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

Health Catalyst (NASDAQ:HCAT) announced 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. The business had revenue of $56.28 million during the quarter, compared to analysts’ expectations 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 Stock Down 2.7%

Shares of HCAT stock traded down $0.04 during trading hours on Friday, hitting $1.46. 285,770 shares of the company were exchanged, compared to its average volume of 385,233. The stock has a market capitalization of $109.88 million, a price-to-earnings ratio of -0.52 and a beta of 1.52. The business’s 50-day simple moving average is $1.71 and its two-hundred day simple moving average is $1.70. The company has a debt-to-equity ratio of 1.51, a quick ratio of 2.70 and a current ratio of 2.70. Health Catalyst has a one year low of $0.96 and a one year high of $3.36.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Citigroup dropped their price target on Health Catalyst from $2.50 to $2.00 and set a “neutral” rating on the stock in a research report on Tuesday, August 11th. Canaccord Genuity Group cut Health Catalyst from a “buy” rating to a “hold” rating and dropped their target price for the stock from $3.00 to $1.80 in a research report on Thursday, August 20th. Wells Fargo & Company cut their price objective 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. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Health Catalyst in a research note on Monday, October 26th. Two equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Health Catalyst has a consensus rating of “Hold” and a consensus price target of $2.01.

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

Insider Activity at Health Catalyst

In related news, CEO Simeon Kohl bought 59,000 shares of the firm’s stock in a transaction on Monday, September 14th. The stock was bought at an average cost of $1.79 per share, for a total transaction 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 approximately $5,112,929.15. The trade was a 2.11% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 19.40% of the company’s stock.

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.