Health Catalyst, Inc.

Health Catalyst, Inc. (HCAT) reported FY 2025 revenue of $311.1M, up 1% YoY from $306.6M in 2024, driven by 7% technology revenue growth to $208.3M from new clients, acquisitions, and contractual escalators, offset by 8% decline in professional services to $102.9M due to lower utilization and TEMS churn. Gross profit rose 5% to $120.4M (39% margin vs 37%), with Adjusted Gross Profit up 6% to $159.1M (51% margin). Operating loss widened to $160.9M from $69.8M, primarily due to $110.2M goodwill/intangible impairment from stock price declines. Net loss increased to $178.0M ($3.00/share basic/diluted) from $69.5M ($1.15/share). Operating cash flow was $0.7M vs $14.6M. Balance sheet shows $502.6M total assets, $50.8M cash, $44.9M short-term investments, $245.8M equity, and $153.3M net debt. FY 2025 challenges included DOS-to-Ignite migrations causing $12.5M ARR churn and macroeconomic pressures like Medicaid cuts. Strategic focus on efficiency, client expansion, and Ignite enhancements positions for long-term leverage despite near-term headwinds.

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