Health Catalyst(US:HCAT)2025-11-10 21:36Financial 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]