Cardio Diagnostics 2025 Q1 Earnings Misses Targets as Net Loss Narrows by 60.7%

Cardio Diagnostics Holdings Inc (CDIO) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company missed revenue expectations, marking a significant decline from the previous year. Despite this, the net loss narrowed substantially, showcasing a 60.7% improvement. The guidance for upcoming quarters remains steady, with the company anticipating a revenue target of $940,000 and an EPS of -$0.97. This reflects an in-line projection with previous earnings, as Cardio Diagnostics aims to enhance market demand and strengthen its strategic investments.

Revenue

The total revenue of Cardio Diagnostics decreased by 94.1% to $940 in 2025 Q1, down from $15928 in 2024 Q1.

Earnings/Net Income

Cardio Diagnostics narrowed losses to $0.97 per share in 2025 Q1 from a loss of $5.93 per share in 2024 Q1 (83.6% improvement). Meanwhile, the company successfully narrowed its net loss to $-1.64 million in 2025 Q1, reducing losses by 60.7% compared to the $-4.16 million net loss reported in 2024 Q1. The Company has sustained losses for 4 years over the corresponding fiscal quarter, highlighting ongoing financial headwinds. Despite narrowing losses, EPS continues to reflect negative performance.

Price Action

The stock price of Cardio Diagnostics has tumbled 11.11% during the latest trading day, has surged 1783.24% during the most recent full trading week, and has surged 929.60% month-to-date.

Post-Earnings Price Action Review

The strategy of buying CDIO when revenues miss and holding for 30 days is considered high-risk, high-reward. This speculative approach relies on the assumption that the stock price will rebound in the short term. Historical data suggests that a revenue miss typically leads to a negative reaction, potentially creating a buying opportunity. However, the risks include the possibility of continued decline due to persistent negative sentiment or further earnings misses. Liquidity concerns remain despite a strong current ratio of 13.92. Conversely, strong liquidity and financial flexibility may support a price rebound if the market views the revenue miss as temporary. A backtest analysis comparing this strategy against a buy-and-hold or cash-based approach could determine its effectiveness, factoring in CDIO's volatility and fundamentals. Ultimately, investors should weigh the company's long-term prospects and potential rebound likelihood before executing this strategy.

CEO Commentary

In the recent earnings call, Dr. David L. S. Jones, CEO of Cardio Diagnostics Holdings Inc., emphasized the significant strides made in the development and commercialization of their epigenetics-based clinical tests for cardiovascular disease. He highlighted that despite facing challenges in market penetration, the company is focusing on enhancing its product offerings and expanding its presence in key markets. Dr. Jones expressed confidence in the strategic investments made to bolster research and development, which are expected to drive future growth. The tone of his remarks was cautiously optimistic, as he acknowledged the competitive landscape but underscored the unique value proposition of their innovative testing solutions.

Guidance

For the upcoming quarters, Cardio Diagnostics projects a revenue target of $940,000 and expects an EPS of -$0.97. The leadership anticipates a steady improvement in market demand for their products, driven by increased awareness of cardiovascular health and the effectiveness of their tests. Additionally, the company is committed to strategic investments in marketing and technology enhancements to better position itself in the evolving healthcare landscape.

Additional News

Cardio Diagnostics Holdings Inc. recently announced a 1-for-30 reverse stock split effective May 13, 2025, aiming to regain compliance with Nasdaq Capital Market's minimum bid price requirement. This strategic move reduces outstanding shares from approximately 52 million to 1.7 million. The company also expanded its AI-driven cardiovascular tests through partnerships with seven new provider organizations across the U.S., enhancing its reach in concierge medicine, primary care, and precision medicine. Furthermore, Cardio Diagnostics showcased its PrecisionCHD™ test and enhanced Actionable Clinical Intelligence™ report at the American College of Cardiology’s 74th Annual Scientific Session, demonstrating superior predictive capabilities for mortality in Acute Coronary Syndrome patients.