iCAD 2025 Q1 Earnings Revenue Down 1.6% as Net Loss Narrows 31.8%
Wednesday, May 14, 2025 5:49 am ET
3min read iCAD reported its fiscal 2025 Q1 earnings on May 13th, revealing a 1.6% decline in total revenue to $4.87 million compared to the previous year. On a positive note, the company improved its net loss by 31.8% year-over-year, reducing it to $833,000. Despite the decline in revenue, iCAD's earnings per share (EPS) loss narrowed from $0.05 to $0.03, reflecting positive adjustments in financial management. The company’s guidance remains in line, with a focus on its strategic acquisition by RadNet and the expected benefits from this merger.
Revenue
In the first quarter of 2025, iCAD’s total revenue reached $4.87 million, marking a slight decrease from the previous year's $4.95 million. The breakdown of revenue included $3.24 million from products and licenses, and $1.63 million from services and supplies. This reduction in revenue is largely attributed to the anticipated transition impacts associated with the shift to a SaaS model.
Earnings/Net Income
iCAD narrowed its losses in the first quarter of 2025, reporting a net loss of $833,000 compared to $1.22 million in the same quarter of 2024. This represents a 31.8% improvement year-over-year. The EPS improved from a loss of $0.05 to $0.03, indicating positive financial adjustments.
Post Earnings Price Action Review
The post-earnings strategy of buying iCAD shares when revenues surpass expectations and holding for 30 days seems promising. This is evident from the 18% year-over-year increase in Annual Recurring Revenue (ARR) to $10.7 million and an improved gross profit margin of 86%. The company's stock price rose following the earnings release, reflecting investor optimism. Additionally, the pending acquisition by RadNet is anticipated to enhance iCAD's market reach and value by integrating AI technologies across multiple healthcare locations. With a solid cash position of $20 million, iCAD is well-positioned to manage market fluctuations and capitalize on broader industry trends in imaging and AI-driven healthcare solutions.
CEO Commentary
Dana Brown, President and CEO of iCAD, emphasized the company's significant progress in Q1 2025, noting an 18% year-over-year increase in total ARR to $10.7 million. Brown highlighted steady demand for the ProFound Breast Health Suite and increased adoption of cloud-based solutions. Despite a slight decrease in consolidated revenue due to SaaS transition impacts, gross margins improved to 86%, driven by higher-margin cloud revenues and a 4% reduction in operating expenses.
Guidance
iCAD anticipates that the completion of its acquisition by RadNet will accelerate innovation and broaden access to its AI-powered solutions across over 1,500 healthcare provider locations worldwide. The transaction remains subject to customary closing conditions, including stockholder approval. The company remains focused on meeting customer needs while advancing its mission of improving breast cancer detection globally, which is expected to drive sustainable long-term value for stakeholders.
Additional News
In recent weeks, iCAD has been active in strategic initiatives. On April 15, 2025, RadNet announced a definitive merger agreement to acquire iCAD in an all-stock transaction valued at approximately $103 million, representing a significant premium for iCAD's shareholders. This strategic move is expected to enhance RadNet's AI-powered breast cancer screening capabilities across its global network. In addition, on April 8, 2025, iCAD expanded its executive team by appointing Mark Koeniguer as Chief Commercial Officer, further strengthening its leadership. Moreover, iCAD announced a collaboration with Microsoft on April 29, 2025, to provide access to its mammography solutions through Microsoft's Precision Imaging Network, enhancing the reach of its AI-driven cancer detection solutions.
Revenue
In the first quarter of 2025, iCAD’s total revenue reached $4.87 million, marking a slight decrease from the previous year's $4.95 million. The breakdown of revenue included $3.24 million from products and licenses, and $1.63 million from services and supplies. This reduction in revenue is largely attributed to the anticipated transition impacts associated with the shift to a SaaS model.
Earnings/Net Income
iCAD narrowed its losses in the first quarter of 2025, reporting a net loss of $833,000 compared to $1.22 million in the same quarter of 2024. This represents a 31.8% improvement year-over-year. The EPS improved from a loss of $0.05 to $0.03, indicating positive financial adjustments.
Post Earnings Price Action Review
The post-earnings strategy of buying iCAD shares when revenues surpass expectations and holding for 30 days seems promising. This is evident from the 18% year-over-year increase in Annual Recurring Revenue (ARR) to $10.7 million and an improved gross profit margin of 86%. The company's stock price rose following the earnings release, reflecting investor optimism. Additionally, the pending acquisition by RadNet is anticipated to enhance iCAD's market reach and value by integrating AI technologies across multiple healthcare locations. With a solid cash position of $20 million, iCAD is well-positioned to manage market fluctuations and capitalize on broader industry trends in imaging and AI-driven healthcare solutions.
CEO Commentary
Dana Brown, President and CEO of iCAD, emphasized the company's significant progress in Q1 2025, noting an 18% year-over-year increase in total ARR to $10.7 million. Brown highlighted steady demand for the ProFound Breast Health Suite and increased adoption of cloud-based solutions. Despite a slight decrease in consolidated revenue due to SaaS transition impacts, gross margins improved to 86%, driven by higher-margin cloud revenues and a 4% reduction in operating expenses.
Guidance
iCAD anticipates that the completion of its acquisition by RadNet will accelerate innovation and broaden access to its AI-powered solutions across over 1,500 healthcare provider locations worldwide. The transaction remains subject to customary closing conditions, including stockholder approval. The company remains focused on meeting customer needs while advancing its mission of improving breast cancer detection globally, which is expected to drive sustainable long-term value for stakeholders.
Additional News
In recent weeks, iCAD has been active in strategic initiatives. On April 15, 2025, RadNet announced a definitive merger agreement to acquire iCAD in an all-stock transaction valued at approximately $103 million, representing a significant premium for iCAD's shareholders. This strategic move is expected to enhance RadNet's AI-powered breast cancer screening capabilities across its global network. In addition, on April 8, 2025, iCAD expanded its executive team by appointing Mark Koeniguer as Chief Commercial Officer, further strengthening its leadership. Moreover, iCAD announced a collaboration with Microsoft on April 29, 2025, to provide access to its mammography solutions through Microsoft's Precision Imaging Network, enhancing the reach of its AI-driven cancer detection solutions.
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