Healthcare Triangle, Inc. (HCTI) reported its financial results for the second quarter and first half ended June 30, 2025. For Q2 2025, total revenue increased by 19% year-over-year to $3.558 million, up from $2.984 million in Q2 2024. For H1 2025, revenue grew modestly by 2% to $7.263 million, compared to $7.093 million in the prior year period.
A significant point of analysis is the compression in gross margins, which declined to 14% for Q2 2025 from 30% in Q2 2024, and to 11% for H1 2025 from 27% in H1 2024. This reduction is attributed to the acquisition and onboarding of SecureKloud contracts negotiated at lower margins, though management expects material improvement in coming quarters.
Despite margin pressures, HCTI's net loss narrowed slightly to $1.368 million in Q2 2025 from $1.510 million in Q2 2024, and to $3.068 million in H1 2025 from $3.372 million in H1 2024. Operating expenses showed varied trends, with R&D decreasing by 73% and G&A increasing by 31%.
Segmental performance showed Software Services revenue growing by 217.8% to $2.101 million in Q2 2025, while Managed Services and Support revenue decreased by 38.4% to $1.388 million. Platform Services revenue saw a modest 2.9% increase to $0.070 million, indicating a mixed picture in the company's strategic shift.
Liquidity and capital resources improved, with the current ratio rising to 1.75 from 0.70 at December 31, 2024, and the debt-equity ratio improving to 0.42 from 1.38. Cash and cash equivalents stood at $3.228 million as of June 30, 2025.
However, net cash used in operating activities increased substantially to $8.19 million for H1 2025, compared to $0.98 million in H1 2024. This was largely offset by $12.00 million in net cash provided by financing activities, primarily from a private placement of equity and warrants in February 2025, and the settlement of convertible notes.
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