Health Catalyst, Inc. (HCAT)
Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations, enabling them to improve clinical, financial, and operational outcomes. The company's offerings include a data and analytics platform, AI and data science solutions, and services for population health management, financial transformation, and quality improvement.
Company Overview
Health Catalyst empowers healthcare organizations with cutting-edge data and analytics solutions, driving improved patient outcomes and financial performance. With a comprehensive platform and specialized services, HCAT is positioned to capitalize on the growing demand for data-driven healthcare transformation, despite current profitability challenges.
Investment Thesis
Health Catalyst presents a compelling investment opportunity within the healthcare analytics space, driven by the increasing demand for data-driven decision-making in healthcare. While the company currently operates with a negative P/E ratio of -1.41 and a negative profit margin of -34.1%, its strong gross margin of 46.5% indicates potential for future profitability as it scales its operations and achieves greater efficiency. Key growth catalysts include the expansion of its AI and data science offerings and the increasing adoption of its population health management solutions. The company's focus on providing actionable insights and automated workflows positions it to capture a significant share of the growing healthcare analytics market. Investors should monitor the company's progress in improving its financial performance and achieving profitability, with a focus on revenue growth and cost management. The company's high beta of 1.74 suggests higher volatility compared to the market.
Key Highlights
- Market Cap of $0.15B reflects its position as a smaller player in the healthcare analytics market, offering potential for growth.
- Gross Margin of 46.5% demonstrates the value of its data and analytics platform and services.
- P/E Ratio of -1.41 indicates that the company is currently not profitable, requiring careful monitoring of its financial performance.
- Beta of 1.74 suggests higher volatility compared to the market, which could lead to larger gains or losses.
- No Dividend Yield reflects the company's focus on reinvesting earnings to fund growth initiatives.
Competitors
Strengths
- Comprehensive data and analytics platform for healthcare.
- Strong expertise in healthcare data and analytics.
- Established relationships with healthcare organizations.
- National data ecosystem for knowledge sharing.
Weaknesses
- Currently unprofitable with a negative profit margin.
- High beta indicates higher volatility.
- Smaller market capitalization compared to larger competitors.
- Reliance on subscription and service revenue.
Catalysts
- Upcoming: Expansion of AI-powered analytics capabilities to enhance clinical decision support.
- Ongoing: Increasing adoption of the Health Catalyst data platform by healthcare systems seeking improved data insights.
- Ongoing: Strategic partnerships with healthcare providers to implement population health management programs.
- Upcoming: Launch of new data products and services to address emerging needs in the healthcare industry.
Risks
- Potential: Intense competition from larger, more established healthcare analytics providers.
- Ongoing: The company's current unprofitability and negative profit margin pose a risk to its long-term sustainability.
- Potential: Evolving regulatory landscape for healthcare data privacy could impact data collection and usage.
- Potential: Economic downturn impacting healthcare spending could reduce demand for Health Catalyst's solutions.
Growth Opportunities
- Expansion of AI and Data Science Offerings: Health Catalyst can capitalize on the increasing demand for AI-powered analytics in healthcare by expanding its AI and data science offerings. This includes developing new AI algorithms and models for predictive analytics, personalized medicine, and clinical decision support. The market for AI in healthcare is projected to reach $34 billion by 2025, presenting a significant growth opportunity for Health Catalyst. Timeline: Ongoing.
- Increased Adoption of Population Health Management Solutions: Health Catalyst can drive growth by increasing the adoption of its population health management solutions. This includes expanding its partnerships with healthcare providers and payers to implement programs that improve patient outcomes and reduce costs. The market for population health management is expected to reach $89 billion by 2027, offering a substantial growth opportunity. Timeline: Ongoing.
- Strategic Partnerships and Acquisitions: Health Catalyst can accelerate its growth through strategic partnerships and acquisitions. This includes partnering with other healthcare technology companies to expand its product offerings and reach new markets. It can also acquire companies with complementary technologies or customer bases. Timeline: Ongoing.
- Expansion into New Geographies: Health Catalyst can expand its geographic reach by entering new markets, both domestically and internationally. This includes targeting healthcare organizations in regions with high growth potential and limited access to advanced analytics solutions. Timeline: Ongoing.
- Development of New Data Products and Services: Health Catalyst can drive growth by developing new data products and services that address emerging needs in the healthcare industry. This includes creating data marketplaces, providing data governance solutions, and offering data science consulting services. Timeline: Ongoing.
Opportunities
- Expansion of AI and data science offerings.
- Increased adoption of population health management solutions.
- Strategic partnerships and acquisitions.
- Expansion into new geographies.
Threats
- Intense competition from larger healthcare analytics providers.
- Evolving regulatory landscape for healthcare data privacy.
- Potential for data breaches and security vulnerabilities.
- Economic downturn impacting healthcare spending.
Competitive Advantages
- Proprietary data and analytics platform designed specifically for healthcare.
- Deep domain expertise in healthcare data and analytics.
- Established relationships with leading healthcare organizations.
- National data ecosystem for knowledge exchange and collaboration.
About
Health Catalyst, Inc., founded in 2008 and headquartered in South Jordan, Utah, is a leading provider of data and analytics technology and services to healthcare organizations. Originally known as HQC Holdings, Inc., the company rebranded to Health Catalyst in March 2017, reflecting its focus on catalyzing healthcare transformation through data. The company's core offering is its data and analytics platform, a commercial-grade solution designed specifically for the healthcare sector. This platform integrates with various healthcare systems to collect, process, and analyze data, providing insights that drive improvements in clinical, financial, and operational performance. Health Catalyst also offers AI and data science solutions, enabling healthcare organizations to leverage advanced analytics to improve accuracy and efficiency. Their services extend to population health management, financial transformation, and quality and safety improvement, providing healthcare providers with actionable guidance and automated workflows. Health Catalyst's national data ecosystem facilitates knowledge exchange and collaboration among healthcare organizations, fostering innovation and best practices. Despite its innovative solutions, Health Catalyst faces challenges in achieving profitability, as reflected in its negative profit margin.
What They Do
- Provides a data and analytics platform for healthcare organizations.
- Offers AI and data science solutions to improve analytics accuracy.
- Delivers population health management tools for care continuum improvement.
- Provides financial transformation insights for costing, labor productivity, and revenue capture.
- Offers quality and safety improvement solutions using clinical data.
- Facilitates a national data ecosystem for knowledge exchange.
Business Model
- Subscription-based revenue for access to its data and analytics platform.
- Professional services fees for implementation, consulting, and training.
- Revenue from AI and data science solutions.
- Revenue from population health management services.
Industry Context
Health Catalyst operates in the rapidly evolving healthcare information services industry, which is driven by the increasing adoption of electronic health records (EHRs), the growing demand for value-based care, and the need to improve patient outcomes and reduce costs. The market for healthcare analytics is expected to grow significantly in the coming years, driven by the increasing availability of data and the development of advanced analytics technologies. Health Catalyst competes with other healthcare analytics providers, including Cerner (now Oracle), Allscripts, and smaller, more specialized players. The company differentiates itself through its focus on providing actionable insights and automated workflows, as well as its national data ecosystem for knowledge exchange.
Key Customers
- Hospitals and health systems.
- Physician groups and clinics.
- Accountable care organizations (ACOs).
- Health insurance payers.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $76M | -$22M | $0.00 |
| Q2 2025 | $81M | -$41M | $0.00 |
| Q1 2025 | $79M | -$24M | $0.00 |
| Q4 2024 | $80M | -$21M | $0.00 |
Source: Company filings
Chart & Info
Price Chart
Health Catalyst, Inc. (HCAT) stock price: $1.84 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests those with the most knowledge of HCAT believe it's undervalued, signaling potential upside.
- •Community sentiment seems to be shifting more positive, with increased discussions about potential catalysts and future growth opportunities.
- •The market appears to be recognizing HCAT's efforts to expand its product line, which could lead to increased revenue streams.
- •HCAT's strategic partnerships are generating positive buzz, indicating potential for synergistic growth and market penetration.
Why Bear
- •Despite insider buying, some worry about the overall volume, questioning if it's enough to offset broader market concerns.
- •While sentiment is improving, there's still a contingent of users expressing concerns about execution and competition.
- •Market perception is volatile; recent positive developments could be short-lived if HCAT fails to deliver on expectations.
- •Some community members are skeptical about the long-term viability of HCAT's partnerships, citing past collaborations that didn't pan out.
Latest News
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3 Cash-Burning Stocks Walking a Fine Line
StockStory · Feb 12, 2026
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Earnings Scheduled For November 10, 2025
benzinga · Nov 10, 2025
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Earnings Scheduled For August 7, 2025
benzinga · Aug 7, 2025
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Earnings Scheduled For May 7, 2025
benzinga · May 7, 2025
Technical Analysis
Rationale
AI-generated technical analysis for HCAT including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for HCAT.
Make a Prediction
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Current price: $1.84
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for HCAT.
Price Targets
Wall Street price target analysis for HCAT.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 3.6% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 8/100
Gross margin at 47.5% indicates good unit economics and healthy profitability per sale.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates HCAT's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does Health Catalyst, Inc. do?
Health Catalyst, Inc. is a healthcare data and analytics company that provides technology and services to healthcare organizations. The company's core offering is its data and analytics platform, which integrates with various healthcare systems to collect, process, and analyze data. Health Catalyst then uses this data to provide insights that drive improvements in clinical, financial, and operational performance. In addition to its platform, Health Catalyst offers AI and data science solutions, population health management tools, financial transformation services, and quality and safety improvement solutions, all designed to help healthcare organizations achieve better outcomes and reduce costs.
Is HCAT stock a good buy?
HCAT stock presents a mixed investment picture. While the company operates in a high-growth sector with increasing demand for data-driven healthcare solutions, its current financial performance is a concern, with a negative P/E ratio and profit margin. However, its strong gross margin suggests potential for future profitability as it scales its operations. Investors should carefully consider the company's growth prospects, competitive landscape, and financial performance before making an investment decision. Monitoring its progress in achieving profitability and expanding its customer base is crucial.
What are the main risks for HCAT?
Health Catalyst faces several key risks. First, the company operates in a highly competitive market with larger, more established players. Second, its current unprofitability and negative profit margin pose a risk to its long-term sustainability. Third, the evolving regulatory landscape for healthcare data privacy could impact its ability to collect and use data. Finally, an economic downturn impacting healthcare spending could reduce demand for its solutions. Investors should carefully consider these risks before investing in HCAT.
Is HCAT a good stock to buy?
Whether HCAT is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the HCAT MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is HCAT data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for HCAT?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to Health Catalyst, Inc..
Who are HCAT's main competitors?
Health Catalyst, Inc.'s competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how HCAT compares.
What do analysts say about HCAT?
Analyst ratings and price targets for HCAT are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is HCAT's market cap?
Market capitalization reflects the total market value of HCAT's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has HCAT stock performed recently?
Check the Chart & Info tab for HCAT's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in HCAT?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for HCAT-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling HCAT?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for HCAT.
Is HCAT a good stock for beginners?
Health Catalyst, Inc. (HCAT) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is HCAT for first-time investors?
Every stock carries risk, including Health Catalyst, Inc. (HCAT). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like HCAT.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Stock data pending update, limiting complete financial analysis.