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MIAMI - Ontrak, Inc. (NASDAQ: OTRK), a behavioral healthcare company utilizing AI technology, has announced a $10 million financing commitment from Acuitas Capital, LLC. The investment comes at a crucial time for the company, which has seen its revenue decline by 14.89% over the last twelve months. The funds are expected to enable the company to expand its customer base and further develop its AI and digital capabilities. According to InvestingPro data, Ontrak’s market capitalization stands at $6.66 million, with the stock currently trading at $1.58.
Brandon LaVerne, CEO of Ontrak, stated that the support from Acuitas Capital would help accelerate the company’s growth initiatives and enhance its technological platform, ultimately delivering increased value to customers and stakeholders. InvestingPro analysis indicates the company faces financial challenges, with negative free cash flow of $13.61 million in the last twelve months. Get access to 7 more exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.
The details of the agreement with Acuitas Capital will be disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission, accessible through the SEC’s website or Ontrak Health’s investor relations page.
Ontrak, known for its Advanced Engagement System, focuses on engaging and delivering care to those most vulnerable in the behavioral health population, such as individuals with anxiety, depression, substance use disorder, and chronic disease. Their approach combines AI, predictive analytics, and digital interfaces with personalized coaching to improve patient health and provide sustainable outcomes. Despite current challenges, InvestingPro’s Fair Value analysis suggests the stock may be undervalued at current levels.
This press release contains forward-looking statements regarding the expected benefits of the financing to Ontrak’s business strategy and execution. However, these statements are subject to risks and uncertainties, including Ontrak’s ability to meet the conditions for obtaining the financing and effectively utilizing the funds to execute its business strategy. For detailed insights into Ontrak’s financial health and future prospects, access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering this and 1,400+ other US stocks.
The company’s progress and plans are outlined in its most recent SEC filings, including its annual report for the year ended December 31, 2024, which detail potential risks and uncertainties that could impact actual results.
This news is based on a press release statement from Ontrak, Inc. For more information, visit www.ontrakhealth.com.
In other recent news, Ontrak Inc. reported its Q4 2024 financial results, revealing a decline in revenue to $3.1 million, which marks an 11% decrease from the previous year. Despite this downturn, the company experienced a growth in membership, increasing from 2,065 to 2,125 members. Ontrak also launched a new product, the Whole Health Plus solution, as part of its strategy to innovate and expand its market presence. Looking forward, the company has projected significant revenue growth, with expectations to double its revenue in 2025 and again in 2026. Ontrak is actively expanding its customer base, having secured new regional health plan customers and health plan expansions, including a recent partnership with Intermountain Health for its Medicare Advantage population. The company is also in late-stage discussions with a large Midwestern health plan that could significantly boost its revenue. Ontrak’s financial strategy includes a focus on enhancing its AI-driven engagement systems and expanding its presence in the Medicare Advantage market. Despite challenges, Ontrak remains optimistic about its growth potential and strategic initiatives.
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