Company: HCTI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109581
Chunk: 43

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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The key factor to our success in generating substantial
recurring subscription revenues in future will be our ability to successfully market and persuade new customers to adopt our Software
as a Service (“SaaS”) offerings. We are in the early stages of marketing our SaaS offerings such as DataEz, CloudEz and Readabl.AI,
and do not yet have enough information about our competition or customer acceptance to determine whether or not recurring subscription
revenue from these offerings will have a material impact on our revenue growth.

Mix of solutions and software services revenues

Another factor to our success is the ability
to sell our solutions to the existing software services customers. During the initial period of deployment by a customer, we generally
provide a greater number of services including advisory, implementation and training. At the same time, many of our customers have historically
purchased our solutions after the deployment. Hence, the proportion of total revenues for a customer associated with software services
is relatively high during the initial deployment period. While our software services help our customers achieve measurable improvements
and make them stickier, they have lower gross margins than solution-based revenue. Over time, we expect the revenues to shift towards
recurring and subscription-based revenues.

Components of Results of Operations

Revenues

During the quarter ended September 30, 2025,
the Company generated revenues of approximately $3.49 million compared to revenue of $2.40 million for the quarter ended September 30,
2024 which represents an increase of $1.09 million or 45% compared to the previous year comparative quarter. Similarly, the Company generated
revenues of approximately $10.8 million during the nine months ended September 30, 2025, compared to a revenue of $9.5 million for the
nine months ended September 30, 2024, which represents an increase of $1.3 million or 13.7%.

We provide our services and manage our business under these operating
segments:

    ●
    Software services

    ●
    Managed services and support

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Software Services 

The Company earns revenue primarily through the
sale of software services that is generated from providing strategic advisory, implementation, and development services. The Company
enters into Statement of Work (SOW) which provides for service obligations that need to be fulfilled as agreed with the customer. The
majority of our software services arrangements are billed on a time and materials basis, and revenues are recognized over time based
on time incurred and contractually agreed upon rates