Health Catalyst (HCAT) AI Stock Analysis

• Market Cap: $227.31M
• Dividend Yield: N/A
• Average Volume (3M): 507.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 5.55%
• EPS Growth: -0.99%
• Country: US
• Employees: 1,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.04
• Shares Outstanding: 70,373,630
• 10 Day Avg. Volume: 557,727
• 30 Day Avg. Volume: 507,429
• 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: 1.49
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 2.36
• Enterprise Value/Ebitda: -9.51
• 1Y Price Target: $4.25
• Price Target Upside: 31.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 52 Neutral
• Price Target: $3.50 ▲(8.36% Upside)

Health Catalyst's overall stock score is primarily impacted by its financial performance challenges, including ongoing profitability issues and cash flow constraints. While technical indicators show positive momentum, valuation concerns due to negative earnings and lack of dividends weigh heavily. The earnings call provided some optimism with strategic initiatives, but macroeconomic challenges remain a significant risk.

Positive Factors

Technology Segment Growth

The strong growth in the Technology segment indicates robust demand for Health Catalyst's data solutions, enhancing its competitive position in the healthcare analytics market.

High-Margin Application Revenue

The focus on high-margin application revenue supports sustainable profitability, as these products contribute significantly to the company's bottom line.

Strong Client Relationships

Maintaining strong relationships with top clients ensures a stable revenue base and reflects the company's ability to deliver value, fostering long-term business stability.

Negative Factors

Profitability Challenges

Ongoing profitability challenges indicate difficulties in cost management and achieving sustainable profit, which may hinder long-term financial health.

Revenue Guidance Revision

The downward revision in revenue guidance reflects macroeconomic pressures and funding cuts, potentially impacting future growth and financial performance.

Cash Flow Issues

Persistent negative cash flows indicate inefficiencies in cash generation, which could strain liquidity and limit investment in growth opportunities.

Health Catalyst Business Overview & Revenue Model

Company Description

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations. Its offerings include data and analytics platform, a commercial-grade data and analytics platform for the healthcare sector; AI and data science, providing integration of AI into existing business intelligence tools, increasing analytics accuracy; population health management identifies improvement across the care continuum as well as actionable guidance for success and automated workflows; financial transformation providing costing and labor productivity insights and revenue capture; quality and safety improvement using clinical quality and patient safety data, analytics, and expert services; and national data ecosystem for thought leadership and mutual knowledge exchange to transform care delivery through next-gen insights. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is based in South Jordan, Utah.

How the Company Makes Money

Health Catalyst generates revenue primarily through a subscription-based model for its software solutions, which includes licensing fees for its data operating system and analytics applications. Additionally, the company earns revenue from consulting services that assist healthcare organizations in implementing and optimizing its technologies. Key revenue streams also include maintenance and support services, as well as professional services tailored to specific client needs. Significant partnerships with healthcare providers and payers, along with ongoing contracts for software and consulting services, contribute to its earnings. The company also benefits from a growing demand for data-driven solutions in the healthcare industry, which further enhances its revenue potential.

Health Catalyst Financial Statement Overview

Summary

Health Catalyst is experiencing growth in revenue but continues to face profitability challenges. The balance sheet shows some improvement in leverage, but past high debt levels remain a concern. Cash flow issues persist, with negative operating cash flows indicating potential liquidity constraints. The company needs to focus on improving operational efficiency and profitability to enhance its financial health.

Income Statement

Health Catalyst's income statement shows modest revenue growth with a TTM increase of 1.55%. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively stable at around 45%, but the persistent negative margins indicate challenges in cost management and achieving profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.50 in the TTM, showing some improvement from previous years. However, the company has a negative return on equity, indicating that it is not generating profits from shareholders' equity. The equity ratio is reasonable, suggesting a balanced asset structure, but the high leverage in previous years poses a risk.

Cash Flow

The cash flow statement highlights significant challenges, with negative operating and free cash flows in the TTM. Although there is a notable improvement in free cash flow growth, the operating cash flow to net income ratio remains negative, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is positive, suggesting some ability to cover losses, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.09M	306.58M	295.94M	276.24M	241.93M	188.84M
Gross Profit	143.21M	140.78M	92.60M	133.19M	117.57M	90.77M
EBITDA	-35.53M	-10.65M	-68.28M	-82.92M	-101.68M	-79.47M
Net Income	-100.12M	-69.50M	-118.15M	-137.40M	-153.21M	-115.02M
Balance Sheet
Total Assets	616.18M	858.93M	701.81M	752.29M	832.10M	577.74M
Cash, Cash Equivalents and Short-Term Investments	97.34M	392.00M	317.73M	363.49M	444.98M	270.87M
Total Debt	172.79M	402.26M	249.07M	247.97M	204.61M	195.28M
Total Liabilities	268.63M	493.72M	334.89M	327.28M	310.00M	301.64M
Stockholders Equity	347.55M	365.21M	366.92M	425.01M	522.10M	276.10M
Cash Flow
Free Cash Flow	-15.72M	-1.84M	-47.39M	-52.68M	-41.59M	-36.61M
Operating Cash Flow	-6.04M	14.56M	-33.08M	-35.27M	-23.12M	-26.15M
Investing Cash Flow	-60.57M	-22.90M	20.29M	-39.02M	-139.68M	-82.56M
Financing Cash Flow	-84.63M	151.75M	2.73M	-2.61M	264.08M	182.61M

Health Catalyst Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCAT, the sentiment is Neutral. The current price of 3.23 is above the 20-day moving average (MA) of 3.07, above the 50-day MA of 3.10, and below the 200-day MA of 3.94, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 43.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HCAT.

Health Catalyst Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSTM	―	$729.17M	36.98	5.81%	0.49%	3.50%	13.99%
OPRX	―	$380.40M	―	-8.21%	―	25.90%	46.13%
SOPH	―	$287.21M	-3.87	-74.09%	―	7.31%	-7.49%
HCAT	―	$227.31M	―	-28.42%	―	5.55%	-0.99%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVH	―	$783.78M	―	-13.38%	―	-6.71%	-71.40%
DH	―	$408.92M	―	-64.27%	―	-5.24%	23.59%

Health Catalyst Corporate Events

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.

Health Catalyst Earnings Call: Growth Amid Challenges

The recent earnings call for Health Catalyst painted a mixed picture, with positive strides in profitability and revenue growth in the applications segment, yet significant challenges due to Medicaid and research funding cuts. These cuts have led to revised revenue guidance and a reduction in client retention and new bookings. Despite these macroeconomic headwinds, the company remains focused on profitability and enhancing shareholder value.

Health Catalyst Reports Strong Q2 2025 Results

Health Catalyst, Inc. is a prominent provider of data and analytics technology and services aimed at enhancing healthcare outcomes, operating primarily within the healthcare sector. The company is known for its cloud-based technology ecosystem, Health Catalyst Ignite™, which leverages AI-enabled solutions to drive clinical, financial, and operational improvements across numerous healthcare organizations globally.

Health Catalyst CEO Retirement Announcement

On August 5, 2025, Health Catalyst announced that CEO Dan Burton plans to retire effective June 30, 2026, after 15 years of service. The company will conduct a search for a new CEO, while Burton will continue to serve on the Board. Additionally, Justin Spencer was appointed to the Board, effective September 1, 2025, expanding the Board to eight directors. Health Catalyst reported strong financial results for the second quarter of 2025, with a total revenue of $80.7 million and an Adjusted EBITDA of $9.3 million, surpassing their quarterly guidance. The company remains committed to achieving its goals and driving value for clients and shareholders during the leadership transition.

The most recent analyst rating on (HCAT) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Health Catalyst stock, see the HCAT Stock Forecast page.