HCTI

By Brad Sorensen, CFA NASDAQ: HCTI READ THE FULL HCTI RESEARCH REPORT Healthcare Triangle, Inc. (NASDAQ: HCTI) operates at the intersection of healthcare delivery and cloud-based data infrastructure, positioning itself as a specialized provider of digital transformation solutions tailored to the highly regulated healthcare industry. The company’s core business centers on helping hospitals, life sciences firms, and payers migrate, manage, and optimize their data and applications in the cloud. With deep expertise in platforms such as electronic health records, interoperability frameworks, and compliance-driven architectures, Healthcare Triangle has carved out a niche as a partner capable of navigating both the technical and regulatory complexities that define modern healthcare IT. In its recent earnings report, HCTI showed improved revenue and a much-improved balance sheet, with cash on hand rising to $7.6 million from $20,000 a year ago as the company continues to make progress towards its goals. At its foundation, the company generates revenue through a mix of consulting services, managed services, and proprietary software offerings. Its consulting arm focuses on cloud migration and digital transformation, guiding healthcare organizations as they shift legacy systems into scalable, secure cloud environments. This is complemented by managed services that provide ongoing support, optimization, and compliance monitoring—areas that are increasingly mission-critical as healthcare providers face rising cybersecurity threats and regulatory scrutiny. On the software side, Healthcare Triangle has developed solutions that enable data interoperability, analytics, and patient-centric insights, aligning with the broader industry push toward value-based care and real-time decision-making. What makes Healthcare Triangle particularly compelling is its alignment with several durable, long-term industry tailwinds. Healthcare is in the early innings of cloud adoption compared to other sectors, largely due to the complexity of data privacy laws such as HIPAA and the mission-critical nature of clinical systems. As a result, providers are increasingly turning to specialized vendors rather than generalist IT firms. HCTI’s focused expertise gives it a competitive advantage in this regard, as it can offer tailored solutions that address compliance, security, and performance simultaneously. Additionally, the proliferation of data—from electronic health records to wearable devices—is creating a growing need for advanced analytics and interoperability, both of which sit squarely within the company’s capabilities. From an investment standpoint, the company presents a compelling growth narrative. Its business model benefits from a combination of project-based revenue, which drives near-term growth, and recurring managed services, which can improve revenue visibility and margin expansion over time. As the installed base of clients grows, the opportunity to cross-sell higher-margin software and analytics solutions becomes increasingly significant. This layered approach to revenue generation can, if executed effectively, lead to operating leverage and improving profitability. Healthcare Triangle’s positioning within cloud and data services aligns it with some of the fastest-growing segments in healthcare IT. Strategic partnerships with major cloud providers enhance its credibility and extend its reach, while also reducing the need for heavy capital investment in infrastructure. This asset-light approach can support scalable growth without proportionate increases in cost, a key driver of long-term shareholder value. That said, the company is not without risk. As a smaller player, it operates in a competitive landscape that includes both large, well-capitalized IT services firms and emerging niche providers. Execution will be critical, particularly in maintaining client relationships, delivering consistent service quality, and scaling operations efficiently. However, for investors willing to accept these risks, HCTI offers exposure to a high-growth segment of healthcare with meaningful secular drivers. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.

By Michael Kim NASDAQ:HCTI READ THE FULL HCTI RESEARCH REPORT Ahead of 4Q25/full-year 2025 results likely to be announced later this month, we highlight several key strategic/financial announcements during the quarter, including: 1. Strategic M&A: Following the initial announcement of a Letter of Intent (LOI) in October 2025, the company recently disclosed the signing of a definitive agreement to acquire certain assets from Teyame AI LLC, a leading provider of AI-powered Customer Experience (CX) solutions based in Spain. More specifically, Teyame offers call center/telemarketing, KPI reporting/data analytics, and marketing strategy services, along with omnichannel CX platforms leveraging Agentic AI, or autonomous systems incorporating Large Language Models (LLMs) that independently plan/execute multi-step workflows. Stepping back, Teyame will likely transition into a separate subsidiary of Healthcare Triangle (NASDAQ:HCTI), with management focused on cross-selling Teyame’s CX solutions to enhance patient engagement, as well as leveraging Teyame’s presence in Spain to increasingly penetrate the LatAm and European markets. Terms of the transaction include a total consideration of up to $50 million consisting of upfront cash payments and shares of HCTI common stock and convertible preferred stock, as well as an equity-based contingent earnout payment. From a financial perspective, the transaction is likely to be highly accretive given that the acquired assets generated ~$32 million in revenue and ~$3.6 million in EBITDA in fiscal 2025. 2. Capital reload: From a financing perspective, management recently announced a series of capital raises to fund the Teyame acquisition and provide working capital. More specifically, HCTI raised $4.0 million via the sale of 681,553 shares of common stock at $5.81 per share under the company’s $20 million At-the-Market (ATM) offering program. Separately, the company issued $15 million of senior unsecured convertible notes, with an option to issue an incremental $15 million of notes subject to investor approvals. The first tranche of $7.5 million of notes closed in November 2025, with the second tranche issuable subsequent to an effective registration statement for the resale of related shares. 3. Increasingly leveraging QuantumNexis: From an organic growth standpoint, senior officials remain focused on leveraging QuantumNexis, the company’s subsidiary providing digital mental health solutions and AI-powered Hospital Information Systems across Asia, the Middle East, Africa, and Europe. More recent initiatives include: a) the launch of operations in Dubai to target high-growth markets in Gulf Cooperation Council (GCC) countries; b) a joint venture with Golden Code Holdings in Saudi Arabia to capitalize on Saudi Vision 2030, the Kingdom’s digital healthcare transformation strategy; c) a strategic partnership with TNG Digital, a payments and financial services platform in Malaysia, to market QuantumNexis’s digital mental health solutions; and d) a development partnership with Better.care, a digital healthcare platform provider, to capture incremental growth opportunities across Europe, the Middle East, and Africa. 4. Share repurchases: Following the recent 1:60 reverse stock split to regain compliance with Nasdaq listing requirements (bringing the number of shares of common stock outstanding to 757K as of February 10, 2026), the Board announced a $2 million share repurchase authorization. While the timing and level of potential share repurchases remain at management’s discretion, we note the current authorization represents a considerable percentage of the stock’s current market capitalization. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.

By Michael Kim NASDAQ:HCTI READ THE FULL HCTI RESEARCH REPORT On 11/6/25, Healthcare Triangle (NASDAQ:HCTI) filed the company’s 10-Q for the three months ended September 30, 2025. For the quarter, HITI generated $3.5 million of revenue, up 45% compared to $2.4 million in 3Q24, and bringing YTD revenues to $10.8 million. The year-over-year growth in 3Q25 reflected higher software services fees (shorter-term engagements focused on consulting and development) partially offset by lower managed services revenue (recurring cloud hosting/disaster recovery and monitoring contracts). After factoring in cost of revenue of $2.9 million, gross profit totaled $0.6 million for 3Q25 representing a gross margin of 17.7%, or up 380 basis points on a sequential-quarter basis. In aggregate, operating expenses totaled $3.2 million for 3Q25 compared to $1.9 million for the year-ago quarter. Much of the year-over-year increase can be attributed to higher general & administrative and sales & marketing expenses primarily related to integrating technology from the recent 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. Putting it all together, HCTI reported a net loss of $1.9 million for the quarter, versus a net loss of $1.2 million for the year-ago period. Net loss per share came in at $0.43 for 3Q25 compared to our net loss estimate of $0.22 per share, and compared to $54.78 (skewed by the recent 1-for-249 reverse stock split) for 3Q24. Relative to our model, the EPS miss was largely a function of a revenue shortfall, higher operating expenses, and lower shares, partially offset by more favorable non-operating income (Exhibit 1). Turning the balance sheet, as of September 30, 2025, cash and cash equivalents totaled $1.6 million compared to $28,000 as of September 30, 2024. Furthermore, the company recently received $2.6 million of net proceeds from the exercise of 1.4 million Series A warrants at a reduced $2 conversion price. HCTI maintained a $1.5 million balance on the company’s Seacoast National Bank credit facility as of September 30, 2025, up from $589,000 as of December 31, 2024. The facility carries an interest rate of 8.5% on advances against accounts receivables. Our updated model calls for slowing net losses of ($1.83) and ($0.53) per share for 2025 and 2026, respectively, followed by ($0.22) in 2027. Looking out to 2028, we forecast EPS to hit $0.20. Key modeling inputs include reaccelerating revenue growth and rising margins. From a top line perspective, we forecast total net revenues of $16.9 million in 2025, up 44% from $11.7 million in 2024 reflecting a sizeable backlog. Beyond this year, we look for ongoing growth, with revenues of $24.4 million, $29.3 million, and $35.2 million in 2026, 2027, and 2028, respectively. Importantly, our model does not incorporate accretion related to the potential acquisition of Teyame.AI, a leading provider of AI-powered customer experience solutions projected to generate $34 million of revenue and $4+ million of EBITDA in 2025. At a high level, strong revenue growth combined with rising margins likely translates into a favorable inflection in profitability followed by accelerating growth in operating income. More specifically, we look for gross margins to expand from 18% in 3Q25 to 35% in 2028 reflecting an ongoing mix shift in favor of highly-scalable/higher-margin subscription services and platform revenues. Target gross margins remain elevated across HCTI’s key verticals including EHR (30%+), Healthcare Cloud (40%+), and AI Solutions (70%+). In fact, management remains steadfast in eschewing lower-margin (sub-25%) contracts. Following through, we expect rising gross profits combined with ongoing cost optimization to drive a powerful inflection in profitability, with key drivers likely including stepped up operational efficiencies, streamlined expenses, and rising economies of scale. Turning to valuation, we are taking down our DCF-derived price target by $1.00 to $5.00, still representing meaningful upside potential from current levels. The stock’s current depressed valuation likely reflects declining revenues in 2024 and limited top-line growth thus far in 2025, ongoing net losses, and the potential for dilutive equity capital raises to fund growth. That said, we look for a considerable upward revaluation for the stock, as awareness and appreciation of the company’s unique business model, accelerating/sustainable growth prospects, competitive positioning across high-growth markets, revenue profile remix, profitability inflection, and valuation disconnect increasingly take hold. Indeed, we look for a substantial step up in HCTI’s earnings power, as well as a steadier revenue growth profile, which we believe are not reflected in the stock at current levels. Moreover, further acquisitions of strategically complementary assets at attractive valuations likely represent powerful catalysts for HCTI. We highlight the following key takeaways from 3Q25 results: 1. Setting the stage for growth: Despite the revenue shortfall relative to our expectations in 3Q25, we look for growth to reaccelerate driven by a number of key drivers. Stepping back, 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. Drilling down, 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. In fact, AI adoption rates are forecast to hit 30% to 45% across various healthcare industry constituencies by 2030. More specific to HCTI, 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. Furthermore, management remains focused on increasingly leveraging the team’s strong domain expertise to further expand the company’s geographic reach beyond the U.S. In fact, HCTI recently announced QuantumNexis secured strategic partnerships with an on-demand lifestyle digital insurer and a Third-Party Administrator (TPA) in Malaysia. Finally, a key focus remains further expanding HCTI’s wallet share with existing software services clients by increasingly activating higher-margin/recurring managed services solutions post initial deployment periods, as well maintaining high contract renewal rates. Indeed, 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. 2. Strategic M&A: Healthcare Triangle maintains a strong track record of accretive strategic acquisitions that have expanded the company’s footprint and augmented growth via revenue synergies. In fact, HCTI recently announced a Letter of Intent (LOI) to acquire Teyame.AI, a leading provider of AI-powered Customer Experience (CX) solutions based in Spain. More specifically, Teyame offers call center/telemarketing, KPI reporting/data analytics, and marketing strategy services, along with omnichannel CX platforms leveraging Agentic AI, or autonomous systems incorporating Large Language Models (LLMs) that independently plan/execute multi-step workflows. Stepping back, Teyame will likely transition into a separate subsidiary of Healthcare Triangle assuming the acquisition closes, with management focused on cross-selling Teyame’s CX solutions to enhance patient engagement across HCTI, as well as leveraging Teyame’s presence in Spain to increasingly penetrate the LatAm and U.S. markets. While terms of the transaction have not yet been announced, we suspect the acquisition will align with HCTI’s typical deal structure involving an upfront consideration comprised of cash and stock combined with earnout payments. 3. Revenue remix: From a mix perspective, the senior management team continues to focus on building recurring subscription/platform fees via SaaS offerings and multi-year contracts across target markets (as opposed to software 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. Cloud-based platform applications include CloudEz, DataEz, and Readabl.ai. Moreover, senior management remains focused on further building out the salesforce and broadening marketing initiatives to stoke demand for the company’s Managed Services & Support and Platform Services solutions. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.

By Michael Kim NASDAQ:HCTI READ THE FULL HCTI RESEARCH REPORT We are initiating coverage of Healthcare Triangle, Inc. (NASDAQ:HCTI) with a 12-month price target of $6.00, translating into sizeable upside from the stock’s current price. Healthcare Triangle Inc. (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. Our investment thesis revolves around: 1. Differentiated model: At a high level, the HCLS industry continues to deal with challenges as it relates to optimizing digital transformation solutions (more broadly) and data analytics services (more specifically) to enhance clinical outcomes, consumer experiences, and financial performance. At the crux of the issue, the healthcare industry remains highly fragmented, with incompatible legacy technology systems across hospitals, providers, pharmacies, and insurance companies. Healthcare Triangle’s platform, solutions, and services leverage proprietary technology to support better clinical outcomes and operating efficiencies via data management/analytics optimization. Key competitive advantages for HCTI include the company’s: 1) domain expertise across cloud technologies, data analytics, AI/ML, security, and governance; 2) long-standing strategic partnerships with leading public cloud providers in addition to EHR vendors; and 3) compliance subject matter experts ensure Health Insurance Portability and Accountability Act (HIPAA) compliant services. From a solutions perspective, HCTI offers a comprehensive suite of software, platforms, and services targeting healthcare providers and life sciences companies. This includes EHR software implementation and optimization, post-implementation support, application managed services, and cloud-based backup and disaster recovery. Proprietary software platforms include CloudEz and DataEz that enable cloud transformation, automation, data management, security and data governance, and operations management, as well as Readabl.AI, an Artificial Intelligence-based system that transforms unstructured paper-based information (documents, faxes, clinical reports) into structured EHR data, thereby reducing manual inputs and related processing times. 2. Multi-layered growth story: Revenues started to reaccelerate in 1H25 (up 58% vs. 2H24), and we look for momentum to continue to build in the back half of 2025, with outsized growth in 2026 and 2027. Key drivers include: a) a massive and growing industry, with the U.S. healthcare IT market projected to grow from $160.5 billion in 2024 to $566.5 billion in 2034 (with higher growth anticipated for HCTI’s key verticals), as healthcare organizations continue to face various operational headwinds, rising costs, and shifting regulatory backdrops; b) HCTI’s differentiated/integrated technology-enabled services designed to improve patient and consumer outcomes and drive operational efficiencies; c) a broader footprint, with management focused on increasingly leveraging the team’s strong domain expertise to further expand the company’s geographic reach beyond the U.S; d) further expanding HCTI’s wallet share with existing software services clients by increasingly activating higher-margin/recurring managed services solutions post initial deployment periods; and e) Healthcare Triangle maintains a strong track record of accretive strategic acquisitions that have expanded the company’s footprint and augmented growth via revenue synergies. 3. Accelerating revenues + margin expansion: Our model calls for slowing net losses of ($1.37) and ($0.25) per share for 2025 and 2026, respectively, followed by essentially breakeven EPS in 2027. Looking out to 2028, we forecast EPS to hit $0.42. Key modeling inputs include reaccelerating revenue growth and rising margins. From a top line perspective, we forecast total net revenues of $19.2 million in 2025, up 64% from $11.7 million in 2024, reflecting a sizeable backlog in addition to ~$2 million of new wins thus far this year, as well as ~$2 million of “high-probability opportunities.” Beyond this year, we look for ongoing growth, with revenues of $27.9 million, $33.5 million, and $40.2 million in 2026, 2027, and 2028, respectively. Importantly, our model does not incorporate accretion related to the potential acquisition of Teyame.AI, a leading provider of AI-powered customer experience solutions projected to generate $34 million of revenue and $4+ million of EBITDA in 2025. At a high level, strong revenue growth combined with rising margins likely translates into a favorable inflection in profitability followed by accelerating growth in operating income. More specifically, we look for gross margins to expand from 14% in 2Q25 to 34% in 2028, reflecting an ongoing mix shift in favor of highly-scalable/higher-margin subscription services and platform revenues. Target gross margins remain elevated across HCTI’s key verticals, including EHR (30%+), Healthcare Cloud (40%+), and AI Solutions (70%+). In fact, management remains steadfast in eschewing lower-margin (sub-25%) contracts. Following through, we expect rising gross profits combined with ongoing cost optimization to drive a powerful inflection in profitability, with key drivers likely including stepped-up operational efficiencies, streamlined expenses, and rising economies of scale. 4. Valuation opportunity: The stock’s current depressed valuation likely reflects declining revenues in 2024 and limited top-line growth thus far in 2025, ongoing net losses, heightened going concern risk, and the potential for dilutive equity capital raises to fund growth. That said, we look for a considerable upward revaluation for the stock, as awareness and appreciation of the company’s unique business model, accelerating/sustainable growth prospects, competitive positioning across high-growth markets, revenue profile remix, profitability inflection, and valuation disconnect increasingly take hold. Indeed, we look for a substantial step up in HCTI’s earnings power, as well as a steadier revenue growth profile, which we believe are not reflected in the stock at current levels. Moreover, further acquisitions of strategically complementary assets at attractive valuations likely represent powerful catalysts for HCTI. Despite what we believe to be conservative inputs/assumptions, our DCF model suggests a wide disconnect between HCTI’s improving fundamentals and the stock’s current price. Furthermore, we looked at peer valuation multiples to validate our DCF-based price target. To be sure, comparable Healthcare Information Services (companies that develop and provide comprehensive physician practice management systems and software for hospitals, medical practices, and managed-care organizations) small cap stocks trade at ~18x next year’s earnings. We recognize most companies on the list are meaningfully larger, with considerable infrastructure, resources, and financial advantages. Furthermore, we forecast ongoing net losses through next year, with around breakeven EPS in 2027 for HCTI. That said, we look for HCTI to benefit from a steeper growth curve through 2028 when we project EPS to hit $0.42. Applying a peer-average forward P/E multiple (reasonably in our minds given HCTI’s stronger growth outlook) to our 2028 EPS estimate of $0.42, then discounting back the implied share price by a couple of years, yields a fair value of approximately $6.00 for the stock. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.

PLEASANTON, Calif., Oct. 9, 2025 /PRNewswire/ -- Healthcare Triangle, Inc. (Nasdaq: HCTI) ("HCTI" or the "Company"), a leader in digital transformation solutions for healthcare and life sciences, today announced it has signed a non-binding Letter of Intent (LOI) to acquire the assets of Teyame.AI LLC ("Teyame"), a Spain-based leader in AI-powered omnichannel customer experience (CX) solutions. This acquisition would position the Company as a global force in AI-powered customer and patient engagement. The strategic acquisition would address a critical gap in healthcare: the disconnect between advanced clinical systems and meaningful patient interaction. By combining HCTI's deep healthcare technology expertise with Teyame's proven AI automation customer engagement platform, an integrated ecosystem would be created where every patient touchpoint would become intelligent, personalized, and outcome-focused. Based on financial information the Company has received from Teyame, the Company expects Teyame to generate approximately $34 million in incremental annual revenue and $4.2 million in incremental EBITDA for fiscal year 2025. The acquisition would represent a pivotal moment in HCTI's evolution from healthcare IT provider to comprehensive digital health innovator and could significantly enhance HCTI's financial performance and shareholder value. "The transaction would bring real world lived experience of Agentic Gen AI, in addition to material revenues and profitability to HCTI" added David Ayanoglou, Chief Financial Officer of HCTI" Proven AI Innovation and Customer Engagement Meets Healthcare Expertise Madrid-headquartered Teyame.AI has built a sophisticated platform that seamlessly blends artificial intelligence with human expertise, currently serving banking and insurance clients while piloting breakthrough healthcare applications. The company's technology stack includes advanced chatbot automation, multilingual patient engagement tools, and real-time analytics… capabilities that become exponentially more powerful when integrated with HCTI's clinical systems. Key highlights of Teyame's innovation include: Integration of Agentic Generative AI (Gen AI) into core operations. Advanced AI-human collaboration models to drive efficiency. Pilots of AI-powered healthcare services, such as appointment confirmations and multilingual patient engagement. Evolution into a digital-first, AI-powered global CX provider. Building a Comprehensive Healthcare Engagement Platform Once completed, this acquisition would create a global, digital-first patient engagement platform that combines HCTI's healthcare technology expertise with Teyame's advanced automation capabilities. Key anticipated synergies include: Integration with QuantumNexis (HCTI Subsidiary) Products Teyame's omnichannel platform will seamlessly integrate with Ziloy, QuantumNexis' advanced AI engine, and Ezovion, a comprehensive EHR/HIS solution. This combination will deliver a front-end, patient engagement platform tightly connected to back-end clinical systems. Enhanced Patient Engagement: Expansion of Ziloy's digital mental health programs using chatbot-led, AI-driven workflows. Personalized care journeys and outreach based on real-time patient data. Global Market Reach: Expansion into Europe, Latin America, Middle East and Asia-Pacific leveraging Teyame's multilingual, scalable platform. AI-Driven Personalization: Intelligent automation for treatment plans, chronic care workflows, and targeted outreach, improving patient outcomes and hospital efficiency. Cross-Selling Opportunities: Immediate ability to introduce Teyame's capabilities to HCTI's extensive hospital and clinic network. Acquisition of High-Quality Talent: Strengthening HCTI's innovation team with Teyame's domain experts in AI, CX, and automation. "This strategic acquisition would expand our reach into international markets and provide our customers with cutting-edge Gen AI solutions," said Sujatha Ramesh, Chief Operating Officer of HCTI. "By integrating Teyame's technology and services with HCTI's healthcare offerings, we could create a next-generation, AI-powered ecosystem for patients, providers, and healthcare organizations." Strategic Growth Alignment This LOI could be a critical step in HCTI's broader strategy focused on: AI-driven healthcare innovation. Global SaaS platforms for patient engagement and care management. Expansion into high-growth international markets through digital-first healthcare solutions. By uniting human expertise with advanced AI, HCTI is accelerating its transformation into a global healthcare technology leader, creating measurable impact for patients, providers, and shareholders About Healthcare Triangle Healthcare Triangle, Inc. based in Pleasanton, California, reinforces healthcare progress through breakthrough technology and extensive industry knowledge and expertise. We support healthcare organizations including hospitals and health systems, payers, and pharma/life sciences organizations in their effort to improve health outcomes through better utilization of the data and information technologies that they rely on. Healthcare Triangle achieves HITRUST Certification for Cloud and Data Platform (CaDP), marketed as CloudEz™ and DataEz™. HITRUST Risk-based, 2-year (r2) Certified status demonstrates to our clients the highest standards for data protection and information security. Healthcare Triangle enables the adoption of new technologies, data enlightenment, business agility, and response to immediate business needs and competitive threats. The highly regulated healthcare and life sciences industries rely on Healthcare Triangle for expertise in digital transformation encompassing the cloud, security and compliance, data lifecycle management, healthcare interoperability, and clinical & business performance optimization. Forward-Looking Statements and Safe Harbor Notice All statements other than statements of historical facts included in this press release are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995), and include, among others, statements regarding the consummation of the private placement, satisfaction of the customary closing conditions of the private placement and the use of the proceeds therefrom. Such forward-looking statements include our expectations and those statements that use forward-looking words such as "projected," "expect," "possibility" and "anticipate." The achievement or success of the matters covered by such forward-looking statements involve significant risks, uncertainties, and assumptions, including market and other conditions. Actual results could differ materially from current projections or implied results. Investors should read the risk factors out lined in the company's annual report on form 10-K for the year ended December 31, 2024, on file with the Securities Exchange Commission (the "SEC") and in previous filings, subsequent filings and future periodic reports filed with the SEC. All the company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements. Investors: 1-800-617-9550 [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/healthcare-triangle-takes-bold-step-toward-ai-driven-future-with-the-signing-of-a-non-binding-loi-for-the-acquisition-of-teyameai-which-is-on-track-to-generate-34m-in-revenue-for-fiscal-year-2025-and-would-create-for-healthcare-302579295.html

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. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.