Health Catalyst (NASDAQ:HCAT) Issues Quarterly Earnings Results

Health Catalyst (NASDAQ:HCAT) posted its quarterly earnings results on Thursday. The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.02, FiscalAI reports. Health Catalyst had a negative net margin of 90.61% and a negative return on equity of 1.83%. The business had revenue of $56.28 million during the quarter, compared to analyst estimates of $55.39 million.

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

• Third-quarter revenue was $56.3 million and adjusted EBITDA was $779,000, both above the high end of guidance. Health Catalyst reaffirmed its 2026 outlook for revenue of $246 million–$249 million and adjusted EBITDA of $18 million–$18.5 million.
• Client retention remains a key challenge: management said churn is higher than desired and migration-related pressure is expected to continue, with the company expecting to be generally through those headwinds by the end of 2027.
• Profitability faces near-term pressure: adjusted gross margin fell to 44.3% from 52.6% a year earlier, while adjusted professional services gross margin was 1.7%. The company expects a fourth-quarter adjusted EBITDA loss of $1.8 million–$1.3 million, mainly reflecting the full-quarter absence of Vitalware, churn dynamics, and seasonally higher medical claims expense.
• Bookings are stronger than anticipated, and the company now expects to exceed the high end of its $22 million–$26 million annual bookings target; management said churn is offsetting that progress in reported results.
• Following the Vitalware divestiture and retirement of its credit facility, Health Catalyst ended the quarter with approximately $79 million in cash and no debt. New CEO Simeon Kohl outlined priorities including improving retention, aligning costs, simplifying the business, and strengthening execution.

Health Catalyst Trading Down 2.7%

Shares of NASDAQ:HCAT traded down $0.04 during midday trading on Friday, hitting $1.46. 285,770 shares of the stock traded hands, compared to its average volume of 385,233. The company has a quick ratio of 2.70, a current ratio of 2.70 and a debt-to-equity ratio of 1.51. The business’s 50 day moving average is $1.71 and its two-hundred day moving average is $1.70. The stock has a market capitalization of $109.88 million, a PE ratio of -0.52 and a beta of 1.52. Health Catalyst has a one year low of $0.96 and a one year high of $3.36.

Analyst Ratings Changes

HCAT has been the topic of several analyst reports. Citigroup decreased their price objective on Health Catalyst from $2.50 to $2.00 and set a “neutral” rating on the stock in a report on Tuesday, August 11th. Canaccord Genuity Group cut Health Catalyst from a “buy” rating to a “hold” rating and dropped their target price for the company from $3.00 to $1.80 in a report on Thursday, August 20th. Wells Fargo & Company reduced their price target on Health Catalyst from $1.75 to $1.50 and set an “equal weight” rating on the stock in a research report on Thursday, August 13th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Health Catalyst in a research report on Monday, October 26th. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Health Catalyst currently has an average rating of “Hold” and an average price target of $2.01.

Key Health Catalyst News

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

• Positive Sentiment: Revenue was $56.28 million, above analysts’ estimate of $55.39 million, providing a positive signal on sales performance. Health Catalyst Reports Third Quarter 2026 Results
• Neutral Sentiment: HCAT lost $0.03 per share. That beat some estimates that expected a $0.05 loss, but missed Zacks’ estimate of a $0.02 loss—so the earnings comparison depends on which consensus is used. Health Catalyst Reports Q3 Loss, Beats Revenue Estimates
• Negative Sentiment: The quarter’s loss compares with earnings of $0.06 per share a year earlier, underscoring that profitability remains a concern despite the revenue beat. Health Catalyst Reports Q3 Loss, Beats Revenue Estimates

Insider Transactions at Health Catalyst

In other Health Catalyst news, CEO Simeon Kohl purchased 59,000 shares of Health Catalyst stock in a transaction that occurred on Monday, September 14th. The shares were bought at an average price of $1.79 per share, for a total transaction of $105,610.00. Following the acquisition, the chief executive officer directly owned 2,856,385 shares in the company, valued at approximately $5,112,929.15. This trade represents a 2.11% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 19.40% of the stock is currently owned by corporate insiders.

Health Catalyst Company Profile

Health Catalyst, Inc is a healthcare technology company that provides data and analytics solutions to help healthcare organizations improve clinical outcomes, operational efficiency and financial performance. Its customers include hospitals, health systems, medical groups and other healthcare organizations seeking to integrate and analyze data from across their operations.

The company’s offerings are built around its Health Catalyst Data Operating System, a cloud-based platform designed to combine information from electronic health records, financial systems and other sources.