iCAD Reports $4.9 Million Revenue in Q1 2025, Faces Decline in Services Revenue

iCAD, Inc. reported a total revenue of $4.9 million for the first quarter of 2025, a decrease of approximately 1.6% compared to $5.0 million in the same period of 2024. The decline was primarily attributed to a 12% drop in services revenue, which fell to $1.6 million from $1.9 million, as customers transitioned to subscription licenses and cloud services. Conversely, product revenue increased by 4.6% to $3.2 million, driven by higher software license sales. The company's gross profit for the quarter was approximately $4.2 million, representing 86% of total revenue, up from 83% in the prior year.

In terms of operational metrics, iCAD's cash and cash equivalents rose to $20.0 million as of March 31, 2025, compared to $17.2 million at the end of 2024. The company also reported a net loss of $833,000, or $0.03 per share, an improvement from a net loss of $1.2 million, or $0.05 per share, in the previous year. The reduction in losses was attributed to cost-saving initiatives and a focus on improving operational efficiency. iCAD's total assets increased to $39.5 million, up from $37.5 million at the end of 2024, while total liabilities decreased slightly to $8.7 million.

Strategically, iCAD is in the process of being acquired by RadNet, Inc., with the merger agreement signed on April 15, 2025. Under the terms of the agreement, each share of iCAD common stock will be converted into the right to receive 0.0677 shares of RadNet common stock. The transaction is expected to close in the second or third quarter of 2025, pending regulatory approvals and stockholder consent. This acquisition is seen as a significant step in enhancing iCAD's market position and expanding its product offerings in AI-powered cancer detection.

The company continues to focus on its ProFound Breast Health Suite, which has been utilized in over 40 million mammograms globally in the past five years. iCAD is transitioning towards a Software as a Service (SaaS) model with its ProFound Cloud platform, which aims to provide more affordable and accessible solutions for medical providers. As of March 31, 2025, iCAD had 27,365,682 shares of common stock issued, reflecting an increase from the previous quarter, and the company is actively managing its workforce and operational costs in light of the upcoming merger.

Looking ahead, iCAD's management believes that its current liquidity and capital resources are sufficient to sustain operations for at least the next 12 months. The company is closely monitoring market conditions and operational performance, particularly in light of ongoing global conflicts and potential impacts from tariffs on production costs. The strategic shift towards subscription and cloud-based services is expected to enhance revenue predictability and support long-term growth objectives.