59M	-14.42M	-42.38M	-24.65M	-12.71M
Net Income	-27.92M	-25.49M	-27.92M	-51.57M	-37.14M	-22.71M
Balance Sheet
Total Assets	18.27M	21.07M	19.85M	25.76M	93.68M	144.70M
Cash, Cash Equivalents and Short-Term Investments	4.09M	5.71M	9.70M	5.03M	58.82M	86.91M
Total Debt	9.68M	8.50M	1.69M	11.26M	37.45M	47.97M
Total Liabilities	13.62M	11.21M	5.58M	20.08M	48.13M	83.95M
Stockholders Equity	4.65M	9.87M	14.27M	5.68M	45.55M	60.75M
Cash Flow
Free Cash Flow	-13.10M	-13.61M	-15.78M	-25.12M	-30.64M	-8.04M
Operating Cash Flow	-12.90M	-13.44M	-15.50M	-23.97M	-26.16M	-6.28M
Investing Cash Flow	-198.00K	-177.00K	-285.00K	-1.16M	-4.48M	-4.64M
Financing Cash Flow	10.78M	9.62M	15.77M	-31.11M	-6.63M	100.11M

Ontrak Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTRK, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.45, and below the 200-day MA of 1.31, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 27.52 is Positive, neither overbought nor oversold. The STOCH value of 8.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OTRK.

Ontrak Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.26	-41.41%	2.22%	22.87%	-2.01%
AMWL	50 Neutral	$111.45M	―	-38.52%	―	5.83%	61.94%
DH	49 Neutral	$574.20M	―	-64.27%	―	-5.24%	23.59%
TDOC	47 Neutral	$1.37B	―	-14.18%	―	-2.57%	79.86%
OTRK	37 Underperform	$512.92K	―	-215.66%	―	-21.03%	47.41%
EUDA	―	$76.54M	―		―	―	―
VSEE	46 Neutral	$9.85M	―	-3190.66%	―	―	-280.85%

Ontrak Corporate Events

Ontrak Files for Chapter 7 Bankruptcy

On August 28, 2025, Ontrak‘s board of directors decided to file for Chapter 7 bankruptcy, leading to the immediate resignation of all board members. This decision marks a significant shift in the company’s operations, potentially impacting its market presence and stakeholders.

Ontrak Ceases Operations After Failed Partnership

Ontrak announced that on July 2, 2025, a major potential partner decided not to pursue a partnership, prompting the board to assess its financial situation and funding prospects. Due to the inability to meet financial covenants and lack of viable funding options, the board decided to cease operations and terminate all employees by July 31, 2025.

Ontrak Faces Partnership Setback Amid Ongoing Prospects

On July 2, 2025, Ontrak, Inc. was informed by a prospective partner that it would not pursue a partnership, affecting up to 9,000 lives for Wholehealth+ and 20,000 for Engage. Despite this setback, Ontrak continues to engage with four prospects in advanced sales stages, representing up to 13,000 lives for Wholehealth+ and 20,000 for Engage, and has 20 additional active prospects representing approximately 15 million plan lives.

Ontrak Completes $3.24 Million Public Offering

On June 30, 2025, Ontrak, Inc. completed a public offering of common stock and warrants, raising approximately $3.24 million in net proceeds. The company plans to use these funds for working capital and general corporate purposes. The offering involved the sale of shares and prefunded warrants, each accompanied by four additional warrants, with an exercise price of $0.60 per share. The offering is part of Ontrak’s strategy to enhance its financial position and support its operations in the behavioral healthcare industry.

Ontrak Amends Note Purchase Agreement with Acuitas

On June 27, 2025, Ontrak, Inc. entered into a Seventh Amendment to its Master Note Purchase Agreement with Acuitas Capital LLC and U.S. Bank Trust Company. This amendment allows Acuitas to purchase up to $8.45 million in senior secured convertible promissory notes from Ontrak, with conditions tied to the company’s financial status and market conditions. Additionally, Humanitario Capital, an affiliate of Acuitas, exercised 500,000 pre-funded warrants on June 20, 2025, increasing Acuitas’ ownership to 52% of Ontrak’s common stock, though this was not considered a change of control due to prior ownership levels.