Liquidity is under pressure as the cash balance dropped from $342.0M in 2025Q1 to $59.9M in 2026Q1, highlighting the difficulty in maintaining consistent free cash flow generation.
| Cash from Operations | 18.96M | 731K | 14.56M | -33.08M | -35.27M | -23.12M | -26.15M | -32.18M | -40.3M | -36.83M |
| Operating CF Margin % | - | 0.23% | 4.75% | -11.18% | -12.77% | -9.56% | -13.85% | -20.77% | -35.8% | -50.39% |
| Operating CF Growth % | 6126.5% | -94.98% | 144.01% | 6.21% | -52.53% | 11.57% | 18.75% | 20.13% | -9.41% | - |
| Net Income | -265.26M | -177.97M | -69.5M | -118.15M | -137.4M | -153.21M | -115.02M | -60.1M | -61.98M | -47.03M |
| Depreciation & Amortization | 50.3M | 50.5M | 41.43M | 42.22M | 48.3M | 37.53M | 18.73M | 9.21M | 7.41M | 5.89M |
| Stock-Based Compensation | 19.47M | 27.01M | 40.13M | 55.76M | 72.1M | 65.14M | 37.96M | 17.84M | 4.2M | 4.24M |
| Deferred Taxes | 58K | 81K | 77K | 8K | -4.52M | -7.13M | -1.27M | 40K | -206K | 14K |
| Other Non-Cash Items | 215.76M | 116.22M | 3.08M | 750K | 162K | 29.93M | 37.29M | 2.08M | 533K | 225K |
| Working Capital Changes | -1.36M | -15.11M | -660K | -13.67M | -13.91M | 4.62M | -3.83M | -1.27M | 9.75M | -166K |
| Change in Receivables | 3.67M | -1.81M | 4.28M | -13.66M | 788K | 102K | -16.45M | 127K | -3.63M | 4.44M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -8.32M | 0 | -3.65M | 2.46M | -2.56M |
| Change in Payables | 91K | -11.51M | 5.58M | 4.87M | -4.7M | 5.2M | 8.24M | -86K | 4.42M | -6.29M |
| Cash from Investing | -69.97M | 36.19M | -22.9M | 20.29M | -39.02M | -139.68M | -82.56M | -209.6M | 21.4M | 22.41M |
| Capital Expenditures | -10.67M | -968K | -1.62M | -1.24M | -2.17M | -18.47M | -10.46M | -4.33M | -2.5M | -3.34M |
| CapEx % of Revenue | 3.53% | 0.31% | 0.53% | 0.42% | 0.78% | 7.63% | 5.54% | 2.8% | 2.22% | 4.58% |
| Acquisitions | 18K | -41.11M | -80.28M | -11.39M | -27.85M | -46.76M | -101.66M | 1.94M | 228K | 878K |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -11.01M | -20.54M | -14.77M | -13.04M | -15.22M | 22K | 14K | -1.87M | -199K | -831K |
| Cash from Financing | -231.07M | -235.78M | 151.75M | 2.73M | -2.61M | 264.08M | 182.61M | 231.38M | 24.35M | 24.87M |
| Debt Issued (Net) | -232.29M | -232.29M | 151.32M | 0 | 0 | 0 | 165.44M | 25.35M | 9.95M | 9.79M |
| Equity Issued (Net) | 1.22M | -3.49M | 2.58M | -1.81M | -8.39M | 245.18M | 40.54M | 206.72M | -8.71M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | -5M | 0 | -1.81M | -8.39M | 0 | 0 | 0 | -8.71M | 0 |
| Other Financing | 0 | 0 | -2.15M | 4.54M | 5.78M | 18.9M | -23.37M | -689K | 23.11M | 15.08M |
| Net Change in Cash | -282.1M | -198.83M | 143.37M | -10.04M | -76.92M | 101.27M | 73.92M | -10.4M | 5.45M | 10.45M |
| Free Cash Flow | 9.17M | -237K | -1.84M | -47.39M | -52.68M | -41.59M | -36.61M | -36.52M | -42.8M | -40.17M |
| FCF Margin % | 3.03% | -0.08% | -0.6% | -16.01% | -19.07% | -17.19% | -19.39% | -23.57% | -38.02% | -54.97% |
| FCF Growth % | 194.8% | 87.11% | 96.12% | 10.05% | -26.67% | -13.59% | -0.26% | 14.68% | -6.54% | - |
| FCF per Share | 0.13 | -0.00 | -0.03 | -0.84 | -0.97 | -0.88 | -0.93 | -1.95 | -1.54 | -1.45 |
| FCF Conversion (FCF/Net Income) | -0.03x | -0.00x | -0.21x | 0.28x | 0.26x | 0.15x | 0.23x | 0.54x | 0.65x | 0.78x |
| Interest Paid | 0 | 0 | 10.12M | 5.75M | 5.75M | 6.36M | 4.98M | 5.56M | 3.94M | 1.03M |
| Taxes Paid | 0 | 0 | 10.12M | 266K | 297K | 138K | 92K | 19K | 31K | 66K |
Persistent Operating Cash Burn
According to the provided quarterly data, the persistent gap between net losses and operating cash flow suggests that Health Catalyst's reported earnings are significantly impacted by non-cash charges, as evidenced by the -0.17 OCF/NI ratio observed in the most recent 2026Q1 reporting period.
The wide divergence between net income and operating cash flow indicates that accounting losses are not fully reflective of the company's cash-generating capacity. Investors should monitor whether this disconnect is driven by recurring stock-based compensation or other non-cash adjustments that mask the underlying operational cash burn.
Based on financial statements, Health Catalyst's free cash flow trajectory remains erratic, swinging from a -29.4% margin in 2023Q4 to a 19.2% margin in 2026Q1, which highlights the difficulty in achieving consistent cash flow generation within the current service-heavy business model.
The lack of a stable free cash flow trend suggests that the company's ability to self-fund operations is highly sensitive to timing differences in working capital and project-based revenue recognition. This volatility warrants further investigation into whether the recent positive FCF is sustainable or merely a temporary artifact of timing.
As reported in recent filings, working capital changes have become a primary driver of quarterly cash flow, with a notable $16.3M contribution in 2026Q1, suggesting that the company's cash position is heavily reliant on the timing of client collections and payables management.
The significant fluctuations in working capital indicate that operational cash flow is not yet driven by organic growth in core subscription revenue. This reliance on working capital management may expose the company to liquidity risks if client payment cycles elongate or if professional service milestones are delayed.
Based on the provided data, stock-based compensation remains a consistent feature of the capital structure, with quarterly figures often exceeding $9M, which effectively obscures the true economic cost of operations and the extent of the company's reliance on equity-based incentives to retain talent.
The consistent issuance of stock-based compensation suggests that the company is utilizing equity to preserve cash, which may dilute shareholders without necessarily improving the underlying cash-generating efficiency of the business. Analysts should adjust for these non-cash expenses to determine the true cash burn rate of the platform.
Quick answers to the most common questions about buying HCAT stock.
Health Catalyst, Inc. (HCAT) generated $0.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Health Catalyst, Inc. (HCAT) reported negative free cash flow of $0.2M in 2025, indicating capital requirements exceeded cash from operations.
Health Catalyst, Inc. (HCAT) spent $1.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Health Catalyst, Inc. (HCAT) spent $5.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.