📊 HCAT Key Takeaways
Is HCAT a Good Investment? Thesis Analysis
Health Catalyst is a deeply unprofitable software company with minimal growth momentum and significant cash burn, creating an unsustainable financial position. The company generated $311.1M in revenue with a -$178M net loss (-57.2% net margin) and -51.7% operating margin, while revenue growth stagnated at 1.5% YoY and EPS deteriorated 121.7%. Without dramatic profitability improvement or revenue acceleration, the company's $50.8M cash balance is inadequate given its annual cash burn trajectory.
Why Buy HCAT? Key Strengths
- Solid 38.3% gross margin demonstrates underlying business model has economic viability and pricing power
- Strong liquidity position with 1.89x current ratio and $50.8M cash provides runway for operational improvements
- Moderate leverage at 0.62x debt/equity ratio allows room to service debt if profitability improves
HCAT Investment Risks to Consider
- Severe operational losses with -$160.9M operating income and -$178M net loss are structurally unsustainable at current revenue scale
- Anemic 1.5% revenue growth combined with worsening earnings quality (EPS down 121.7% YoY) indicates business momentum deterioration and cost structure misalignment
- Negative $237K free cash flow and inadequate operating cash flow relative to capital needs signal imminent cash constraints if losses persist
Key Metrics to Watch
- Operating margin trend - path to breakeven is existential for company viability
- Revenue growth acceleration - must exceed 10%+ to justify fixed cost base, or costs must reduce 40%+
- Free cash flow and cash balance depletion rate - determine runway before liquidity crisis forces restructuring
HCAT Financial Metrics
💡 AI Analyst Insight
Health Catalyst, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HCAT Profitability Ratios
HCAT vs Technology Sector
How Health Catalyst, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HCAT Overvalued or Undervalued?
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.
HCAT Balance Sheet & Liquidity
HCAT 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
HCAT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $70.6M | -$32.6M | $-0.58 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HCAT Capital Allocation
HCAT SEC 10-K & 10-Q Filing 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 an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HCAT's key strengths?
Claude: Solid 38.3% gross margin demonstrates underlying business model has economic viability and pricing power. Strong liquidity position with 1.89x current ratio and $50.8M cash provides runway for operational improvements.
What are the risks of investing in HCAT?
Claude: Severe operational losses with -$160.9M operating income and -$178M net loss are structurally unsustainable at current revenue scale. Anemic 1.5% revenue growth combined with worsening earnings quality (EPS down 121.7% YoY) indicates business momentum deterioration and cost structure misalignment.
What is HCAT's revenue and growth?
Health Catalyst, Inc. reported revenue of $311.1M.
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 $-2.55.
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 April 2026, Health Catalyst, Inc. has a STRONG SELL rating with 88% 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 -72.4% (sector avg: 22%), net margin of -57.2% (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 STRONG 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 $731.0K, with capital expenditures of $968.0K. FCF margin is -0.1%.
How does HCAT compare to other Technology stocks?
Vs Technology sector averages: Net margin -57.2% (avg: 18%), ROE -72.4% (avg: 22%), current ratio 1.89 (avg: 2.5).