HCAT · Health Catalyst, Inc.

Health Catalyst's Q1 2026 results showed revenue of $70.8 million, a 11% decline from $79.4 million in Q1 2025, driven by drops in both technology revenue ($49.5 million from $51.5 million) and professional services ($21.3 million from $27.9 million). Gross profit fell 3% to $27.7 million with GAAP gross margin improving to 39% from 36%, while adjusted gross profit declined 7% to $36.4 million with margin expansion to 51% from 49%, reflecting better cost management excluding non-cash and one-time items. The quarter's net loss ballooned to $111.0 million from $23.7 million, primarily due to a $95.5 million goodwill impairment charge, alongside higher operating expenses including sales and marketing, R&D, and G&A, though these were down from prior year levels amid restructuring costs of $1.8 million. Adjusted EBITDA rose 46% to $9.1 million, exceeding expectations as stated by CEO Ben Albert, signaling operational improvements. Balance sheet reflects total assets down to $412.2 million from $502.6 million at year-end 2025, with stockholders' equity reduced to $138.1 million from $245.8 million, largely from the impairment and accumulated deficit growth. Cash and equivalents increased to $59.9 million, supported by $18.5 million in operating cash flow. Management highlighted a 'strategic reset' of the operating model, focusing on high-conviction technology opportunities rather than short-term cost cuts, with confidence in leadership to build a durable intelligence-driven company. Guidance for Q2 projects revenue $68-70 million and Adjusted EBITDA $9-10 million; full-year at $260-265 million revenue and $30-33 million Adjusted EBITDA, underscoring focus on profitability amid transformation.