Health Catalyst (HCAT)
NASDAQ:HCAT
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Health Catalyst
(NASDAQ:HCAT)
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Rating:47Neutral
Price Target:
$1.00
▼(-24.24% Downside)
Action:Reiterated
Date:05/15/26
The score is held down primarily by weak financial performance (declining TTM revenue and very large losses) and a clearly bearish price trend (trading below key moving averages). Partially offsetting this are improved balance-sheet leverage and a return to positive TTM cash flow, plus an earnings call that showed operational progress and cost-savings plans, albeit with meaningful migration/churn and execution risks.
Positive Factors
Technology revenue mix & higher gross margins
A clear shift toward higher-margin technology revenue reflects a durable move to recurring, subscription-based economics. Higher tech gross margins improve scalability and long-term margin expansion potential as platform adoption grows and reduces reliance on low-margin professional services.
Negative Factors
Structural unprofitability and stagnant revenue
Despite margin and cash improvements, deep accounting losses and declining TTM revenue indicate the company remains structurally unprofitable. Sustained net losses erode equity value and require consistent revenue recovery and margin improvements to deliver durable shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Technology revenue mix & higher gross margins
A clear shift toward higher-margin technology revenue reflects a durable move to recurring, subscription-based economics. Higher tech gross margins improve scalability and long-term margin expansion potential as platform adoption grows and reduces reliance on low-margin professional services.
Read all positive factors
Health Catalyst (HCAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$103.45M
Dividend YieldN/A
Average Volume (3M)628.93K
Price to Earnings (P/E)―
Beta (1Y)1.72
Revenue Growth-2.83%
EPS Growth-223.32%
CountryUS
Employees1,500
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-3.72
Shares Outstanding73,894,020
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 Cap0.60
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit0.45
Enterprise Value/Ebitda-0.67
Forecast
1Y Price Target
$2.11Price Target Upside59.63% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)0.04
Revenue Forecast (FY)$266.73M
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...
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 platf...
Health Catalyst Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational and financial progress with meaningful near-term headwinds. Positives include a revenue beat, improved adjusted gross margin, a sizable adjusted EBITDA beat, strong cash generation, a detailed restructuring program (Project NEXUS) targeting ~$30M of annualized savings, early product and AI traction, and reinstated full-year guidance. Negatives center on migration-driven churn (~$30M at-risk ARR with an expected ~$20M 2026 impact), transitional duplicate hosting and data-loading costs weighing on margins, expected professional services margin decline, and near-term restructuring charges and execution risk. Overall, management laid out a coherent plan to address issues and improve long-term durability but acknowledged short-term revenue and margin pressure tied to migration and transformation.Positive Updates
Revenue Beat and Top-Line Composition
Q1 2026 total revenue $70.8M, exceeding the high end of guidance ($68M–$70M). Technology revenue $49.5M (vs. professional services $21.3M), reflecting the strategic mix shift toward higher-margin technology offerings.
Negative Updates
Migration-Driven Churn and At-Risk ARR
Previous accelerated DAS→Ignite migration strategy created churn dynamics. Management previously identified $12.5M of ARR notified for downselling and ~$52M of potentially at-risk ARR; after review they expect to retain at least $22M, leaving ~ $30M at-risk ARR. Current expected impact: ~$20M revenue headwind in 2026 and ~$10M in 2027.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Beat and Top-Line Composition
Q1 2026 total revenue $70.8M, exceeding the high end of guidance ($68M–$70M). Technology revenue $49.5M (vs. professional services $21.3M), reflecting the strategic mix shift toward higher-margin technology offerings.
Read all positive updates
Company Guidance
Health Catalyst issued full‑year 2026 guidance of $260–$265 million in total revenue and $30–$33 million of adjusted EBITDA, and Q2 2026 guidance of $68–$70 million revenue and $9–$10 million adjusted EBITDA; Q1 results were $70.8M revenue (technology $49.5M; professional services $21.3M), adjusted EBITDA $9.1M, adjusted gross margin 51.5% (technology 55.3%; services 19.4%), adjusted operating expenses $27.3M (39% of revenue), adjusted net income per share $0.02 on 72.6M weighted average shares, and cash/cash equivalents/short‑term investments of ~$108.8M (up $13.1M QoQ). They expect Project NEXUS to incur ~ $4M of Q2 restructuring charges and yield ~ $30M of annual run‑rate savings (≈$22M direct from a 9% headcount reduction and ~$8M indirect), with quarterly adjusted OpEx expected to fall $3–$4M and adjusted cost of revenue down $1–$2M versus Q1; technology gross margin is expected to finish 2026 in the mid‑60s, professional services margins to land in the mid‑ to low‑teens, services revenue exiting 2026 of ~$55–$65M, new bookings of $22–$26M for 2026 (conversion typically 3–6 months), and migration impacts of a previously disclosed $12.5M notified downsell plus ~$52M at‑risk ARR (they expect to retain at least $22M, leaving ~$30M at risk, with an estimated ~$20M revenue impact in 2026 and ~$10M in 2027).Health Catalyst Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
55
Neutral
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 302.48M | 311.14M | 306.58M | 295.94M | 276.24M | 241.93M |
| Gross Profit | 139.10M | 104.13M | 140.78M | 131.83M | 133.19M | 117.57M |
| EBITDA | -93.25M | 14.40M | -10.65M | -68.28M | -82.92M | -101.68M |
| Net Income | -265.26M | -177.97M | -69.50M | -118.15M | -137.40M | -153.21M |
Balance Sheet | ||||||
| Total Assets | 412.20M | 502.64M | 858.93M | 701.81M | 752.29M | 832.10M |
| Cash, Cash Equivalents and Short-Term Investments | 108.82M | 95.73M | 392.00M | 317.73M | 363.49M | 444.98M |
| Total Debt | 18.84M | 171.24M | 402.26M | 249.07M | 247.97M | 204.61M |
| Total Liabilities | 274.06M | 256.86M | 493.72M | 334.89M | 327.28M | 310.00M |
| Stockholders Equity | 138.15M | 245.78M | 365.21M | 366.92M | 425.01M | 522.10M |
Cash Flow | ||||||
| Free Cash Flow | 9.17M | -237.00K | -1.84M | -47.39M | -52.68M | -41.59M |
| Operating Cash Flow | 18.96M | 731.00K | 14.56M | -33.08M | -35.27M | -23.12M |
| Investing Cash Flow | -69.97M | 36.19M | -22.90M | 20.29M | -39.02M | -139.68M |
| Financing Cash Flow | -231.07M | -235.78M | 151.75M | 2.73M | -2.61M | 264.08M |
Health Catalyst Technical Analysis
Positive
1.32
Price Trends
1.27
Positive
1.64
Negative
2.25
Negative
Market Momentum
-0.01
Positive
54.51
Neutral
69.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCAT, the sentiment is Positive. The current price of 1.32 is below the 20-day moving average (MA) of 1.37, above the 50-day MA of 1.27, and below the 200-day MA of 2.25, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 69.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HCAT.
Health Catalyst Risk Analysis
Health Catalyst disclosed 63 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 0 New Risks
Health Catalyst Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $719.57M | 36.82 | 5.67% | 0.52% | 6.64% | 6.54% | |
61 Neutral | $95.70M | 14.24 | 5.47% | ― | 13.75% | ― | |
54 Neutral | $364.08M | -4.44 | -140.63% | ― | 20.85% | -18.60% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $418.43M | ― | -77.89% | ― | -21.26% | -290.08% | |
49 Neutral | $127.58M | -0.57 | -67.07% | ― | -3.89% | 63.03% | |
47 Neutral | $103.45M | -0.38 | -99.78% | ― | -2.83% | -223.32% |
* Healthcare Sector Average
HCAT
Health Catalyst
1.38
-2.42
-63.68%
HSTM
HealthStream
24.97
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-10.39%
OPRX
OptimizeRx
5.19
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EVH
Evolent Health
3.95
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-46.98%
SOPH
SOPHiA GENETICS
5.05
2.05
68.33%
DH
Definitive Healthcare Corp
0.93
-2.38
-71.90%
Health Catalyst Corporate Events
Business Operations and StrategyExecutive/Board Changes
Health Catalyst Adds Steve Nelson to Board of Directors
Positive
Apr 30, 2026
On April 29, 2026, Health Catalyst’s board appointed Steve Nelson, currently Executive Vice President and President of Aetna, to its board of directors effective May 1, 2026, expanding the board to seven directors before it later returns to ...
Business Operations and StrategyExecutive/Board Changes
Health Catalyst Announces Restructuring and Workforce Reduction Plan
Negative
Apr 27, 2026
On April 24, 2026, Health Catalyst’s board decided to eliminate the Chief People Officer role as part of a broader restructuring, with current CPO Linda Llewelyn set to leave the position effective June 1, 2026 and then serve as a senior adv...
Executive/Board Changes
Health Catalyst CEO Retirement Accelerated With Advisory Role
Negative
Apr 3, 2026
On February 12, 2026, Health Catalyst, Inc. Chief Executive Officer and principal executive officer Daniel Burton accelerated the effective date of his previously announced retirement to that same day, marking an earlier‑than‑expected ...
Business Operations and StrategyExecutive/Board Changes
Health Catalyst Names New CEO Amid Board Restructuring
Neutral
Feb 18, 2026
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,...
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.