Health Catalyst Inc
NASDAQ:HCAT
Health Catalyst Inc
Health Catalyst, Inc. engages in the provision of data and analytics technology and services to healthcare organizations. The company is headquartered in South Jordan, Utah. The company went IPO on 2019-07-25. The firm operates in two segments: technology and professional services. The technology segment includes its data platform, analytics applications and support services. Its solution consists of a cloud-based data platform, analytics software and professional services expertise. Its cloud-based data operating system (DOS) is a healthcare-specific, open, flexible, and scalable data platform that provides customers with a single comprehensive environment to integrate and organize data from its software systems, which enables a range of analytics. Its software analytics application is built on top of its data platform to provide foundational or domain-specific insights that improve customers clinical, financial and operational performance. Its support services consist of both analytics experts and domain experts.
Health Catalyst, Inc. engages in the provision of data and analytics technology and services to healthcare organizations. The company is headquartered in South Jordan, Utah. The company went IPO on 2019-07-25. The firm operates in two segments: technology and professional services. The technology segment includes its data platform, analytics applications and support services. Its solution consists of a cloud-based data platform, analytics software and professional services expertise. Its cloud-based data operating system (DOS) is a healthcare-specific, open, flexible, and scalable data platform that provides customers with a single comprehensive environment to integrate and organize data from its software systems, which enables a range of analytics. Its software analytics application is built on top of its data platform to provide foundational or domain-specific insights that improve customers clinical, financial and operational performance. Its support services consist of both analytics experts and domain experts.
Revenue & EBITDA Beat: Q3 revenue was $76.3 million and adjusted EBITDA was $12 million, both above guidance.
Segment Performance: Technology segment revenue grew 7% year-over-year to $52.1 million; professional services revenue declined 12% year-over-year.
Margin Expansion: Adjusted gross margin rose to 53%, up 510 basis points year-over-year and 310 basis points sequentially.
Full-Year Guidance Reaffirmed: 2025 revenue guidance remains at $310 million with adjusted EBITDA of $41 million, representing 1% and 57% year-over-year growth, respectively.
2026 Outlook: Management expects 2026 revenue to be a few points lower than 2025 but anticipates further improvement in adjusted EBITDA due to cost actions and mix shift.
Client Migration Flexibility: Ignite platform migrations are progressing, but more clients are being allowed to remain on DOS longer; the majority still expected to migrate by mid-2026.
Retention Pressure: Dollar-based retention expected to stay in the low 90s through 2025 and into 2026 due to migrations.
Profitability Focus: Exiting or restructuring less profitable TEMS contracts to improve margins, even if it slightly impacts revenue.
