The firm exhibits a persistent negative free cash flow trajectory, with quarterly burn rates frequently exceeding $2M, further complicated by erratic working capital fluctuations.
| Cash from Operations | -7.34M | -7.41M | -6.07M | -5.77M | -3.64M | -2.45M | -3.84M |
| Operating CF Margin % | - | -170413.66% | -32635.4% | -112108.29% | -25354.09% | -9577.78% | -5982.98% |
| Operating CF Growth % | 2.53% | -22.12% | -5.14% | -58.43% | -48.6% | 36.14% | - |
| Net Income | -8.49M | -8.77M | -6.61M | -6.35M | -4.83M | -2.45M | -3.81M |
| Depreciation & Amortization | 97.38M | 127.96K | 95.13K | 26.91K | 26.57K | 33.61K | 63.83K |
| Stock-Based Compensation | 987.64M | 249.88K | 405.02K | 248.31K | 68.4K | 24.68K | 135.07K |
| Deferred Taxes | 0 | 0 | 0 | 101.1M | 0 | 0 | -10.02K |
| Other Non-Cash Items | 2.97B | 456.51K | 539.23K | -100.97M | -35.59K | -248.54K | -21.79K |
| Working Capital Changes | -841.59K | 517.89K | -504.36K | 173.98K | 1.12M | 190.13K | -195.97K |
| Change in Receivables | 4.35M | -4.35K | 0 | 2.32K | -2.32K | 0 | -7K |
| Change in Inventory | -7.02M | -21.09K | 47.18K | -2.22K | 76.64K | 106.23K | 147.31K |
| Change in Payables | 5.65K | -129.52K | -183.19K | 37.82K | 358.96K | -20.65K | -305.94K |
| Cash from Investing | -52.26K | -30.19K | -125.27K | -18.31K | -1.93K | -712 | 8.17K |
| Capital Expenditures | 9.46M | -3.16K | -64.45K | -18.31K | -1.93K | -712 | -11.42K |
| CapEx % of Revenue | 109068.61% | 72.57% | 346.53% | 355.5% | 13.44% | 2.78% | 17.8% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -12.24M | -27.03K | -60.82K | 0 | 0 | 0 | 19.59K |
| Cash from Financing | 8.19M | 2.73M | 10.34M | 6.53M | 3.84M | 2.68M | 1.81M |
| Debt Issued (Net) | 2.35M | 1.59M | 42.62K | -398.26K | 4.23M | 2.48M | 633.79K |
| Equity Issued (Net) | 5.89M | 1.15M | 10.3M | 5.62M | 0 | 200K | 1.18M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.51B | 0 | 0 | 1.31M | -385.14K | 0 | 0 |
| Net Change in Cash | 800.51K | -4.71M | 4.15M | 742.21K | 194.78K | 226.63K | -2.02M |
| Free Cash Flow | -3.41B | -7.44M | -6.2M | -5.79M | -3.65M | -2.45M | -3.85M |
| FCF Margin % | -39339747.93% | -171107.63% | -33308.9% | -112463.79% | -25367.54% | -9580.56% | -6000.78% |
| FCF Growth % | -45427.83% | -20.14% | -6.97% | -58.85% | -48.64% | 36.31% | - |
| FCF per Share | -1078.46 | -7.93 | -17.57 | -72.85 | -109.86 | -74.02 | -116.22 |
| FCF Conversion (FCF/Net Income) | 401.91x | 0.85x | 0.92x | 0.91x | 0.75x | 1.00x | 1.01x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pre-commercial liquidity exhaustion
According to recent financial disclosures, the relationship between net income and operating cash flow is heavily distorted by massive stock-based compensation, which reached $550.5M in 2026Q3, masking the underlying reality that the company is consistently consuming cash to fund its ongoing research and development activities.
The wide gap between net losses and operating cash flow suggests that non-cash expenses are the primary driver of the reported figures rather than operational efficiency. Investors should monitor whether this reliance on equity-based compensation remains a sustainable strategy for preserving cash as the company attempts to reach commercial viability.
As reported in quarterly filings, HeartSciences Inc. continues to exhibit a deeply negative free cash flow trajectory, with quarterly burn rates frequently exceeding $2M, indicating that the business model is currently incapable of self-funding its operations through its minimal revenue-generating activities.
The lack of positive free cash flow margins across the observed ten-quarter period underscores the company's status as a pre-commercial entity. This trend suggests that the firm remains entirely dependent on external capital markets to sustain its current cost structure and regulatory validation efforts.
Based on the provided cash flow statements, working capital changes have been erratic, with fluctuations such as the $722.5K inflow in 2025Q3 followed by significant outflows, suggesting that the company lacks a stable or predictable cash conversion cycle typical of a mature medical device manufacturer.
These swings in working capital appear to reflect the irregular nature of pilot programs and project-based revenue rather than a disciplined management of receivables or inventory. Such volatility warrants further investigation into the company's ability to manage its short-term liquidity needs effectively.
Analysis of the cash flow statement reveals that the company's reported operating cash flow may be artificially bolstered by accounting adjustments, as evidenced by the $9.5M in capital expenditures recorded in 2026Q3, which deviates significantly from the minimal investment levels seen in prior periods.
The sudden spike in capital expenditure suggests that the company may be capitalizing costs that were previously expensed, potentially to improve the appearance of its operating cash flow. This shift warrants caution, as it may obscure the true extent of the cash burn required to maintain the MyoVista platform.
Quick answers to the most common questions about buying HSCS stock.
HeartSciences Inc. (HSCS) generated $-7.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
HeartSciences Inc. (HSCS) reported negative free cash flow of $7.4M in 2025, indicating capital requirements exceeded cash from operations.
HeartSciences Inc. (HSCS) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.