Heartflow 2025 Q3 Earnings 40.5% Revenue Growth and 69.7% EPS Improvement

Heartflow’s third-quarter 2025 earnings report exceeded expectations, with revenue surging 40.5% year-over-year and a significant narrowing of per-share losses. The company’s full-year revenue guidance remains in line with market projections, reflecting sustained demand for its FFRCT technology and Plaque Analysis adoption.

Revenue

Heartflow’s total revenue reached $46.28 million in Q3 2025, a 40.5% increase from $32.93 million in the prior year. U.S. revenue drove the growth, rising 42% to $42.5 million, while international and other revenue expanded 24% to $3.8 million. The year-over-year increase was primarily attributed to higher U.S. FFRCT case volume and operational efficiency.

Earnings/Net Income

The company narrowed its per-share loss to $1.04 in Q3 2025 from $3.43 in Q3 2024, a 69.7% improvement. However, net loss widened to $50.85 million, a 165.7% increase from $19.14 million in the prior year, driven by noncash warrant remeasurement charges and debt extinguishment costs. The EPS improvement reflects operational progress despite ongoing financial pressures.

Post-Earnings Price Action Review

Heartflow’s stock demonstrated positive momentum post-earnings, with a 2.88% rise on the latest trading day, a 2.97% gain over the past week, and a 7.59% increase month-to-date. While the broader market’s volatility remains a factor, the stock’s performance suggests investor confidence in the company’s growth trajectory and recent strategic milestones, including expanded insurance coverage for Plaque Analysis.

CEO Commentary

CEO John Farquhar emphasized the 41% year-over-year revenue increase, driven by FFRCT growth and rapid installed base expansion. He highlighted the potential of Plaque Analysis as a second growth wave, supported by UnitedHealthcare and Cigna coverage. The CEO also noted the strengthened balance sheet post-IPO, reiterating optimism about AI-driven solutions and market leadership in coronary disease management.

Guidance

Heartflow provided full-year 2025 revenue guidance of $173.0–$173.5 million, implying 37.5–38.0% year-over-year growth. The outlook assumes sustained FFRCT demand and Plaque Analysis adoption, though it does not include near-term cost reductions. Risks include reimbursement uncertainties, competitive pressures, and AI model development challenges.

Additional News

Recent non-earnings developments include:

1. Insider Share Surrenders: CEO John Farquhar, CFO Vikram Verghese, and other officers surrendered shares totaling 2,329 to cover option exercise costs and tax liabilities.

2. Analyst Price Target Hike: Stifel raised its price target to $40 from $35, citing strong FFR-CT growth and improved gross margins.

3. Insurance Coverage Expansion: UnitedHealthcare and Cigna began covering Heartflow Plaque Analysis, enhancing commercial adoption potential.