HTFL

Heartflow is a genuine quality-growth story at the software layer of medical diagnostics: FY2025 revenue grew 39.9% to $176M with a 76.8% gross margin and 600,000+ cumulative patients (219,000 in 2025 alone), and the platform is the most widely adopted AI-powered CAD test with regulatory clearance across the US, UK, EU and Japan. The August 2025 IPO transformed the balance sheet — stockholders' equity jumped 135% to $301M, liabilities/equity sits at a conservative 0.20x, and current assets of $220M against $42.4M current liabilities give ample near-term liquidity to fund the product roadmap (PCI Navigator in Q2 2026, Plaque Tracker in 2027). Operating leverage is slowly appearing: operating loss narrowed slightly to -$64.1M and operating cash burn improved 21.7% to -$54M even as R&D rose 49%.

The other side is real and keeps this from being a buy. The company is still deeply unprofitable — a -$117M net loss (net margin -66.3%), a -$1.09B accumulated deficit, and only $44.8M of cash on hand against ~$54M annual operating burn (the runway leans on the broader $220M current-asset base, much of it IPO-raised short-term investments). At a $2.99B market cap the stock trades at 17x trailing sales, a price that already pays for years of continued 40% growth; with no earnings, conventional P/E and ROE (-38.8%) are uninformative and the multiple offers little margin of safety.