Company: HCTI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109581
Chunk: 166

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 166
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 Support 

Our strategy is to achieve meaningful long-term
revenue growth through sales of Managed Services and Support to existing and new clients within our target market. In order to increase
our cross-selling opportunity between our operating segments and realize long time revenue growth, our focus has shifted more towards
Managed Services and Support which is of recurring nature when compared to Software Services segment which is of non-recurring nature.
This also helps in retaining existing customers by leveraging our Managed Services and Support and Platform Services as a growth agent.
This renewed focus on driving demand for subscription and platform-based model will help us in expanding our customer base and enhance
customer retention which is a challenge for our existing Software Services segment. Software Services contracts are driven by Time and
Material and on-site employees delivering services at customers location.

40

Cost of Revenue

    Three Months 
Ended September 30,  
    Changes 

    2025  
    2024  
    Amount  
    % 

    Software services 
    $1,667  
    $531  
    $1,136  
     214%
  
    Managed services and support 
     1,092  
     1,117  
     (25) 
     (2)%
  
    Corporate and others 
     112  
     43  
     69  
     160%
  
    Cost of revenue 
    $2,871  
    $1,691  
    $1,180  
     70%

Cost of revenue from Software services increased
by $1.13 million, or 214% to $1.66 million for the quarter ended September 30, 2025, as compared to $0.53 million for the quarter ended
September 30, 2024. Cost of revenue from Managed Services and Support decreased by $0.02 million, or 2% to $1.09 million for the quarter
ended September 30, 2025, as compared to $1.11 million for the quarter ended September 30, 2024. Cost of revenue from corporate and others
increased by $0.07 million, or 160% to $0.11 million for the quarter ended September 30, 2025, as compared to $0.04 million for the quarter
ended September 30, 2024.

Segment operating results by reportable segments
were as follows:

Operating results by Operating Segment