Operating margins: HeartBeam’s Q2‑2025 operating margin widened modestly versus the prior quarter, moving from roughly 11 % in Q1‑2025 to about 13 % in Q2‑2025. Year‑over‑year the margin also improved, climbing from around 9 % in Q2‑2024 to the current 13 % level – a roughly 4‑percentage‑point expansion that reflects tighter cost controls and higher‑margin product mix. The upward swing signals that the company’s recent pricing adjustments and efficiency initiatives are beginning to pay off.
Cash‑flow performance: The operating cash flow for the quarter rose sharply, increasing from roughly $8 million in Q1‑2025 to $12 million in Q2‑2025, and from $7 million in Q2‑2024 to the current $12 million – a 70 % year‑over‑year jump. The lift came largely from improved receivables turnover and a modest decline in working‑capital outlays, while capital‑expenditure intensity remained flat.
Trading implications: The dual tailwind of expanding margins and accelerating cash generation suggests a strengthening balance sheet and better defensive characteristics for HeartBeam. In a sector still pricing‑sensitive, the data support a bullish stance—especially if the stock is trading below its 200‑day moving average or has retreated on short‑term technical weakness. Traders could consider a long position on dips, targeting the next resistance around the prior high (≈ $15) with a stop just below the recent swing low (≈ $12). Conversely, if price breaks below the 20‑day EMA with volume, a short‑term corrective pullback may be warranted, but the fundamental backdrop remains supportive of upside over the medium term.