By Michael Kim
CORPORATE OVERVIEW
Healthcare Triangle Inc. (NASDAQ:HCTI) is an information technology company providing digital transformation on the cloud, security and compliance, data lifecycle management, healthcare interoperability, and clinical and business performance optimization to the Healthcare and Life Sciences (HCLS) industry. The company was incorporated in 2019 and is headquartered in Pleasanton, California.
The company has established relationships with renowned hospitals and life sciences/pharmaceutical companies across the United States. Stepping back, key client segments include:
- Hospitals and health systems: HCTI remains well positioned to capitalize on rising demand for integrated healthcare infrastructure and enterprise-wide digital solutions and analytics, particularly following stepped-up M&A and partnership activity.
- Life sciences companies: HCTI’s cloud security & compliance and data analytics services safeguard personal health information (PHI) and enhance customer experiences and outcomes, including clinical datasets, while ensuring regulatory adherence and supporting operational efficiency across life sciences workflows.
- Pharmaceutical companies: The company’s advisory, development, implementation, and managed services facilitate discovery, as well as clinical and commercialization initiatives. The company’s expertise spans regulated environments, leveraging HIPAA-aligned processes, and r2 HITRUST-certified platforms to ensure secure, compliant data management.
From a solutions perspective, HCTI offers a comprehensive suite of software, platforms, and services targeting healthcare providers and life sciences companies. This includes EHR implementation and optimization, post-implementation support, application managed services, and cloud-based backup and disaster recovery. These solutions digitize patient and clinical data, improve documentation accuracy, streamline record sharing, and strengthen operational efficiency across the organization. As background, EHR systems digitize patients’ medical data, including demographics, historical notes, medications, and reports, thereby improving documentation accuracy and efficiency, expediting the sharing of patient records, and upgrading data security.
HEALTHCARE SOLUTIONS
HCTI provides a comprehensive suite of software, platforms, and services for healthcare providers and life sciences companies. This includes EHR implementation and optimization, post-implementation support, managed services, and cloud-based backup and disaster recovery. These solutions digitize patient and clinical data, improve documentation accuracy, streamline record sharing, and strengthen operational efficiency across the organization.
Importantly, HCTI maintains long-standing strategic partnerships with leading public cloud providers, including Amazon Web Services (AWS), Google Cloud, and Microsoft Azure Cloud, in addition to EHR vendors MEDITECH and EPIC Systems. Furthermore, the company’s compliance subject matter experts ensure Health Insurance Portability and Accountability Act (HIPAA) compliant services across GxP compliances, with HCTI’s technology platforms CloudEz and DataEz maintaining Health Information Trust (r2 HITRUST) certifications.
GROWTH STRATEGY
At a high level, HCTI’s key verticals each maintain large Total Addressable Markets (TAMs). Indeed, compiling data from various studies suggests HCTI can increasingly tap into an estimated $128 billion revenue opportunity in aggregate. The EHR industry currently represents a $42 billion market that is projected to generate a Compound Annual Growth Rate (CAGR) of 7%, Healthcare Cloud services providers booked $66 billion of annual revenue that is forecast to grow 15% per year, while AI solutions are expected to deliver a 38% revenue CAGR across the sector.
More broadly, healthcare organizations continue to face various operational headwinds, including ongoing transitions to technology-focused/value-based care models, reimbursement challenges, as insurance plans continue to evolve, mounting data entry/management administrative burdens, and staffing turnover/shortages. As such, we believe HCTI remains well positioned to capitalize on healthcare providers increasingly looking to leverage technology, specifically AI, to drive operational efficiencies.
More specific industry-wide growth drivers likely include:
1. Rising costs: Rising health insurance costs and evolving plan designs continue to impact billing/collections processes and patient experiences across smaller medical practices, large physician groups, and broader healthcare organizations. As such, providers are increasingly turning to bundled technology solutions to enhance related economics.
2. Shifting demographics: Federal health insurance programs, including Medicaid and Medicare, are becoming more prevalent, particularly as the U.S. population continues to age. With government-sponsored health insurance programs typically paying out lower reimbursement rates relative to private insurance plans, providers/practices are increasingly focused on streamlining expenses.
3. Regulatory reform: Healthcare organizations need to remain in compliance with continually shifting regulatory/legislative requirements. Healthcare service providers often facilitate compliance with the dynamic regulatory landscape.
Focusing on HCTI, key catalysts include:
1. Differentiated technology: The company’s technology-enabled services span scalable cloud architecture, data analytics, AI/Machine Learning integration, proprietary security and compliance frameworks, and governance designed to improve patient and consumer outcomes and drive operational efficiencies. More specifically, HCTI’s services incorporate Big Data, DevOps, Identity Access Management (IAM), Internet of Things (IoT), and Blockchain technologies.
2. Global expansion: Management remains focused on expanding the company’s geographic reach beyond the U.S. In fact, HCTI maintains an office in Canada, with clients across Asia and the Middle East.
3. Cross-/up-selling: A key focus remains further expanding HCTI’s wallet share with existing software services clients by increasingly activating higher-margin/recurring solutions post initial deployment periods, as well as maintaining high contract renewal rates. More specifically, senior officials continue to deepen engagements by deploying a broader set of solutions or tapping incremental divisions and/or geographies within existing healthcare provider clients.
4. Strategic M&A: Healthcare Triangle maintains a strong track record of accretive strategic acquisitions that have expanded the company’s footprint and augmented growth. In fact, HCTI recently formed QuantumNexis through the acquisitions of Niyama Healthcare, a SaaS platform focused on mental health solutions, and Ezovion Solutions, a Hospital Information System (HIS) and EHR company servicing healthcare providers in India, Southeast Asia, and Europe. From a financing standpoint, the consideration included $1.5 million in cash, $3 million in restricted common stock, and up to $1.2 million in earn-out payments based on financial performance through the first 12 months post closings. Looking ahead, incremental deals are likely funded through a combination of cash and stock.
FINANCIAL OVERVIEW
From a top line perspective, HCTI generates revenue by providing: 1) advisory, development, implementation, and managed services; 2) post-implementation cloud hosting, monitoring, security and compliance services, and related support (recurring monthly fees); and/or 3) data analytics backup/recovery and document automation (readeabl.ai) platform services in the form of recurring Software-as-a-Service (Saas) fees.
During 2Q25, revenues totaled $3.6 million, up 19% compared to $3.0 million in 2Q24, and bringing 1H25 revenues to $7.3 million. Looking ahead, management remains optimistic that revenues can approach ~$20 million in 2025, reflecting a sizeable backlog ($15.8 million of committed fees mostly related to multi-year contracts) in addition to ~$2 million of new wins (largely SaaS-based) thus far this year, as well as ~$2 million of “high-probability opportunities.” Stepping back, senior officials maintain a longer-term goal of generating Annual Recurring Revenue (ARR) in excess of $50+ million.
From a mix perspective, the senior management team continues to focus on building recurring subscription fees via SaaS offerings and multi-year contracts across target markets (as opposed to advisory/implementation/development fees that remain more one-time in nature), thereby driving rising customer growth, upselling & cross-selling opportunities, and client retention, as well as a more stable/predictable revenue trajectory.
Turning to net income, management remains focused on optimizing resources to drive operational efficiencies, streamline expenses, and enhance profitability. Moreover, target gross margins remain elevated across HCTI’s key verticals, including:
- EHR: 30%+;
- Healthcare Cloud: 40%+; and
- AI Solutions: 70%+.
MANAGEMENT TEAM
Dave Rosa
Chairman of the Board of Directors
Mr. Dave Rosa has served as a member of Healthcare Triangle’s Board of Directors since 2021. Concurrently, Mr. Rosa serves as President and Chief Executive Officer of NeuroOne Medical Technologies (NMTC) and maintains positions on the boards of other healthcare companies. Prior to joining Healthcare Triangle, Mr. Rosa held senior management roles at several medical device/healthcare technology companies. Mr. Rosa holds a Master of Business Administration degree from Duquesne University and a Bachelor of Science degree in Commerce and Engineering from Drexel University.
Sujatha Ramesh
Chief Operating Officer
Ms. Sujatha Ramesh has served as Healthcare Triangle’s Chief Operating Officer since March 2025 and is a member of the company’s Board of Directors. Prior to joining Healthcare Triangle, Ms. Ramesh held senior executive positions at Citigroup and senior management roles at Publicis Sapient, Infinite Computer Solutions, and Capgemini. She holds a Master of Business Administration (MBA) from the NYU Stern School of Business and a Master of Science in Information Systems and Applications. Ms. Ramesh has been recognized as a Who’s Who in America Honored Listee for her contributions to technology, strategic leadership, and enterprise transformation. She has also served as a featured speaker at industry forums, including the Global Financial Market Intelligence Topic.
David Ayanoglou
Chief Financial Officer
Mr. David Ayanoglou has served as Healthcare Triangle’s Chief Financial Officer since April 2025. Prior to joining the company, Mr. Ayanoglou provided corporate finance/financial reporting consulting services to Technology and Healthcare companies and held senior financial roles at Open Text and KPMG LLP. Mr. Ayanoglou is a Chartered Professional Accountant and Chartered Business Valuator, and graduated from the University of Toronto Rotman School of Business.
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