Health Catalyst (HCAT) AI Stock Analysis

• Market Cap: $232.23M
• Dividend Yield: N/A
• Average Volume (3M): 955.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 5.55%
• EPS Growth: -0.99%
• Country: US
• Employees: 1,500
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.04
• Shares Outstanding: 70,373,630
• 10 Day Avg. Volume: 1,024,729
• 30 Day Avg. Volume: 955,269
• 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: 1.46
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 2.36
• Enterprise Value/Ebitda: -9.51
• 1Y Price Target: $4.43
• Price Target Upside: 31.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 49 Neutral
• Price Target: $3.50 ▲(3.55% Upside)

Health Catalyst's overall stock score reflects significant challenges in financial performance, with ongoing profitability issues and negative cash flows. The technical analysis indicates a bearish trend, while the valuation is unattractive due to a negative P/E ratio. Despite positive strategic initiatives and earnings call highlights, macroeconomic challenges and funding cuts weigh heavily on the company's outlook.

Positive Factors

Corporate Culture

Conversations with Health Catalyst employees reinforced the view of the company’s unique corporate culture, which is seen as core to the company’s long-term growth model.

Leadership

CEO Dan Burton is an excellent leader who has built a good company.

Technology and AI

Health Catalyst is shifting the business to high-margin technology and integrating AI more heavily into its offerings, reducing reliance on lower-margin professional services.

Negative Factors

CEO Transition

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

Revenue Guidance

Health Catalyst cut its revenue guidance for the year, removing all organic growth from its outlook.

Revenue Performance

Health Catalyst's bookings for the first half of the year were disappointing, impacting its financial outlook.

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: Neutral
• Last Price: 3.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCAT, the sentiment is Neutral. The current price of 3.38 is above the 20-day moving average (MA) of 3.19, below the 50-day MA of 3.59, and below the 200-day MA of 4.86, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 35.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HCAT.

Health Catalyst Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSTM	75 Outperform	$835.88M	42.39	5.81%	0.43%	3.50%	13.99%
OPRX	68 Neutral	$345.50M	―	-8.21%	―	25.90%	46.13%
EVH	55 Neutral	$1.12B	―	-13.38%	―	-6.71%	-71.40%
DH	52 Neutral	$571.35M	―	-64.27%	―	-5.24%	23.59%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
SOPH	51 Neutral	$230.45M	―	-74.09%	―	7.31%	-7.49%
HCAT	49 Neutral	$232.23M	―	-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.

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.