Health Catalyst (HCAT)
NASDAQ:HCAT
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Health Catalyst
(NASDAQ:HCAT)
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Rating:43Neutral
Price Target:
$0.96
▼(-14.20% Downside)
Action:ReiteratedDate:04/03/26
The score is held down primarily by weak financial performance (widening losses and negative free cash flow) and bearish technical signals (price below key moving averages with negative MACD). Earnings-call commentary shows improving adjusted profitability but elevated churn/migration risk and limited guidance visibility, while valuation support is constrained by losses and no stated dividend.
Positive Factors
Recurring Technology Revenue
Health Catalyst’s technology revenue growth demonstrates a durable, subscription-based revenue base that is less tied to one-off services. A $208.3M technology run-rate supports higher gross margins and provides a platform for cross-sell of analytics apps, fostering steady revenue retention and scalable unit economics over the medium term.
Negative Factors
Migration-Related ARR At Risk
Large-scale DOS-to-Ignite migrations create structural retention and revenue risk: $12.5M confirmed churn and ~$52M subject to negotiation (including ~$35M infrastructure ARR) could materially reduce recurring revenue. Successful technical migrations and commercial negotiations are required to preserve long-term ARR and unit economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Technology Revenue
Health Catalyst’s technology revenue growth demonstrates a durable, subscription-based revenue base that is less tied to one-off services. A $208.3M technology run-rate supports higher gross margins and provides a platform for cross-sell of analytics apps, fostering steady revenue retention and scalable unit economics over the medium term.
Read all positive factors
Health Catalyst (HCAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.00M
Dividend YieldN/A
Average Volume (3M)781.20K
Price to Earnings (P/E)―
Beta (1Y)1.49
Revenue Growth4.64%
EPS Growth-17.17%
CountryUS
Employees1,500
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.08
Shares Outstanding73,586,180
10 Day Avg. Volume479,213
30 Day Avg. Volume781,201
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 Cap2.70
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit2.03
Enterprise Value/Ebitda14.65
Forecast
1Y Price Target
$2.17Price Target Upside93.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.14
Revenue Forecast (FY)$282.02M
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:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The call conveyed constructive operational progress — margin expansion, strong adjusted EBITDA growth (59% YoY), 7% technology revenue growth, improved cost discipline, and strategic leadership actions to simplify the commercial story. However, these positives are tempered by material near-term risks: a large $110.2M GAAP impairment, quarterly revenue decline, professional services weakness, and significant DOS-to-Ignite migration headwinds (~$12.5M confirmed churn and ~$52.0M at risk, incl. $35.0M data infrastructure). Management is investing to address migrations and future AI-enabled opportunities but withheld full-year guidance pending strategic review. Overall, the call reflects operational improvement underpinned by meaningful execution risks and financial uncertainty.Positive Updates
Full-Year Revenue and Technology Growth
Total revenue for FY2025 was $311.1M, representing 1% year-over-year growth. Technology revenue increased 7% year-over-year to $208.3M, indicating strength in the software/technology business despite overall modest topline growth.
Negative Updates
Quarterly Revenue Decline
Q4 2025 total revenue was $74.7M compared to $79.6M in the prior-year period, a decline of approximately 6% year-over-year. Management expects Q1 2026 revenue of $68.0M–$70.0M (sequential decline).
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Technology Growth
Total revenue for FY2025 was $311.1M, representing 1% year-over-year growth. Technology revenue increased 7% year-over-year to $208.3M, indicating strength in the software/technology business despite overall modest topline growth.
Read all positive updates
Company Guidance
Health Catalyst provided Q1 2026 guidance for total revenue of $68.0M–$70.0M and adjusted EBITDA of $7.0M–$8.0M (versus Q4 2025 revenue of $74.7M), noting Q1 revenue pressure driven by roughly $2.0M of TEMS-related downselling/exit, ~$1.5M of DOS-to-Ignite data platform migration pressure, and an estimated $1.5M reduction in non‑recurring project revenue; management said they’ve been notified of about $12.5M of DOS‑related ARR downsell/churn (≈75%, or ~$9.4M, expected to hit in 2026) and that an additional ~$52.0M of DOS‑related ARR (including ~$35.0M of data platform infrastructure ARR) may be subject to negotiation across 2026–2027, that full‑year revenue and adjusted EBITDA guidance will be provided no later than the Q1 earnings call in May, and that near‑term investments in migration personnel and R&D (including AI and India) may create short‑term pressure but are intended to improve cost structure and margins in the second half of 2026 and beyond.Health Catalyst Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
63
Positive
Cash Flow
34
Negative
| 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
Negative
1.12
Price Trends
1.57
Negative
2.00
Negative
2.63
Negative
Market Momentum
-0.15
Negative
39.28
Neutral
32.31
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 1.12 is below the 20-day moving average (MA) of 1.13, below the 50-day MA of 1.57, and below the 200-day MA of 2.63, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 32.31 is Neutral, 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 60 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $597.99M | 37.76 | 5.18% | 0.52% | 3.68% | 5.62% | |
66 Neutral | $111.26M | 44.33 | 4.22% | ― | 24.19% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $347.59M | -3.99 | -116.98% | ― | 13.66% | -2.65% | |
46 Neutral | $141.60M | -2.20 | -47.69% | ― | -5.30% | 46.01% | |
45 Neutral | $282.44M | -0.85 | -69.22% | ― | -16.65% | -71.92% | |
43 Neutral | $78.00M | ― | -54.67% | ― | 4.64% | -17.17% |
* Healthcare Sector Average
HCAT
Health Catalyst
1.12
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-70.13%
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Health Catalyst Corporate Events
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,...
Business Operations and StrategyExecutive/Board Changes
Health Catalyst Announces Chief Commercial Officer Transition Plan
Neutral
Jan 23, 2026
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 F...
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.