olivLaw · US equity research
Health Catalyst, Inc. HCAT
Services-Computer Programming, Data Processing, Etc. · SIC 7370 · Vertical: Services-Computer Programming, Data Processing, Etc. (SIC 7370)
Health Catalyst provides data and analytics platforms, applications and professional services to health systems that want to turn data into measurable clinical, financial and operational gains. In 2026 the company is in transition: it sold Vitalware, fully repaid its credit facility and is migrating clients from DOS to Ignite, while revenue has declined from last year's level.
At the close of 04 Nov 2026, Health Catalyst, Inc. (HCAT) stock was 1.59 USD (+10.42% on the day), with market capitalisation 119.7 m USD, beta 1.36, 52-week range 1.00–3.05 USD. Latest reported quarter (Q2 2026): revenue of 70.5 m USD (−12.7% YoY), net income of -40.5 m USD, diluted EPS -0.55 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 44.2
- weak (30–45)
- Bollinger (20, 2)
- 1.52 – 1.88
- in the lower half of the band · %B 0.20 · band width 21.3%
- SMA 50 / 200
- 1.71 / 1.73
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.04 / -0.02
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −9.7% | −2.0% | −7.7 pp | — |
| 3 months | −33.5% | −2.2% | −31.3 pp | — |
| 6 months | +1.3% | +4.3% | −3.0 pp | — |
| Year to date | −33.5% | +10.6% | −44.0 pp | — |
| 1 year | −47.5% | +10.5% | −58.0 pp | −15.2% |
| 3 years | −79.1% | +73.7% | −152.7 pp | +5.6% |
| 5 years | −96.9% | +61.7% | −158.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 76.4 m | 79.6 m | 79.4 m | 80.7 m | 76.3 m | 74.7 m | 70.8 m | 70.5 m |
| Cost of revenue | 42.3 m | 44.9 m | 43.2 m | 42.5 m | 38.5 m | 35.3 m | 35.3 m | 35.6 m |
| Gross profit | 36.3 m | — | — | — | 40.1 m | — | — | — |
| Research & development | 14.2 m | 15.0 m | 15.2 m | 12.4 m | 12.3 m | 9.9 m | 9.8 m | 11.0 m |
| Operating income | -13.7 m | -17.5 m | -20.2 m | -37.1 m | -17.5 m | -86.1 m | -106.5 m | -36.5 m |
| Depreciation & amortisation | 10.0 m | 10.3 m | 12.3 m | 12.7 m | 12.6 m | 12.9 m | 12.1 m | 11.0 m |
| Income tax | -475.0 k | 625.0 k | 215.0 k | 81.0 k | 41.0 k | 379.0 k | 414.0 k | 315.0 k |
| Net income | -14.7 m | -20.7 m | -23.7 m | -41.0 m | -22.2 m | -91.0 m | -111.0 m | -40.5 m |
| Diluted EPS | -0.24 | -0.33 ≈ | -0.35 | -0.59 | -0.32 | -1.28 ≈ | -1.53 | -0.55 |
| Operating cash flow | 6.2 m ≈ | -3.5 m | 280.0 k | -9.0 m ≈ | -464.0 k ≈ | 9.9 m | 18.5 m | 275.0 k ≈ |
| Capex | 705.0 k ≈ | 413.0 k | 670.0 k | -230.0 k ≈ | 255.0 k ≈ | 273.0 k | 338.0 k | 345.0 k ≈ |
| Share repurchases | 0 ≈ | 0 | 5.0 m | 0 ≈ | 0 ≈ | 0 | 0 | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 112.6 m | 154.9 m | 188.8 m | 241.9 m | 276.2 m | 295.9 m | 306.6 m | 311.1 m |
| Revenue YoY | +54.0% | +37.6% | +21.9% | +28.1% | +14.2% | +7.1% | +3.6% | +1.5% |
| Net income | -62.0 m | -60.1 m | -115.0 m | -153.2 m | -137.4 m | -118.1 m | -69.5 m | -178.0 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | unavailable | -12.86 | -2.91 | -3.23 | -2.63 | -2.09 | -1.15 | -2.55 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -55.1% | -38.8% | -60.9% | -63.3% | -49.7% | -39.9% | -22.7% | -57.2% |
| Free cash flow | -42.4 m | -34.2 m | -33.9 m | -33.6 m | -37.4 m | -34.3 m | 12.9 m | -237.0 k |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 50.8 m USD
- Financial debt
- 153.3 m USD
- Net debt
- 102.4 m USD
- Equity
- 245.8 m USD
- Total assets
- 502.6 m USD
- Debt / equity
- 0.62x
- Current ratio
- 1.89x
- ROE
- -58.3%
- ROA
- -26.1%
- FCF margin
- -0.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 188.8 m | 241.9 m | 276.2 m | 295.9 m | 306.6 m | 311.1 m | SEC (XBRL)· 12 Mar 2026verified |
| Cost of revenue | 98.1 m | 124.4 m | 143.0 m | 164.1 m | 165.8 m | 159.5 m | SEC (XBRL)· 12 Mar 2026verified |
| Gross profit | 90.8 m ≈ | 117.6 m ≈ | 133.2 m ≈ | 131.8 m ≈ | 140.8 m ≈ | 151.7 m ≈ | SEC (XBRL)· 12 Mar 2026derived |
| Research & development | 53.5 m | 62.7 m | 75.7 m | 72.6 m | 58.0 m | 49.8 m | SEC (XBRL)· 12 Mar 2026verified |
| Operating income | -96.1 m | -143.7 m | -140.0 m | -126.9 m | -69.8 m | -160.9 m | SEC (XBRL)· 12 Mar 2026verified |
| Depreciation & amortisation | 18.7 m | 37.5 m | 48.3 m | 42.2 m | 41.4 m | 50.5 m | SEC (XBRL)· 12 Mar 2026verified |
| EBITDA | -77.4 m ≈ | -106.1 m ≈ | -91.7 m ≈ | -84.7 m ≈ | -28.4 m ≈ | -110.4 m ≈ | SEC (XBRL)· 12 Mar 2026derived |
| Pre-tax income | — | — | — | -117.8 m | -69.2 m | -177.3 m | SEC (XBRL)· 12 Mar 2026verified |
| Income tax | -1.2 m | -6.9 m | -4.3 m | 356.0 k | 333.0 k | 716.0 k | SEC (XBRL)· 12 Mar 2026verified |
| Net income | -115.0 m | -153.2 m | -137.4 m | -118.1 m | -69.5 m | -178.0 m | SEC (XBRL)· 12 Mar 2026verified |
| Diluted EPS | -2.91 | -3.23 | -2.63 | -2.09 | -1.15 | -2.55 | SEC (XBRL)· 12 Mar 2026verified |
| Weighted average diluted shares | 39.5 m | 47.5 m | 54.1 m | 56.4 m | 60.2 m | 69.9 m | SEC (XBRL)· 12 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 92.0 m | 193.2 m | 116.3 m | 106.3 m | 249.6 m | 50.8 m | SEC (XBRL)· 12 Mar 2026verified |
| Receivables | 48.3 m | 48.8 m | 48.0 m | 60.3 m | 57.2 m | 59.1 m | SEC (XBRL)· 12 Mar 2026verified |
| Current assets | 329.8 m | 508.4 m | 427.8 m | 393.4 m | 465.7 m | 169.3 m | SEC (XBRL)· 12 Mar 2026verified |
| Property, plant & equipment, net | 12.9 m | 23.3 m | 25.9 m | 25.7 m | 29.4 m | 33.8 m | SEC (XBRL)· 12 Mar 2026verified |
| Goodwill | 107.8 m | 170.0 m | 186.0 m | 190.7 m | 259.8 m | 209.1 m | SEC (XBRL)· 12 Mar 2026verified |
| Intangibles (excl. goodwill) | 98.9 m | 104.8 m | 92.2 m | 73.4 m | 86.1 m | 77.7 m | SEC (XBRL)· 12 Mar 2026verified |
| Total assets | 577.7 m | 832.1 m | 752.3 m | 701.8 m | 858.9 m | 502.6 m | SEC (XBRL)· 12 Mar 2026verified |
| Accounts payable | 5.3 m | 4.7 m | 4.4 m | 6.6 m | 11.4 m | 9.4 m | SEC (XBRL)· 12 Mar 2026verified |
| Short-term debt | — | — | — | 0 | 231.2 m | 1.6 m | SEC (XBRL)· 12 Mar 2026verified |
| Long-term debt | 169.0 m | 180.9 m | 226.5 m | 228.0 m | 151.2 m | 151.6 m | SEC (XBRL)· 12 Mar 2026verified |
| Current liabilities | 88.0 m | 93.1 m | 82.5 m | 89.0 m | 325.9 m | 89.6 m | SEC (XBRL)· 12 Mar 2026verified |
| Total liabilities | 301.6 m | 310.0 m | 327.3 m | 334.9 m | 493.7 m | 256.9 m | SEC (XBRL)· 12 Mar 2026verified |
| Equity | 276.1 m † | 522.1 m † | 425.0 m † | 366.9 m † | 365.2 m † | 245.8 m † | SEC (XBRL)· 12 Mar 2026verified |
| Shares outstanding at year end | — | — | — | — | — | 73.6 m | SEC (XBRL)· 30 Apr 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -26.1 m | -23.1 m | -35.3 m | -33.1 m | 14.6 m | 731.0 k | SEC (XBRL)· 12 Mar 2026verified |
| Capex | 7.8 m | 10.5 m | 2.2 m | 1.2 m | 1.6 m | 968.0 k | SEC (XBRL)· 12 Mar 2026verified |
| Free cash flow | -33.9 m ≈ | -33.6 m ≈ | -37.4 m ≈ | -34.3 m ≈ | 12.9 m ≈ | -237.0 k ≈ | SEC (XBRL)· 12 Mar 2026derived |
| Investing cash flow | -82.6 m | -139.7 m | -39.0 m | 20.3 m | -22.9 m | 36.2 m | SEC (XBRL)· 12 Mar 2026verified |
| Financing cash flow | 182.6 m | 264.1 m | -2.6 m | 2.7 m | 151.7 m | -235.8 m | SEC (XBRL)· 12 Mar 2026verified |
| Share repurchases | 0 | 0 | 8.4 m | 1.8 m | 0 | 5.0 m | SEC (XBRL)· 12 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 52 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 119.7 m USD
Key indicators
Coverage and freshness
Score by group
- Valuation94
- Balance sheet100
- Quality27
- Growth20
- Returns33
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 2.59 – 27.72 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/Sales2.59 – 27.72 (Mid 12.11)17 companies used · median multiple 3.4x · quartiles 1.0x – 7.5xAPP, BMBL, DOCN, FDS, GOOGL, GRND, LGCL, MGNI, MTCH, RXT, RZLV, SANG, SIFY, SST, TRIP, WB, ZIP
- Peers: EV/EBITDAunavailable · the base of the ratio is not positive
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 52/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 50.5% | 26 (on a fixed band) | 11% |
| EBIT margin · Quality | -84.4% | 19 (vs peers) | 9% |
| FCF margin · Quality | 9.2% | 37 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 4.0% | 16 (on a fixed band) | 18% |
| Revenue growth (YoY) · Growth | 1.5% | 28 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.7x | 100 (on a fixed band) | 7% |
| EV/Sales · Valuation | 0.7x | 89 (vs peers) | 18% |
| FCF yield · Valuation | 22.6% | 100 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | 0.0% | 33 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/2 factors with a value
- Growth20/100 · 2/2 factors with a value
- Quality27/100 · 3/3 factors with a value
- Returns33/100 · 1/1 factors with a value
- Valuation94/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Health Catalyst, Inc. (HCAT). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 311.1 m USD in 2025; YoY growth 1.5%; net margin -90.6%; ROE -118.1%.
The estimated value range is 2.59–27.72 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 12.11 USD, the price of 1.59 USD leaves a potential of 661.4% (value / price − 1) and a margin of safety of 86.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 52/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 2.7x
- EV/Sales: 0.7x
- FCF yield: 22.6%
- The price is below the estimated value range
What contradicts it
- Gross margin: 50.5%
- EBIT margin: -84.4%
- Revenue CAGR 3Y: 4.0%
- Revenue growth (YoY): 1.5%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA.
Versus the vertical median
Services-Computer Programming, Data Processing, Etc. (SIC 7370) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| GOOGLAlphabet Inc. | 3,442.7 bn | 14.6 | 44.3% | 50.0% | +15.1% | −13% / +111% |
| APPAppLovin Corporation | 82.3 bn | 18.9 | 203.7% | 64.6% | +70.0% | −59% / +555% |
| NBISNebius Group N.V. | 35.8 bn | 428.8 | 2.1% | 15.6% | +479.0% | +49% / unavailable |
| FDSFactset Research Systems Inc | 12.1 bn | 23.5 | 25.5% | 21.5% | +6.7% | +23% / −25% |
| DOCNDigitalOcean Holdings, Inc. | 9.9 bn | 281.3 | 5.1% | 3.1% | +15.5% | +89% / +184% |
| MTCHMatch Group, Inc. | 9.1 bn | 13.7 | — | 20.7% | +0.2% | +21% / +24% |
| SOGPSound Group Inc. | 8.8 bn | 350.3 | 70.4% | 7.1% | +59.4% | −21% / +265% |
| SIFYSify Technologies Ltd | 5.8 bn | — | -4.1% | -2.0% | +9.0% | +20% / +53% |
| WIXWix.com Ltd. | 4.4 bn | 91.5 | — | 2.5% | +13.2% | −16% / −21% |
| MGNIMagnite, Inc. | 3.3 bn | 21.9 | 19.6% | 22.5% | +6.9% | +55% / +182% |
| GRNDGrindr Inc. | 2.4 bn | 27.6 | 108.7% | 18.7% | +27.6% | +9% / +108% |
| DVDoubleVerify Holdings, Inc. | 2.1 bn | 34.0 | 5.8% | 8.2% | +13.9% | +29% / −59% |
| BZKanzhun Limited | 1.7 bn | 41.6 | 16.0% | 33.1% | +17.3% | −21% / +6% |
| WBWeibo Corporation | 1.6 bn | 3.8 | 12.1% | 25.6% | +0.1% | −35% / −36% |
| DJTTrump Media & Technology Group Corp. | 1.2 bn | — | -78.9% | -28,867.7% | +1.8% | −61% / −74% |
| TRIPTripadvisor, Inc. | 1.2 bn | 332.1 | 0.8% | 0.3% | +3.1% | −31% / −43% |
| SMWBSimilarweb Ltd. | 766.1 m | — | -129.6% | -11.7% | +13.1% | +13% / +75% |
| BMBLBumble Inc. | 718.8 m | — | -94.7% | -58.0% | −9.9% | +69% / −57% |
| RXTRackspace Technology, Inc. | 716.2 m | — | — | -5.9% | −1.9% | +165% / +123% |
| NEXNNexxen International Ltd. | 513.3 m | 22.2 | 5.0% | 6.9% | −0.2% | +41% / +151% |
| RZLVRezolve AI plc | 460.8 m | — | -98.7% | -216.7% | +2,224.2% | −55% / −87% |
| YALAYalla Group Limited | 413.9 m | 6.8 | 19.6% | 43.3% | +0.7% | −20% / −6% |
| ZIPZiprecruiter, Inc. | 321.9 m | 12.9 | — | 6.2% | −5.3% | −5% / −66% |
| BLNDBlend Labs, Inc. | 302.7 m | — | — | -3.3% | +6.8% | −59% / +1% |
| SSTSystem1, Inc. | 161.0 m | — | -581.6% | -50.7% | −22.6% | −53% / −88% |
1- and 3-year price returns: for HCAT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Health Catalyst provides data and analytics platforms, applications and professional services to health systems that want to turn data into measurable clinical, financial and operational gains. In 2026 the company is in transition: it sold Vitalware, fully repaid its credit facility and is migrating clients from DOS to Ignite, while revenue has declined from last year's level 23.
SWOT
Strengths
- The Ignite platform is built specifically for healthcare data and supports both the company's solutions and clients' own applications.
- Recurring revenue gives high visibility, and contracts often include built-in technology revenue escalators.
- The company has a documented history of client-verified improvements and strong satisfaction scores from third-party reviews.
Weaknesses
- Revenue declined in 2026, and the DOS-to-Ignite migration has caused churn and contract down-sells.
- Net losses remain significant, and goodwill impairments have weighed heavily on results.
- Dollar-based retention fell in 2025 compared with the prior year, showing difficulty in expanding existing relationships.
Opportunities
- If existing clients buy more applications, the company could grow revenue without acquiring new clients at high cost.
- If investments in AI-enabled intelligence and content create differentiation, the offering could become harder to replace.
- International expansion is cited as a goal, with existing presence in Singapore and the UK as a starting point.
Threats
- Medicaid and research funding cuts could delay client decisions and reduce available budgets.
- Larger competitors with greater resources and EHR vendors could displace the company's solutions.
- Clients consolidating vendors can gain bargaining power and push for lower prices.
Risks
- Churn during DOS-to-Ignite migrationhigh
Clients may leave or seek lower prices during migration, which would weigh on recurring technology revenue.
- Repeated net losseshigh
Net losses and goodwill impairments could affect the balance sheet and the capacity to fund investments.
- Macroeconomic and budget pressuremedium
Inflation, high interest rates and Medicaid cuts could slow purchasing decisions by health systems.
- Intense competitionmedium
Larger rivals may offer similar functions with easier integration, and price pressure could increase.
- Execution of the transformation planmedium
If Project Nexus and cost reductions do not deliver the expected benefits, financial results could fall short of expectations.
Investment thesis
What would need to be true (bull case)
- If client migrations end with smaller losses than estimated, recurring revenue could stabilize.
- Closing the Vitalware sale and repaying the credit facility could provide flexibility for well-targeted product investment.
- If health systems improve their margins, clients could return to investing in analytics and expanding contracts.
What would break the thesis
- If price reductions at migration continue, recurring revenue could stay below its earlier level.
- Repeated net losses and impairments could limit the company's capacity to invest during the transformation period.
- If larger competitors expand their analytics offerings, the company could lose new clients and market share.
What to watch
- Third-quarter results and delivery of the revenue guidance of $55 million to $56 millionQ3 2026
- Progress of DOS-to-Ignite churn and recovery of at-risk ARR2026
- Annual results and guidance for 2027 following Project Nexusnext 10-K
- Trend in net loss after goodwill impairments and the effect of the credit facility repaymentQ4 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
The company delivers a solution made up of the cloud Ignite platform, analytics applications across five focus areas and expertise, including TEMS managed services. Its clients are mainly healthcare providers and its revenue model is subscription-based, with over 90% of revenue recurring 1. At December 31, 2025 it served 162 Platform Clients and over 1,000 App Clients 1.
Total revenue was $311.1 million in fiscal 2025 versus $306.6 million in fiscal 2024, and the net loss of $178.0 million was driven largely by a goodwill impairment 1. In the first half of 2026 revenue fell to $141.2 million, reflecting exits from lower-margin TEMS arrangements and DOS-to-Ignite migration churn 2.
The company cut its workforce several times in 2023, 2025 and 2026, and in 2026 it launched Project Nexus to transform its operating model 12. For the second quarter of 2026 it reported Adjusted EBITDA of $9.9 million and guides full-year 2026 Adjusted EBITDA of $18 million to $18.5 million 23.
Segments
Technology (Ignite and DOS subscriptions)
The technology segment covers access to the data platform and analytics applications, usually invoiced annually or quarterly. It generated $48.8 million in the second quarter of 2026, down from $52.9 million, as DOS clients migrate to Ignite and some down-sell or churn 2.
Professional services
The services segment includes data analytics, domain expertise, implementation and TEMS. Revenue fell to $21.7 million in the second quarter of 2026, reflecting clients reducing FTEs engaged in their initiatives and exits from low-margin TEMS arrangements 2.
Market context
The target market is US healthcare organizations, which the company estimates include more than 1,200 organizations in its core addressable market 1. Financial pressure on health systems, including Medicaid funding cuts, has lengthened sales cycles, and the company is focusing on existing clients, who are more receptive to expansion than new prospects 2.
Trends
- Migration from DOS to Igniteheadwind
Clients moving from DOS infrastructure to Ignite often negotiate lower prices, which reduces recurring revenue. The company estimates about $52 million of ARR at risk across 2026 and 2027 2. After 2027 management expects to be largely past this pressure 2.
- Pressure on health system fundingheadwind
Medicaid and research funding cuts linked to the OBBBA law of July 2025 strain client budgets and lengthen sales cycles, especially in Life Sciences 12. If health system margins keep improving, demand could recover faster than currently expected.
- AI and data-driven intelligencemixed
The company argues that data infrastructure is becoming commoditized and that lasting advantage could come from the intelligence and content built on top of it 2. Project Nexus and the focus on AI-enabled solutions follow this direction 2.
- Vitalware divestiture and debt repaymentmixed
Closing the Vitalware divestiture and fully repaying the credit facility strengthen the balance sheet and give flexibility for targeted investment, but they reduce the revenue base and weigh on near-term results 23.
Competitive position
Competition comes from industry-agnostic analytics companies, electronic health record vendors such as Epic Systems and Oracle Health, point solution vendors and healthcare organizations building their own analytics 1. Some large competitors, such as Optum Analytics and IBM, have greater name recognition and far larger resources 1.
Price competition could compress margins, and some health systems have built their own population health and care coordination systems 1. The company differentiates through the Ignite platform, clinical expertise and documented client outcomes 1.
- Epic Systems
Electronic health record vendor extending data analytics and patient engagement services, which clients may choose instead of the company's offerings.
- Oracle Health
Electronic health record company competing on analytics and integration with clients' existing systems.
- Optum Analytics
Large competitor with greater name recognition and established distribution relationships with providers.
- IBM
Large technology company with substantial resources that can compete in analytics and healthcare solutions.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report14 Sept 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report08 Sept 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Termination of a material agreement · Acquisition or disposition of assets · Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report20 Jul 2026Shareholder vote
- Current report04 Jun 2026Material agreement · Regulation FD disclosure · Financial statements and exhibits
- Proxy statement03 Jun 2026
- Quarterly report11 May 2026
- Current report11 May 2026Results of operations · Financial statements and exhibits
- Current report30 Apr 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Health Catalyst, Inc. · 12 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Health Catalyst, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Health Catalyst, Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.