Health Catalyst, Inc. (HCAT) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Health Catalyst, Inc. (HCAT) Healthcare & Pipeline Overview

Health Catalyst, Inc. delivers data and analytics solutions to healthcare organizations, focusing on improving clinical, financial, and operational outcomes. Its platform integrates AI and data science to enhance business intelligence, offering services from population health management to financial transformation within the evolving healthcare landscape.

What Is the Investment Thesis for HCAT?

Health Catalyst operates in the growing healthcare analytics market, driven by the increasing demand for data-driven insights to improve patient outcomes and reduce costs. The company's comprehensive suite of data and analytics solutions positions it to capitalize on this trend. However, with a current market capitalization of $127M and a negative profit margin of -57.2%, the company faces significant challenges in achieving profitability. A key value driver is the company's ability to expand its customer base and increase adoption of its platform and services. Upcoming catalysts include potential partnerships with larger healthcare organizations and the launch of new AI-powered analytics solutions. Investors should monitor the company's progress in improving its financial performance and achieving sustainable growth.

Based on FMP financials and quantitative analysis

HCAT Key Highlights

Market capitalization of $127M, reflecting its current valuation in the market.

• Negative profit margin of -57.2%, indicating challenges in achieving profitability.
• Gross margin of 33.5%, showcasing the profitability of its core services before operating expenses.
• Beta of 1.81, suggesting higher volatility compared to the overall market.
• No dividend yield, as the company does not currently distribute dividends to shareholders.

Who Are HCAT's Competitors?

HCAT is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are HCAT's Key Strengths?

Comprehensive data and analytics platform.

• Expertise in AI and data science.
• Focus on the healthcare sector.
• National data ecosystem.

What Are HCAT's Weaknesses?

Negative profit margin.

• Relatively small market capitalization.
• High beta indicating volatility.
• Dependence on healthcare organizations' willingness to adopt new technologies.

What Could Drive HCAT Stock Higher?

Potential partnerships with larger healthcare organizations to expand market reach.

• Launch of new AI-powered analytics solutions to enhance platform capabilities.
• Increasing adoption of value-based care driving demand for population health management solutions.
• Growing need for data-driven insights to improve patient outcomes and reduce costs.

What Are the Key Risks for HCAT?

Financial-distress signal — its Altman Z-Score of -6.57 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-99.8%) — the business is not currently generating profit on shareholder capital.
• Intense competition from larger companies with greater resources.
• Regulatory changes in the healthcare industry affecting data privacy and security.
• Negative profit margin and challenges in achieving profitability.
• Dependence on healthcare organizations' willingness to adopt new technologies.

What Are the Growth Opportunities for HCAT?

• Expansion of AI and Data Science Offerings: Health Catalyst can leverage its AI and data science capabilities to develop new solutions that address specific healthcare challenges, such as predicting patient readmissions or identifying high-risk patients. The market for AI in healthcare is projected to reach $34 billion by 2027, offering a substantial growth opportunity for Health Catalyst. By integrating AI into its existing platform, the company can enhance its value proposition and attract new customers.
• Strategic Partnerships with Healthcare Providers: Forming strategic partnerships with large healthcare providers can provide Health Catalyst with access to a broader customer base and valuable data. These partnerships can also enable the company to co-develop new solutions and tailor its offerings to meet the specific needs of its partners. The timeline for these partnerships can vary, but successful collaborations can drive significant revenue growth and market share gains.
• Geographic Expansion: Health Catalyst can expand its geographic reach by targeting new markets outside of the United States. The global healthcare analytics market is expected to grow significantly in the coming years, presenting opportunities for Health Catalyst to establish a presence in new regions. This expansion can be achieved through direct sales, partnerships with local distributors, or acquisitions of complementary businesses.
• Focus on Population Health Management: With the increasing emphasis on value-based care, Health Catalyst can capitalize on the growing demand for population health management solutions. By providing tools and services that help healthcare organizations identify and manage high-risk populations, the company can improve patient outcomes and reduce healthcare costs. The market for population health management is projected to reach $69.2 billion by 2030, offering a significant growth opportunity for Health Catalyst.
• Development of a National Data Ecosystem: Health Catalyst's national data ecosystem can serve as a valuable asset for thought leadership and knowledge exchange. By fostering collaboration among healthcare organizations and providing access to a vast amount of data, the company can drive innovation and improve care delivery across the industry. This ecosystem can also attract new customers and partners, further strengthening Health Catalyst's market position.

What Are HCAT's Competitive Advantages?

• Proprietary data and analytics platform tailored for healthcare.
• Expertise in AI and data science applied to healthcare challenges.
• Established relationships with healthcare organizations.
• National data ecosystem fostering knowledge exchange.

What Does HCAT Do?

Founded in 2008 and headquartered in South Jordan, Utah, Health Catalyst, Inc. emerged from a vision to transform healthcare through data and analytics. Initially known as HQC Holdings, Inc., the company rebranded as Health Catalyst, Inc. in March 2017, marking a pivotal shift towards its current focus. Health Catalyst provides a suite of technology and services designed to help healthcare organizations improve their performance. Its core offering is a data and analytics platform tailored for the healthcare sector, providing a commercial-grade infrastructure for managing and analyzing vast amounts of clinical, financial, and operational data. This platform enables healthcare providers to gain actionable insights, improve patient outcomes, and reduce costs. In addition to its platform, Health Catalyst offers AI and data science solutions, integrating artificial intelligence into existing business intelligence tools to enhance analytics accuracy and predictive capabilities. The company's services also include population health management, which identifies opportunities for improvement across the care continuum, offering guidance and automated workflows to drive success. Furthermore, Health Catalyst provides financial transformation solutions, delivering insights into costing, labor productivity, and revenue capture. The company also focuses on quality and safety improvement, leveraging clinical quality and patient safety data, analytics, and expert services to enhance healthcare delivery. Health Catalyst's national data ecosystem fosters thought leadership and knowledge exchange, aiming to transform care delivery through next-generation insights. With approximately 1,500 employees, Health Catalyst serves a diverse range of healthcare organizations, including hospitals, health systems, and accountable care organizations.

What Products and Services Does HCAT Offer?

• Provides a data and analytics platform for healthcare organizations.
• Offers AI and data science solutions to enhance business intelligence.
• Delivers population health management tools and services.
• Provides financial transformation solutions for costing and labor productivity insights.
• Offers quality and safety improvement services using clinical data.
• Maintains a national data ecosystem for knowledge exchange.

How Does HCAT Make Money?

• Provides subscription-based access to its data and analytics platform.
• Offers professional services for implementation, training, and support.
• Generates revenue from AI and data science solutions.
• Provides population health management and financial transformation services.

What Industry Does HCAT Operate In?

Health Catalyst operates within the healthcare information services industry, which is experiencing significant growth due to the increasing adoption of electronic health records (EHRs) and the growing need for data-driven insights to improve healthcare delivery. The market is competitive, with companies like Cerner (ORCL) and Allscripts (Unknown) offering similar solutions. Health Catalyst differentiates itself through its focus on providing a comprehensive data and analytics platform specifically designed for the healthcare sector. The industry is expected to continue to grow as healthcare organizations increasingly invest in data analytics to improve patient outcomes, reduce costs, and comply with regulatory requirements.

Who Are HCAT's Key Customers?

• Health systems
• Accountable care organizations (ACOs)

Company Profile

Health Catalyst, Inc. operates in the Medical - Healthcare Information Services industry within the Healthcare sector. It is headquartered in South Jordan, US. The company is led by CEO Benjamin Albert. HCAT has traded publicly since 2019.

Health Catalyst, Inc. Financial Trajectory

Health Catalyst, Inc. (HCAT) reported $70.5M in revenue for Q2 FY2026, a decline of 0.4% compared to the prior quarter. The company recorded a net loss of $40.5M, with diluted EPS of $-0.55. Revenue has contracted over three consecutive quarters, which investors in this micro-cap Healthcare stock should monitor closely. Across the four most recent quarters, HCAT averaged $-0.92 in diluted EPS.

How Health Catalyst, Inc. Is Valued

Health Catalyst, Inc. carries a market capitalization of $127M, placing it in the micro-cap category. Analyst price targets span from $1.75 to $3.00, with a consensus of $2.08. At the current price of $1.72, that implies approximately 21% upside potential. Relative to its peer group, HCAT's quantitative score of 18/100 is below the peer average of 71/100.

Return on equity for Health Catalyst, Inc. stands at -99.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -64.4%, showing how much profit it generates from its asset base. Its free cash flow yield is 6.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.69 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -176.5%, the inverse of the P/E and a quick read on earnings relative to price.

Health Catalyst, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -6.57 places it in the distress zone, a signal of elevated financial risk.

Health Catalyst, Inc. has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 10.3% above estimates on average.

Over the past six months, Health Catalyst, Inc. insiders filed 17 SEC Form 4 transactions — 9 sales and 8 purchases. On net that is roughly 393K shares acquired (about $169K) — insiders putting money in tends to read as conviction.

HCAT Financials

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HCAT Analyst Consensus

HCAT MoonshotScore

Common Questions About HCAT (Healthcare)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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