Health Catalyst (HCAT) AI Stock Analysis

• Market Cap: $89.41M
• Dividend Yield: N/A
• Average Volume (3M): 951.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: 4.64%
• EPS Growth: -17.17%
• Country: US
• Employees: 1,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.08
• Shares Outstanding: 73,586,180
• 10 Day Avg. Volume: 1,040,193
• 30 Day Avg. Volume: 951,748
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -704.86
• Enterprise Value/Market Cap: 2.35
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 2.02
• Enterprise Value/Ebitda: 14.58
• 1Y Price Target: $2.19
• Price Target Upside: 88.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.15
• Revenue Forecast (FY): $282.34M

• Rating: 45 Neutral
• Price Target: $1.00 ▼(-13.79% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is weighed down primarily by weak financial performance (widening losses, softening revenue, and negative free cash flow) and bearish technicals (price far below key moving averages with negative MACD). Earnings-call commentary shows improving adjusted profitability and cost discipline, but near-term revenue pressure, withheld full-year guidance, and sizable migration-driven ARR risk limit confidence; valuation support is also constrained by negative earnings.

Positive Factors

Technology / Recurring Revenue

A growing technology revenue base (7% YoY to $208M) signals durable subscription/recurring dynamics and higher-margin software mix. This supports more predictable revenue streams and scalability versus one-off services, strengthening long-term revenue quality if retention holds.

Margin Expansion and Adjusted Profitability

Substantial adjusted EBITDA growth and material gross margin expansion reflect improving cost discipline and operational leverage from restructuring. Sustained margin gains increase free-cash-flow potential and provide runway to invest in product and migrations while pursuing profitable growth.

Improved Balance Sheet / Liquidity

Material reduction in leverage and a sizable equity base enhance financial resilience, lowering refinancing risk while funding strategic investments. Stronger balance-sheet flexibility supports migration programs and R&D investments without immediate dependence on dilutive financing.

Negative Factors

Weak Revenue Momentum

A sharp slowdown in topline growth erodes the primary growth engine for a SaaS-led business. Persistent revenue weakness limits operating leverage, reduces scale benefits, and undermines the ability to convert structural cost cuts into sustainable profitability over the medium term.

Migration-Related ARR at Risk

Material chunks of contracted ARR face potential downsell or negotiation during DOS-to-Ignite migrations. Loss or re-pricing of recurring ARR harms revenue visibility, increases retention costs, and can reverse progress on margin expansion if migrations require extended professional services.

Negative Free Cash Flow and Inconsistent Cash Generation

Sustained negative free cash flow constrains self-funding capacity and raises reliance on external capital. If losses and FCF do not improve, the company may face limits on investments in product, migrations, or sales capacity, and higher financing costs over the medium term.

Health Catalyst Business Overview & Revenue Model

Company Description

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations. Its offerings include data and analytics platform, a commercial-grade data and analytics platform for the healthcare sector; AI and data science, providing integration of AI into existing business intelligence tools, increasing analytics accuracy; population health management identifies improvement across the care continuum as well as actionable guidance for success and automated workflows; financial transformation providing costing and labor productivity insights and revenue capture; quality and safety improvement using clinical quality and patient safety data, analytics, and expert services; and national data ecosystem for thought leadership and mutual knowledge exchange to transform care delivery through next-gen insights. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is based in South Jordan, Utah.

How the Company Makes Money

Health Catalyst primarily makes money by selling its software and related services to healthcare organizations. Its revenue model generally consists of (1) recurring software revenue from subscriptions (typically SaaS) for access to its data platform and analytics applications, and (2) services revenue from implementation, integration, advisory, and other professional services that support deployment and ongoing customer initiatives. Software subscription contracts tend to be multi-period and generate recurring revenue over the contract term, while services revenue is recognized as the work is delivered. The company’s earnings are influenced by its ability to (a) land new customers (e.g., health systems) and expand within existing customers by adding additional applications/modules, users, or capabilities, (b) retain customers and renew subscriptions, and (c) manage the mix between higher-margin recurring software revenue and generally lower-margin services work that can be necessary to implement and realize value from the software. Information on specific partnerships or partner revenue contributions: null.

Health Catalyst Financial Statement Overview

Summary

Balance sheet improved with substantially lower leverage and sizable equity, but operating performance remains weak: revenue momentum deteriorated sharply in 2025, losses widened, and free cash flow stayed negative and worsened versus 2024—limiting self-funding capacity.

Income Statement

Revenue growth has cooled materially, moving from strong growth in 2020–2022 to modest growth in 2023–2024 and a sharp decline in 2025 (annual). Gross margin has been relatively steady in the mid-to-high 40% range, but profitability remains the key issue: operating results are deeply negative and net losses widened significantly in 2025 versus 2024, indicating worsening cost leverage and limited progress toward breakeven.

Balance Sheet

Leverage improved substantially in 2025 (annual), with total debt dropping to a low level and debt relative to equity falling to a very conservative range versus the highly levered 2024 profile. Equity remains sizable, supporting balance-sheet resilience; however, recurring losses are translating into consistently negative returns on equity, which is a key long-term risk if profitability does not improve.

Cash Flow

Cash generation is inconsistent: operating cash flow was meaningfully negative in 2020–2023, turned positive in 2024, and was only slightly positive in 2025 (annual). Free cash flow remains negative across the period and deteriorated sharply in 2025 versus 2024, suggesting ongoing cash burn and limited self-funding capacity despite a brief improvement in operating cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	311.14M	306.58M	295.94M	276.24M	241.93M
Gross Profit	104.13M	140.78M	131.83M	133.19M	117.57M
EBITDA	14.40M	-10.65M	-68.28M	-82.92M	-101.68M
Net Income	-177.97M	-69.50M	-118.15M	-137.40M	-153.21M
Balance Sheet
Total Assets	502.64M	858.93M	701.81M	752.29M	832.10M
Cash, Cash Equivalents and Short-Term Investments	95.73M	392.00M	317.73M	363.49M	444.98M
Total Debt	171.24M	402.26M	249.07M	247.97M	204.61M
Total Liabilities	256.86M	493.72M	334.89M	327.28M	310.00M
Stockholders Equity	245.78M	365.21M	366.92M	425.01M	522.10M
Cash Flow
Free Cash Flow	-237.00K	-1.84M	-47.39M	-52.68M	-41.59M
Operating Cash Flow	731.00K	14.56M	-33.08M	-35.27M	-23.12M
Investing Cash Flow	36.19M	-22.90M	20.29M	-39.02M	-139.68M
Financing Cash Flow	-235.78M	151.75M	2.73M	-2.61M	264.08M

Health Catalyst Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCAT, the sentiment is Negative. The current price of 1.16 is below the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.99, and below the 200-day MA of 2.88, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 24.78 is Positive, neither overbought nor oversold. The STOCH value of 5.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HCAT.

Health Catalyst Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSTM	69 Neutral	$603.57M	37.76	5.87%	0.52%	3.68%	5.62%
OPRX	64 Neutral	$115.39M	44.33	4.22%	―	24.19%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SOPH	48 Neutral	$348.31M	-3.99	-116.98%	―	13.66%	-2.65%
DH	47 Neutral	$142.74M	-7.96	-47.69%	―	-5.30%	46.01%
EVH	46 Neutral	$305.89M	-0.85	-69.22%	―	-16.65%	-71.92%
HCAT	45 Neutral	$89.41M	-0.47	-30.28%	―	4.64%	-17.17%

Health Catalyst Corporate Events

Health Catalyst Names New CEO Amid Board Restructuring

On February 12, 2026, Health Catalyst appointed Ben Albert, formerly its president and chief operating officer and previously CEO of acquired patient-engagement firm Upfront Healthcare Services, as chief executive officer and a Class III director, while accelerating the planned retirement of long-time CEO Dan Burton. Albert’s compensation package includes a $600,000 base salary and extensive time- and performance-based restricted stock awards, underscoring the board’s intent to align his incentives with long-term financial and operational performance while he drives cost-efficiency, improved execution, and a return to growth.

Burton stepped down as CEO and director effective February 12, 2026, but will remain as a strategic adviser, with the company expecting to formalize his transition in a separate agreement, and the board emphasized that his departure stemmed from succession timing rather than strategic disagreements. The leadership handover follows Albert’s internal restructuring efforts since September 2025 to streamline the organization and concentrate resources on high-return priorities, signaling a push to sharpen focus on margin improvement and more disciplined operations.

The company also enacted sweeping board changes, with directors Dawn Smith and Duncan Gallagher resigning effective February 17, 2026 and John Kane set to depart April 1, 2026, alongside the previously announced exit of director Matt Kolb at the 2026 annual meeting. In recognition of their service, the board accelerated vesting of restricted stock units and, in some cases, granted additional RSUs or full quarterly cash-equivalent retainers, indicating an orderly, non-contentious refresh of governance rather than activist-driven pressure.

As part of the shake-up, Justin Spencer was named independent chair of the board on February 12, 2026, and committee leadership was reconfigured, with Kane remaining as audit chair until his exit, Julie Larson-Green continuing to lead compensation, and Matt Arens assuming the chair of nominating and corporate governance. The board size was briefly increased to ten to accommodate Albert’s appointment and then scheduled for staged reductions to five directors by the time of the 2026 annual meeting, a move that is likely to tighten board oversight and may lower governance costs while concentrating authority among a smaller group of directors.

The most recent analyst rating on (HCAT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Health Catalyst stock, see the HCAT Stock Forecast page.

Health Catalyst Announces Chief Commercial Officer Transition Plan

On January 20, 2026, Health Catalyst, Inc. announced that its Board of Directors had decided Chief Commercial Officer Kevin Freeman would leave that role effective February 1, 2026. To support continuity in commercial operations, the company and Freeman plan for him to receive separation benefits under the company’s Executive Severance Plan in exchange for a general release of claims and then transition into a senior advisor position under an anticipated independent contractor agreement starting February 2, 2026, signaling an effort to manage leadership change while preserving access to his expertise.

The most recent analyst rating on (HCAT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Health Catalyst stock, see the HCAT Stock Forecast page.