UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q ________________ (Exact name of registrant as specified in its charter) ________________ Delaware 45-3337483 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Nu ...

Core Insights - Health Catalyst reported revenue of $80.72 million for the quarter ended June 2025, reflecting a 6.4% increase year-over-year, and an EPS of $0.04, down from $0.12 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $80.53 million by 0.24%, while the EPS surpassed the consensus estimate of $0.03 by 33.33% [1] Revenue Breakdown - Professional services revenue was $27.85 million, slightly below the average estimate of $27.86 million, representing a year-over-year decline of 1.5% [4] - Technology revenue reached $52.88 million, exceeding the estimated $52.67 million, and showing an 11% increase compared to the previous year [4] Profitability Metrics - Adjusted Gross Profit for Professional Services was reported at $5.11 million, surpassing the average estimate of $4.09 million [4] - Adjusted Gross Profit for Technology was $34.85 million, slightly below the average estimate of $35.35 million [4] Stock Performance - Over the past month, Health Catalyst shares have returned -5.2%, contrasting with a +1.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Health Catalyst (HCAT) Q2 2025 Earnings Call August 07, 2025 05:00 PM ET Speaker0Welcome to the Health Catalyst Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants have been placed in a listen only mode and the floor will be open for your questions following the presentation. I would now like to turn the call over to Jack Knight, Vice President of Investor Relations.Speaker1Good afternoon, and welcome to Health Catalyst's earnings conference call for the 2025, which en ...

Mr. Burton to Retire June 30, 2026, Actively Committed to Support Board in Transition and New CEO SearchSALT LAKE CITY, Aug. 7, 2025 /PRNewswire/ -- Health Catalyst, Inc. ("Health Catalyst,"Nasdaq: HCAT), a leading provider of data and analytics technology and services to healthcare organizations, today announced that Health Catalyst Chief Executive Officer Dan Burton is stepping down from his role as CEO, effective June 2026, to enable additional time to pursue a few volunteer service opportunities he and ...

Core Insights - Health Catalyst, Inc. will release its second quarter 2025 operating results on August 7, 2025, after market close [1] - A conference call to discuss the results will take place at 5:00 pm ET on the same day [1] Company Overview - Health Catalyst is a leading provider of data and analytics technology and services aimed at improving healthcare outcomes [3] - The company serves over 1,000 organizations globally, utilizing its cloud-based technology ecosystem, Health Catalyst Ignite™, and AI-enabled solutions [3] - Health Catalyst has a proven track record of delivering billions of dollars in measurable results, focusing on transforming complex healthcare data into actionable insights [3]

Core Insights - Health Catalyst, Inc. has announced the listing of 10 AI-integrated data toolkits on Databricks Marketplace, aimed at addressing significant challenges in healthcare organizations [1][2] - The toolkits are designed to provide actionable resources at no cost, enabling healthcare organizations to trial use cases and experience the value of Health Catalyst's expertise [2][4] - This initiative is part of a broader partnership with Databricks to enhance healthcare data sharing and analytics [3][7] Group 1: Product Offering - The data toolkits include advanced machine learning models and large language model capabilities to help health systems improve outcomes in various areas [4][6] - Key functionalities of the toolkits include predicting hospital readmissions, reducing avoidable emergency department visits, and optimizing surgical outcomes [6][7] - The toolkits are designed to remove barriers to measurable improvement by providing a ready-to-run framework for healthcare organizations [4][5] Group 2: Strategic Importance - The release of these toolkits reflects Health Catalyst's commitment to making data-driven improvements more accessible across the healthcare community [7] - The initiative follows the launch of Health Catalyst Ignite Spark™, which aims to provide tailored analytics solutions for smaller healthcare organizations [7][8] - By democratizing access to sophisticated analytics, Health Catalyst enables healthcare organizations of all sizes to leverage AI for better patient outcomes [5][8]

Core Viewpoint - Health Catalyst (HCAT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, driven by institutional investors who adjust their valuations based on these estimates [4][6]. - Rising earnings estimates for Health Catalyst suggest an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [5][10]. Recent Performance and Projections - Health Catalyst is projected to earn $0.25 per share for the fiscal year ending December 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for Health Catalyst has increased by 32.4%, reflecting a positive trend in earnings estimates [8]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - The Zacks Rank 2 upgrade for Health Catalyst places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Performance & Targets - Health Catalyst's Q1 2025 total revenue reached $79.4 million, a 6% increase year-over-year, exceeding the guidance of approximately $79 million[48] - The company's Q1 2025 Adjusted EBITDA was $6.3 million, representing an 8% margin and an 86% increase, surpassing the guidance of around $4 million[48] - Health Catalyst anticipates a 2025 Adjusted EBITDA of approximately $41 million, a 57% increase, resulting in a 12% margin[15, 48] - The company targets approximately $500 million in revenue and $100 million in Adjusted EBITDA by 2028[15] Client Base & Retention - Health Catalyst has over 1,000 platform and app clients, including academic medical centers, integrated delivery networks, and health insurers[17] - The company added 10 net new platform clients in Q1 2025, with an aggregated average total ARR plus non-recurring revenue of approximately $500,000[48] - Health Catalyst aims to add approximately 40 net new platform clients in 2025, with an average ARR plus non-recurring revenue ranging from $300,000 to $700,000[48] - The dollar-based retention rate for Tech + TEMS is targeted at approximately 103% for 2025[48] Solutions & Improvements - Health Catalyst solutions focus on five core areas: Clinical Improvement, Revenue & Cost Improvement, Ambulatory Operations, Measures & Registries, and Data & Analytics[20, 21] - The company highlights examples of client improvements, such as $22 million in cost savings and $1.9 million in new revenue through improved patient flow[23] - Health Catalyst emphasizes its comprehensive solution, including a data platform, applications, and expertise, to drive measurable clinical, financial, and operational improvements for healthcare organizations[10, 15]

Group 1 - The recommendation for Health Catalyst (NASDAQ: HCAT) is a buy rating, indicating a positive outlook for the company's future performance [1] - The new Ignite platform is identified as a major growth catalyst that is expected to drive growth for the foreseeable future [1] - The investment approach focuses on long-term investments while also incorporating short-term strategies to uncover alpha opportunities, emphasizing a bottom-up analysis of individual companies [1] Group 2 - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

[Part I. Financial Information](index=6&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents Health Catalyst, Inc.'s unaudited condensed consolidated financial statements for Q1 2025, including balance sheets, statements of operations, and cash flows, with notes on key events like the Upfront Healthcare acquisition and a new restructuring plan Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $341,968 | $249,645 | +$92,323 | | Goodwill | $313,380 | $259,759 | +$53,621 | | Total assets | $891,542 | $858,929 | +$32,613 | | Deferred revenue (Current) | $71,497 | $53,281 | +$18,216 | | Total liabilities | $514,731 | $493,722 | +$21,009 | | Total stockholders' equity | $376,811 | $365,207 | +$11,604 | Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended Mar 31, 2025 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Total revenue | $79,413 | $74,723 | +6.3% | | Technology Revenue | $51,482 | $46,966 | +9.6% | | Professional Services Revenue | $27,931 | $27,757 | +0.6% | | Loss from operations | $(20,171) | $(22,812) | +11.6% | | Net loss | $(23,742) | $(20,587) | -15.3% | | Net loss per share, basic and diluted | $(0.35) | $(0.35) | 0.0% | Condensed Consolidated Statements of Cash Flows (Unaudited) | Cash Flow Activity | Three Months Ended Mar 31, 2025 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $280 | $10,266 | | Net cash provided by investing activities | $96,762 | $83,984 | | Net cash (used in) provided by financing activities | $(4,712) | $863 | | Net increase in cash and cash equivalents | $92,323 | $95,094 | - On January 22, 2025, the company acquired Upfront Healthcare Services, Inc. for a total consideration of **$80.0 million**, consisting of **$41.1 million** in net cash, **$31.6 million** in common stock, and **$7.3 million** in contingent consideration[99](index=99&type=chunk) - In Q1 2025, the company initiated a new restructuring plan to optimize its cost structure, reducing its global workforce and incurring **$3.6 million** in related costs, primarily for severance[206](index=206&type=chunk)[208](index=208&type=chunk) - On April 14, 2025, the company fully repaid the outstanding principal and accrued interest on its 2.50% Convertible Senior Notes due 2025, which had an aggregate principal amount of **$230.0 million**[213](index=213&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, noting a 6% revenue increase, widened net loss, improved Adjusted EBITDA, and strong liquidity, alongside strategic initiatives and macroeconomic impacts Key Financial Metrics Comparison (Unaudited) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total revenue | $79,413 thousand | $74,723 thousand | | Gross margin | 36% | 39% | | Net loss | $(23,742) thousand | $(20,587) thousand | | Adjusted Gross Margin | 49% | 51% | | Adjusted EBITDA | $6,279 thousand | $3,377 thousand | - Total revenue increased by **6% YoY** to **$79.4 million** in Q1 2025, primarily driven by a **10% increase** in Technology revenue from new and acquired clients and contractual escalators with existing clients[268](index=268&type=chunk)[269](index=269&type=chunk) - Sales and marketing expenses decreased by **23% YoY** to **$14.7 million**, mainly due to lower stock-based compensation, a change in the timing of the annual HAS event, and a reduced provision for expected credit losses[273](index=273&type=chunk) - The company's liquidity position as of March 31, 2025, included **$342.0 million** in cash, cash equivalents, and short-term investments. The company believes this is sufficient to meet its needs for at least the next 12 months[283](index=283&type=chunk)[285](index=285&type=chunk) - The company performed a quantitative goodwill impairment test during Q1 2025 due to a decline in its stock price. The test concluded that the fair values of both the Technology and Professional Services reporting units exceeded their carrying values by approximately **10%** and **13%**, respectively, so no impairment was recorded[304](index=304&type=chunk)[306](index=306&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks include interest rate risk from its variable-rate Credit Agreement, limited foreign currency risk, and ongoing inflation risk impacting client spending and operating costs - The company is exposed to interest rate risk from its Credit Agreement, which bears interest at a floating rate of SOFR plus **6.5%**. A hypothetical **100 basis point** change in interest rates is not expected to have a material impact on the fair value of the outstanding debt as of the filing date[313](index=313&type=chunk)[315](index=315&type=chunk) - Foreign currency exchange risk is currently not material due to the small size of international operations, with most international sales contracts denominated in U.S. dollars. The company may consider hedging programs as it expands internationally[317](index=317&type=chunk)[318](index=318&type=chunk) - The company acknowledges that the recent high inflationary environment has put financial strain on its health system end market. While client operating margins improved in early 2025, ongoing inflation could negatively impact client spending and the company's own costs[319](index=319&type=chunk)[320](index=320&type=chunk) [Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[322](index=322&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[323](index=323&type=chunk) [Part II. Other Information](index=72&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=72&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial condition - As of the report date, Health Catalyst is not involved in any legal proceedings that management believes would have a material adverse effect on the company[326](index=326&type=chunk) [Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) This section details significant risks including intense competition, macroeconomic impacts, operational challenges with third-party reliance and platform migration, regulatory compliance, and financial risks related to indebtedness and profitability - The company faces intense competition from large, well-financed entities like Epic Systems and Oracle Health, as well as niche vendors, which could lead to pricing pressures and impact market share[328](index=328&type=chunk)[329](index=329&type=chunk) - Macroeconomic challenges, including high inflation and interest rates, continue to strain the healthcare industry, which could lead to delays in client purchasing decisions and negatively affect demand for the company's solutions[334](index=334&type=chunk) - The company's business is vulnerable to information technology system failures and cyberattacks. A security breach could lead to litigation, reputational damage, and regulatory fines[401](index=401&type=chunk)[403](index=403&type=chunk)[404](index=404&type=chunk) - The business relies on third-party providers, particularly Microsoft Azure, for its computing infrastructure. Any disruption from these providers could adversely affect service delivery and lead to liability[409](index=409&type=chunk)[410](index=410&type=chunk) - The company is subject to numerous complex healthcare and data privacy laws, including HIPAA, the federal Anti-Kickback Statute, GDPR, and CCPA. Failure to comply could result in significant penalties and harm the business[436](index=436&type=chunk)[441](index=441&type=chunk)[449](index=449&type=chunk) - The Credit Agreement contains restrictive covenants that could limit the company's ability to incur debt, make investments, or pay dividends, potentially restricting operational and financial flexibility[472](index=472&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=111&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activities, including the repurchase of **1,103,601 shares** for **$5.0 million** in Q1 2025, with **$24.8 million** remaining for future repurchases Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31, 2025 | — | $— | $29.8 million | | Feb 1 - Feb 28, 2025 | — | $— | $29.8 million | | Mar 1 - Mar 31, 2025 | 1,103,601 | $4.51 | $24.8 million | | **Total** | **1,103,601** | **$4.51** | **$24.8 million** | [Other Information](index=111&type=section&id=Item%205.%20Other%20Information) This section discloses that CEO Daniel Burton and General Counsel Benjamin Landry adopted Rule 10b5-1 trading arrangements in Q1 2025, while two other officers terminated theirs - During Q1 2025, CEO Daniel Burton and General Counsel Benjamin Landry adopted Rule 10b5-1 trading arrangements to permit future sales of their company stock[509](index=509&type=chunk) [Exhibits](index=113&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including the Upfront Healthcare merger agreement, corporate governance documents, and officer certifications - The exhibits filed with this report include the Agreement and Plan of Merger for the Upfront Healthcare acquisition, the company's Amended and Restated Certificate of Incorporation and Bylaws, and certifications by the CEO and CFO[511](index=511&type=chunk)