Health Catalyst (NASDAQ:HCAT) Issues Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Health Catalyst beat second-quarter estimates, reporting adjusted EPS of $0.04 versus $0.03 expected and revenue of $70.49 million versus $69.09 million expected. Adjusted EBITDA reached $9.9 million.
• The company completed the Vitalware and Med-Metrix divestiture for $147 million and used the proceeds to repay about $160 million of debt, eliminating approximately $19 million in annual GAAP interest expense and leaving it debt-free.
• Despite the earnings beat, management cut its outlook, forecasting third-quarter revenue of $55–$56 million and full-year 2026 revenue of $246–$249 million. Migration-related churn and costs are expected to persist, contributing to a roughly 25% stock decline.

Health Catalyst (NASDAQ:HCAT - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of $0.03 by $0.01, FiscalAI reports. The firm had revenue of $70.49 million during the quarter, compared to analysts' expectations of $69.09 million. Health Catalyst had a negative net margin of 90.61% and a negative return on equity of 1.57%.

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 Trading Down 25.1%

NASDAQ:HCAT traded down $0.58 on Friday, hitting $1.73. 3,050,688 shares of the stock were exchanged, compared to its average volume of 645,310. The stock has a market capitalization of $127.83 million, a price-to-earnings ratio of -0.47 and a beta of 1.55. Health Catalyst has a 52 week low of $0.96 and a 52 week high of $3.80. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.69 and a current ratio of 1.69. The company's 50-day moving average price is $1.98 and its 200 day moving average price is $1.71.

Key Headlines Impacting Health Catalyst

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

Institutional Investors Weigh In On Health Catalyst

Several institutional investors have recently modified their holdings of HCAT. AQR Capital Management LLC lifted its holdings in Health Catalyst by 816.8% in the first quarter. AQR Capital Management LLC now owns 168,344 shares of the company's stock valued at $763,000 after buying an additional 149,981 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Health Catalyst by 7.9% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 36,047 shares of the company's stock valued at $163,000 after acquiring an additional 2,624 shares during the last quarter. Focus Partners Wealth bought a new stake in shares of Health Catalyst during the 1st quarter valued at $46,000. Geode Capital Management LLC lifted its stake in shares of Health Catalyst by 11.4% in the 2nd quarter. Geode Capital Management LLC now owns 1,662,455 shares of the company's stock valued at $6,269,000 after purchasing an additional 169,580 shares during the period. Finally, Rhumbline Advisers lifted its stake in shares of Health Catalyst by 13.5% in the 2nd quarter. Rhumbline Advisers now owns 101,986 shares of the company's stock valued at $384,000 after purchasing an additional 12,127 shares during the period. Institutional investors and hedge funds own 85.00% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently commented on HCAT shares. Weiss Ratings raised Health Catalyst from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, July 28th. Stephens reduced their price target on shares of Health Catalyst from $2.00 to $1.75 and set an "equal weight" rating on the stock in a research report on Tuesday, May 12th. Cantor Fitzgerald reaffirmed a "neutral" rating on shares of Health Catalyst in a research note on Monday, May 11th. Canaccord Genuity Group raised their price objective on shares of Health Catalyst from $2.00 to $3.00 and gave the stock a "buy" rating in a report on Tuesday, July 21st. Finally, Citigroup restated a "neutral" rating on shares of Health Catalyst in a research report on Thursday, July 23rd. Four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Health Catalyst presently has an average rating of "Hold" and an average target price of $2.93.

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.

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