HCAT earnings analysis
What we found in HCAT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Health Catalyst (HCAT) achieved a revenue of $70.8 million in Q1 2026, a decrease of 11% from $79.4 million in the prior year. While the company reported a positive EPS of $0.02, management highlighted significant challenges including a $95.5 million goodwill impairment alongside changing market conditions impacting profitability and client retention.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Q1 Revenue at $70.8 Million
- Total revenue decreased by 11% from $79.4 million in Q1 2025.
- Positive EPS of $0.02
- This contrasts with an estimated EPS loss of -$0.01, marking a slight earnings surprise.
- Adjusted EBITDA Increased
- Adjusted EBITDA grew to $9.1 million from $6.3 million year-over-year.
- Technology Revenue Represents 70% of Total
- Technology revenue at $49.5 million, down from $51.5 million.
- Improvement in Professional Services Margin
- Professional services gross margin improved to 15% from 8% year-over-year.
- High Recurring Revenue Model
- Over 90% of total revenue is recurring in nature, enhancing predictability.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- $95.5 Million Goodwill Impairment
- This significant impairment reflects declines in stock price and market capitalization.
- Client Downsell and Churn
- $12.5 million in annual recurring revenue loss linked to migrations from legacy systems.
- External Economic Pressures
- High inflation and government funding cuts are expected to strain future revenue streams.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.02
- Gross margin
- 39%
- Segment
- Technology Revenue: $49.5 Million
- Segment
- Professional Services Revenue: $21.3 Million
What they said about what is next.
Management provided revenue guidance expecting a Q2 revenue between $68 million and $70 million.
The filing reads about the same as the one before it.
What came before.
- 10-K · April 30, 2026
- Health Catalyst reported sluggish performance in fiscal 2025 with a net loss of $177.97 million and total revenue of $311.14 million, marking a notable dip from prior periods. Despite a positive revenue surprise in Q4…
- 10-K · March 12, 2026
- Health Catalyst’s 2025 10-K emphasizes its Ignite platform, analytics applications, and services flywheel and reports visible scale (162 Platform Clients and over 1,000 App Clients as of December 31, 2025) and more than…
- 10-Q · May 9, 2025
- Health Catalyst reported Q1 revenue of $79,413,000, up $4,690,000 (+6.3%) versus Q1 2024. Technology revenue grew faster (+$4,516,000 to $51,482,000) while professional services was essentially flat ($27,931,000). Gross…
- 10-K · February 26, 2025
- Health Catalyst positions itself as a healthcare-focused data & analytics company centered on its Ignite platform, analytics applications, and managed services (the “Solution”) and emphasizes a recurring subscription…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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