Medtech Heartflow IPOs, shares now available for Freedom clients

Shares of medtech Heartflow, which specializes in AI-driven coronary artery disease management, are now available for clients to trade in the Freedom trading platform. Heartflow stated it raised $316.7 million, more than three years after a previous IPO attempt failed. The stock is listed under the ticker HTFL. 

Heartflow raised $316.7 million in its IPO, selling 16.67 million shares at $19 per share, above the $17-18 per share indicative price range. Meanwhile, the company had originally planned to sell 12.5 million shares at $15-17 apiece, according to documents filed with the SEC. Heartflow was valued at $1.54 billion in the IPO. 

The IPO was run by J.P. Morgan, Morgan Stanley, and Piper Sandler.

After paying down debt, Heartflow will have about $130 million of the proceeds left, which it plans to use for sales, marketing, and R&D.

Heartflow decided to go public more than three years after its previous IPO attempt failed. In July 2021, the company announced that it would merge with the SPAC Longview Acquisition Corp II. At the time, Heartflow expected a valuation of about $2.4 billion. However, the IPO ended up being canceled in February 2022 due to unfavorable market conditions, recaps Reuters. 

Founded in 2007, Heartflow develops AI-powered software for noninvasive CT imaging of the heart and coronary arteries. Its flagship product, Heartflow FFRCT Analysis, has shown 78% higher accuracy than standard diagnostic methods in clinical trials, according to MedTech Dive. The platform helps identify patients in need of revascularization, a procedure that restores blood flow to areas with restricted supply.

Heartflow’s AI technology has been used in the treatment of more than 400,000 heart patients worldwide, Cardiovascular Business reported.

The company generates revenue on a pay-per-use basis, earning fees each time a physician uses its software to diagnose coronary heart disease.

The IPO filing disclosed preliminary financial results for the second quarter of 2025, with revenue expected to be up 38-40% year over year at $42.9-43.4 million. The company attributed the growth to a 47% increase in the number of "revenue cases." 

Heartflow had $80.2 million in cash and cash equivalents at the end of June, down from $109.8 million at the end of March. The decrease was attributed to annual bonus payments, IPO costs, and debt service.

Heartflow’s market debut coincides with a series of strategically significant developments. The Centers for Medicare & Medicaid Services have approved expanded insurance coverage for digital platforms that analyze medical images to diagnose coronary heart disease and assess coronary atherosclerosis. MedTech Dive reports that Heartflow’s platform is included in this list.

In addition, UnitedHealthcare, the largest U.S. health insurer, will begin covering the use of Heartflow’s software to analyze plaque in the heart starting October 1 – the first such coverage in the market. The policy will apply across all of the company’s business segments.

On the back of these developments, Heartflow plans to step up commercialization efforts and diversify its revenue base. As of the end of March, 99% of its revenue came from a single product: its fractional flow reserve analysis system.

"Heartflow's strong top-line growth and high gross margins position it well for initial investor interest, especially given its similarity to commercialized Beta Bionics and Kestra Medical," says IPOX CEO Josef Schuster, as quoted by Reuters. Still, with broader market volatility rising and select deals trading below offer, investors may be cautious beyond the first trading day, Schuster suggests.

Despite improving gross margins and reduced cash burn, the company’s operating margin remain deeply negative, reflecting ongoing financial risk, warns IPO expert Donovan Jones in a column for Seeking Alpha. 

Freedom analyst Alem Bektemirov says the main risk for the company is competition from giants like Siemens Healthineers, GE Healthcare, Philips, and Canon Medical Systems Corporation. The target price Bektemirov has set for Heartflow offers upside of nearly 21% relative to the IPO price.

Heartflow’s debut comes amid a rebound in medtech IPO activity after a prolonged slump, MedTech Dive noted. In June, Caris Life Sciences, which uses AI to analyze DNA and develop personalized cancer treatments, raised $494 million in its IPO, selling 23.5 million shares at $21 apiece. The stock is now trading above $30 per share. Beta Bionics, a developer of diabetes management solutions, and Kestra Medical, a maker of wearable cardiac devices, also went public in the first quarter.

Medical products supplier Medline has announced plans to IPO, while Medtronic, one of the world’s largest medical device makers, intends to spin off its diabetes division into a separate company, potentially followed by a public offering.

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Freedom clients will be able to trade Heartflow shares ahead of the main exchange session. Trading will open in the early, pre-market window, 2-3 hours before U.S. exchanges begin regular hours (from 15:30 to 16:30 Astana time). Participate by selecting the ticker HTFL.US.

The AI translation of this story was reviewed by a human editor.