The earnings call highlighted positive steps towards improved profitability and successful revenue growth in the applications segment. However, significant challenges, primarily from Medicaid and research funding cuts, have led to revised revenue guidance and a reduction in client retention and new bookings. The company is focused on profitability and shareholder value, despite the macroeconomic headwinds.

Company Guidance -

Q3 2025

During the Health Catalyst Second Quarter 2025 Earnings Conference Call, the company provided a detailed guidance update, highlighting several key metrics and adjustments in their financial outlook. Health Catalyst reported Q2 2025 revenue of $80.7 million and an adjusted EBITDA of $9.3 million, surpassing their guidance. However, they revised their full-year 2025 revenue guidance to $310 million due to a $1 trillion Medicaid cut and additional research funding reductions. Despite this revision, they maintained their adjusted EBITDA guidance at $41 million. The company also adjusted its expectations for net new platform clients from 40 to 30 for 2025, having already added 22 new clients by mid-year. They anticipate a shift towards more technology revenue, particularly applications, aiming for improved profitability despite macroeconomic challenges. This includes a restructuring effort impacting 9% of their workforce, expected to enhance profitability by over $40 million annually. Health Catalyst projects Q3 2025 revenue of approximately $75 million and adjusted EBITDA of $10.5 million, with an annualized run rate of $60 million in adjusted EBITDA going into 2026, and aims to expand adjusted EBITDA margins beyond 20% as they continue to focus on profitability improvement.

Outperformance in Revenue and Adjusted EBITDA

Q2 2025 revenue of $80.7 million and adjusted EBITDA of $9.3 million outperformed guidance, with Technology segment revenue growing by 11% year-over-year.

Strong Application Revenue Growth

Applications revenue grew more than 20% year-over-year, with an estimated gross margin of over 80% and adjusted EBITDA margin of 30%.

Restructuring and Profitability Focus

Restructuring efforts and client contract changes are expected to improve profitability by over $40 million annually, with adjusted EBITDA margin approaching 20% by Q4 2025.

Positive Technology Revenue Mix Shift

Favorable revenue mix shift towards technology and applications revenue, enabling higher gross margins and profitability.

CEO Commitment to Shareholder Value

CEO Dan Burton announced a reduction in his compensation for 2026, emphasizing a focus on improved profitability and shareholder value.

Health Catalyst (HCAT) Earnings, Revenues Date & History

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HCAT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 11, 2025	2025 (Q3)	0.07 / -	0.07	―	―	―
Aug 07, 2025	2025 (Q2)	0.03 / 0.04	0.12	-66.67% (-0.08)	―
May 07, 2025	2025 (Q1)	>-0.01 / 0.01	0.05	-80.00% (-0.04)	―
Feb 26, 2025	2024 (Q4)	0.07 / 0.04	0.02	100.00% (+0.02)	―
Nov 06, 2024	2024 (Q3)	0.10 / 0.07	0.03	133.33% (+0.04)	―
Aug 07, 2024	2024 (Q2)	0.08 / 0.12	0.05	140.00% (+0.07)	―
May 09, 2024	2024 (Q1)	0.03 / 0.05	0.05	0.00% (0.00)	―
Feb 22, 2024	2023 (Q4)	0.01 / 0.02	-0.05	140.00% (+0.07)	―
Nov 02, 2023	2023 (Q3)	>-0.01 / 0.03	-0.13	123.08% (+0.16)	―
Aug 08, 2023	2023 (Q2)	-0.01 / 0.05	-0.03	266.67% (+0.08)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

HCAT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 07, 2025	$3.69	$2.83	-23.31%
May 07, 2025	$3.97	$4.18	+5.29%
Feb 26, 2025	$4.94	$4.39	-11.13%
Nov 06, 2024	$8.25	$8.86	+7.39%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.