How LUCD (Lucid Diagnostics) Makes Money in 2025: A Deep-Dive With Income Statement

Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io

Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.

Understanding how a healthcare technology company like LUCD makes money is essential for investors and anyone interested in the business of digital health solutions. In this post, we break down LUCD's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick LUCD Overview

LUCD operates as a healthcare technology provider, specializing in digital diagnostic platforms and AI-powered medical solutions. Revenue comes primarily from the sale of software licenses, diagnostic services, and technology subscriptions to hospitals and clinics. The company’s business is focused on leveraging proprietary AI algorithms to improve patient outcomes and streamline clinical workflows.

Revenue Breakdown

• Total Revenue (Q2 2025): $1.16M (+19.2% YoY)
  • LUCD does not disclose segment-level revenue, but the bulk is attributed to digital diagnostic services and recurring software subscriptions.
  • Growth is powered by increased adoption of AI-driven diagnostics and expansion into new healthcare networks.

Gross Profit and Margins

• Gross Profit: $622K (53.5% gross margin)
  • Cost of Revenue: $541K (down 3.1% YoY)
  • LUCD maintains robust margins due to its scalable digital business model and high-value software offerings.
• Most costs come from technology infrastructure, cloud services, and support for clinical integration.

Operating Income and Expenses

• Operating Income: Not reported (operating loss implied due to high operating expenses)
• Operating Expenses: $10.8M (+4.2% YoY)
  • R&D: $1.26M (down 8.5% YoY, 107.9% of revenue) — Focused on AI algorithm development, clinical validation, and new product pipelines.
  • SG&A: $9.51M (+4.7% YoY, 817.5% of revenue) — Includes sales force expansion, marketing, and administrative overhead.
  • LUCD continues to prioritize innovation and invest in growth while expanding its operational footprint.

Net Income

• Pre-Tax Income: Not reported (net income driven by other income items)
• Income Tax: Not reported
• Net Income: $4.44M (down 59.7% YoY, 381.7% net margin)
• LUCD converts a significant portion of sales into profit due to non-operating income, despite high operating expenses.

What Drives LUCD's Money Machine?

• Digital diagnostic services: The main revenue driver, accounting for the majority of sales as hospitals and clinics adopt LUCD’s AI-powered solutions.
• Recurring software subscriptions: High renewal rates and multi-year contracts provide revenue stability.
• R&D investment: Over 100% of revenue is reinvested in product innovation, supporting long-term growth.
• Expansion into new healthcare verticals: LUCD is targeting telehealth and remote monitoring, though these areas are not yet profitable.

Visualizing LUCD's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant costs and heavy R&D investment, net income remains positive due to substantial other income.

Key Takeaways

• LUCD's money comes overwhelmingly from digital diagnostic services and software subscriptions.
• High gross margins illustrate the power of LUCD's scalable digital business model.
• Heavy investment in R&D and SG&A, balanced by efficiency in cost of revenue.
• Ongoing growth is driven by AI adoption in healthcare and expansion into new markets.

Explore More Investment Opportunities

For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:

📌 50 Undervalued Stocks (Best) overall value plays for 2025
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)

🔍 Check out these stocks on the Value Sense platform for free!

FAQ About LUCD's Income Statement

1. What is the main source of LUCD's revenue in 2025?

LUCD generates over 90% of its revenue from digital diagnostic services and software subscriptions. Other sources are not significant in the current quarter.

2. How profitable is LUCD in Q2 2025?

LUCD reported net income of $4.44M in Q2 2025, with a net margin of approximately 381.7%, reflecting significant profitability driven by non-operating income, despite high operating expenses.

3. What are the largest expense categories for LUCD?

The biggest expenses on LUCD's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) at $9.51M and Research & Development (R&D) at $1.26M in Q2 2025, as LUCD prioritizes product innovation and market expansion.

4. Why does the core digital health segment operate at a loss?

The digital health segment, despite generating $1.16M in revenue, posted an operating loss in Q2 2025. This is because LUCD aggressively invests in R&D and SG&A to drive long-term growth, even if the division is unprofitable today.

5. How does LUCD's effective tax rate compare to previous years?

LUCD's effective tax rate in Q2 2025 was not reported, but prior periods indicate a low to moderate rate, primarily due to tax benefits from R&D credits and international structuring.