Medical imaging company Heartflow is preparing to go public, intending to raise up to $180 million through its initial public offering (IPO). In an amended filing, the company announced plans to offer 12.5 million shares priced between $15 and $17 each, aiming for a Nasdaq listing under the ticker symbol “HFLO.”
At the midpoint price of $16 per share, Heartflow expects to net approximately $180.5 million after underwriting fees. That figure could climb to $208.4 million if underwriters exercise their option to purchase additional shares. After accounting for its outstanding debt, the company anticipates having around $130 million in net proceeds to support its strategic initiatives.
What Heartflow Does
Heartflow develops AI-powered software that generates 3D models of the heart using coronary computed tomography angiography (CCTA) scans. Its flagship product, the FFRCT Analysis, has been shown in clinical trials to be 78% more effective at identifying patients who need revascularization compared to traditional care methods.
The technology is designed to offer cardiologists and healthcare providers a non-invasive, precise, and data-driven approach to diagnosing and managing coronary artery disease. With this, Heartflow aims to replace more invasive procedures with better digital diagnostics.
How the IPO Funds Will Be Used
According to its IPO filing, Heartflow plans to invest heavily in sales, marketing, and R&D. The company sees the IPO as an opportunity to scale adoption of its platform, expand its software portfolio, and enhance its market presence.
One area of expansion is its Plaque Analysis software, which complements the FFRCT Analysis. The company received a major boost in July when UnitedHealthcare announced coverage of Heartflow’s Plaque Analysis starting October 1. The decision marks UnitedHealthcare as the first U.S. insurer to align with new cardiac imaging guidelines set by radiology benefit manager EviCore.
Financial Snapshot and Market Readiness
In its latest filing, Heartflow disclosed preliminary Q2 revenue between $42.9 million and $43.4 million, representing a 38% to 40% year-over-year growth. This growth was largely driven by a 47% increase in case volume, totaling 48,420 procedures during the quarter.
Despite ending March with $109.8 million in cash, the company’s balance declined to $80.2 million by June. This was attributed to the payment of annual bonuses, IPO-related costs, and interest on existing debt.
Heartflow is also gradually diversifying beyond its core FFRCT offering, which still accounted for 99% of total revenue as of March. With FDA clearance of its plaque analysis tool in 2022 and limited market rollout in 2023, the company is now ready for a broader commercialization push.
Outlook
As Heartflow prepares to enter the public market, it is positioning itself as a key player in the future of non-invasive cardiac diagnostics. With a proven technology, regulatory backing, and new insurance coverage, the company is well-aligned to capture a growing share of the digital health and medical imaging market.
The success of this IPO could pave the way for Heartflow to not only accelerate its growth but also redefine how heart disease is diagnosed and managed through intelligent, image-based software.
