Health Catalyst (HCAT) AI Stock Analysis

• Market Cap: $154.90M
• Dividend Yield: N/A
• Average Volume (3M): 507.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: 4.64%
• EPS Growth: -17.17%
• Country: US
• Employees: 1,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.06
• Shares Outstanding: 70,730,880
• 10 Day Avg. Volume: 560,971
• 30 Day Avg. Volume: 507,088
• PEG Ratio: 0.14
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 1.39
• P/FCF Ratio: -231.38
• Enterprise Value/Market Cap: 1.84
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 1.94
• Enterprise Value/Ebitda: -8.69
• 1Y Price Target: $3.90
• Price Target Upside: 78.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $2.00 ▼(-8.68% Downside)

Health Catalyst's overall stock score is primarily impacted by its financial performance challenges, including consistent losses and negative profitability metrics. While the earnings call provided some positive insights, such as exceeding financial guidance and strategic operational successes, the technical analysis and valuation remain weak. The recent corporate event of appointing a new President is a positive strategic move, but it does not outweigh the significant financial and valuation concerns.

Positive Factors

Recurring subscription revenue model

A subscription-heavy model creates predictable, recurring revenue and higher lifetime value from customers. Coupled with licensing, services, and partner channels, this diversified recurring mix supports steadier cash flow and long-term customer relationships that underpin durable growth.

Technology revenue growth and margin expansion

Sustained growth in the higher-margin technology segment and improving gross margins indicate product-led scalability and operating leverage. Durable margin expansion suggests the platform is capturing more value from customers and can support margin-driven profitability as scale increases.

Demonstrated client value via measurable cost savings

Documented multi-million dollar savings for large clients validate the platform's ROI and strengthen sales differentiation. Proven cost reduction outcomes drive retention, upsell opportunities, and referenceability—structural advantages that support durable demand from healthcare systems.

Negative Factors

Persistent unprofitability and operating losses

Chronic negative margins constrain the company's ability to self-fund growth and reduce resiliency to shocks. Ongoing operating losses necessitate either sustained cash infusions or steep margin improvements to achieve durable profitability and attractive returns for investors.

Sharp decline in cash reserves

A large drop in cash reduces financial flexibility and shortens runway for product investments or sales expansion. Over the medium term this heightens refinancing or dilution risk, forcing tougher trade-offs between growth spending and near-term profitability.

Retention and migration-related revenue headwinds

Migration to a new platform causing down-sell and churn undermines revenue durability and raises customer lifecycle risk. Prolonged retention pressure can slow net new client value and depress long-term growth unless migrations stabilize and stick rates recover materially.

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 subscription-based models, offering its software solutions and analytics applications to healthcare providers on a recurring basis. The company has multiple key revenue streams, including licensing fees for its software products, professional services such as implementation and consulting, and data management services. Additionally, HCAT has established significant partnerships with healthcare organizations and technology providers, which contribute to its earnings by expanding its market reach and providing integrated solutions. The company's focus on continuous innovation and improving the healthcare delivery system ensures a consistent demand for its products and services.

Health Catalyst Financial Statement Overview

Summary

Health Catalyst faces significant profitability challenges, with consistent losses impacting its financial health. While leverage has improved, and cash flow management shows some positive signs, the company needs to address its operating inefficiencies to achieve sustainable growth and profitability.

Income Statement

Health Catalyst's income statement reveals challenges in profitability, with consistent negative net profit margins and EBIT margins over the years. The TTM data shows a slight decline in revenue growth, indicating stagnation. Despite a stable gross profit margin, the company struggles with high operating losses, impacting overall profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, which has improved in the TTM period, indicating better leverage management. However, the negative return on equity highlights ongoing profitability issues. The equity ratio remains stable, suggesting a reasonable level of financial stability despite profitability challenges.

Cash Flow

Cash flow analysis indicates persistent negative operating cash flow, although there is a notable improvement in free cash flow growth in the TTM period. The high free cash flow to net income ratio suggests that cash flow management is better than net income figures imply, but overall cash flow remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.06M	306.58M	295.94M	276.24M	241.93M	188.84M
Gross Profit	146.98M	140.78M	131.83M	133.19M	117.57M	90.77M
EBITDA	-32.74M	-10.65M	-68.28M	-82.92M	-101.68M	-85.91M
Net Income	-107.62M	-69.50M	-118.15M	-137.40M	-153.21M	-115.02M
Balance Sheet
Total Assets	587.13M	858.93M	701.81M	752.29M	832.10M	577.74M
Cash, Cash Equivalents and Short-Term Investments	91.54M	392.00M	317.73M	363.49M	444.98M	270.87M
Total Debt	172.12M	402.26M	249.07M	247.97M	204.61M	195.28M
Total Liabilities	255.21M	493.72M	334.89M	327.28M	310.00M	301.64M
Stockholders Equity	331.92M	365.21M	366.92M	425.01M	522.10M	276.10M
Cash Flow
Free Cash Flow	-22.79M	-1.84M	-47.39M	-52.68M	-41.59M	-36.61M
Operating Cash Flow	-12.71M	14.56M	-33.08M	-35.27M	-23.12M	-26.15M
Investing Cash Flow	-77.56M	-22.90M	20.29M	-39.02M	-139.68M	-82.56M
Financing Cash Flow	-197.66M	151.75M	2.73M	-2.61M	264.08M	182.61M

Health Catalyst Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.19 is below the 20-day moving average (MA) of 2.32, below the 50-day MA of 2.43, and below the 200-day MA of 3.23, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 15.60 is Positive, 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	$644.99M	31.86	5.87%	0.52%	3.68%	5.62%
OPRX	61 Neutral	$204.49M	-4,161.54	0.03%	―	24.19%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SOPH	51 Neutral	$356.20M	-4.63	-86.09%	―	13.66%	-2.65%
HCAT	50 Neutral	$154.90M	-1.37	-31.33%	―	4.64%	-17.17%
DH	49 Neutral	$334.30M	-1.36	-47.69%	―	-5.30%	46.01%
EVH	48 Neutral	$360.47M	-2.06	-13.63%	―	-16.65%	-71.92%

Health Catalyst Corporate Events

Health Catalyst Announces Chief Commercial Officer Transition Plan

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 Freeman plan for him to receive separation benefits under the company’s Executive Severance Plan in exchange for a general release of claims and then transition into a senior advisor position under an anticipated independent contractor agreement starting February 2, 2026, signaling an effort to manage leadership change while preserving access to his expertise.

The most recent analyst rating on (HCAT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Health Catalyst stock, see the HCAT Stock Forecast page.

Health Catalyst Appoints New Board Member Matt Arens

On December 1, 2025, Health Catalyst appointed Matt Arens, CEO and Founder of its largest shareholder First Light Asset Management, to its Board of Directors, expanding the Board from eight to nine members. Arens, who brings extensive experience in capital markets and healthcare investment, waived compensation for his Board service except for expense reimbursement. Concurrently, Matthew Kolb announced he would not stand for re-election at the 2026 annual meeting, leading to a planned reduction of the Board back to eight members.

The most recent analyst rating on (HCAT) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Health Catalyst stock, see the HCAT Stock Forecast page.