Health Catalyst (HCAT) AI Stock Analysis

• Market Cap: $205.84M
• Dividend Yield: N/A
• Average Volume (3M): 661.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 5.55%
• EPS Growth: -0.99%
• Country: US
• Employees: 1,500
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.04
• Shares Outstanding: 70,373,630
• 10 Day Avg. Volume: 1,174,701
• 30 Day Avg. Volume: 661,815
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 2.36
• Enterprise Value/Ebitda: -9.51
• 1Y Price Target: $4.79
• Price Target Upside: 64.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 44 Neutral
• Price Target: $3.00 ▲(2.74% Upside)

Health Catalyst faces significant challenges with profitability and valuation, as indicated by its negative P/E ratio and ongoing cash flow issues. The technical analysis suggests a bearish trend, further weighing on the stock's outlook. While the earnings call provided some positive insights into future profitability improvements, the revised revenue guidance and macroeconomic challenges remain significant concerns.

Positive Factors

Cost Management

Announced restructuring valued at $40MM+ with a 9% workforce reduction and contract restructuring expected to yield significant annualized savings.

Financial Performance

HCAT has been able to sufficiently cut costs and integrate AI to improve adjusted EBITDA and cash flow.

Profitability

The planned workforce reduction is expected to result in substantial annualized cost savings, helping to maintain EBITDA guidance.

Negative Factors

Leadership Changes

CEO Dan Burton, the founder, will be stepping down, which has contributed to the stock pulling back significantly.

Market Challenges

The hospital buying environment is expected to become more challenging due to the Big Beautiful Bill Act, affecting future growth prospects.

Revenue Outlook

The 2025 revenue guide is lowered to ~$310MM from a previous ~$335MM.

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 generates revenue primarily through a subscription-based model for its software solutions, which includes licensing fees for its data operating system and analytics applications. Additionally, the company earns revenue from consulting services that assist healthcare organizations in implementing and optimizing its technologies. Key revenue streams also include maintenance and support services, as well as professional services tailored to specific client needs. Significant partnerships with healthcare providers and payers, along with ongoing contracts for software and consulting services, contribute to its earnings. The company also benefits from a growing demand for data-driven solutions in the healthcare industry, which further enhances its revenue potential.

Health Catalyst Financial Statement Overview

Summary

Health Catalyst shows consistent revenue growth but struggles with profitability and cash flow generation. The balance sheet is moderately leveraged, with a significant portion of assets funded by equity. However, negative net income and free cash flow highlight the need for strategic financial improvements.

Income Statement

Health Catalyst has shown consistent revenue growth, with a revenue increase from $306.58 million to $311.27 million in the TTM. However, profitability remains a challenge, with negative EBIT and net income margins. Gross profit margin has decreased, indicating pressure on cost management. Despite growing revenue, the company is yet to achieve profitability.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, with total debt being a significant portion of stockholders' equity. The equity ratio stands at a healthy level, indicating that a substantial portion of assets is funded by equity. However, the high net debt may pose risks if cash flows do not improve.

Cash Flow

Health Catalyst is experiencing challenges in generating free cash flow, with negative free cash flow in the TTM. The operating cash flow to net income ratio is low, suggesting inefficiencies in converting income into cash. The company needs to focus on improving operational efficiency to enhance cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.09M	306.58M	295.94M	276.24M	241.93M	188.84M
Gross Profit	143.21M	140.78M	92.60M	133.19M	117.57M	90.77M
EBITDA	-35.53M	-10.65M	-68.28M	-82.92M	-101.68M	-79.47M
Net Income	-100.12M	-69.50M	-118.15M	-137.40M	-153.21M	-115.02M
Balance Sheet
Total Assets	616.18M	858.93M	701.81M	752.29M	832.10M	577.74M
Cash, Cash Equivalents and Short-Term Investments	97.34M	392.00M	317.73M	363.49M	444.98M	270.87M
Total Debt	172.79M	402.26M	249.07M	247.97M	204.61M	195.28M
Total Liabilities	268.63M	493.72M	334.89M	327.28M	310.00M	301.64M
Stockholders Equity	347.55M	365.21M	366.92M	425.01M	522.10M	276.10M
Cash Flow
Free Cash Flow	-15.72M	-1.84M	-47.39M	-52.68M	-41.59M	-36.61M
Operating Cash Flow	-6.04M	14.56M	-33.08M	-35.27M	-23.12M	-26.15M
Investing Cash Flow	-60.57M	-22.90M	20.29M	-39.02M	-139.68M	-82.56M
Financing Cash Flow	-84.63M	151.75M	2.73M	-2.61M	264.08M	182.61M

Health Catalyst Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.92 is below the 20-day moving average (MA) of 3.59, below the 50-day MA of 3.77, and below the 200-day MA of 5.22, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 36.84 is Neutral, neither overbought nor oversold. The STOCH value of 38.95 is Neutral, 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	$768.89M	38.99	5.81%	0.45%	3.50%	13.99%
OPRX	66 Neutral	$304.47M	―	-8.21%	―	25.90%	46.13%
Sector *	57 Neutral	£5.17B	4.93	-44.55%	2.32%	28.89%	-10.08%
EVH	51 Neutral	$1.03B	―	-13.38%	―	-6.71%	-71.40%
SOPH	51 Neutral	$209.85M	―	-74.09%	―	7.31%	-7.49%
DH	50 Neutral	$512.22M	―	-64.27%	―	-5.24%	23.59%
HCAT	44 Neutral	$205.84M	―	-28.42%	―	5.55%	-0.99%

Health Catalyst Corporate Events

Health Catalyst CEO Retirement Announcement

On August 5, 2025, Health Catalyst announced that CEO Dan Burton plans to retire effective June 30, 2026, after 15 years of service. The company will conduct a search for a new CEO, while Burton will continue to serve on the Board. Additionally, Justin Spencer was appointed to the Board, effective September 1, 2025, expanding the Board to eight directors. Health Catalyst reported strong financial results for the second quarter of 2025, with a total revenue of $80.7 million and an Adjusted EBITDA of $9.3 million, surpassing their quarterly guidance. The company remains committed to achieving its goals and driving value for clients and shareholders during the leadership transition.

The most recent analyst rating on (HCAT) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Health Catalyst stock, see the HCAT Stock Forecast page.

Health Catalyst Stockholders Approve Key Governance Changes

On July 9, 2025, Health Catalyst, Inc. held its annual meeting of stockholders, where four proposals were voted on. The stockholders elected two Class III directors, ratified the appointment of Ernst & Young LLP as the independent auditor, approved executive compensation, and supported a proposal to declassify the board of directors. These decisions reflect ongoing governance and operational strategies aimed at enhancing the company’s leadership structure and financial oversight.

The most recent analyst rating on (HCAT) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Health Catalyst stock, see the HCAT Stock Forecast page.