0001636422-26-000035
SEC filingHealth 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.
Health Catalyst reported FY 2025 revenue of $311.1M, +1% YoY from $306.6M, with technology revenue at $208.3M (+7%) and professional services at $102.9M (-8%). Gross profit increased 5% to $120.4M (39% margin from 37%), Adjusted Gross Profit +6% to $159.1M (51%). Operating loss expanded to $160.9M from $69.8M due to $110.2M impairment charges. Net loss $178.0M ($3/share) vs $69.5M ($1.15/share). Adjusted EBITDA improved 59% to $41.4M. Platform Clients reached 162 (from 130), Dollar-based Retention Rate 93% (new definition). Cash flow from operations $0.7M vs $14.6M.
Technology revenue $208.3M (+7% YoY), 67% of total, driven by new/acquired clients, escalators, offset by DOS-to-Ignite churn ($12.5M ARR impact). Professional services $102.9M (-8%), 33% of total, due to lower utilization, TEMS exits. >90% revenue recurring. Platform Clients 162 (+32 net new). U.S. revenue 96.3%. Growth tempered by Medicaid cuts, elongated sales cycles.
Gross margin 39% (up from 37%), technology 51% (52%), professional services 13% (12%). Adjusted Gross Margin 51% (49%). Technology Adjusted Gross Margin 67% (66%). Operating expenses $312.5M (100% of revenue) vs $210.6M (69%), driven by $110.2M impairments, $50.5M D&A (+22%). Sales/marketing $52.5M (17%), R&D $49.8M (16%), G&A $49.6M (16%). Restructuring reduced headcount, aiding efficiency.
Operating cash flow $0.7M (vs $14.6M). Investing $36.2M (investments, $41.1M Upfront acquisition). Financing -$235.8M (debt repayment $232.3M, $5M repurchases). Cash/equivalents $50.8M, short-term investments $44.9M (total liquidity $95.7M, down from $392M). Total assets $502.6M (down from $858.9M), liabilities $256.9M, equity $245.8M. Debt $153.3M net (SOFR+6.5%, due 2029). Accumulated deficit -$1.36B.
Management highlights DOS-to-Ignite migrations (~2/3 complete), $52M ARR at risk through 2027 (focus data platform). Prioritizes efficiency, client expansion (upsells to 162 Platform +1,000 App Clients), Ignite enhancements. Near-term revenue headwinds from churn, Medicaid cuts (OBBBA $1T impact), but >90% recurring, 93% retention supports visibility. Targets operating leverage, Adjusted EBITDA growth (slower near-term), no near-term acquisitions.