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Health Catalyst
(NASDAQ:HCAT)
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Rating:60Neutral
Price Target:
$1.50
▼(-27.88% Downside)
Action:Reiterated
Date:08/07/26
HCAT scores as a moderate-risk, mixed-quality setup: financial performance is held back by persistent losses and soft TTM revenue, but improved free cash flow and a strengthened balance sheet support the score. Technicals are moderately positive with the stock trading above key moving averages. Valuation remains a downside factor due to negative earnings and no dividend support, while earnings-call takeaways are balanced—stronger capital structure and cost actions but lowered guidance and ongoing migration-related churn/margin headwinds.
Positive Factors
Debt elimination and stronger balance sheet
Retiring the credit facility removes substantial interest burden and leaves no debt, improving liquidity, resilience and capacity to fund core product investment. This is a durable capital-structure improvement, though execution still determines whether cash can be sustained.
Negative Factors
Persistent losses and weak profitability
Persistent net losses and a roughly -91% TTM net margin show that gross-profit gains are not yet translating into durable profitability. Continued losses can erode the equity cushion and constrain reinvestment, even with recent cash-flow improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt elimination and stronger balance sheet
Retiring the credit facility removes substantial interest burden and leaves no debt, improving liquidity, resilience and capacity to fund core product investment. This is a durable capital-structure improvement, though execution still determines whether cash can be sustained.
Read all positive factors
Health Catalyst (HCAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$122.67M
Dividend YieldN/A
Average Volume (3M)628.93K
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth-7.54%
EPS Growth-143.41%
CountryUS
Employees1,200
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-3.68
Shares Outstanding75,256,380
10 Day Avg. Volume592,331
30 Day Avg. Volume628,929
Financial Highlights & Ratios
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<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$1.83Price Target Upside-12.26% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-0.03
Revenue Forecast (FY)$250.59M
Health Catalyst Business Overview & Revenue Model
Company Description
Health Catalyst, Inc. equips healthcare providers with crucial data and analytical technologies, alongside specialized services. Their extensive product line features a robust, enterprise-level data and analytics platform designed specifically for...
How the Company Makes Money
Health Catalyst primarily generates revenue from selling access to its technology (software and cloud-based data/analytics offerings) and from professional services. A core revenue stream is subscription-based software revenue, where healthcare pr...
Health Catalyst Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call communicated meaningful strategic progress: a completed divestiture that eliminated debt and interest costs, cost reductions via Project Nexus, a Q2 revenue beat and adjusted EBITDA at the high end of guidance, and continued investments in technology and AI. However, the near-term picture is constrained by the loss of Vitalware's revenue/EBITDA contribution, persistent migration-related churn and at-risk ARR, margin pressure from dual operating costs during migrations, and a lowered full-year revenue/EBITDA outlook. Management frames these as deliberate, multiyear transformation actions that improve the capital structure and position the company for long-term growth while acknowledging short-term revenue and margin headwinds.Positive Updates
Revenue Beat in Q2
Total revenue of $70.5 million for Q2 2026 exceeded the high end of guidance ($68M–$70M) by $0.5M (approximately +0.7%).
Negative Updates
Vitalware Divestiture Reduces 2026 Revenue and EBITDA
Removal of Vitalware from the company’s results and guidance is the largest driver of the updated outlook — Vitalware H1 adjusted EBITDA was $11.4M and the guidance reflects removal of five months of Vitalware revenue, lowering full-year 2026 revenue and adjusted EBITDA targets.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat in Q2
Total revenue of $70.5 million for Q2 2026 exceeded the high end of guidance ($68M–$70M) by $0.5M (approximately +0.7%).
Read all positive updates
Company Guidance
Management updated full-year 2026 guidance to total revenue of $246–249 million and adjusted EBITDA of $18–18.5 million, with Q3 revenue of $55–56 million and Q3 adjusted EBITDA of breakeven to $0.5 million; they maintained a full-year bookings target of $22–26 million (including Vitalware through the transaction). They now expect full-year adjusted gross margin below 50%, adjusted technology gross margin in the low‑60s and adjusted professional services gross margin in the low‑ to mid‑teens. Q2 results included revenue of $70.5 million (technology $48.8M; professional services $21.7M), adjusted gross margin 51% (technology 63%; services 22%), adjusted EBITDA $9.9M, adjusted operating expenses $25.9M (37% of revenue), adjusted net income per share $0.04 on 74 million weighted shares, and cash of ~$103.4M. The Vitalware divestiture generated $147M in cash consideration (net ~$145.5M), Vitalware H1 adjusted EBITDA was $11.4M, and proceeds plus cash were used to retire ~ $160M of credit facility debt, eliminating ~ $19M of annual GAAP interest (~$16.5M of annual cash interest) and leaving pro forma cash of ~$82M and zero debt. Migration-related metrics noted: $12.5M of notified ARR down‑sell/churn, ~$52M additional at‑risk ARR with ~$22M expected to be retained; services revenue is expected to exit the year nearer $55M; Project Nexus is tracking to exceed savings targets but net savings are expected toward the lower end of the original $3–4M estimate, and stock‑based comp is expected to be down significantly to mid‑single digits of revenue for the year.Health Catalyst Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 292.25M | 311.14M | 306.58M | 295.94M | 276.24M | 241.93M |
| Gross Profit | 135.72M | 104.13M | 140.78M | 131.83M | 133.19M | 117.57M |
| EBITDA | -187.07M | -110.35M | -10.65M | -68.28M | -82.92M | -101.68M |
| Net Income | -264.82M | -177.97M | -69.50M | -118.15M | -137.40M | -153.21M |
Balance Sheet | ||||||
| Total Assets | 358.60M | 502.64M | 858.93M | 701.81M | 752.29M | 832.10M |
| Cash, Cash Equivalents and Short-Term Investments | 103.44M | 95.73M | 392.00M | 317.73M | 363.49M | 444.98M |
| Total Debt | 169.98M | 171.24M | 402.26M | 249.07M | 247.97M | 204.61M |
| Total Liabilities | 257.78M | 256.86M | 493.72M | 334.89M | 327.28M | 310.00M |
| Stockholders Equity | 100.83M | 245.78M | 365.21M | 366.92M | 425.01M | 522.10M |
Cash Flow | ||||||
| Free Cash Flow | 13.06M | -237.00K | -1.84M | -47.39M | -52.68M | -41.59M |
| Operating Cash Flow | 28.23M | 731.00K | 14.56M | -33.08M | -35.27M | -23.12M |
| Investing Cash Flow | -16.85M | 36.19M | -22.90M | 20.29M | -39.02M | -139.68M |
| Financing Cash Flow | -1.43M | -235.78M | 151.75M | 2.73M | -2.61M | 264.08M |
Health Catalyst Technical Analysis
Negative
2.08
Price Trends
1.99
Negative
1.67
Negative
1.91
Negative
Market Momentum
-0.12
Positive
32.30
Neutral
4.44
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 2.08 is above the 20-day moving average (MA) of 1.93, above the 50-day MA of 1.99, and above the 200-day MA of 1.91, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 32.30 is Neutral, neither overbought nor oversold. The STOCH value of 4.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HCAT.
Health Catalyst Risk Analysis
Health Catalyst disclosed 61 risk factors in its most recent earnings report. Health Catalyst reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
The divestiture of the Vitalware Business may not achieve some or all of the expected benefits and may adversely affect our business. Q2, 2026
Health Catalyst Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $741.74M | 79.63 | 2.79% | ― | 14.05% | ― | |
70 Outperform | $4.76B | 34.74 | 3.59% | ― | 19.23% | 44.44% | |
60 Neutral | $122.67M | -0.42 | -129.70% | ― | -7.54% | -143.41% | |
56 Neutral | $2.71B | 93.91 | 0.01% | ― | 24.10% | 84.08% | |
52 Neutral | $531.38M | -1.06 | -99.16% | ― | -4.50% | -184.71% | |
52 Neutral | $105.37M | -0.45 | -78.52% | ― | -4.99% | 39.52% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HCAT
Health Catalyst
1.53
-1.75
-53.35%
EVH
Evolent Health
4.74
-4.86
-50.63%
PHR
Phreesia
12.12
-17.63
-59.26%
PRVA
Privia Health Group
21.12
-0.87
-3.96%
DH
Definitive Healthcare Corp
0.71
-3.35
-82.41%
WAY
Waystar Holding Corp.
25.01
-11.23
-30.99%
Health Catalyst Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Health Catalyst Sells VitalWare, Refocuses Core Operations
Neutral
Aug 6, 2026
On July 31, 2026, Health Catalyst completed the sale of all equity interests in its VitalWare business to Med-Metrix for a base purchase price of $147 million, using the proceeds and existing cash to fully prepay and terminate its credit facility ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Health Catalyst Divests Vitalware to Strengthen Core Focus
Positive
Jun 4, 2026
On June 4, 2026, Health Catalyst agreed to sell all equity interests in Vitalware, its mid-revenue cycle software business, to Med-Metrix for an aggregate cash consideration of $147 million, subject to customary adjustments. The transaction, which...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.