Core Viewpoint - Health Catalyst, Inc. has appointed Matt Arens, CEO and Founder of First Light Asset Management, to its board of directors, effective December 1, 2025, which is expected to enhance the company's strategic focus and shareholder value creation efforts [1][3]. Company Overview - Health Catalyst is a leading provider of data and analytics technology and services aimed at improving healthcare outcomes, with over 1,100 organizations relying on its offerings [6]. - The company operates a cloud-based technology ecosystem called Health Catalyst Ignite™, which provides AI-enabled data and analytics solutions [6]. Shareholder Information - First Light Asset Management is the largest shareholder of Health Catalyst, owning approximately 19% of the company's outstanding shares, which equates to about 13.9 million shares [2]. - Matt Arens has been a shareholder since Health Catalyst's IPO in 2019 [2]. Board Composition - The addition of Matt Arens to the board is seen as a significant move due to his extensive experience in capital markets and healthcare investments [3]. - Matthew Kolb, a current director since 2023, will not seek re-election at the 2026 annual meeting, marking a change in board composition [5]. Strategic Insights - Matt Arens expressed that the market is not fully recognizing the value within Health Catalyst, citing a low EBITDA multiple and high free cash flow generation potential as indicators of significant appreciation opportunities for the company's shares [5]. - The firm has a proven track record of delivering billions of dollars in measurable results, reinforcing its commitment to data-informed healthcare improvement [6].

Core Insights - Health Catalyst, Inc. (NASDAQ:HCAT) is actively participating in several investor conferences to showcase its data and analytics solutions and discuss its strategies and performance [1][6] Conference Participation - The company will attend the Stephens Annual Investment Conference in Nashville on November 19, 2025, featuring a fireside chat [2] - Health Catalyst will also be present at the Canaccord Genuity MedTech, Diagnostics and Digital Health and Services Forum in New York on November 20, 2025, offering one-on-one meetings [2] - Additional participation includes the 8th Annual Evercore Healthcare Conference in Miami on December 2, 2025, and Citi's 2025 Global Healthcare Conference in Miami on December 3, 2025 [2] Technology and Operations - Health Catalyst's operations are centered around its cloud-based technology, Health Catalyst Ignite, which utilizes AI-enabled data and analytics to enhance clinical, financial, and operational outcomes [3][6] - The platform supports over 1,100 organizations globally, delivering billions in measurable results by transforming complex data into actionable insights [3][6] Financial Performance - In its recent financial report, Health Catalyst achieved earnings per share of $0.06, surpassing the estimated $0.05 [4][6] - The company reported a revenue of $76.32 million, exceeding the estimated $73.97 million [4][6] - Health Catalyst demonstrated efficiency with an asset turnover ratio of 0.51 [4][6] - For the most recent quarter, the company reported a cost of revenue of $38.51 million and operating expenses of $55.33 million, resulting in a gross profit of $37.82 million [5]

Summary of Key Points Core Insights - Several healthcare and biotech stocks experienced significant gains in after-hours trading following earnings updates and guidance revisions Company Performance - **KalVista Pharmaceuticals Inc. (KALV)**: Stock rose 11.29% to $12.12 after reporting a third-quarter net loss of $49.5 million ($0.92 per share), compared to a loss of $39.1 million ($0.84 per share) in the same period last year. Net product revenue for the quarter was $13.7 million [1] - **Health Catalyst Inc. (HCAT)**: Stock advanced 13.24% to $3.23 after reporting a third-quarter net loss of $22.2 million ($0.32 per share), compared to a loss of $14.7 million ($0.24 per share) a year ago. Revenue declined to $76.3 million from $86.4 million. For Q4 2025, projected revenue is about $73.5 million with adjusted EBITDA of $13.4 million. Full-year expectations are $310 million in revenue and $41 million in adjusted EBITDA [2] - **Bio-Techne Corp. (TECH)**: Stock climbed 8.72% to $62.47. The company reported first-quarter GAAP EPS of $0.24, up from $0.21 last year, while adjusted EPS remained flat at $0.42. Revenue declined 1% year-over-year to $286.6 million [3] - **Assertio Holdings Inc. (ASRT)**: Stock gained 8.30% to $0.87 after reporting third-quarter GAAP net income of $11.4 million ($0.11 per share), compared to a loss of $2.9 million ($0.03 per share) last year. Adjusted EPS rose to $0.18 from $0.02. Net product sales reached $49.5 million, up from $28.7 million [4] - **Abeona Therapeutics Inc. (ABEO)**: Stock moved up 8.51% to $4.59. The company is scheduled to report third-quarter results on November 12, with analysts expecting a loss of $0.34 per share on revenue of $5.53 million [5]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Insights - Health Catalyst (HCAT) reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, but down from $0.07 per share a year ago [1][2] - The company achieved a revenue of $76.32 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.66%, and slightly down from $76.35 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was +20.00%, following a previous surprise of +33.33% when earnings were $0.04 per share against an expectation of $0.03 [2] - Over the last four quarters, Health Catalyst has exceeded consensus EPS estimates two times and revenue estimates three times [2][3] Stock Performance - Health Catalyst shares have declined approximately 60% since the beginning of the year, contrasting with the S&P 500's gain of 14.4% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $74.59 million, and for the current fiscal year, it is $0.19 on revenues of $309.8 million [8] - The Medical Info Systems industry, to which Health Catalyst belongs, is ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Core Insights - Health Catalyst (HCAT) reported revenue of $76.32 million for the quarter ended September 2025, showing no change compared to the same period last year, with EPS at $0.06, down from $0.07 year-over-year [1] - The revenue exceeded the Zacks Consensus Estimate of $75.08 million by +1.66%, and the EPS surpassed the consensus estimate of $0.05 by +20% [1] Revenue Breakdown - Professional services revenue was $24.27 million, exceeding the four-analyst average estimate of $23.08 million, but reflecting a year-over-year decline of -12.4% [4] - Technology revenue reached $52.05 million, slightly above the estimated $52 million, marking a +7% increase compared to the year-ago quarter [4] Profitability Metrics - Adjusted Gross Profit for Professional Services was $4.63 million, surpassing the average estimate of $4.45 million [4] - Adjusted Gross Profit for Technology was $35.5 million, exceeding the average estimate of $34.9 million [4] Stock Performance - Health Catalyst shares have returned +6.8% over the past month, outperforming the Zacks S&P 500 composite's +0.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $76.3 million, flat year-over-year, exceeding guidance [7][15] - Adjusted EBITDA for Q3 2025 was $12 million, up 64% compared to Q3 2024, and exceeding guidance of approximately $10.5 million [17] - Adjusted gross margin increased to 53%, up approximately 510 basis points year-over-year [17] - Cash, cash equivalents, and short-term investments decreased to $92 million from $392 million at year-end 2024 [17] Business Line Data and Key Metrics Changes - Technology segment revenue was $52.1 million, representing a 7% year-over-year growth driven by recurring revenue from new and acquired clients [7][15] - Professional services revenue for Q3 2025 was $24.3 million, a 12% decline compared to Q3 2024, primarily due to exiting less profitable contracts [15][17] - Adjusted technology gross margin was 68%, an increase of approximately 330 basis points year-over-year [16] Market Data and Key Metrics Changes - The company anticipates approximately 30 net new platform client additions for 2025, with dollar-based retention expected to be in the low 90% [8][14] - The market remains dynamic, with ongoing financial and workforce pressures impacting client operations [10] Company Strategy and Development Direction - The company is focused on solutions with proven ROI and is committed to delivering meaningful results while maintaining a strong pipeline [8][10] - The leadership team has been strengthened to support long-term vision and improve performance, with recent key appointments [10] - The company is prioritizing areas that will sustain technology gross margin expansion and enhance R&D efficiency [21] Management's Comments on Operating Environment and Future Outlook - Management expects revenue performance in 2026 to be a few points lower than in 2025, driven by dollar-based retention pressures and lower net new client counts [14] - The company is taking a measured approach to setting expectations and will continue to provide updates as the market evolves [14] - Management remains optimistic about the potential for growth in 2026, focusing on cost management and operational efficiency [40][72] Other Important Information - The company is not anticipating pursuing additional acquisitions in the near to medium term, focusing instead on driving growth and profitability from existing capabilities [15] - The Ignite migration initiatives are on track, with approximately two-thirds of DOS clients expected to migrate by the end of 2025 [11][12] Q&A Session Summary Question: What is driving the longer timeline for Ignite migration? - Management noted that some clients prefer to stay on DOS due to its current value and flexibility, which has been positively received [26][28] Question: How does the sequential decline in tech revenue relate to dollar-based retention? - Management explained that the decline is influenced by DOS to Ignite headwinds and the growth in the apps layer, with a mix of moving parts affecting revenue [32][33] Question: What is the value of one-time revenues and the outlook for positive revenue growth? - Management indicated that one-time revenues are becoming more common in professional services, and they expect a robust pipeline to support growth, potentially returning to positive growth by mid-2026 [37][39] Question: How are margins expected to trend into 2026? - Management expressed confidence in EBITDA growth, with Q4 serving as a useful guide for 2026, while acknowledging some one-time items affecting Q4 results [78] Question: What areas are being considered for targeted market expansion? - Management highlighted specific use case areas in cost management and ambulatory offerings where client demand is strong, indicating a focus on leveraging new technologies and AI capabilities [83]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $76.3 million, flat year-over-year, exceeding guidance [7][15] - Adjusted EBITDA for Q3 2025 was $12 million, up 64% compared to Q3 2024, exceeding guidance of approximately $10.5 million [17] - Adjusted gross margin increased to 53%, up approximately 510 basis points year-over-year [16] Business Line Data and Key Metrics Changes - Technology segment revenue was $52.1 million, representing a 7% year-over-year growth driven by recurring revenue from new and acquired clients [7][15] - Professional services revenue for Q3 2025 was $24.3 million, a 12% decline compared to Q3 2024, primarily due to exiting less profitable contracts [15][16] - Adjusted technology gross margin was 68%, an increase of approximately 330 basis points year-over-year [16] Market Data and Key Metrics Changes - The company anticipates approximately 30 net new platform client additions for 2025, with dollar-based retention expected to be in the low 90% [8][14] - The market remains dynamic, with ongoing financial and workforce pressures impacting client operations [10][14] Company Strategy and Development Direction - The company is focused on solutions with proven ROI, aiming to maintain a strong pipeline while managing costs and making targeted investments [8][14] - Recent leadership appointments aim to support long-term vision and improve performance, reflecting a commitment to building an agile organization [10] - The company plans to balance growth, revenue mix, and free cash flow progression while prioritizing existing capabilities and recently acquired assets [15][21] Management's Comments on Operating Environment and Future Outlook - Management expects revenue performance in 2026 to be a few points lower than in 2025, driven by dollar-based retention pressures and lower net new client counts [14] - The company is optimistic about improving adjusted EBITDA in 2026, reflecting ongoing strategic focus and cost management [14][21] - Management emphasizes the importance of meeting clients where they are, providing flexibility in migration timelines to enhance client experience and retention [12][28] Other Important Information - The company is committed to realizing a strong return on acquisition investments and does not anticipate pursuing additional acquisitions in the near to medium term [15] - The company is making progress on Ignite migration initiatives, with approximately two-thirds of DOS clients expected to migrate by the end of 2025 [11][12] Q&A Session Summary Question: What is driving the longer timeline for Ignite migration? - Management noted that clients desire to stay on DOS longer due to its current value, and flexibility is being provided to meet client needs [26][27] Question: How does the sequential decline in tech revenue relate to dollar-based retention? - Management explained that the decline is influenced by DOS to Ignite headwinds and growth in the apps layer, with a mix of factors affecting revenue [32][33] Question: What is the value of one-time revenues and the outlook for positive revenue growth? - Management indicated that one-time revenues are becoming more common in professional services, and the pipeline remains robust, with expectations for growth in mid-2026 [37][38] Question: How are competing priorities affecting client decisions? - Management acknowledged that clients are focused on data quality and may prefer to leverage existing capabilities before migrating to Ignite [52][53] Question: What are the growth rates for Ignite versus DOS customers? - Management highlighted a shift in approach to provide flexibility for clients on DOS, allowing for growth opportunities in the apps layer [64][66]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $76.3 million, flat year-over-year, exceeding guidance [7][15] - Adjusted EBITDA for Q3 2025 was $12 million, up 64% compared to Q3 2024, and exceeding guidance of approximately $10.5 million [17][18] - Adjusted gross margin increased to 53%, up approximately 510 basis points year-over-year [7][16] Business Line Data and Key Metrics Changes - Technology segment revenue was $52.1 million, representing a 7% year-over-year growth driven by recurring revenue from new and acquired clients [7][15] - Professional services revenue for Q3 2025 was $24.3 million, a 12% decline compared to Q3 2024, primarily due to exiting less profitable contracts [15][16] Market Data and Key Metrics Changes - The company anticipates approximately 30 net new platform client additions for 2025, with dollar-based retention expected to be in the low 90% [8][13] - The market remains dynamic, with ongoing financial and workforce pressures impacting client operations [10][11] Company Strategy and Development Direction - The company is focused on solutions with proven ROI, emphasizing cost control and operational efficiency to meet client needs [10][11] - There is a commitment to enhancing the Ignite data and analytics platform while providing flexibility for clients to remain on the DOS platform longer if needed [11][12] - The company does not anticipate pursuing additional acquisitions in the near to medium term, focusing instead on driving growth and profitability from existing capabilities [14][15] Management's Comments on Operating Environment and Future Outlook - Management expects revenue performance in 2026 to be a few points lower than in 2025, influenced by dollar-based retention rates and lower net new client counts [13][14] - The company is optimistic about improving adjusted EBITDA in 2026 through strategic focus and cost management [14][21] - Management highlighted the importance of meeting clients where they are, especially regarding the Ignite migration, to improve client experience and retention [12][26] Other Important Information - The company ended Q3 2025 with $92 million in cash and equivalents, down from $392 million at year-end 2024 [17] - Adjusted total operating expenses were $28.1 million, representing 37% of revenue, an improvement from 38% in Q3 2024 [16][17] Q&A Session Summary Question: What is driving the longer timeline for Ignite migration? - Management noted that some clients prefer to stay on DOS due to its current value, and the company is providing flexibility to meet client needs [24][25] Question: How does the sequential decline in tech revenue relate to dollar-based retention? - Management explained that the decline is influenced by DOS to Ignite migration headwinds and the growth in the apps layer, with a mix of moving parts affecting revenue [30][31] Question: What is the value of one-time revenues and the outlook for positive revenue growth? - Management indicated that one-time revenues are becoming more common in professional services, and they expect a robust pipeline to support growth, potentially mid-2026 or later [36][38] Question: How does the company plan to manage costs and expand in 2026? - Management emphasized targeted investments in areas with high client demand, such as cost management and ambulatory performance solutions, while also leveraging AI capabilities [81][82] Question: What is the growth rate in Ignite customers versus DOS customers? - Management acknowledged that Ignite is a more efficient platform and expects growth in the apps layer, while also providing flexibility for clients to remain on DOS longer if needed [64][66]

Financial Performance - Total revenue for Q3 2025 was $76.323 million, slightly down from $76.353 million in Q3 2024, representing a decrease of 0.04%[24] - Net loss for Q3 2025 was $22.229 million, compared to a net loss of $14.726 million in Q3 2024, reflecting an increase in losses of 50.8%[24] - The company reported a loss from operations of $17.509 million for Q3 2025, compared to a loss of $13.687 million in Q3 2024, an increase of 28.5%[24] - For the nine months ended September 30, 2025, Health Catalyst reported a net loss of $86,949,000, compared to a net loss of $48,829,000 for the same period in 2024, indicating an increase in losses of approximately 78%[36] - Pro forma net loss for the three months ended September 30, 2025, was $24.1 million, compared to a loss of $17.5 million for the same period in 2024[112] - Pro forma net loss for the nine months ended September 30, 2025, was $92.8 million, compared to a loss of $58.3 million for the same period in 2024[112] - The company incurred a net loss of $22.2 million for the three months ended September 30, 2025, compared to a net loss of $14.7 million for the same period in 2024, indicating a worsening financial performance[168] Revenue Breakdown - Technology revenue increased to $52.051 million in Q3 2025 from $48.653 million in Q3 2024, a growth of 4.3%[24] - Total revenue for the three months ended September 30, 2025, was $76.3 million, with recurring technology revenue at $52.1 million[123] - For the three months ended September 30, 2025, the Technology segment generated revenue of $52.1 million, up from $48.7 million in the same period of 2024, while the Professional Services segment revenue decreased to $24.3 million from $27.7 million[212] Assets and Liabilities - Total assets decreased to $587.128 million as of September 30, 2025, down from $858.929 million as of December 31, 2024, a decline of 31.5%[19] - Current liabilities decreased to $87.893 million as of September 30, 2025, from $325.850 million as of December 31, 2024, a reduction of 73.0%[19] - Cash and cash equivalents decreased to $40.305 million as of September 30, 2025, from $249.645 million as of December 31, 2024, a decline of 83.8%[19] - Total stockholders' equity decreased to $331.923 million as of September 30, 2025, down from $365.207 million as of December 31, 2024, a decline of 9.1%[20] - The company’s accumulated deficit increased to $(1,273.621) million as of September 30, 2025, from $(1,186.672) million as of December 31, 2024, an increase of 7.3%[20] Cash Flow and Investments - Cash flows from operating activities resulted in a net cash used of $9,181,000 for the nine months ended September 30, 2025, compared to net cash provided of $18,086,000 in 2024[36] - The company generated $149,448,000 from the sale and maturity of short-term investments during the nine months ended September 30, 2025, down from $206,488,000 in 2024, reflecting a decrease of approximately 28%[36] - Health Catalyst's net cash provided by investing activities was $35,184,000 for the nine months ended September 30, 2025, compared to $89,847,000 in 2024, a decline of about 61%[37] - Cash and cash equivalents at the end of the period were $40,305,000 as of September 30, 2025, a decrease from $328,327,000 at the end of September 2024, representing a decline of approximately 88%[37] Acquisitions and Goodwill - Health Catalyst acquired Upfront Healthcare Services for a total consideration of $80.0 million, which includes $41.1 million in cash and $31.6 million in stock[106] - The acquisition of Upfront resulted in the recognition of $52.9 million in goodwill, which is not deductible for income tax purposes[108] - Health Catalyst also acquired Intraprise Health for $44.9 million, consisting of $25.4 million in cash and $19.5 million in stock[114] - The acquisition of Intraprise resulted in $29.6 million in goodwill, with $21.5 million of it being deductible for income tax purposes[115] - Health Catalyst acquired Lumeon Ltd. for a total consideration of $39.8 million, including $36.2 million in cash and $2.9 million in stock[117] - The acquisition of Carevive Systems, Inc. was completed for $22.1 million, consisting of $18.6 million in cash and $2.6 million in stock[119] - Goodwill from the Lumeon acquisition was recorded at $24.4 million, fully allocated to the technology reporting unit[118] - A goodwill impairment charge of $28.8 million was recorded during the nine months ended September 30, 2025, due to declines in stock price and revenue forecasts[127] Stock-Based Compensation - Health Catalyst's stock-based compensation expense decreased to $22,905,000 for the nine months ended September 30, 2025, from $29,316,000 in 2024, a reduction of about 22%[36] - Total stock-based compensation for the three months ended September 30, 2025, was $7.039 million, a decrease of 26% compared to $9.512 million for the same period in 2024[174] - For the nine months ended September 30, 2025, total stock-based compensation was $22.905 million, down 22% from $29.316 million in 2024[174] - The total grant date fair value of RSUs vested during the nine months ended September 30, 2025, was $19.1 million, compared to $26.1 million in 2024[176] Debt and Financing - As of September 30, 2025, total principal outstanding debt is $161.2 million, down from $392.4 million as of December 31, 2024, reflecting a significant reduction in debt levels[151] - The company has a credit agreement providing a five-year term loan facility of up to $225 million, with an initial term loan of $125 million fully funded on July 16, 2024[153] - The contractual maturity of debt includes $155.9 million due in 2029, with total debt maturities amounting to $161.2 million as of September 30, 2025[152] - The company reported a net cash used in financing activities of $235,348,000 for the nine months ended September 30, 2025, compared to net cash provided of $114,056,000 in 2024, indicating a significant shift in financing activities[37] Restructuring and Workforce - The August 2025 Restructuring Plan resulted in a reduction of the global workforce, primarily incurring costs related to severance and other team member expenses[214] - Severance and other restructuring costs incurred amounted to $4,772,000[216] - Cash payments made during the restructuring process totaled $3,913,000[216] - The balance of restructuring liabilities as of September 30, 2025, stands at $859,000[216]