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

Health Catalyst (NASDAQ:HCAT) posted its quarterly earnings results on Thursday. The company reported $0.04 EPS for the quarter, beating the consensus estimate of $0.03 by $0.01, FiscalAI reports. Health Catalyst had a negative net margin of 90.61% and a negative return on equity of 1.57%. The business had revenue of $70.49 million during the quarter, compared to analyst estimates of $69.09 million.

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 Stock Down 25.1%

Health Catalyst stock traded down $0.58 during midday trading on Friday, reaching $1.73. The company’s stock had a trading volume of 3,050,688 shares, compared to its average volume of 645,310. The company has a debt-to-equity ratio of 1.10, a current ratio of 1.69 and a quick ratio of 1.69. The stock has a market capitalization of $127.83 million, a P/E ratio of -0.47 and a beta of 1.55. The stock’s 50-day simple moving average is $1.98 and its 200-day simple moving average is $1.71. Health Catalyst has a 52-week low of $0.96 and a 52-week high of $3.80.

Hedge Funds Weigh In On Health Catalyst

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

Analyst Ratings Changes

HCAT has been the topic of several research reports. Cantor Fitzgerald reissued a “neutral” rating on shares of Health Catalyst in a report on Monday, May 11th. Stephens lowered their target price on Health Catalyst from $2.00 to $1.75 and set an “equal weight” rating for the company in a report on Tuesday, May 12th. Wells Fargo & Company increased their target price on Health Catalyst from $1.00 to $1.75 and gave the company an “equal weight” rating in a research report on Friday, June 26th. Canaccord Genuity Group lifted their price target on Health Catalyst from $2.00 to $3.00 and gave the company a “buy” rating in a report on Tuesday, July 21st. Finally, Weiss Ratings upgraded Health Catalyst from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, July 28th. Four investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $2.93.

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

Health Catalyst Company Profile

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.