📊 HCAT Key Takeaways
Is Health Catalyst, Inc. (HCAT) a Good Investment?
Health Catalyst is fundamentally unprofitable with a $111.0M net loss on $70.8M revenue, indicating severe operating inefficiency and an unsustainable business model. Anemic 1.5% revenue growth combined with a 1.11x debt-to-equity ratio and $153.4M long-term debt creates a precarious financial position requiring urgent restructuring or significant operational transformation.
Health Catalyst shows minimal revenue growth with deeply negative operating and net margins, indicating limited operating leverage and a challenged path to profitability. Liquidity and leverage are acceptable, but interest coverage is absent and cash generation is essentially breakeven to slightly negative. Until gross/operating margin expansion and consistently positive operating cash flow emerge, the fundamentals remain weak.
Why Buy Health Catalyst, Inc. Stock? HCAT Key Strengths
- Positive free cash flow of $18.2M despite accounting losses, suggesting potential non-cash charge distortions
- Healthy liquidity metrics (1.69x current ratio) with $59.9M cash reserves providing near-term runway
- Positive stockholders' equity of $138.1M maintains balance sheet solvency
- Solid liquidity with 1.89x current ratio
- Moderate leverage (0.62x debt/equity)
- FCF near breakeven (-0.1% margin)
HCAT Stock Risks: Health Catalyst, Inc. Investment Risks
- Operating loss of $106.5M (150.5% negative margin) indicates broken unit economics at current scale
- Minimal revenue growth of 1.5% YoY fails to support debt service and operating losses, requiring unsustainable cash burn
- High leverage (1.11x debt-to-equity, $153.4M long-term debt) with massive losses creates refinancing and covenant risk
- Severely negative ROE (-80.4%) and ROA (-26.9%) demonstrate capital destruction and operational failure
- Persistent large operating and net losses (operating margin -51.7%, net margin -57.2%)
- Very weak top-line growth (+1.5% YoY) limits scale benefits
- No interest coverage; potential dilution or financing needs if losses persist
Key Metrics to Watch
- Quarterly revenue growth rate trajectory and ability to achieve meaningful acceleration
- Operating expense reduction progress and path to operating margin breakeven
- Cash burn rate and runway relative to debt maturities and refinancing needs
- Operating margin
- Operating cash flow
Health Catalyst, Inc. (HCAT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 25.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
HCAT Profit Margin, ROE & Profitability Analysis
HCAT vs Technology Sector: How Health Catalyst, Inc. Compares
How Health Catalyst, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Health Catalyst, Inc. Stock Overvalued? HCAT Valuation Analysis 2026
Based on fundamental analysis, Health Catalyst, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Health Catalyst, Inc. Balance Sheet: HCAT Debt, Cash & Liquidity
HCAT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Health Catalyst, Inc.'s revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.09 indicates the company is currently unprofitable.
HCAT Revenue Growth, EPS Growth & YoY Performance
HCAT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $70.8M | -$23.7M | $-0.35 |
| Q3 2025 | $76.3M | -$14.7M | $-0.24 |
| Q2 2025 | $75.9M | -$13.5M | $-0.23 |
| Q1 2025 | $74.7M | -$20.6M | $-0.35 |
| Q3 2024 | $73.8M | -$14.7M | $-0.24 |
| Q2 2024 | $73.2M | -$13.5M | $-0.23 |
| Q1 2024 | $73.9M | -$20.6M | $-0.35 |
| Q3 2023 | $68.4M | -$22.0M | $-0.39 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Health Catalyst, Inc. Dividends, Buybacks & Capital Allocation
HCAT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Health Catalyst, Inc. (CIK: 0001636422)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HCAT
What is the AI rating for HCAT?
Health Catalyst, Inc. (HCAT) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HCAT's key strengths?
Claude: Positive free cash flow of $18.2M despite accounting losses, suggesting potential non-cash charge distortions. Healthy liquidity metrics (1.69x current ratio) with $59.9M cash reserves providing near-term runway. ChatGPT: Solid liquidity with 1.89x current ratio. Moderate leverage (0.62x debt/equity).
What are the risks of investing in HCAT?
Claude: Operating loss of $106.5M (150.5% negative margin) indicates broken unit economics at current scale. Minimal revenue growth of 1.5% YoY fails to support debt service and operating losses, requiring unsustainable cash burn. ChatGPT: Persistent large operating and net losses (operating margin -51.7%, net margin -57.2%). Very weak top-line growth (+1.5% YoY) limits scale benefits.
What is HCAT's revenue and growth?
Health Catalyst, Inc. reported revenue of $70.8M.
Does HCAT pay dividends?
Health Catalyst, Inc. does not currently pay dividends.
Where can I find HCAT SEC filings?
Official SEC filings for Health Catalyst, Inc. (CIK: 0001636422) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HCAT's EPS?
Health Catalyst, Inc. has a diluted EPS of $-1.53.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HCAT a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Health Catalyst, Inc. has a SELL rating with 82% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HCAT stock overvalued or undervalued?
Valuation metrics for HCAT: ROE of -80.4% (sector avg: 22%), net margin of -156.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy HCAT stock in 2026?
Our dual AI analysis gives Health Catalyst, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HCAT's free cash flow?
Health Catalyst, Inc.'s operating cash flow is $18.5M, with capital expenditures of $338.0K. FCF margin is 25.7%.
How does HCAT compare to other Technology stocks?
Vs Technology sector averages: Net margin -156.9% (avg: 18%), ROE -80.4% (avg: 22%), current ratio 1.69 (avg: 2.5).