Breaking Down Hyperfine, Inc. (HYPR) Financial Health: Key Insights for Investors

You're looking at Hyperfine, Inc. (HYPR) and seeing the classic high-growth, high-burn med-tech story-an exciting portable MRI product, but a balance sheet that makes you pause. The Q3 2025 results defintely give us mixed signals, which is why we need to look past the headline net loss of $11.0 million (or $0.14 per share) and focus on the commercial traction. The good news is their execution is tightening up; Q3 revenue hit $3.4 million, representing a strong 27% sequential jump, and the gross margin (the money they make after cost of goods) hit a record 53.8%. That's efficiency. But let's be real: the full-year picture still shows a significant cash burn, now projected to be in the range of $29 to $31 million for 2025, even with the $20.1 million capital raise in October that bought them runway. Management is guiding for full-year revenue between $13 and $14 million, so the core question for every investor isn't if they're growing, but can they scale fast enough to close that cash gap before the runway ends?

Revenue Analysis

You're looking at Hyperfine, Inc. (HYPR) and wondering if the revenue picture shows a viable path to scale. The short answer is that while the third quarter of 2025 saw a year-over-year dip, the sequential growth and full-year guidance point to a critical inflection point driven by new product adoption.

For the full fiscal year 2025, management projects total revenue to be in the range of approximately $13 million to $14 million. This is a crucial number, as it frames the company's growth trajectory around the commercial rollout of its next-generation products. This figure is based on a strong forecast for the fourth quarter, which is expected to hit between $5 million and $6 million.

Breaking Down Primary Revenue Streams

Hyperfine's revenue streams are straightforward, dominated by the sale of its core product, the Swoop® system, and supplemented by service contracts. The Swoop® system is their portable, ultra-low-field magnetic resonance (MR) brain imaging device-a game-changer for point-of-care diagnostics. In the third quarter of 2025, the revenue split clearly favored device sales, which is typical for a medical device company in its commercialization phase.

• Device Sales: Contributed $2.89 million in Q3 2025, the majority of the quarter's sales.
• Service Revenue: Accounted for the remainder, bringing in $546,000 in Q3 2025.

Here's the quick math: Device sales made up about 84% of the total Q3 revenue of $3.44 million. This tells you that the company's financial health is defintely tied to the successful placement of their hardware units, which now includes the next-generation Swoop system and the Opti AI™ software.

Growth Trends and Segment Contribution

The year-over-year (YoY) revenue comparison for Q3 2025 showed a decline of 5.7%, with revenue dropping to $3.44 million from $3.64 million in Q3 2024. That's the near-term risk. But, you also need to see the opportunity in the sequential growth (quarter-over-quarter), which was a strong 27% increase from Q2 2025. Sequential growth signals commercial momentum, which is a better indicator of recent product adoption.

The company is strategically focusing its sales efforts across three main verticals, which are starting to change the revenue mix and support the ambitious guidance:

• US Hospital Deals: The traditional market for high-acuity care.
• US Office Deals: Specifically targeting the neurology office market, a new and potentially high-volume segment.
• International Business: Bolstered by regulatory approvals like the CE Mark and UKCA Mark for the Opti AI software, which facilitates expansion.

What this estimate hides is the impact of the new products. The raised Q4 2025 revenue guidance of $5 million to $6 million represents a projected year-over-year quarterly growth of 137% at the midpoint. That massive jump is directly attributed to the commercial launch of the next-generation Swoop system and the Opti AI software, which are driving a record gross margin of nearly 54% in Q3 2025.

To get a clearer picture of the volatility and the growth catalysts, take a look at the full analysis in Breaking Down Hyperfine, Inc. (HYPR) Financial Health: Key Insights for Investors.

Profitability Metrics

You're looking at Hyperfine, Inc. (HYPR) because the portable MRI market is exciting, but the cold, hard numbers tell a story of a growth company still deep in its investment phase. The key takeaway is this: their gross profitability is excellent and improving, but the cost structure for scaling is still massive, leading to significant net losses.

For the third quarter of 2025 (Q3 2025), Hyperfine, Inc. reported revenue of $3.4 million. While this was a healthy 27% sequential increase from Q2 2025, the company's path to true profitability remains a long one. We need to break down the margins to see the real operational picture.

Gross, Operating, and Net Profit Margins

Hyperfine, Inc.'s gross margin is the strongest indicator of its product's inherent value and cost management. This is where the story gets interesting, but the operating and net margins show the reality of a pre-scale MedTech business (Medical Technology). Here's the quick math for Q3 2025:

• Gross Profit Margin: The margin hit a record 53.8% in Q3 2025, up significantly from 49.3% in Q2 2025. This means for every dollar of revenue, $0.538 is left over after paying for the direct costs of the Swoop® system.
• Operating Profit Margin: This margin is deeply negative. After subtracting operating expenses (R&D and SG&A), the operating loss for Q3 2025 was approximately $8.9 million. This translates to an operating margin of roughly -261.8%.
• Net Profit Margin: The net loss for Q3 2025 was $11.0 million, resulting in a net profit margin of approximately -323.5%.

The company is selling a high-margin product, but the sheer cost of development and sales is eating all the profit and then some. That's the typical trade-off for a disruptive technology company like this.

Profitability Trends and Operational Efficiency

The trend in gross margin is defintely the most positive sign for investors. It shows that the operational side-managing the cost of goods sold (COGS) for the Swoop® system-is improving rapidly. This is a critical sign of operational efficiency as the company scales production and launches its next-generation system.

The sequential improvement in gross margin throughout 2025 is clear:

You can see the gross margin jump by over 12 percentage points from Q1 to Q3 2025. This margin expansion is driven by the commercial launch of the next-generation Swoop® system and Optive AI™ software, which are likely designed for better manufacturing economics and higher value. Still, the operating loss remains substantial, though it is narrowing on a sequential basis, which is a good sign for cash burn management.

Comparison with Industry Averages

When you stack Hyperfine, Inc.'s profitability against the broader US Medical Equipment industry, the divergence is stark, but expected for a company in its growth stage.

The MedTech industry is generally highly profitable, with average profit margins-often measured as operating or net profit-averaging around 22%. For comparison, a peer in the broader industrial/medical device space, Moog, reported an industrial operating margin of 12.7% in Q4 2025, and Tecan, a MedTech OEM, forecasts an adjusted EBITDA margin of 17.5% to 18.5% for the full year 2025. Hyperfine's -261.8% operating margin is a world apart.

However, the 53.8% gross margin is competitive for a high-value medical device, where gross margins are typically high to cover massive research and development (R&D) and sales, general, and administrative (SG&A) costs. The company's challenge is to grow revenue fast enough to cover the $10.7 million in combined R&D and SG&A expenses it incurred in Q3 2025. To understand the company's long-term vision for bridging this gap, you should read their Mission Statement, Vision, & Core Values of Hyperfine, Inc. (HYPR).

Debt vs. Equity Structure

You're looking at Hyperfine, Inc. (HYPR) and its balance sheet, and the immediate takeaway is clear: this is a company funding its growth almost entirely through investor capital, not debt. In the high-risk, high-reward medical device space, that's a deliberate, conservative choice.

As of the third quarter of 2025 (September 30, 2025), Hyperfine, Inc.'s capital structure is remarkably equity-heavy. The company's Debt-to-Equity (D/E) ratio stood at a minimal 0.01. This tiny ratio signals that for every dollar of shareholder equity, the company has only one cent of debt. That's defintely a low-leverage profile.

Here's the quick math on how Hyperfine, Inc. compares to its peers:

• Hyperfine, Inc. D/E Ratio: 0.01
• Industry Median D/E Ratio (Surgical and Medical Instruments): 0.70

Compare that 0.01 to the median D/E ratio of 0.70 for the Surgical and Medical Instruments industry. Most medical device companies use a moderate level of debt to accelerate growth or fund operations, but Hyperfine, Inc. is essentially debt-free, relying on equity and current liabilities like accounts payable and deferred revenue, which totaled $10.168 million as of Q3 2025. This reduces financial risk but also means the company isn't using the financial leverage (debt) to magnify returns on equity.

The absence of significant long-term or short-term conventional debt on the balance sheet is a key feature of the company's financing strategy. For a pre-profit, growth-stage technology company, this is a common strategy: prioritize flexibility and cash runway over the cost-efficiency of debt. This is how they manage the inherent risk of a long commercialization cycle.

The most recent financing activity confirms this equity-first approach. In October 2025, the company completed a significant underwritten public offering, raising $20.1 million in gross proceeds (or $18.4 million in net proceeds). This capital infusion, which did not involve taking on new debt, immediately bolstered the balance sheet and is expected to extend the company's cash runway into the second half of 2027.

The company is trading financial leverage for financial safety. This is a crucial point for investors, especially when looking at a company with a net loss of $11.0 million in Q3 2025. The equity raises are the lifeblood, not debt. For a deeper dive into who is buying this equity, you should be Exploring Hyperfine, Inc. (HYPR) Investor Profile: Who's Buying and Why?

Your action item here is simple: keep an eye on the cash balance post-offering, which is now significantly higher than the $21.6 million reported at the end of Q3 2025. Any future financing will almost certainly remain equity-based until the company achieves consistent positive free cash flow.

Liquidity and Solvency

You are looking at Hyperfine, Inc. (HYPR) and wondering if they have the cash to keep the lights on while they scale. Honestly, the liquidity picture is a classic growth-stage scenario: strong on paper due to capital raises, but fundamentally reliant on outside funding to cover significant operating losses.

As of the end of the third quarter of 2025, the company's balance sheet showed a very healthy short-term position, but this strength masks the underlying cash burn.

• Current Ratio: The calculated Current Ratio for Q3 2025 stood at approximately 3.63.
• Quick Ratio: The Quick Ratio (or acid-test ratio), which strips out inventory, was about 3.05.

A ratio over 1.0 is generally good, so a 3.63 is defintely robust, meaning Hyperfine, Inc. has more than three times the current assets necessary to cover its current liabilities of $10.17 million. The quick ratio is also excellent. This is a clear strength, but it's crucial to understand where this liquidity comes from. It's not operating profits; it's capital infusion.

Working Capital and Cash Flow Trends

The working capital story is a tale of two balance sheets. The company's total current assets were approximately $36.90 million at the close of Q3 2025. The positive working capital position is a cushion, but the cash flow statement tells the real story about the trend.

In the third quarter of 2025, the net loss widened to $11.0 million. Here's the quick math on cash flow:

• Operating Cash Flow: The net cash burn from operations (excluding financing) was approximately $5.9 million for Q3 2025, which, to be fair, was a 27% sequential decline from the prior quarter. This is the core challenge.
• Investing Cash Flow: While specific CapEx (Capital Expenditures) is not the focus, the company is still in a development and initial rollout phase, meaning this category is a minor cash outflow.
• Financing Cash Flow: This is the lifeline. The cash balance of $21.56 million as of September 30, 2025, was immediately bolstered by the October 2025 public offering, which brought in net proceeds of approximately $18.4 million.

That equity raise is the only reason the liquidity looks so strong today. It extended the company's cash runway out to mid-2027, which is a significant win for a company with a projected full-year 2025 cash burn of $29 million to $31 million.

Near-Term Liquidity Concerns and Action

The primary risk isn't immediate bankruptcy; it's the reliance on the capital markets. The company is structured to lose money as it scales, which is normal for a tech-heavy medical device firm. The high current and quick ratios are a direct result of the October financing, not sustainable operations.

The key action for investors is to track the cash burn rate against the revenue guidance. Management expects Q4 2025 revenue to be between $5 million and $6 million. If they can hit that and continue to reduce the burn, the path to self-sufficiency becomes clearer. If you want to dig deeper into who is backing this strategy, I recommend Exploring Hyperfine, Inc. (HYPR) Investor Profile: Who's Buying and Why?.

We need to see a dramatic and sustained reduction in that operating cash outflow over the next four quarters.

Valuation Analysis

You're looking at Hyperfine, Inc. (HYPR) and trying to figure out if the market price is realistic, which is a smart move. My quick take is this: the stock is currently trading at a premium on a Price-to-Book basis, but the analyst consensus suggests a significant near-term upside, meaning they see it as undervalued relative to its growth potential, not its current earnings.

The core of the valuation story for Hyperfine, Inc. is that it is a growth-stage medical device company. This means traditional earnings-based metrics like Price-to-Earnings (P/E) are essentially useless right now. They are not profitable yet. Here's the quick math on where the valuation sits as of late 2025.

• Price-to-Earnings (P/E) Ratio: The P/E is negative, around -2.17x, because the company is posting a loss. For the full fiscal year 2025, analysts expect an Earnings Per Share (EPS) loss of about $-1.00. You can't value a turnaround or growth story on a negative P/E.
• Price-to-Book (P/B) Ratio: The P/B ratio stands at approximately 3.14. This tells you investors are willing to pay over three times the company's book value (assets minus liabilities), which is a clear sign that the market is pricing in future growth and the value of its intellectual property, like the Swoop Portable MR imaging system.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric is also not applicable (N/A) because the company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is negative. The Enterprise Value is a more meaningful number here, sitting at about $80.65 million as of November 2025.

What this estimate hides is the cash burn. Management expects the full year 2025 cash burn to be in the range of $29 million to $31 million, even as they project full-year revenue of approximately $13 million to $14 million. That's a lot of capital going out the door to chase growth.

The company does not pay a dividend, so the dividend yield and payout ratios are 0%.

Stock Price Trend and Analyst View

The stock has definitely been volatile over the last 12 months. It traded in a wide 52-week range, from a low of $0.53 to a high of $2.22. As of mid-November 2025, the stock price was hovering around $1.07 to $1.15, but still showed a 52-week price change gain of +16.67%. That's a decent return, but it's a bumpy ride.

Analyst sentiment is generally positive, which is a critical factor for a stock like this. The consensus rating is a Buy or Strong Buy from the analysts covering Hyperfine, Inc. The average one-year price target is set between $1.28 and $1.73. This suggests a potential upside of over 20% from the current price, which is why the 'Buy' rating holds. They believe the new product rollouts, like the next-generation Swoop system powered by Optive AI software, will accelerate revenue.

Here's how the analysts stack up:

To be fair, the stock's performance will hinge on their ability to convert that cash burn into sustainable revenue growth, especially with the Q3 2025 revenue of $3.4 million topping estimates. If you want to dive deeper into the operational metrics, you can check out the full analysis at Breaking Down Hyperfine, Inc. (HYPR) Financial Health: Key Insights for Investors.

Next step: Check the Q4 2025 revenue guidance of $5 million to $6 million against actual results when they drop, as that will be the real test of their commercial momentum.

Risk Factors

You're looking at Hyperfine, Inc. (HYPR) and seeing a groundbreaking product, the Swoop system, but the investment thesis must start with the financial and operational risks. The core issue is that Hyperfine is a growth-stage company still burning significant cash to capture market share in a highly competitive medical imaging sector.

The most immediate financial concern is the cash burn rate. Management projects the total cash burn for the full year 2025 will be in the range of $29 million to $31 million, even with a projected 22% year-over-year reduction at the midpoint. This persistent cash outflow is why the net loss for Q3 2025 widened to $11.0 million, a 6.7% increase from the same quarter last year. Simply put, they are spending heavily to grow revenue, which is projected to be only $13 million to $14 million for the full year 2025.

Here's the quick math: the company's Q3 2025 net cash position of $21.6 million would be quickly depleted without external financing.

Market Adoption and Competition Headwinds

The external risks center on market adoption and intense competition. Hyperfine, Inc. is introducing a new technology-a portable, ultra-low-field MRI-into established hospital and office settings, which naturally leads to longer, more variable sales cycles. The market is skeptical about adoption rates, which is reflected in the stock's volatility despite sequential revenue growth.

The company faces two key commercial challenges:

• Hospital Sales Cycle: Hospitals are slow-moving, and capital expenditure decisions for new medical devices like the Swoop system take time to finalize.
• Direct Competition: They must compete with established medical imaging giants who have far greater resources and existing relationships with health systems.
• International Hurdles: Expanding globally is slow; it involves complex procurement processes and the need to localize software and documentation for each new market.

To be fair, the Q3 2025 gross margin expanded to a record 53.8%, driven by a higher average selling price of $361,000 for the next-generation Swoop system, but that margin needs to scale dramatically to offset the operating expenses.

Mitigation Strategies and Financial Runway

Management is defintely aware of these risks and has taken clear steps to mitigate them, especially on the financial and product fronts. The most critical action was the $20 million October financing round, which the company states extends its cash runway into the second half of 2027. This buys them crucial time to reach profitability.

Operationally, the strategy is a dual-pronged attack: new product features and market diversification. The launch of the next-generation Swoop system and Opti AI software is designed to improve image quality and drive mainstream adoption, which is the only way to shorten those long sales cycles. Plus, they are actively expanding into the neurology office market, aiming to diversify revenue away from just the hospital setting.

If you want a deeper dive into the company's financial mechanics, you can find more detail in Breaking Down Hyperfine, Inc. (HYPR) Financial Health: Key Insights for Investors.

Here is a summary of the core financial risks and mitigation efforts:

The company has a two-year window to prove its commercial model before the cash runway becomes a major concern again. Your next step should be to monitor Q4 2025 revenue for signs that the new product launches are accelerating sales.

Growth Opportunities

You're looking at Hyperfine, Inc. (HYPR) and wondering if the recent sequential revenue growth is a blip or a real trend. The direct takeaway is this: the company is making a critical shift from a pure R&D-heavy startup to a commercial entity, and its future hinges on two key factors-new product adoption and market expansion outside the hospital. It's a high-risk, high-reward play, but the near-term actions are clear.

The company's growth prospects are defintely tied to its unique technology, the Swoop® Portable MR Imaging System. This system is the first FDA-cleared, AI-powered portable magnetic resonance (MR) brain imaging device, which is a massive competitive advantage. Why? Because it offers lower upfront capital costs and doesn't require the specialized construction that conventional MRI machines do. This makes it a game-changer for accessibility, especially in places like critical care units and smaller neurology offices.

Key Growth Drivers and Product Innovation

The core of Hyperfine's push in 2025 is product innovation and getting their new technology into the hands of more clinicians. The launch of the next-generation Swoop® system and the Optive AI™ software are the primary engines here. The Optive AI™ software, which has secured both CE Mark and UKCA Mark approvals in addition to its U.S. clearance, is crucial because it significantly enhances image quality-a historical hurdle for low-field portable MRI. They are actively converting their entire U.S. hospital pipeline to this next-gen system, which is a smart move for revenue acceleration.

• Launch next-generation Swoop® system.
• Roll out Optive AI™ software internationally.
• Expand into neurology office market.

This product-led strategy is already showing traction. In the third quarter of 2025, Hyperfine reported total revenues of $3.4 million, which marked a solid 27% sequential increase from the previous quarter. That's a strong signal of product adoption momentum.

Financial Projections and Market Expansion

For the full 2025 fiscal year, management is guiding for total revenue between $13 million and $14 million. Here's the quick math: achieving this requires a significant jump in the fourth quarter, with guidance set at $5 million to $6 million-a projected sequential growth of 60% at the midpoint. This acceleration is expected to come from their strategic focus on new markets, specifically the neurology office setting, which is a full-scale commercial launch for them.

While the top line is growing, you must remain a realist about the bottom line. The company is still in a heavy investment phase. The full-year 2025 cash burn is forecast to be between $29 million and $31 million, though this does represent a 22% reduction from 2024. They did raise $20.1 million in gross proceeds in October 2025, which extended their cash runway to mid-2027, buying them time to execute their plan. Still, profitability is a long way off, with the full-year EPS estimate sitting around -$0.46 per share. The gross margin, however, is expected to improve to 49% to 51% for the year, showing better production efficiency.

To see how these numbers stack up against the broader market sentiment, you should check out Exploring Hyperfine, Inc. (HYPR) Investor Profile: Who's Buying and Why?. The market expansion strategy is targeting a much larger total addressable market (TAM), moving beyond the initial beachhead of critical care.

The key driver for long-term growth is the shift from selling a novelty device to integrating a necessary tool into routine care. The successful pilot programs in the neurology office setting and the use of their AI technology in trials for Alzheimer's disease treatments, like detecting ARIA-E during Lecanemab therapy, are the kind of concrete examples that build a compelling case for growth beyond just hospital capital expenditure cycles.