HeartBeam, Inc. (BEAT) Earnings

Management highlights

- Commercial Launch Progress • Completed initial anchor partner onboarding, adding Atelier Health (Beverly Hills, Cedars-Sinai affiliated) to first partner Clear Cardio, establishing flagship presence in all four target geographies: New York City, Dallas, South Florida, and Southern California • Early physician feedback confirms strong demand for the company's unique portable, cable-free 12-lead ECG technology, with no pushback on the proposed $750-$1,000 annual subscription pricing • Ongoing refinement of physician onboarding workflows to create a scalable, repeatable rollout playbook, executed with a lean commercial team to maintain cost efficiency - Product and Pipeline Development • 12-lead on-demand extended wear patch: Completed first working prototype in Q1 2026, initiated a 50-patient European pilot study to validate ischemia detection capabilities, and advanced strategic partnership discussions with multiple industry players • Heart attack detection: Enrollment is underway and ahead of schedule for the Align ACS pilot study (100-120 patients) enrolling emergency department chest pain patients in Europe, on track to complete enrollment by Q3 2026 to inform FDA pivotal study design • Head Start ACS study: An Indonesia government-sponsored 500-patient trial with the same ER-based study design, fully funded by the Indonesian government, that will provide additional patient data for clinical validation and AI algorithm development • AI collaboration: Finalized a strategic partnership with Mount Sinai to combine HeartBeam's 3D ECG signal technology with Mount Sinai's AI and clinical expertise to develop next-generation algorithms for heart attack detection, cardiac wellness, and personalized cardiac assessment - Financial Position • Closed an $11.5 million gross common stock underwritten public offering in April 2026, including a $1.5 million over-allotment option exercised by the underwriter; participation included existing investors, company leadership, and new fundamental institutional investors, signaling confidence in the business • Pro forma cash balance as of the end of Q1 2026 is approximately $12.4 million, providing extended cash runway into 2027 • Achieved a 19% year-over-year reduction in operating cash outflow compared to Q1 2025, demonstrating ongoing cost discipline

Guidance

- Full year 2026 operating cash outflow guidance was revised downward from the prior range of $17 million to $19 million to an estimated outflow below $16 million. The revision reflects a decision to maintain a lean commercial team structure for the early launch phase rather than executing more aggressive sales hiring as originally planned • A small amount of revenue and customer cash receipts is expected in Q2 2026, but management emphasized the first half of 2026 remains focused on establishing anchor accounts and validating the commercial model, not driving meaningful revenue. Meaningful revenue growth and scalable funnel building will begin in the second half of 2026 to support 2027 revenue targets • The company targets 30,000 total contracted patients to reach break-even, which management projects will take approximately 2 years of methodical rollout, with acceleration possible after securing early proof points from initial flagship accounts that can support expansion through large practice chain partners • The Align ACS pilot study is on track to complete enrollment by the end of Q3 2026, as previously guided

Segment performance

HeartBeam is an early-stage commercial company with only one product in limited launch as of Q1 2026. No multiple product segments with established revenue contribution have been formed. The company reported an overall net loss of $4.7 million for Q1 2026, with net cash used in operating activities of $3.6 million. The limited commercial launch is focused on the direct pay concierge cardiology segment, which serves approximately 5 million total U.S. patients, with no material revenue recorded in the quarter.

Risks & headwinds

- As an early-stage company with a newly cleared device in limited commercial launch, there is execution risk associated with successfully scaling adoption, establishing a repeatable commercial model, and gaining regulatory approval for new indications including heart attack detection • Clinical trial timelines and outcomes are uncertain, and results from pilot studies may not support advancement to or successful completion of the FDA pivotal study for indication expansion • Additional financing may be required to fully execute the company's long-term product and commercial roadmap, though the recent financing extended cash runway into 2027 • Actual commercial adoption and patient uptake could differ from management's projections, even after anchor accounts are established

Analyst Q&A

• Q: Anchor partner patient volume and pricing: Can you share the total number of patients managed by your two initial anchor partners, and confirm if the $500-$1,000 annual pricing range still holds?

  A: The company cannot disclose patient counts for the private anchor accounts at this stage to avoid exposing confidential customer information, but the two accounts collectively represent tens of thousands of target patients in the four core geographies. Pricing is confirmed at $750-$1,000 annual subscription, and the company has not received any pushback on this price point from early partners, supporting the premium value proposition. Aggregate patient volume will be disclosed once more accounts are added in the near future.

• Q: Revenue modeling: How should full-year 2026 revenue be modeled, and what is the expected adoption profile for a fully penetrated flagship account?

  A: Annual subscription revenue is mostly straight-lined over the contract term on the income statement, though a small portion is recognized upfront for onboarding obligations, and most customers pay the full annual fee up front, benefiting near-term cash flow. Early accounts typically have 400 to 4,000 total patients, with the company targeting 50% adoption of eligible patients per account for modeling purposes, which can translate to $750,000 to $1 million in annual revenue per large account. More detailed adoption and revenue data will be shared in August 2026.

• Q: Financing timing: Why did management wait to raise capital until the share price was under $1, rather than raising after FDA approval when the share price was higher?

  A: Financing decisions balance multiple factors including input from current shareholders, existing covenant commitments, and bringing on new long-term supportive institutional investors that will support the company going forward. The company closed a clean all-common-stock financing with strong participation from high-conviction investors, resulting in a clean cap table with significant optionality for future growth. Management is confident that continued execution on milestones will deliver the valuation the company and technology deserve.

• Q: Clinician feedback: What feedback have you received from medical professionals on how HeartBeam differentiates from existing 12-lead systems, and is more frequent at-home monitoring seen as beneficial?

  A: Clinicians confirm that existing portable ECG products only provide limited data that still requires patients to come into the office or ED for a full 12-lead ECG when concerns arise. HeartBeam's product provides the same clinical-grade 12-lead ECG patients would get in a hospital setting that can be used any time at home, which is seen as a major improvement. Clinicians are also very interested in the ability to collect frequent, longitudinal 12-lead data outside of clinical settings, which has not been possible before, and are eager to explore what insights can be gained from this data.