Ontrak, Inc. (OTRKP) Stock Analysis

Ontrak, Inc. (OTRKP) Healthcare & Pipeline Overview

Ontrak, Inc. delivers AI-driven, telehealth-enabled healthcare solutions targeting chronic disease management through behavior change. The company's OnTrak program integrates psychosocial and medical interventions, addressing behavioral conditions linked to chronic illnesses, positioning it within the evolving healthcare information services sector.

What Is the Investment Thesis for OTRKP?

Ontrak, Inc. presents an investment case centered on its AI-driven approach to chronic disease management and telehealth capabilities. The company's OnTrak program targets a significant market need by addressing the behavioral components of chronic illnesses. However, potential investors may want to evaluate the company's negative profit margin of -228.1% and its presence on the OTC market, which introduces liquidity and regulatory risks. Growth catalysts include potential expansion of its OnTrak program to new health plans and geographic regions. The company's success hinges on demonstrating improved patient outcomes and cost savings to attract and retain clients. The high beta of 1.53 suggests higher volatility compared to the overall market.

Based on FMP financials and quantitative analysis

OTRKP Key Highlights

Ontrak operates with a negative Profit Margin of -228.1%, indicating significant losses relative to revenue.

• The company's Gross Margin stands at 55.1%, reflecting the profitability of its core services before operating expenses.
• Ontrak has a Beta of 1.53, suggesting its stock price is more volatile than the overall market.
• The company does not currently offer a dividend, reflecting a focus on reinvesting earnings for growth.
• Ontrak's market capitalization is $0.00B, indicating a small-cap company with potential for growth but also higher risk.

Who Are OTRKP's Competitors?

OTRKP is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are OTRKP's Key Strengths?

AI-powered platform for predicting and managing chronic disease.

• Integrated approach combining psychosocial and medical interventions.
• Telehealth-enabled delivery model for increased accessibility.
• Focus on addressing behavioral conditions that exacerbate chronic illnesses.

What Are OTRKP's Weaknesses?

Negative profit margin indicating financial instability.

• Reliance on a limited number of health plan clients.
• Limited market capitalization and liquidity.
• Presence on the OTC market, increasing regulatory and compliance risks.

What Could Drive OTRKP Stock Higher?

Expansion of the OnTrak program to new health plans and geographic regions.

• Development of new program modules to address additional chronic conditions.
• Integration with wearable devices and remote monitoring technologies.
• Leveraging AI and machine learning for personalized care.
• Potential positive results from studies demonstrating the effectiveness of the OnTrak program.

What Are the Key Risks for OTRKP?

Financial-distress signal — its Altman Z-Score of -45.16 sits in the distress zone (elevated bankruptcy risk).

• Weak fundamentals — a Piotroski F-Score of 2/9 flags soft profitability, leverage or efficiency.
• Negative profit margin and financial instability.
• Competition from other healthcare technology companies.
• Changes in healthcare regulations and reimbursement policies.
• Data breaches and privacy violations.
• Presence on the OTC market, increasing regulatory and compliance risks.

What Are the Growth Opportunities for OTRKP?

• Expansion into New Geographic Markets: Ontrak has the opportunity to expand its OnTrak program into new geographic markets within the United States. The market for chronic disease management is substantial, with significant unmet needs in underserved areas. By targeting specific regions with high prevalence of chronic conditions and limited access to care, Ontrak can increase its market reach and revenue. This expansion could involve partnerships with local healthcare providers and community organizations to build trust and ensure culturally competent care delivery. The timeline for this expansion is ongoing, with potential for accelerated growth in the next 3-5 years.
• Partnerships with Additional Health Plans: Ontrak can pursue partnerships with additional health plans to offer its OnTrak program to a wider member base. The market for health plan partnerships is competitive, but Ontrak's AI-driven platform and focus on behavioral health provide a unique value proposition. By demonstrating improved patient outcomes and cost savings, Ontrak can attract new health plan clients and expand its market share. The timeline for securing new health plan partnerships is ongoing, with potential for significant growth in the next 2-3 years.
• Development of New Program Modules: Ontrak can develop new program modules to address additional chronic conditions and behavioral health needs. The market for specialized chronic disease management programs is growing, with increasing demand for solutions that address specific patient populations and comorbidities. By expanding its program offerings, Ontrak can attract new clients and increase its revenue per member. This development could involve research and development efforts to identify unmet needs and develop evidence-based interventions. The timeline for developing new program modules is ongoing, with potential for new offerings in the next 1-2 years.
• Integration with Wearable Devices and Remote Monitoring Technologies: Ontrak can integrate its platform with wearable devices and remote monitoring technologies to enhance patient engagement and data collection. The market for wearable devices and remote monitoring is rapidly expanding, with increasing adoption among patients and healthcare providers. By integrating these technologies into its OnTrak program, Ontrak can provide more personalized and proactive care, improve patient adherence, and collect valuable data for program optimization. The timeline for integrating wearable devices and remote monitoring is ongoing, with potential for significant advancements in the next 1-3 years.
• Leveraging AI and Machine Learning for Personalized Care: Ontrak can further leverage its AI and machine learning capabilities to personalize care pathways and interventions for individual patients. The market for personalized medicine is growing, with increasing recognition of the importance of tailoring treatment to individual patient characteristics and preferences. By using AI to analyze patient data and predict individual responses to treatment, Ontrak can optimize its OnTrak program and improve patient outcomes. The timeline for leveraging AI for personalized care is ongoing, with potential for continuous improvement and innovation in the next 1-5 years.

What Are OTRKP's Competitive Advantages?

• Proprietary AI-powered platform for predicting and managing chronic disease.
• Integrated approach combining psychosocial and medical interventions.
• Telehealth-enabled delivery model for increased accessibility and convenience.

What Does OTRKP Do?

Ontrak, Inc., formerly Catasys, Inc., was founded in 2003 and rebranded in July 2020 to reflect its focus on AI-powered healthcare solutions. Headquartered in Henderson, Nevada, the company operates as a virtualized healthcare provider, offering in-person and telehealth services to health plans and third-party payors across the United States. Ontrak's core offering is its technology-enabled OnTrak program, designed to predict individuals whose chronic diseases can be improved through behavioral changes. The platform recommends personalized care pathways and guides patients through necessary interventions. The OnTrak program specifically targets members with behavioral conditions that worsen chronic medical conditions such as diabetes, hypertension, coronary artery disease, chronic obstructive pulmonary disease, and congestive heart failure. The program integrates evidence-based psychosocial and medical interventions, delivered via telehealth or in-person, along with care coaching and community care coordinators who address social and environmental determinants of health. Ontrak aims to improve patient outcomes and reduce healthcare costs by addressing the behavioral aspects of chronic disease management.

What Products and Services Does OTRKP Offer?

• Provides an AI-powered, telehealth-enabled healthcare platform.
• Offers virtualized healthcare services to health plans and third-party payors.
• Predicts individuals whose chronic disease will improve with behavior change.
• Recommends effective care pathways tailored to individual needs.
• Engages and guides patients through the care they need.
• Delivers the OnTrak program for members with behavioral conditions that exacerbate chronic medical conditions.
• Integrates psychosocial and medical interventions via telehealth or in-person.
• Offers care coaching and community care coordination to address social determinants of health.

How Does OTRKP Make Money?

• Generates revenue by providing its OnTrak program to health plans and other third-party payors.
• Charges fees based on member enrollment and engagement in the OnTrak program.
• Aims to reduce healthcare costs for payors by improving patient outcomes and reducing hospitalizations.

What Industry Does OTRKP Operate In?

Ontrak, Inc. operates within the healthcare information services industry, a sector experiencing rapid growth due to the increasing adoption of telehealth and AI-driven solutions. The industry is characterized by a competitive landscape with companies offering various approaches to chronic disease management and patient engagement. Market trends include a shift towards value-based care, personalized medicine, and remote patient monitoring. Ontrak's focus on integrating behavioral health with chronic disease management positions it within a niche segment of the broader healthcare IT market. Competitors such as ALEAF, GWPC, HHPHF, HRTT, and HTPRF also operate in the broader healthcare and telehealth space.

Who Are OTRKP's Key Customers?

• Health plans seeking to improve outcomes for members with chronic conditions.
• Third-party payors looking to reduce healthcare costs.
• Individuals with behavioral conditions that exacerbate chronic medical conditions.

The most recent 12 insider filings for Ontrak, Inc. break down as 3 sales and 9 purchases. On net that is roughly 4.6M shares acquired (about $7.1M) — insiders putting money in tends to read as conviction.

Wall Street analysts project Ontrak, Inc. revenue of about $24.8M for fiscal 2026, with EPS near $0.00.

Ontrak, Inc.'s Piotroski F-Score is 2/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -45.16 places it in the distress zone, a signal of elevated financial risk.

Key Financial Metrics

Return on assets is -66.0%, showing how much profit it generates from its asset base. A current ratio of 0.72 means current liabilities exceed short-term assets, a liquidity point worth watching.

OTRKP Revenue & Earnings Trend

In Q1 FY2025, OTRKP generated $2.0M in top-line revenue, marking a sequential decrease of 35.9%. The company recorded a net loss of $6.9M, with diluted EPS of $-1.25. Quarter-over-quarter revenue has been mixed, typical for a unknown company operating in Healthcare. Across the four most recent quarters, OTRKP averaged $-1.42 in diluted EPS.

Company Profile

Ontrak, Inc. operates in the Medical - Healthcare Information Services industry within the Healthcare sector. It is headquartered in Henderson, US. The company is led by CEO Brandon H. LaVerne CPA. OTRKP has traded publicly since 2020.

OTRKP Financials

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Common Questions About OTRKP (Healthcare)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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