Health Catalyst (NASDAQ:HCAT) Announces Earnings Results

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

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 Price Performance

Shares of NASDAQ:HCAT traded down $0.04 during midday trading on Friday, hitting $1.46. 285,770 shares of the stock were exchanged, compared to its average volume of 385,233. The stock has a market cap of $109.88 million, a P/E ratio of -0.52 and a beta of 1.52. The company has a current ratio of 2.70, a quick ratio of 2.70 and a debt-to-equity ratio of 1.51. Health Catalyst has a twelve month low of $0.96 and a twelve month high of $3.36. The company has a 50 day moving average price of $1.71 and a 200-day moving average price of $1.70.

Insider Buying and Selling

In other Health Catalyst news, CEO Simeon Kohl bought 59,000 shares of the company’s stock in a transaction on Monday, September 14th. The stock was purchased at an average cost of $1.79 per share, for a total transaction of $105,610.00. Following the acquisition, the chief executive officer owned 2,856,385 shares of the company’s stock, valued at $5,112,929.15. The trade was a 2.11% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 19.40% of the company’s stock.

Key Stories Impacting Health Catalyst

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

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Citigroup lowered their target price on shares of Health Catalyst from $2.50 to $2.00 and set a “neutral” rating on the stock in a research report on Tuesday, August 11th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Health Catalyst in a report on Monday, October 26th. Canaccord Genuity Group lowered Health Catalyst from a “buy” rating to a “hold” rating and decreased their price target for the stock from $3.00 to $1.80 in a research note on Thursday, August 20th. Finally, Wells Fargo & Company decreased their price target on Health Catalyst from $1.75 to $1.50 and set an “equal weight” rating on the stock in a research note on Thursday, August 13th. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Health Catalyst currently has a consensus rating of “Hold” and a consensus target price of $2.01.

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.