Health Catalyst (NASDAQ:HCAT) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Health Catalyst reported a quarterly loss of $0.03 per share, beating the consensus loss estimate of $0.05, while revenue of $56.28 million also exceeded analyst expectations of $55.39 million.
• Third-quarter revenue and adjusted EBITDA topped the high end of guidance, and bookings are expected to exceed the company’s annual target. Health Catalyst reaffirmed its 2026 revenue and adjusted EBITDA outlook.
• Retention and profitability remain challenges: elevated client churn and migration-related pressures are weighing on results, and adjusted gross margin declined year over year. The company ended the quarter with about $79 million in cash and no debt.

Health Catalyst (NASDAQ:HCAT - Get Free Report) posted its quarterly earnings data 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 return on equity of 1.83% and a negative net margin of 90.61%. The company 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 Price Performance

Shares of HCAT traded down $0.04 during midday trading on Friday, reaching $1.46. The stock had a trading volume of 285,770 shares, compared to its average volume of 385,233. The company has a current ratio of 2.70, a quick ratio of 2.70 and a debt-to-equity ratio of 1.51. The company has a market capitalization of $109.88 million, a price-to-earnings ratio of -0.52 and a beta of 1.52. The company's 50-day moving average is $1.71 and its 200 day moving average is $1.70. Health Catalyst has a 12-month low of $0.96 and a 12-month high of $3.36.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on HCAT. Wells Fargo & Company dropped their price target on Health Catalyst from $1.75 to $1.50 and set an "equal weight" rating for the company in a research report on Thursday, August 13th. Citigroup cut their price objective on Health Catalyst from $2.50 to $2.00 and set a "neutral" rating for the company in a report on Tuesday, August 11th. Weiss Ratings restated a "sell (d-)" rating on shares of Health Catalyst in a research report on Monday, October 26th. Finally, Canaccord Genuity Group downgraded shares of Health Catalyst from a "buy" rating to a "hold" rating and lowered their target price for the company from $3.00 to $1.80 in a research note on Thursday, August 20th. Two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Health Catalyst presently has an average rating of "Hold" and a consensus target price 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

Insiders Place Their Bets

In other news, CEO Simeon Kohl bought 59,000 shares of the business's stock in a transaction on Monday, September 14th. The stock was acquired at an average price of $1.79 per share, with a total value of $105,610.00. Following the completion of the purchase, the chief executive officer directly owned 2,856,385 shares in the company, valued at $5,112,929.15. This represents a 2.11% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 19.40% of the stock is owned by insiders.

About Health Catalyst

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.

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