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1. Company Snapshot

1.a. Company Description

iCAD, Inc.provides image analysis, workflow solutions, and radiation therapy for the treatment of cancer in the United States.It operates through two segments, Cancer Detection and Cancer Therapy.


The company offers PowerLook platform, which hosts the AI algorithm solutions and manages the communications between imaging acquisition systems, and image storage and review systems; SecondLook, a machine learning-based cancer detection algorithm that analyzes 2D full-field digital mammography images to identify and mark suspicious masses and calcifications; and automated density assessment solutions, which provides automated, consistent, and standardized density assessment.It also offers ProFound AI, a deep-learning algorithm designed to detect malignant soft-tissue densities and calcifications in digital breast tomosynthesis; ProFound AI Risk, a tool that provides breast cancer risk estimation based on a screening mammogram; and magnetic resonance imaging applications, a tool to detect breast and prostate cancer.In addition, the company offers VeraLook, a solution designed to support the detection of colonic polyps in conjunction with CT Colonography.


Further, it provides Xoft Axxent electronic brachytherapy systems for the treatment of early stage breast, non-melanoma skin, and gynecological cancers to university research and community hospitals, cancer care clinics, veterinary facilities, and dermatology offices.The company sells its products through direct sales organizations, as well as through various original equipment manufacturer partners, distributors, technology platform partners, and resellers.It also exports its products in Europe, Taiwan, Canada, China, and internationally.


The company was formerly known as Howtek, Inc.and changed its name to iCAD, Inc.in June 2002.


iCAD, Inc.was incorporated in 1984 and is headquartered in Nashua, New Hampshire.

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1.b. Last Insights on ICAD

iCAD's recent performance was driven by several positive factors. The company's strategic partnership with RamSoft to deliver ProFound AI-Powered Mammography Solutions across North America is expected to enhance workflow efficiency, increase diagnostic confidence, and improve patient care. Additionally, the partnership with Koios Medical to expand AI-Powered, Multi-Modality Breast Cancer Detection Solutions at ECR 2025 will provide radiologists with an AI-powered pathway from screening to diagnosis. Furthermore, the appointment of Mark Koeniguer as Chief Commercial Officer is expected to lead the next phase of global growth for iCAD.

1.c. Company Highlights

2. iCAD, Inc. Q4 2024 Earnings Analysis

iCAD, Inc. delivered a strong Q4 2024 performance, with revenue reaching $5.4 million, reflecting a 14% year-over-year increase. Full-year revenue for 2024 totaled $19.6 million, up 13% from 2023. While the company reported a GAAP net loss of $0.9 million for the quarter, it marked an improvement compared to the $0.5 million loss in Q4 2023. The transition to a SaaS-based model has been a key driver of growth, with total Annual Recurring Revenue (ARR) reaching $9.8 million, underscoring the success of subscription and cloud offerings. However, this strategic shift has also resulted in short-term financial pressures, as operating expenses rose 10% to $5.5 million, primarily due to increased R&D investments.

Publication Date: Mar -21

📋 Highlights
  • Revenue Growth and SaaS Transition:: iCAD reported Q4 2024 revenue of $5.4 million, up 14% year-over-year, with full-year revenue of $19.6 million, up 13%. Total ARR reached $9.8 million, reflecting growth in cloud and subscription offerings despite short-term financial impacts from the SaaS shift.
  • ProFound AI v4.0 Launch:: The new version of ProFound AI demonstrates superior accuracy, reducing radiologists' reading time by 52% and improving cancer detection by 23%, with early sales momentum expected to drive deal acceleration in 2025.
  • Global Expansion and Partnerships:: iCAD expanded its footprint with deals in South Africa, UAE, Jordan, and the UK, launched ProFound Health, and partnered with Koios Medical and RamSoft to enhance its AI-driven breast health ecosystem.
  • Financial Performance and Efficiency:: Q4 saw a GAAP net loss of $0.9 million, improved from $0.5 million in Q4 2023, with cash reserves at $17.2 million. Operating expenses rose 10% to $5.5 million, driven by R&D investments, while cash used in operations decreased to $3.9 million.
  • Cloud Adoption and Future Momentum:: Q4 2024 saw 19 cloud deals, up from 10 in Q2, with Eric Lonnqvist expressing confidence in ongoing cloud momentum and reduced revenue lumpiness as the SaaS transition progresses.

Product Success and Market Expansion

iCAD’s ProFound AI platform continues to demonstrate its clinical value, reducing radiologists’ reading time by 52% and improving cancer detection by 23%. The launch of ProFound Detection v4.0, with enhanced accuracy for dense breast tissue and invasive lobular cancers, represents a significant milestone. The company also expanded its global footprint, securing deals in South Africa, the UAE, Jordan, and the UK, while launching ProFound Health, a virtual second read service. These initiatives highlight iCAD’s commitment to leveraging AI to address unmet needs in breast health diagnostics.

Financial Health and Strategic Focus

Despite the transition to a SaaS model, iCAD ended 2024 with $17.2 million in cash and cash equivalents, though down from $21.7 million in 2023. Cash used in operations decreased to $3.9 million from $5 million in 2023, indicating improved operational efficiency. CFO Eric Lonnqvist emphasized the challenges of revenue lumpiness during the transition but expressed confidence in continued momentum for cloud solutions in 2025. The company’s focus on SaaS adoption and partnerships, such as with Koios Medical and RamSoft, positions it to strengthen its leadership in AI-powered breast health solutions.

Valuation and Market Position

iCAD’s stock is currently valued at a Price/Earnings-to-Growth (PEG) ratio of 1.5, suggesting moderate growth expectations relative to its earnings. The company’s Price-to-Sales (P/S) ratio of 3.11 indicates a premium valuation compared to its revenue growth. While the transition to SaaS has led to short-term financial pressures, the long-term benefits of recurring revenue streams and ARR growth are promising. The company’s ability to maintain its momentum in cloud adoption and leverage its AI-driven product portfolio will be critical to driving sustained revenue growth and improving profitability in 2025.

3. NewsRoom

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iCAD Reports Financial Results for First Quarter Ended March 31, 2025

May -13

Source: globenewswire.com

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ICAD INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of iCAD, Inc. - ICAD

Apr -17

Source: businesswire.com

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$HAREHOLDER ALERT: The M&A Class Action Firm Investigates the Merger of iCAD, Inc. - ICAD

Apr -16

Source: prnewswire.com

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ICAD Stock Alert: Halper Sadeh LLC Is Investigating Whether the Sale of iCad, Inc. Is Fair to Shareholders

Apr -16

Source: businesswire.com

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iCAD Expands Executive Leadership with Appointment of Mark Koeniguer as Chief Commercial Officer

Apr -08

Source: globenewswire.com

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iCAD, Inc. (ICAD) Q4 2024 Earnings Call Transcript

Mar -19

Source: seekingalpha.com

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iCAD Reports Financial Results for Fourth Quarter and Fiscal Year Ended December 31, 2024

Mar -19

Source: globenewswire.com

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iCAD and RamSoft Announce Partnership to Deliver ProFound® AI-Powered Mammography Solutions Across North America

Mar -05

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.43%)

6. Segments

Detection Products

Expected Growth: 10.43%

iCAD's Detection Products segment growth is driven by increasing adoption of AI-powered cancer detection solutions, expanding product portfolio, and strategic partnerships. Growing demand for digital breast tomosynthesis and computed tomography systems also contributes to the growth. Additionally, the company's focus on improving workflow efficiency and enhancing patient outcomes supports the segment's 10.43% growth.

Detection Services

Expected Growth: 10.43%

iCAD's Detection Services segment growth of 10.43% is driven by increasing adoption of AI-powered cancer detection solutions, expansion into new markets, and strategic partnerships. Additionally, growing demand for early disease detection, advancements in digital mammography, and regulatory approvals for new products contribute to the segment's growth.

7. Detailed Products

XoftSpyder-LV

A low-voltage, digital mammography detector designed for breast imaging

Xoft eBx

A electronic brachytherapy system for treating cancer

iCAD's Computer-Aided Detection (CAD) software

A software that helps radiologists detect breast cancer from mammography images

VeraLook

A computer-aided detection (CAD) software for detecting colon polyps from CT scans

SecondLook

A digital mammography workstation that provides advanced image processing and analysis tools

8. iCAD, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

iCAD, Inc. faces moderate threat from substitutes due to the availability of alternative medical imaging and radiation therapy solutions.

Bargaining Power Of Customers

iCAD, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

iCAD, Inc. relies on a few key suppliers for components and services, giving them some bargaining power, but the company's size and reputation mitigate this risk.

Threat Of New Entrants

The medical imaging and radiation therapy industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with iCAD, Inc.

Intensity Of Rivalry

The medical imaging and radiation therapy industry is highly competitive, with several established players competing for market share, which increases the intensity of rivalry for iCAD, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.36%
Debt Cost 3.95%
Equity Weight 98.64%
Equity Cost 10.76%
WACC 10.67%
Leverage 1.38%

11. Quality Control: iCAD, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
iCAD

A-Score: 4.7/10

Value: 7.0

Growth: 3.1

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
TriSalus Life Sciences

A-Score: 4.4/10

Value: 8.4

Growth: 4.2

Quality: 6.0

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Quanterix

A-Score: 3.3/10

Value: 8.6

Growth: 4.9

Quality: 4.7

Yield: 0.0

Momentum: 0.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Anika Therapeutics

A-Score: 2.8/10

Value: 8.8

Growth: 1.3

Quality: 3.4

Yield: 0.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Bioventus

A-Score: 2.8/10

Value: 6.6

Growth: 3.4

Quality: 4.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Iridex

A-Score: 2.6/10

Value: 8.4

Growth: 1.8

Quality: 3.6

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.87$

Current Price

3.87$

Potential

-0.00%

Expected Cash-Flows