Health Catalyst (NASDAQ:HCAT) Posts Earnings Results, Beats Expectations By $0.01 EPS

Health Catalyst (NASDAQ:HCAT) released its quarterly earnings data on Thursday. The company reported $0.04 EPS for the quarter, topping analysts’ consensus estimates of $0.03 by $0.01, FiscalAI reports. The business had revenue of $70.49 million during the quarter, compared to the consensus estimate of $69.09 million. Health Catalyst had a negative return on equity of 1.57% and a negative net margin of 90.61%.

Here are the key takeaways from Health Catalyst’s conference call:

• Q2 results exceeded expectations, with revenue of $70.5 million above the $68–$70 million outlook and adjusted EBITDA of $9.9 million at the high end of guidance.
• Health Catalyst completed the Vitalware and Med-Metrix divestiture for $147 million in cash consideration and used the proceeds plus cash on hand to repay approximately $160 million of debt, eliminating roughly $19 million in annual GAAP interest expense and leaving the company debt-free.
• The company reduced its 2026 outlook to $246–$249 million of revenue and $18–$18.5 million of adjusted EBITDA, while guiding to third-quarter revenue of $55–$56 million and adjusted EBITDA between breakeven and $500,000.
• Client migrations from DOS to Ignite continue to create churn and near-term cost pressure, including duplicate hosting, data-loading expenses, and deployment resources; management expects migration-related churn headwinds to persist generally through the end of 2027.
• Management described Project Nexus as an early-stage, multi-year transformation focused on intelligence products, AI-driven automation, Ignite and interoperability, while continuing to evaluate services and concentrate investment on its highest-conviction opportunities.

Health Catalyst Stock Down 25.1%

NASDAQ:HCAT traded down $0.58 during trading hours on Friday, hitting $1.73. The stock had a trading volume of 3,050,688 shares, compared to its average volume of 645,310. The company has a current ratio of 1.69, a quick ratio of 1.69 and a debt-to-equity ratio of 1.10. Health Catalyst has a 1-year low of $0.96 and a 1-year high of $3.80. The business has a 50 day simple moving average of $1.98 and a two-hundred day simple moving average of $1.71. The company has a market cap of $127.83 million, a PE ratio of -0.47 and a beta of 1.55.

Analyst Ratings Changes

A number of research firms have issued reports on HCAT. Weiss Ratings raised Health Catalyst from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, July 28th. Citigroup restated a “neutral” rating on shares of Health Catalyst in a report on Thursday, July 23rd. Cantor Fitzgerald reaffirmed a “neutral” rating on shares of Health Catalyst in a research note on Monday, May 11th. Canaccord Genuity Group boosted their target price on Health Catalyst from $2.00 to $3.00 and gave the stock a “buy” rating in a report on Tuesday, July 21st. Finally, Wells Fargo & Company increased their target price on shares of Health Catalyst from $1.00 to $1.75 and gave the stock an “equal weight” rating in a research report on Friday, June 26th. Four equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $2.93.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in HCAT. nVerses Capital LLC acquired a new stake in Health Catalyst during the 4th quarter valued at $25,000. Cresset Asset Management LLC acquired a new position in Health Catalyst in the 2nd quarter worth $39,000. Focus Partners Wealth acquired a new position in Health Catalyst in the 1st quarter worth $46,000. BNP Paribas Financial Markets lifted its holdings in Health Catalyst by 71.7% in the 3rd quarter. BNP Paribas Financial Markets now owns 16,355 shares of the company’s stock worth $47,000 after buying an additional 6,832 shares in the last quarter. Finally, Quadrature Capital Ltd purchased a new position in Health Catalyst in the 4th quarter valued at about $64,000. 85.00% of the stock is owned by institutional investors and hedge funds.

Key Health Catalyst News

Here are the key news stories impacting Health Catalyst this week:

• Positive Sentiment: Health Catalyst reported second-quarter adjusted earnings of $0.04 per share, exceeding consensus estimates of $0.03, while revenue of $70.49 million topped expectations of $69.09 million. Management also said revenue exceeded the high end of its guidance and adjusted EBITDA reached the midpoint of its forecast. Health Catalyst Reports Second Quarter 2026 Results
• Positive Sentiment: The company completed the sale of its Vitalware business to Med-Metrix and retired all debt under its credit facility. The transaction should reduce leverage and allows Health Catalyst to concentrate on its healthcare intelligence technology business. Health Catalyst Completes Sale of Vitalware
• Neutral Sentiment: Second-quarter performance was generally in line with the prior-year earnings level, with the company still reporting a deeply negative net margin. Analysts continue to expect a full-year loss.
• Negative Sentiment: Health Catalyst issued third-quarter revenue guidance of $55 million to $56 million, well below the $62.8 million analyst consensus. The company also reduced full-year 2026 revenue guidance to $246 million-$249 million, compared with expectations of $263.1 million. Compared to Estimates, Health Catalyst Q2 Earnings
• Negative Sentiment: The weaker outlook signals a substantial near-term slowdown and appears to have driven the negative market reaction despite the quarterly earnings and revenue beats. Health Catalyst Exceeds Q2 Expectations but Stock Drops

About Health Catalyst

Health Catalyst (NASDAQ: HCAT) is a healthcare data and analytics technology company founded in 2008 and headquartered in Salt Lake City, Utah. The company went public in 2019 and has since focused on delivering a unified data platform that helps healthcare organizations aggregate and analyze clinical, financial and operational information.

The core of Health Catalyst’s offering is the Data Operating System (DOS), a modular data management platform that integrates disparate data sources—from electronic health records to claims and patient-generated data—into a single analytics environment.