Free cash flow remains significantly negative, with a -60.8% FCF margin in 2026Q1, exacerbated by an $18.4M outflow in working capital that highlights ongoing liquidity volatility.
| Cash from Operations | -70.96M | -54.02M | -69M | -76.43M |
| Operating CF Margin % | - | -30.69% | -54.85% | -87.68% |
| Operating CF Growth % | -104.13% | 21.71% | 9.72% | - |
| Net Income | -111.83M | -116.79M | -96.43M | -95.66M |
| Depreciation & Amortization | 8.91M | 8.57M | 8.13M | 7.59M |
| Stock-Based Compensation | 11.47M | 13.96M | 10.21M | 11.87M |
| Deferred Taxes | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 48.97M | 47.89M | 19.96M | 8.3M |
| Working Capital Changes | -28.49M | -7.66M | -10.88M | -8.54M |
| Change in Receivables | -7.47M | -4.89M | -3.85M | -9.35M |
| Change in Inventory | 0 | 0 | 0 | 0 |
| Change in Payables | 3.51M | 218K | -327K | -623K |
| Cash from Investing | -238.89M | -238.57M | -4.36M | -6.11M |
| Capital Expenditures | -5.81M | -5.03M | -4.36M | -6.11M |
| CapEx % of Revenue | 3.04% | 2.85% | 3.46% | 7% |
| Acquisitions | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 |
| Cash from Financing | 219.28M | 286.04M | 2.24M | 169.32M |
| Debt Issued (Net) | -73.86M | -121.9M | 0 | 0 |
| Equity Issued (Net) | 6.63M | 408.45M | 0 | 168.73M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -228K |
| Other Financing | 286.51M | -510K | 2.24M | 589K |
| Net Change in Cash | -90.11M | -6.74M | -71.39M | 86.28M |
| Free Cash Flow | -76.77M | -59.05M | -73.36M | -82.54M |
| FCF Margin % | -40.11% | -33.54% | -58.31% | -94.68% |
| FCF Growth % | - | 19.51% | 11.12% | - |
| FCF per Share | -0.21 | -0.16 | -1.16 | -1.29 |
| FCF Conversion (FCF/Net Income) | 0.69x | 0.46x | 0.72x | 0.80x |
| Interest Paid | -3.44M | 0 | 19.16M | 20.8M |
| Taxes Paid | 0 | 0 | 0 | 405K |
Insufficient liquidity for operations
As reported in quarterly filings, HeartFlow exhibits a persistent disconnect between net losses and operating cash flow, with the OCF/NI ratio fluctuating significantly, reaching 1.10 in 2026Q1, which suggests that non-cash expenses and working capital volatility are masking the true underlying cash burn of the business.
The erratic relationship between net income and operating cash flow indicates that the company's accounting earnings are not currently reflective of its cash-generating capacity. Investors should monitor whether this volatility stems from aggressive revenue recognition timing or the timing of cash-based operating expenses, as the current conversion profile remains highly unstable.
Based on the provided financial data, HeartFlow's free cash flow margin remains deeply negative, bottoming out at -89.0% in 2024Q1 and showing little evidence of a sustainable path to positive cash generation despite the company's aggressive top-line growth trajectory observed in recent reporting periods.
The consistent failure to generate positive free cash flow suggests that the company's current business model is structurally dependent on external capital to fund its ongoing operations. This trajectory implies that the firm is prioritizing market share acquisition over the immediate achievement of self-sustaining cash flow, a strategy that appears increasingly risky given the current liquidity constraints.
According to recent SEC filings, working capital fluctuations have become a primary driver of cash flow variability, highlighted by a significant $18.4M outflow in 2026Q1 that directly exacerbated the company's quarterly cash burn and further strained its already limited available liquidity reserves.
The sharp swings in working capital suggest potential inefficiencies in the collection cycle or lumpy inventory-related outlays that are not yet optimized for a high-growth software-as-a-service model. This instability in working capital management warrants further investigation, as it appears to be a major contributor to the company's unpredictable cash position.
Based on reported figures, the cash flow statement obscures the true cost of clinical support, as stock-based compensation and capitalized costs appear to be inflating the reported operating cash flow, potentially masking the true labor-intensive nature of the company's 'human-in-the-loop' diagnostic verification process.
The reliance on stock-based compensation to manage cash outflows suggests that the company is attempting to preserve liquidity by substituting equity for cash-based compensation. Analysts should be wary that these adjustments may be hiding the true operational costs required to maintain the platform's clinical accuracy, which could be higher than the GAAP figures imply.
Quick answers to the most common questions about buying HTFL stock.
Heartflow, Inc. Common Stock (HTFL) generated $-54.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Heartflow, Inc. Common Stock (HTFL) reported negative free cash flow of $59.0M in 2025, indicating capital requirements exceeded cash from operations.
Heartflow, Inc. Common Stock (HTFL) spent $5.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.