Health Catalyst (HCAT) AI Stock Analysis

• Market Cap: $206.53M
• Dividend Yield: N/A
• Average Volume (3M): 716.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• 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: 913,301
• 30 Day Avg. Volume: 716,818
• 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: 1.36
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: -8.59
• 1Y Price Target: $4.00
• Price Target Upside: 36.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.2
• Revenue Forecast (FY): $310.28M

• Rating: 45 Neutral
• Price Target: $2.50 ▼(-14.38% Downside)

Health Catalyst's overall stock score is primarily impacted by its financial performance challenges, including consistent losses and profitability issues. Technical analysis suggests a bearish trend, and valuation concerns are heightened by a negative P/E ratio. Despite some positive earnings call highlights, the overall outlook remains cautious.

Positive Factors

Revenue Growth

The 7% YoY growth in the technology segment indicates strong demand for Health Catalyst's core offerings, suggesting a robust market position and potential for sustained revenue growth.

Operational Efficiency

Significant cost savings for clients through Health Catalyst's solutions demonstrate the effectiveness and value of its offerings, enhancing client retention and competitive advantage.

Leadership Change

The appointment of Ben Albert, with his experience in healthcare services, as President and COO could drive strategic growth and operational improvements, strengthening leadership.

Negative Factors

Profitability Challenges

Ongoing profitability challenges with consistent losses suggest operational inefficiencies, which could hinder long-term financial stability and growth prospects.

Cash Flow Concerns

Negative operating cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth opportunities and manage financial obligations effectively.

Retention Pressure

Retention pressures due to migration challenges could lead to client churn, impacting revenue stability and growth, and necessitating strategic adjustments.

Health Catalyst Business Overview & Revenue Model

Company Description

Health Catalyst (HCAT) is a healthcare data analytics company that specializes in providing cloud-based software and data solutions to healthcare organizations. Founded in 2008, HCAT focuses on improving patient outcomes and reducing costs through advanced analytics, data warehousing, and artificial intelligence. The company's core products include analytics applications, data management solutions, and a comprehensive cloud platform designed to help healthcare providers make informed decisions based on data-driven insights.

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: Positive
• Last Price: 2.92
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.92 is above the 20-day moving average (MA) of 2.66, above the 50-day MA of 2.85, and below the 200-day MA of 3.67, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 57.23 is Neutral, neither overbought nor oversold. The STOCH value of 89.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HCAT.

Health Catalyst Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSTM	67 Neutral	$751.20M	37.11	5.87%	0.49%	3.68%	5.62%
OPRX	61 Neutral	$286.69M	―	0.03%	―	24.19%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SOPH	51 Neutral	$316.27M	-4.26	-86.09%	―	13.66%	-2.65%
HCAT	45 Neutral	$206.53M	―	-31.33%	―	4.64%	-17.17%
EVH	45 Neutral	$468.72M	―	-13.63%	―	-16.65%	-71.92%
DH	42 Neutral	$396.10M	-1.05	-47.69%	―	-5.30%	46.01%

Health Catalyst Corporate Events

Health Catalyst Q3 2025 Earnings: Mixed Sentiment and Strategic Focus

The recent earnings call for Health Catalyst showcased a blend of optimism and caution. The company reported financial results that exceeded expectations and highlighted strategic operational successes. However, these positive outcomes were balanced by challenges in professional services revenue, retention pressures, and migration-related headwinds.

Health Catalyst Reports Strong Q3 2025 Performance

Health Catalyst, Inc. is a prominent provider of data and analytics technology and services for healthcare organizations, aiming to enhance clinical, financial, and operational outcomes through its innovative solutions. In its third-quarter earnings report for 2025, Health Catalyst announced a total revenue of $76.3 million and an Adjusted EBITDA of $12.0 million, surpassing its quarterly guidance. The company’s CEO, Dan Burton, emphasized the focus on high-impact solutions and strategic investments as key drivers for their performance.

Health Catalyst Appoints Ben Albert as New President

On September 10, 2025, Health Catalyst announced the appointment of Ben Albert as President and Chief Operating Officer, effective September 16, 2025. Albert, who previously led Upfront Healthcare Services, will guide Health Catalyst through a pivotal phase, focusing on long-term success and operational leadership. This transition is part of a broader leadership change, as current CEO Dan Burton plans to retire in June 2026, with Albert working closely alongside him to ensure continuity and stability. The appointment aims to enhance Health Catalyst’s progress and shareholder value, leveraging Albert’s extensive experience in healthcare technology.

The most recent analyst rating on (HCAT) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Health Catalyst stock, see the HCAT Stock Forecast page.