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what it is
Health Catalyst sells software and services that help hospitals organize data, track performance, and run revenue operations.
how it gets paid
Last year Health Catalyst made $311M in revenue. ignite platform was the main engine at $122M, or 39% of sales.
why it's growing
Revenue grew 1.5% last year on ~$311M—low single-digit FY growth. A quarter near ~$78M (≈¼ of FY) is the right scale check; prior $236M “quarter” lines do not reconcile to that FY.
what just happened
Quarterly revenue on the order of ~$78M is consistent with the ~$311M year; EPS stayed deeply negative.
At a glance
C++ balance sheet — some cracks in the foundation
65/100 earnings predictability — reasonably predictable
-$1.15 fy2024 eps est
$307M fy2024 rev est
~-51.7% operating margin — still deep in the red at the operating line
xvary composite: 43/100 — below average
What they do
Health Catalyst sells software and services that help hospitals organize data, track performance, and run revenue operations.
You buy one central layer that plugs different vendor systems into one place. That means your team stops stitching together spreadsheets and starts working from the same dashboard. The proof is $311M in annual revenue and a 50.4% gross margin, while the business still ran a -51.7% operating margin.
How they make money
$311M
annual revenue · their business grew +1.5% last year
ignite platform
$122M
+4.0%
applications
$84M
+2.0%
expertise solutions
$56M
flat
implementation services
$31M
−3.0%
managed services
$18M
+1.0%
The products that matter
data and analytics software
Technology
$209M · 67% of revenue
This is the part you want to work. It generated a 67.4% gross margin in 2025, but it still grew only 1% last year.
67.4% gross margin
implementation and consulting
Professional Services
$102M · 33% of revenue
It is one-third of revenue and only 18.3% gross margin. That keeps the company close to services economics, not software economics.
18.3% gross margin
Key numbers
$311M
annual revenue
You are looking at a small company with a big-revenue footprint for its market cap.
~-51.7%
operating margin (trailing · co.)
Negative operating margin → the core business still spends well above operating profit per revenue dollar before interest and taxes.
$167M
long-term debt
Debt this large sits awkwardly next to a $97M market cap.
1.75
beta
The stock moves about 75% more than the market, so your portfolio feels the bumps.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $167M (63% of capital)
C++ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for HCAT right now.
source: institutional data · return history unavailable
What just happened
missed estimates
~$78M of quarterly revenue (vs ~$311M FY) is the coherent scale—EPS stayed deeply negative.
FY revenue growth was about 1.5%—ignore triple-digit vs. prior year % unless the comp quarter and line item are explicit. Gross margin was 50.4% in this print. EPS here is -$1.25 vs the -$1.15 FY EPS est shown in the score strip—match the same period and GAAP vs adjusted.
~$78M
Q revenue (approx.)
-$1.25
eps (Q · GAAP)
50.4%
gross margin (FY · co.)
the number that mattered
-$1.25 EPS mattered most on a ~$78M revenue quarter—FY growth was only ~1.5%, so profitability still drives the story.
source: company earnings report, 2026
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What could go wrong
the #1 risk is a CEO-led operational review without 2026 guidance. This is not abstract. It is a company with slowing FY growth, EPS still deep red on ~$78M revenue quarters, and investors still waiting for the plan—do not anchor to a single “$91M loss” line without matching the same period to the filing.
med
strategy reset without targets
Ben Albert launched an operational review in March 2026 and gave no 2026 guidance. If management cannot translate the review into measurable targets soon, the stock stays in limbo.
No guidance means no clean way to underwrite next year's revenue or margin path. For a turnaround, that uncertainty is the story.
med
losses are still doing the talking
HCAT lost $91M in Q4 2025, carries a -57.2% net margin, and has a fy2024 EPS estimate of -$1.15. That is not a temporary paper cut.
If losses stay anywhere near this scale, the market will keep valuing the company on survival and credibility, not software upside.
med
the business mix is fighting the bull case
Technology posts a 67.4% gross margin, but Professional Services still makes up $102M of revenue at only 18.3% gross margin. Meanwhile, both segments grew just 1% last year.
You need the software side to outgrow the services side. Right now, you mostly have a mix problem with no acceleration.
med
small-cap ownership can cut both ways
Institutions own about 85% of shares, beta is 1.75, and the stock traded between $1.20 and $5.06 over the last 52 weeks. That is a lot of motion for a $97M company.
When a crowded small cap disappoints, sellers tend to find out how thin the exit really is.
This risk stack hits all three levers at once — growth, margins, and balance-sheet flexibility — in a company worth just $97M and carrying $167M of long-term debt.
source: institutional data · regulatory filings · risk analysis
Pay attention to
financials
whether losses stop printing nine-digit quarters
Q4 posted a $91M net loss on $74.7M of revenue. Until that gap closes materially, every other improvement will feel theoretical.
management
the first concrete output from the operational review
You are waiting for actual targets, not corporate therapy. Cost actions, segment goals, or 2026 guidance would all count as proof.
calendar
the next earnings report under Ben Albert
That report should tell you whether Q4 was a reset quarter or just the new baseline. If guidance is still missing, the market will notice.
business mix
whether technology growth breaks above 1%
The software segment is the margin engine at 67.4% gross margin. If it stays stuck near 1% growth, the turnaround case loses its best argument.
Analyst rankings
earnings predictability
65 / 100
in human-speak, analysts think this business is forecastable enough to model, but not stable enough to trust blindly.
beta
1.75
Beta measures how hard a stock tends to move versus the market. At 1.75, HCAT has acted more like an amplifier than a shelter.
risk rank
3
The broad risk score says middle of the pack. The lived experience says the 10 / 100 price stability number matters more.
source: institutional data
Institutional activity
institutional ownership data for HCAT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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