Revenue growth has contracted to -10.9% year-over-year as of 2026Q1, while gross margins have experienced significant volatility, falling to 33.4% in the same period.
| Sales/Revenue | 302.48M | 311.14M | 306.58M | 295.94M | 276.24M | 241.93M | 188.84M | 154.94M | 112.57M | 73.08M |
| Revenue Growth % | -2.83% | 1.48% | 3.6% | 7.13% | 14.18% | 28.11% | 21.88% | 37.63% | 54.04% | - |
| Cost of Goods Sold | 163.38M | 207M | 165.81M | 164.1M | 143.05M | 124.35M | 98.08M | 75.34M | 59.85M | 43.64M |
| COGS % of Revenue | - | 66.53% | 54.08% | 55.45% | 51.79% | 51.4% | 51.94% | 48.63% | 53.17% | 59.72% |
| Gross Profit | 139.1M | 104.13M | 140.78M | 131.83M | 133.19M | 117.57M | 90.77M | 79.6M | 52.72M | 29.44M |
| Gross Margin % | 45.99% | 33.47% | 45.92% | 44.55% | 48.21% | 48.6% | 48.06% | 51.37% | 46.83% | 40.28% |
| Gross Profit Growth % | - | -26.03% | 6.79% | -1.02% | 13.28% | 29.53% | 14.04% | 50.97% | 79.09% | - |
| Operating Expenses | 197.19M | 140.24M | 210.59M | 258.73M | 273.19M | 261.22M | 186.89M | 134.46M | 112.82M | 74.98M |
| OpEx % of Revenue | - | 45.07% | 68.69% | 87.43% | 98.9% | 107.98% | 98.97% | 86.78% | 100.22% | 102.6% |
| Selling, General & Admin | 89.79M | 102.04M | 111.2M | 143.88M | 149.22M | 160.96M | 114.65M | 79M | 66.81M | 40.62M |
| SG&A % of Revenue | - | 32.79% | 36.27% | 48.62% | 54.02% | 66.53% | 60.71% | 50.99% | 59.35% | 55.58% |
| Research & Development | 44.26M | 49.77M | 57.95M | 72.63M | 75.68M | 62.73M | 53.52M | 46.25M | 38.59M | 28.47M |
| R&D % of Revenue | - | 16% | 18.9% | 24.54% | 27.4% | 25.93% | 28.34% | 29.85% | 34.28% | 38.96% |
| Other Operating Expenses | 2M | -11.57M | 41.43M | 42.22M | 48.3M | 37.53M | 18.73M | 9.21M | -39K | -4K |
| Operating Income | -58.09M | -36.1M | -69.81M | -126.9M | -140M | -143.65M | -96.13M | -54.87M | -60.09M | -45.54M |
| Operating Margin % | -19.2% | -11.6% | -22.77% | -42.88% | -50.68% | -59.38% | -50.9% | -35.41% | -53.38% | -62.31% |
| Operating Income Growth % | - | 48.28% | 44.99% | 9.36% | 2.54% | -49.44% | -75.2% | 8.7% | -31.96% | - |
| EBITDA | -7.79M | 14.4M | -28.38M | -84.67M | -88.48M | -102.54M | -77.4M | -45.65M | -52.68M | -39.65M |
| EBITDA Margin % | -2.58% | 4.63% | -9.26% | -28.61% | -32.03% | -42.38% | -40.99% | -29.46% | -46.8% | -54.25% |
| EBITDA Growth % | 67.44% | 150.73% | 66.49% | 4.3% | 13.71% | -32.48% | -69.54% | 13.34% | -32.88% | - |
| D&A (Non-Cash Add-back) | 50.3M | 50.5M | 41.43M | 42.22M | 51.53M | 41.11M | 18.73M | 9.21M | 7.41M | 5.89M |
| EBIT | -143.54M | -36.1M | -52.08M | -110.5M | -134.44M | -142.79M | -104.64M | -56.53M | -60.09M | -45.54M |
| Net Interest Income | -17.18M | -8.87M | 896K | 9.1M | -1.55M | -16.48M | -11.62M | -3.45M | -1.99M | -1.47M |
| Interest Income | 4.5M | 7.54M | 17.98M | 16.39M | 5.69M | 831K | 2.09M | 2.81M | 602K | 542K |
| Interest Expense | 21.68M | 16.4M | 17.09M | 7.29M | 7.24M | 17.31M | 13.72M | 6.26M | 2.59M | 2.01M |
| Other Income/Expense | -206.25M | -141.15M | 637K | 9.11M | -1.68M | -16.46M | -20.09M | -5.09M | -2.02M | -1.47M |
| Pretax Income | -264.34M | -177.26M | -69.17M | -117.79M | -141.68M | -160.11M | -116.21M | -59.95M | -62.12M | -47.01M |
| Pretax Margin % | -87.39% | -56.97% | -22.56% | -39.8% | -51.29% | -66.18% | -61.54% | -38.69% | -55.18% | -64.32% |
| Income Tax | 915K | 716K | 333K | 356K | -4.28M | -6.9M | -1.19M | 142K | -135K | 26K |
| Effective Tax Rate % | -0.35% | -0.4% | -0.48% | -0.3% | 3.02% | 4.31% | 1.03% | -0.24% | 0.22% | -0.06% |
| Net Income | -265.26M | -177.97M | -69.5M | -118.15M | -137.4M | -153.21M | -115.02M | -60.1M | -61.98M | -47.03M |
| Net Margin % | -87.69% | -57.2% | -22.67% | -39.92% | -49.74% | -63.33% | -60.91% | -38.79% | -55.06% | -64.36% |
| Net Income Growth % | -265.08% | -156.07% | 41.17% | 14.01% | 10.32% | -33.21% | -91.39% | 3.05% | -31.78% | - |
| Net Income (Continuing) | -265.26M | -177.97M | -69.5M | -118.15M | -137.4M | -153.21M | -115.02M | -60.1M | -61.98M | -47.03M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -3.65 | -2.55 | -1.15 | -2.09 | -2.54 | -3.23 | -2.91 | -3.21 | -2.23 | -1.69 |
| EPS Growth % | -223.48% | -121.74% | 44.98% | 17.72% | 21.36% | -11% | 9.35% | -43.95% | -31.95% | - |
| EPS (Basic) | - | -2.55 | -1.15 | -2.09 | -2.56 | -3.23 | -2.91 | -3.21 | -2.23 | -1.69 |
| Diluted Shares Outstanding | 72.59M | 69.9M | 60.19M | 56.42M | 54.08M | 47.49M | 39.54M | 18.74M | 27.77M | 27.77M |
| Basic Shares Outstanding | 72.59M | 69.9M | 60.19M | 56.42M | 53.72M | 47.49M | 39.54M | 18.74M | 27.77M | 27.77M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Persistent Operating Losses
As indicated by the most recent quarterly data, Health Catalyst's revenue growth has contracted to -10.9% year-over-year, signaling a significant departure from previous periods of modest expansion and suggesting that the company is struggling to maintain its footprint within the competitive healthcare information services landscape.
The shift from positive growth in early 2025 to a double-digit decline in 2026Q1 suggests that the company's core value proposition may be facing headwinds from elongated hospital sales cycles or increased competitive displacement. Investors should monitor whether this contraction is a temporary cyclical trough or a structural decline in the demand for the company's data orchestration services.
Based on reported financial statements, the company's gross margin has experienced significant volatility, dropping to 33.4% in 2026Q1, which highlights the inherent difficulty in scaling a business model that remains heavily reliant on labor-intensive professional services rather than high-margin, automated software subscription revenue.
The inability to maintain gross margins above the 50% threshold suggests that the platform requires substantial human intervention to remain functional for clients, effectively capping the company's operating leverage. This margin profile warrants investigation into whether the firm can achieve the necessary automation to improve profitability or if it will remain trapped in a low-margin service-heavy cycle.
According to the income statement, Health Catalyst continues to struggle with operating leverage, as evidenced by the -9.5% operating margin in 2026Q1, which indicates that overhead and R&D expenses are currently outpacing the company's ability to generate sufficient gross profit to cover its fixed cost base.
The persistent operating losses suggest that the company's current scale is insufficient to absorb its existing cost structure, raising questions about the efficiency of its SG&A and R&D investments. Without a clear path to scaling revenue faster than operating expenses, the company may continue to face significant pressure on its bottom line.
As reported in recent filings, the net margin plummeted to -156.9% in 2026Q1, a figure that appears heavily influenced by non-operating items or significant one-time charges that obscure the underlying operational performance and complicate the assessment of the company's true earnings power.
The extreme variance in net income compared to operating income suggests that investors should isolate non-cash impairments and restructuring charges to understand the core cash burn. This level of volatility in the bottom line makes it difficult to forecast a sustainable path to profitability without a fundamental change in the company's expense discipline.
While the company maintains a niche in vendor-agnostic data orchestration, the bear case focuses on the -57.20% net margin and the reliance on human capital, which may indicate that the business model is fundamentally unscalable in its current form despite the stickiness of its platform integrations.
Short-sellers may point to the lack of operating leverage and the potential for further margin compression as evidence that the company is a tech-enabled consultancy rather than a high-growth software firm. The market's potential mispricing of this entity as a pure SaaS provider remains a significant risk if the company cannot demonstrate a transition toward higher-margin, automated revenue streams.
Quick answers to the most common questions about buying HCAT stock.
For fiscal year 2025, Health Catalyst, Inc. (HCAT) reported total revenue of $311.1M. This represents a 325.7% increase compared to $73.1M in 2017.
Health Catalyst, Inc. (HCAT) reported a net loss of $178.0M for the fiscal year ending 2025.
Health Catalyst, Inc. (HCAT) reported an operating income of $-36.1M, resulting in an operating profit margin of -11.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Health Catalyst, Inc. (HCAT) generated $104.1M in gross profit for the year, representing a gross profit margin of 33.5%. This demonstrates the company's core pricing power and production efficiency.