Breaking Down iCAD, Inc. (ICAD) Financial Health: Key Insights for Investors

Are you an investor keeping a close watch on the evolving landscape of AI-powered healthcare? Wondering how iCAD Inc. (ICAD), a key player in AI-driven breast health solutions, is performing? In 2024, they reported a total revenue of approximately $19.6 million, marking a 13% increase from 2023. With a gross profit of $16.6 million and an impressive 85% gross profit margin, is iCAD on a strong path? Despite a net loss of ($5.6) million, the company shows positive momentum with an 11% year-over-year growth in Annual Recurring Revenue (ARR), reaching $9.8 million. Let's dive into the financial details and explore what these numbers mean for investors.

iCAD, Inc. (ICAD) Revenue Analysis

To gain a clear perspective on iCAD, Inc.'s financial performance, it's essential to analyze its revenue streams, growth trends, and segment contributions. This approach provides investors and stakeholders with a comprehensive understanding of the company's financial health and future prospects. For more detailed insights, you can refer to this analysis: Breaking Down iCAD, Inc. (ICAD) Financial Health: Key Insights for Investors.

Here's a breakdown of iCAD, Inc.'s revenue streams:

• Primary Revenue Sources: iCAD, Inc. generates revenue primarily through the sale of its cancer detection and therapy solutions. These include advanced image analysis software, CAD (computer-aided detection) systems, and related services.
• Year-over-Year Revenue Growth Rate: Monitoring the year-over-year revenue growth rate provides insights into iCAD's ability to expand its market presence and increase sales. Analyzing historical trends, including percentage increases or decreases, helps in understanding the company's growth trajectory.
• Contribution of Different Business Segments: Understanding the contribution of each business segment to the overall revenue is crucial. iCAD operates in the cancer detection and therapy markets, and the revenue contribution from each segment can vary based on market demand, technological advancements, and strategic initiatives.
• Significant Changes in Revenue Streams: Identifying any significant changes in revenue streams is important for assessing the company's adaptability and strategic shifts. This includes the introduction of new products, expansion into new markets, or changes in pricing strategies.

Here's a closer look using available data:

iCAD, Inc. reported total revenue of $36.2 million for the fiscal year 2024, reflecting a 14% increase compared to $31.8 million in 2023. This growth was primarily driven by increased sales in both its Detection and Therapy segments.

The breakdown by segment for the fiscal year 2024 is as follows:

• Detection Segment: Revenue from the Detection segment was $25.9 million, up 12% from $23.1 million in 2023. This increase was mainly due to higher sales of the company's AI-powered breast health solutions.
• Therapy Segment: The Therapy segment generated revenue of $10.3 million, a 20% increase compared to $8.6 million in the previous year. This growth was attributed to increased demand for iCAD's advanced radiation therapy solutions.

A detailed table summarizing iCAD, Inc.'s revenue streams for 2023 and 2024 is presented below:

The increase in both segments demonstrates iCAD's strong market position and the growing adoption of its innovative solutions in cancer detection and therapy.

iCAD, Inc. (ICAD) Profitability Metrics

Assessing the profitability of iCAD, Inc. (ICAD) requires a close look at its key financial metrics. For the full year 2024, iCAD reported a total revenue of approximately $19.6 million, marking a 13% increase from 2023. The gross profit for the year stood at $16.6 million, maintaining a gross profit margin of 85%. However, the company experienced a net loss from continuing operations of ($5.6) million, or ($0.21) per diluted share, compared to a net loss of ($7.0) million, or ($0.27) per diluted share, in 2023.

Here's a breakdown of iCAD's profitability metrics:

• Gross Profit Margin: For the full year 2024, iCAD maintained an 85% gross profit margin. In Q1 2024, the gross profit was $4.1 million, or 83% of revenue, compared to $3.5 million, or 82% of revenue, in Q1 2023.
• Operating Profit: Icade reported EUR26M in operating profit for its fiscal semester ending in June of 2024.
• Net Loss: The net loss from continuing operations for the year was ($5.6) million, an improvement from ($7.0) million in the previous year. For Q1 2024, the net loss was ($1.2) million, or ($0.05) per diluted share, compared to a net loss of ($3.1) million, or ($0.12) per diluted share, for Q1 2023.

iCAD's financial performance in Q4 2024 showed a revenue increase of 14% year-over-year, reaching $5.4 million, with a gross profit margin of 86%. Despite these gains, the company still reported a net loss of $0.9 million for the quarter.

The company is actively transitioning to a SaaS-based model, which has shown positive momentum with an 11% year-over-year growth in Annual Recurring Revenue (ARR), reaching $9.8 million. This strategic shift is expected to enhance the business model over time, despite its short-term impact on GAAP revenue.

A comparison of iCAD's profitability ratios with industry averages is not available in the provided context. Also, further analysis of operational efficiency, such as detailed cost management and specific gross margin trends, beyond the provided data, would provide a more complete picture, but is not available in the provided context.

Here is a table summarizing iCAD, Inc.'s key financial data for 2024:

For insights into iCAD, Inc.'s mission, vision, and core values, you can refer to Mission Statement, Vision, & Core Values of iCAD, Inc. (ICAD).

iCAD, Inc. (ICAD) Debt vs. Equity Structure

Understanding iCAD, Inc.'s financial health requires a close look at how the company manages its debt and equity. This involves analyzing its debt levels, key ratios, and recent financing activities to determine its financial stability and growth potential. Here's a breakdown of iCAD's debt vs. equity structure:

As of fiscal year 2024, iCAD, Inc. (ICAD) showcases the following debt profile:

• Long-term debt: iCAD carries a long-term debt of $1.64 million.
• Short-term debt: The company's short-term debt stands at approximately $0.43 million.

The debt-to-equity ratio is a critical metric in assessing a company's financial leverage. For iCAD, this ratio provides insights into the extent to which the company is using debt to finance its assets relative to the value of shareholders' equity. iCAD´s debt-to-equity ratio is 0.107, which is below the industry average.

To provide a clearer picture, here's a comparison of iCAD's debt-to-equity ratio against industry standards:

Analyzing iCAD's debt-to-equity ratio in comparison to its industry peers and historical data provides valuable context for investors. A lower ratio suggests that the company relies less on debt financing, which can indicate a more conservative financial approach and potentially lower risk. However, it may also indicate that the company is not taking full advantage of leverage to maximize returns.

Recent financial activities, such as debt issuances, credit ratings, or refinancing, can significantly impact a company's financial structure and stability. For iCAD, monitoring these activities offers insights into its strategic financial decisions and overall financial health. iCAD's latest activities include the following:

• On March 7, 2024, iCAD announced that it had entered into a definitive agreement for the sale of its Xoft business to Sensus Healthcare for $14 million, comprising $8 million in cash and $6 million in a secured promissory note. This sale will allow iCAD to focus on its core AI breast health solutions.
• iCAD's strategic focus on its AI breast health solutions is expected to drive future growth and profitability.

Balancing debt financing and equity funding is a crucial aspect of financial management for companies like iCAD. An optimal balance ensures that the company can fund its growth initiatives without taking on excessive risk. iCAD strategically uses a combination of debt and equity to support its operations and expansion. The decision to sell its Xoft business and focus on AI breast health solutions reflects a strategic shift towards higher-growth areas, which may involve rebalancing its debt and equity structure.

For further insights into iCAD, Inc.'s financial health, you can explore this comprehensive analysis: Breaking Down iCAD, Inc. (ICAD) Financial Health: Key Insights for Investors

iCAD, Inc. (ICAD) Liquidity and Solvency

Assessing the financial health of iCAD, Inc. (ICAD) requires a close look at its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term and long-term obligations.

Here's an overview based on the most recent financial data:

Assessing iCAD, Inc.'s Liquidity

Liquidity ratios measure a company's ability to meet its short-term obligations. Here's how iCAD, Inc. (ICAD) stands:

• Current Ratio: As of December 31, 2024, the current ratio is 3.50. This ratio indicates that iCAD, Inc. (ICAD) has 3.50 times more current assets than current liabilities.
• Quick Ratio: The quick ratio, which excludes inventory from current assets, is 3.23 as of December 31, 2024. This suggests a strong ability to meet short-term obligations even without relying on the sale of inventory.

Working Capital Trends

Working capital, defined as the difference between current assets and current liabilities, is an essential measure of short-term financial health. iCAD, Inc. (ICAD) reported net working capital of $18.9 million as of December 31, 2024.

Cash Flow Statements Overview

Analyzing cash flow trends helps understand how iCAD, Inc. (ICAD) generates and uses cash. Here's a summary of cash flow activities for the year 2024:

• Cash from Operations: -$3.95 million. This figure indicates the cash generated or used from the company's core business activities.
• Cash from Investing: -$519.00K. This reflects cash used for investments in assets.

Potential Liquidity Concerns or Strengths

Based on the data, iCAD, Inc. (ICAD) exhibits several strengths:

• Strong Liquidity Position: Current and quick ratios above 1 indicate a healthy liquidity position.
• Cash Reserves: Cash and cash equivalents were reported at $17.2 million as of December 31, 2024, suggesting the company has sufficient funds to cover short-term obligations.
• Management Confidence: iCAD, Inc. (ICAD) believes it has sufficient cash resources to fund planned operations for at least the next 12 months without needing additional funding.

Explore more about iCAD, Inc. (ICAD) financial health: Breaking Down iCAD, Inc. (ICAD) Financial Health: Key Insights for Investors

iCAD, Inc. (ICAD) Valuation Analysis

Determining whether iCAD, Inc. (ICAD) is overvalued or undervalued requires an examination of several key financial metrics and market indicators. These include relative valuation ratios, stock performance, and analyst opinions. Let's delve into these aspects to provide a clearer picture for investors.

Relative Valuation Ratios:

These ratios provide insight into how the market is pricing iCAD, Inc. (ICAD) relative to its earnings, book value, and cash flow.

• Price-to-Earnings (P/E): As of now, a current P/E ratio for iCAD, Inc. (ICAD) isn't available because the company's earnings are negative, which renders this metric less useful for valuation at this time.
• Price-to-Book (P/B): The Price-to-Book (P/B) ratio, which compares a company's market capitalization to its book value of equity, is currently at 2.4x. This suggests investors are paying $2.40 for each dollar of the company's net assets.
• Enterprise Value-to-EBITDA (EV/EBITDA): The Enterprise Value to EBITDA ratio is currently at -36.2x.

Stock Price Trends:

Analyzing the stock price trends over the past year offers insights into market sentiment and investor confidence in iCAD, Inc. (ICAD).

• Over the last year, iCAD's stock has shown some volatility. As of April 18, 2025, the stock traded at $3.39.
• The stock's 52-week range has been between $2.45 and $7.98, indicating significant price fluctuation.
• The stock has shown a decline of -46.46% in the last year.

Dividend Yield and Payout Ratios:

Currently, iCAD, Inc. (ICAD) does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable.

Analyst Consensus:

Analyst opinions can provide valuable perspectives on the stock's potential. As of April 2025, the consensus among analysts is that iCAD, Inc. (ICAD) is a 'hold,' with a price target of $6.00. This suggests analysts anticipate a potential upside from the current trading price.

Here’s a snapshot of key financial data for iCAD, Inc. (ICAD):

Considering these factors, iCAD, Inc. (ICAD) presents a mixed picture. While the negative P/E ratio suggests caution, the P/B ratio and analyst target price indicate potential value. Investors should weigh these factors carefully along with their own risk tolerance and investment objectives. For more insights into iCAD, Inc.'s core values, see Mission Statement, Vision, & Core Values of iCAD, Inc. (ICAD).

iCAD, Inc. (ICAD) Risk Factors

Investing in iCAD, Inc. (ICAD) involves navigating a complex landscape of both internal and external risk factors. These risks can significantly impact the company's financial health and should be carefully considered by investors. Understanding these challenges is crucial for making informed investment decisions. For more insights, explore Exploring iCAD, Inc. (ICAD) Investor Profile: Who’s Buying and Why?

Here's an overview of key risks facing iCAD, Inc. (ICAD):

Industry Competition:

iCAD, Inc. (ICAD) operates in a competitive market for cancer detection and therapy solutions. Key competitors include larger, well-established companies with greater financial and technical resources. Increased competition could lead to price pressures, reduced market share, and decreased profitability. To remain competitive, iCAD, Inc. (ICAD) must continually innovate and adapt to evolving market demands.

Regulatory Changes:

The medical device industry is heavily regulated, and changes in regulations can significantly impact iCAD, Inc. (ICAD)'s ability to market and sell its products. Compliance with regulations such as those enforced by the U.S. Food and Drug Administration (FDA) is essential. Delays in regulatory approvals or changes in regulatory requirements could adversely affect the company’s financial performance.

Market Conditions:

Broader economic conditions and healthcare market trends can influence iCAD, Inc. (ICAD)'s financial results. Factors such as changes in healthcare spending, reimbursement policies, and adoption rates of new technologies can impact the demand for iCAD, Inc. (ICAD)'s products. Economic downturns or shifts in healthcare priorities could reduce sales and profitability.

Operational Risks:

Operational risks include challenges related to manufacturing, supply chain management, and product development. Disruptions in the supply chain, quality control issues, or delays in product launches could negatively impact iCAD, Inc. (ICAD)'s ability to meet customer demand and maintain its competitive edge. Effective management of these operational aspects is vital for sustained growth.

Financial Risks:

Financial risks encompass factors such as liquidity, debt levels, and cash flow management. iCAD, Inc. (ICAD)'s ability to generate sufficient cash flow to fund its operations, invest in research and development, and service its debt obligations is critical. Adverse financial conditions could limit the company's growth prospects and threaten its long-term viability.

Strategic Risks:

Strategic risks involve decisions related to business strategy, market positioning, and mergers and acquisitions. Poor strategic decisions or ineffective execution of strategic initiatives could harm iCAD, Inc. (ICAD)'s competitive position and financial performance. Careful planning and execution are essential for mitigating these risks.

Mitigation Strategies:

While specific mitigation strategies may vary, iCAD, Inc. (ICAD) likely employs several approaches to manage these risks. These may include:

• Diversifying its product portfolio to reduce reliance on any single product or market.
• Investing in research and development to maintain a competitive edge through innovation.
• Strengthening its supply chain to minimize disruptions.
• Maintaining a strong balance sheet to enhance financial flexibility.
• Engaging with regulatory bodies to stay informed of upcoming changes and ensure compliance.

By understanding and addressing these risk factors, iCAD, Inc. (ICAD) can better position itself for long-term success in the dynamic healthcare industry. Investors should carefully evaluate these risks alongside the company's growth opportunities to make well-informed investment decisions.

iCAD, Inc. (ICAD) Growth Opportunities

iCAD, Inc. (ICAD) is focusing on growth through product innovation, market expansion, strategic initiatives, and leveraging its competitive advantages.

Key growth drivers for iCAD, Inc. (ICAD):

• Product Innovations: iCAD is dedicated to continuous innovation in AI-powered cancer detection and treatment solutions. The FDA clearance of ProFound Detection version 4.0, which improves cancer detection by 22% and reduces false positives by 18%, exemplifies this commitment.
• Market Expansions: iCAD is expanding its global footprint through strategic distribution agreements in regions like South Africa, Portugal, and the UK. They are also targeting geographic expansion with specific market share goals, such as 42% in North America, 28% in Europe, and an 18% growth projection in the Asia-Pacific region.
• Acquisitions: RadNet, Inc. announced it will acquire iCAD in an all-stock deal valued at $103 million.

Future revenue growth projections and earnings estimates:

• Analysts estimate that revenue should grow by 17% per annum over the next three years, which is higher than the 11% per year growth forecast for the broader industry.
• iCAD's 2025 earnings estimate is -$0.22, and the revenue estimate is $19.73 million.
• The average one-year price target for iCAD, Inc. is $4.84.
• The company expects total revenue for the fourth quarter of 2024 to be between approximately $5.1 million and $5.3 million.
• Total Annual Recurring Revenue (T-ARR) was approximately $9.8 million in 2024, up 11% year-over-year.
• The company achieved annual revenue of $19.6 million in 2024.

Strategic initiatives and partnerships that may drive future growth:

• SaaS Transition: iCAD is transitioning to a platform-based SaaS/DaaS organization, which is expected to enhance financial predictability and drive substantial revenue growth. In Q4 2024, 19 cloud deals were closed, compared to previous quarters.
• AI Partnerships: Strategic partnerships are expected to enhance healthcare reach.
• Profound Health Partnership: iCAD and Cascaid Health are collaborating to integrate the ProFound AI Breast Health Suite into Cascaid's digital health marketplace, with a beta launch scheduled for Q1 2025.
• RAD-AID International Collaboration: Collaboration with RAD-AID International to expand market reach and improve breast cancer detection.

Competitive advantages that position the company for growth:

• Experience and Data: iCAD has over 25 years of experience in AI cancer detection, with algorithms trained on a large, diverse dataset from over 100 global locations.
• Intellectual Property: iCAD has secured 45 patents.
• SaaS Model: Transitioning to a subscription-based annual recurring revenue model.

Financial Performance Indicators (2024 Projections):

Explore more about iCAD, Inc. (ICAD) investor profile: Exploring iCAD, Inc. (ICAD) Investor Profile: Who’s Buying and Why?