Health Catalyst (HCAT) Q4 2025 Earnings Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy HCAT?
Source: NASDAQ.COM
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Analyst Views on HCAT
Wall Street analysts forecast HCAT stock price to rise
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 1.215
Low
2.75
Averages
3.85
High
5.00
Current: 1.215
Low
2.75
Averages
3.85
High
5.00
About HCAT
Health Catalyst, Inc. is a provider of data and analytics technology and services to healthcare organizations. The Company's solution comprises its cloud-based data platform, applications, and expertise. Its segments include Technology and Professional Services. The Technology segment includes its data platform, analytics applications and support services and earns primarily from contracts that are cloud-based subscription arrangements, time-based license arrangements, and maintenance and support fees. The Professional Services segment is generally a combination of analytics, implementation, strategic advisory, outsourcing, and improvement services to deliver capabilities to its clients to fully configure and utilize the benefits of its technology offerings. Its clients, which are primarily healthcare providers, use its Solution to manage their data, derive analytical insights to operate their organization, and produce measurable clinical, financial, and operational improvements.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Health Catalyst (HCAT) Q4 2025 Earnings Transcript
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Health Catalyst Shares Plunge 31% After Mixed Q4 Results
- Disappointing Earnings: Health Catalyst reported earnings of $0.08 per share for Q4, missing analysts' expectations by $0.02, which led to a 27.93% drop in share price to $1.29 during early trading, reflecting market concerns over the company's profitability.
- Revenue Beat: Despite the earnings miss, Health Catalyst's revenue of $74.8 million exceeded consensus estimates, indicating potential for revenue growth, although it failed to offset the negative impact of the earnings shortfall.
- Cautious Outlook: The company projects revenue for the upcoming quarter to be between $68 million and $70 million, with adjusted EBITDA expected to range from $7 million to $8 million; however, the lack of annual guidance adds uncertainty to market expectations.
- Strategic Review Initiated: New CEO Benjamin Albert has launched a strategic review aimed at optimizing cost structure and resource allocation, and while he did not confirm or deny the possibility of a company sale, this move underscores the company's commitment to improving transparency and operational efficiency.
See More
HEALTH CATALYST REPORTS Q4 ADJUSTED GROSS MARGIN OF 53.5% (CORRECTION: NOT 'ADJUSTED TECHNOLOGY GROSS MARGIN')
- Health Catalyst Q4 Adjusted Gross Margin: The adjusted gross margin for Health Catalyst in Q4 is reported at 53.5%.
- Clarification on Terminology: The term "not 'adj. technology gross margin'" is emphasized to clarify the specific financial metric being discussed.
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Health Catalyst Q4 2025 Earnings Call Insights
- Leadership Transition: Newly appointed CEO Benjamin Albert emphasized a renewed focus on execution and leadership enhancement following Dan Burton's departure, appointing new general managers to strengthen interoperability and cybersecurity, reflecting the company's commitment to strategic restructuring.
- Financial Performance: For the fiscal year 2025, total revenue reached $311.1 million with adjusted EBITDA of $41.4 million; despite a rise in adjusted gross margin to 53.5% in Q4, a significant impairment charge of $110.2 million led to a net loss of $178 million, highlighting financial strain.
- Future Outlook: Management is not providing annual guidance for 2026, with Q1 revenue expected between $68 million and $70 million, indicating challenges ahead due to revenue pressures from platform migrations and declines in nonrecurring revenue.
- Market Reaction: Increased analyst inquiries regarding the strategic review and potential sale reflect growing concerns about future growth and revenue loss, with management's cautious stance potentially impacting investor confidence.
See More
Health Catalyst to Announce Q4 Earnings on March 12
- Earnings Announcement Date: Health Catalyst is set to release its Q4 earnings on March 12 after market close, with a consensus EPS estimate of $0.10, reflecting a substantial year-over-year increase of 130.3%, indicating a significant improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $73.99 million, representing a 7.0% year-over-year decline, which highlights challenges the company faces in market competition and may impact future growth strategies.
- Historical Performance Review: Over the past year, Health Catalyst has only beaten EPS estimates 25% of the time while exceeding revenue estimates 75% of the time, indicating relative stability in revenue management but volatility in profitability that warrants attention.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates and two downward revisions, while revenue estimates saw one upward revision, suggesting a cautious market outlook on the company's future performance, potentially affecting investor confidence.
See More
Health Catalyst Appoints New CEO Ben Albert Amid Board Restructuring
- Executive Transition: Health Catalyst announced that Ben Albert will become the new CEO effective February 12, which aims to expedite the succession planning for retiring CEO Dan Burton, highlighting the company's commitment to leadership stability.
- Board Restructuring: The company is reducing its board size ahead of the 2026 Annual Meeting, with the departure of three directors leading to a total of five members, which may impact governance structure and decision-making efficiency.
- Historical Context: Ben Albert joined Health Catalyst in 2025 during the acquisition of Upfront Healthcare Services and became president and COO in 2022, indicating the company's preference for internal promotion to maintain management continuity.
- Future Outlook: With Dan Burton planning to retire in 2026, Albert's appointment not only accelerates succession planning but may also bring new strategic directions to the company, enhancing its competitive edge in the market.
See More
Health Catalyst (HCAT) Q4 2025 Earnings Transcript
See More
Health Catalyst Shares Plunge 31% After Mixed Q4 Results
- Disappointing Earnings: Health Catalyst reported earnings of $0.08 per share for Q4, missing analysts' expectations by $0.02, which led to a 27.93% drop in share price to $1.29 during early trading, reflecting market concerns over the company's profitability.
- Revenue Beat: Despite the earnings miss, Health Catalyst's revenue of $74.8 million exceeded consensus estimates, indicating potential for revenue growth, although it failed to offset the negative impact of the earnings shortfall.
- Cautious Outlook: The company projects revenue for the upcoming quarter to be between $68 million and $70 million, with adjusted EBITDA expected to range from $7 million to $8 million; however, the lack of annual guidance adds uncertainty to market expectations.
- Strategic Review Initiated: New CEO Benjamin Albert has launched a strategic review aimed at optimizing cost structure and resource allocation, and while he did not confirm or deny the possibility of a company sale, this move underscores the company's commitment to improving transparency and operational efficiency.
See More
HEALTH CATALYST REPORTS Q4 ADJUSTED GROSS MARGIN OF 53.5% (CORRECTION: NOT 'ADJUSTED TECHNOLOGY GROSS MARGIN')
- Health Catalyst Q4 Adjusted Gross Margin: The adjusted gross margin for Health Catalyst in Q4 is reported at 53.5%.
- Clarification on Terminology: The term "not 'adj. technology gross margin'" is emphasized to clarify the specific financial metric being discussed.
See More
Health Catalyst Q4 2025 Earnings Call Insights
- Leadership Transition: Newly appointed CEO Benjamin Albert emphasized a renewed focus on execution and leadership enhancement following Dan Burton's departure, appointing new general managers to strengthen interoperability and cybersecurity, reflecting the company's commitment to strategic restructuring.
- Financial Performance: For the fiscal year 2025, total revenue reached $311.1 million with adjusted EBITDA of $41.4 million; despite a rise in adjusted gross margin to 53.5% in Q4, a significant impairment charge of $110.2 million led to a net loss of $178 million, highlighting financial strain.
- Future Outlook: Management is not providing annual guidance for 2026, with Q1 revenue expected between $68 million and $70 million, indicating challenges ahead due to revenue pressures from platform migrations and declines in nonrecurring revenue.
- Market Reaction: Increased analyst inquiries regarding the strategic review and potential sale reflect growing concerns about future growth and revenue loss, with management's cautious stance potentially impacting investor confidence.
See More
Health Catalyst to Announce Q4 Earnings on March 12
- Earnings Announcement Date: Health Catalyst is set to release its Q4 earnings on March 12 after market close, with a consensus EPS estimate of $0.10, reflecting a substantial year-over-year increase of 130.3%, indicating a significant improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $73.99 million, representing a 7.0% year-over-year decline, which highlights challenges the company faces in market competition and may impact future growth strategies.
- Historical Performance Review: Over the past year, Health Catalyst has only beaten EPS estimates 25% of the time while exceeding revenue estimates 75% of the time, indicating relative stability in revenue management but volatility in profitability that warrants attention.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates and two downward revisions, while revenue estimates saw one upward revision, suggesting a cautious market outlook on the company's future performance, potentially affecting investor confidence.
See More
Health Catalyst Appoints New CEO Ben Albert Amid Board Restructuring
- Executive Transition: Health Catalyst announced that Ben Albert will become the new CEO effective February 12, which aims to expedite the succession planning for retiring CEO Dan Burton, highlighting the company's commitment to leadership stability.
- Board Restructuring: The company is reducing its board size ahead of the 2026 Annual Meeting, with the departure of three directors leading to a total of five members, which may impact governance structure and decision-making efficiency.
- Historical Context: Ben Albert joined Health Catalyst in 2025 during the acquisition of Upfront Healthcare Services and became president and COO in 2022, indicating the company's preference for internal promotion to maintain management continuity.
- Future Outlook: With Dan Burton planning to retire in 2026, Albert's appointment not only accelerates succession planning but may also bring new strategic directions to the company, enhancing its competitive edge in the market.
See More
