Heartflow (HTFL) Financials

Heartflow’s recent statements show strong revenue growth and improving gross margins, but the company remains unprofitable and dependent on its investment portfolio to supplement operating cash flow.

• Revenue growth remains strong. Q2 2026 revenue reached $64.1 million, up 22% from $52.6 million in Q1 2026 and approximately 48% from $43.4 million in Q2 2025. Revenue has also increased substantially from the $31.1 million reported in Q2 2024.
• Gross margin improved materially. Gross profit was $53.2 million in Q2 2026, representing an approximately 83% gross margin, compared with about 80% in Q1 2026 and 76% in Q2 2025. This suggests that revenue growth is increasingly outpacing cost of revenue.
• Operating losses narrowed sequentially. The Q2 2026 operating loss was $17.9 million, an improvement from the $29.5 million loss in Q1 2026. The improvement came despite higher selling, general and administrative expenses and research and development spending.
• Operating cash burn improved. Net cash used in operating activities declined to $8.6 million in Q2 2026 from $30.1 million in Q1 2026. This was also better than the $27.3 million burn recorded in Q2 2025.
• Liquidity remains substantial. At June 30, 2026, Heartflow held $34.4 million in cash and equivalents and $128.2 million in short-term investments. Including $84.3 million of long-term investments, the company had approximately $246.9 million in cash and investments.
• The balance sheet currently carries limited reported debt. Total liabilities were $64.7 million at the end of Q2 2026, compared with total equity of $279.7 million. The company also reported no commitments and contingencies in the provided data.
• Investment activity is an important source of cash-flow volatility. Q2 2026 investing cash flow was positive $21.2 million, largely because Heartflow received $38.9 million from investment sales or maturities while purchasing $15.8 million of investments. This improved cash balances, but it is not the same as generating cash from operations.
• Accounts receivable increased. Accounts receivable rose to $42.8 million in Q2 2026 from $35.5 million in Q1 and $29.7 million in Q2 2025. The increase is consistent with higher sales, but investors should monitor collections and working-capital requirements.
• Heartflow continues to report sizable net losses. Q2 2026 net loss attributable to common shareholders was $15.8 million, or $0.18 per diluted share. Although the loss improved from $27.1 million in Q1 2026, the company has remained loss-making across the reported periods.
• Operating expenses remain above gross profit. Q2 2026 selling, general and administrative expense was $44.8 million and research and development expense was $26.3 million. Combined operating expenses of $71.1 million exceeded gross profit by $17.9 million, indicating that Heartflow has not yet reached operating breakeven.

Heartflow’s revenue trajectory is the clearest positive trend in the statements. Quarterly revenue increased from $31.1 million in Q2 2024 to $64.1 million in Q2 2026, while gross margin expanded from roughly 77% to 83%. However, operating expenses have also risen as the company invests in sales, administration and product development, leaving it with continued operating and net losses.

The company’s cash position provides a meaningful financial cushion, but recent cash generation has depended partly on financing and investment transactions. Operating cash flow was negative in every listed quarter from Q2 2024 through Q2 2026. Investors should focus on whether revenue growth eventually produces positive operating cash flow rather than relying on the sale or maturity of investments.

The provided statements also show substantial changes in reported share counts and capital structure, particularly between 2025 and 2026. Q2 2026 weighted average basic shares were approximately 86.4 million, compared with 6.3 million in the restated Q2 2025 figure. Because the historical filings include restated data and major changes in reported equity accounts, earnings-per-share comparisons should be interpreted cautiously.