Revenue growth remains erratic, while structural inefficiencies are highlighted by a 2026Q1 operating margin of -36.8% and gross margins consistently struggling within the 16.1% range.
| Sales/Revenue | 20.04M | 13.89M | 11.7M | 33.2M | 45.89M | 35.27M | 31.34M | 28.74M |
| Revenue Growth % | 77.5% | 18.77% | -64.77% | -27.64% | 30.1% | 12.54% | 9.06% | - |
| Cost of Goods Sold | 16.9M | 12M | 8.81M | 26.43M | 34.59M | 24.75M | 23.56M | 23.66M |
| COGS % of Revenue | - | 86.39% | 75.29% | 79.59% | 75.38% | 70.17% | 75.17% | 82.35% |
| Gross Profit | 3.14M | 1.89M | 2.89M | 6.78M | 11.29M | 10.52M | 7.78M | 5.07M |
| Gross Margin % | 15.69% | 13.61% | 24.71% | 20.41% | 24.62% | 29.83% | 24.83% | 17.65% |
| Gross Profit Growth % | - | -34.6% | -57.36% | -40% | 7.35% | 35.2% | 53.43% | - |
| Operating Expenses | 15.16M | 11.68M | 7.64M | 14.47M | 27.62M | 15.88M | 6.61M | 3.4M |
| OpEx % of Revenue | - | 84.08% | 65.33% | 43.59% | 60.19% | 45.02% | 21.08% | 11.84% |
| Selling, General & Admin | 13.85M | 10.42M | 6.15M | 10.4M | 12.17M | 9.2M | 4.86M | 2.39M |
| SG&A % of Revenue | - | 75.02% | 52.61% | 31.31% | 26.53% | 26.09% | 15.52% | 8.32% |
| Research & Development | 477K | 536K | 429K | 799K | 8.14M | 5.26M | 1.74M | 1.01M |
| R&D % of Revenue | - | 3.86% | 3.67% | 2.41% | 17.74% | 14.9% | 5.56% | 3.53% |
| Other Operating Expenses | 835K | 722K | 1.06M | 3.28M | 7.31M | 1.42M | 0 | 0 |
| Operating Income | -12.01M | -9.79M | -4.75M | -7.7M | -16.32M | -5.36M | 1.18M | 1.67M |
| Operating Margin % | -59.94% | -70.47% | -40.62% | -23.18% | -35.57% | -15.19% | 3.75% | 5.81% |
| Operating Income Growth % | - | -106.04% | 38.26% | 52.86% | -204.65% | -555.34% | -29.5% | - |
| EBITDA | -10.5M | -9.08M | -3.86M | -6.13M | -13.38M | -3.94M | 1.98M | 2.45M |
| EBITDA Margin % | -52.39% | -65.39% | -33.02% | -18.46% | -29.16% | -11.16% | 6.32% | 8.51% |
| EBITDA Growth % | -168.79% | -135.21% | 36.99% | 54.2% | -239.96% | -298.8% | -19.03% | - |
| D&A (Non-Cash Add-back) | 1.5M | 705K | 889K | 1.57M | 2.94M | 1.42M | 803.19K | 776.13K |
| EBIT | -11.29M | -9.79M | -4.74M | -7.68M | -13.64M | -5.36M | 1.18M | 1.67M |
| Net Interest Income | -238K | -567K | -1.21M | -968K | -212K | -567K | -78.65K | -52.58K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 238K | 567K | 1.21M | 968K | 212K | 567K | 78.65K | 52.58K |
| Other Income/Expense | -1.96M | 313K | -1.21M | -956K | 2.47M | -567K | 1.43M | -52.58K |
| Pretax Income | -13.97M | -9.48M | -5.96M | -8.65M | -13.85M | -5.92M | 2.61M | 1.62M |
| Pretax Margin % | -69.72% | -68.22% | -50.93% | -26.05% | -30.19% | -16.8% | 8.33% | 5.63% |
| Income Tax | 0 | 0 | 12K | 35K | 506K | 24K | 257.38K | 444.37K |
| Effective Tax Rate % | 0% | 0% | -0.2% | -0.4% | -3.65% | -0.41% | 9.86% | 27.49% |
| Net Income | -13.97M | -9.48M | -5.97M | -8.69M | -14.36M | -5.95M | 2.35M | 1.17M |
| Net Margin % | -69.72% | -68.22% | -51.03% | -26.16% | -31.29% | -16.87% | 7.51% | 4.08% |
| Net Income Growth % | -140.64% | -58.75% | 31.28% | 39.5% | -141.35% | -352.78% | 100.79% | - |
| Net Income (Continuing) | -13.97M | -9.48M | -5.97M | -8.69M | -14.36M | -5.95M | 2.35M | 1.17M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -61K | -37K | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -22575.12 | -15308.56 | -16895.02 | -31051.57 | -57997.93 | -30202.01 | 9993.37 | 4976.51 |
| EPS Growth % | -66.99% | 9.39% | 45.59% | 46.46% | -92.03% | -402.22% | 100.81% | - |
| EPS (Basic) | - | -15308.56 | -16895.02 | -31051.57 | -57997.93 | -30202.01 | 9993.37 | 4976.51 |
| Diluted Shares Outstanding | 619 | 619 | 353 | 280 | 248 | 197 | 236 | 236 |
| Basic Shares Outstanding | 619 | 619 | 353 | 280 | 248 | 197 | 236 | 236 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Liquidity and operational sustainability
According to the provided quarterly financial data, HCTI experienced a significant revenue surge to $9.9M in 2026Q1, representing a 166.1% year-over-year increase, though this follows a period of extreme volatility where quarterly revenue fluctuated between $2.2M and $7.1M over the preceding two years.
The erratic nature of these revenue figures suggests a heavy reliance on lumpy, project-based implementation contracts rather than a stable, recurring SaaS model. Investors should monitor whether this recent spike represents a sustainable shift in market demand or merely the timing of large, non-recurring professional service engagements.
As reported in the company's income statements, gross margins have consistently struggled to exceed the 15-20% range, with a recent 2026Q1 figure of 16.1%, indicating that the firm's service-heavy delivery model lacks the pricing power typically associated with high-margin healthcare information technology platforms.
The inability to expand gross margins despite top-line growth suggests that the cost of delivering these services scales linearly with revenue. This profile implies that HCTI functions more as a specialized IT consultancy than a scalable software provider, which limits the potential for significant margin expansion without a fundamental change in product mix.
Based on the historical income statement data, HCTI's operating margins have remained deeply negative, reaching -36.8% in 2026Q1, which demonstrates that the company has failed to achieve the necessary operating leverage to offset its fixed overhead and R&D investments as it scales its revenue base.
The persistent gap between gross profit and operating expenses suggests that SG&A costs are not being managed with sufficient discipline relative to the company's current revenue generation. This lack of operating leverage warrants further investigation into whether the current cost structure is permanently misaligned with the firm's ability to monetize its cloud and data platforms.
Analysis of the reported cost structure reveals that COGS consistently consumes the vast majority of revenue, leaving minimal gross profit to cover substantial SG&A expenses, which peaked at $5.0M in 2026Q1, highlighting a business model burdened by high labor-intensive service delivery costs.
The company's reliance on specialized technical talent appears to be the primary driver of its elevated cost base, preventing the realization of economies of scale. Without a transition toward automated, high-margin software subscriptions, the current cost structure may continue to exert downward pressure on the firm's overall financial health.
While the 18.8% annual growth rate is often cited, the underlying financial data suggests that this growth is achieved at the expense of severe operating losses, with net margins reaching -62.9% in 2026Q1, raising significant concerns regarding the long-term viability of the current business model.
Short-sellers would likely focus on the disconnect between the company's software-oriented narrative and its service-heavy financial reality. The risk remains that the current growth trajectory is unsustainable if it requires continuous capital injections to fund operations that do not demonstrate a clear path to profitability.
Quick answers to the most common questions about buying HCTI stock.
For fiscal year 2025, Healthcare Triangle, Inc. (HCTI) reported total revenue of $13.9M. This represents a 51.7% decline compared to $28.7M in 2019.
Healthcare Triangle, Inc. (HCTI) reported a net loss of $9.5M for the fiscal year ending 2025.
Healthcare Triangle, Inc. (HCTI) reported an operating income of $-9.8M, resulting in an operating profit margin of -70.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Healthcare Triangle, Inc. (HCTI) generated $1.9M in gross profit for the year, representing a gross profit margin of 13.6%. This demonstrates the company's core pricing power and production efficiency.