Health Catalyst, Inc. (HCAT)
NASDAQHealth CareMedical - Healthcare Information ServicesSnapshot 2026-09-04
$1.69-1.17%
Close 2026-09-04 · 1-day change
NASDAQHealth CareMedical - Healthcare Information ServicesSnapshot 2026-09-04
Broken: Primary pillar broken — Cash from operations improves to at least $18.5M in 2026-Q1: Q3 FY26 OCF guidance $9.3M-$9.9M vs trip <$9.9M.
Health Catalyst aims to improve cash from operations, which rose to $18.5M in 2026-Q1 from $9.9M in 2025-Q4. Management is focused on cutting costs and improving efficiency. Revenue guidance for 2026 is about $262.5M. The company has a plan to stabilize its losses and grow revenue.
Operating losses increased to $106.5M in 2026-Q1 from $86.1M in 2025-Q4. Revenue is expected to decline about 13% next year per analysts. Management is volatile and the company is loss-making. The turnaround may stall or fail to deliver sustainable profits.
The stock trades about 15% above our fair value near $2. Analysts expect about 13% revenue decline next year. Our fair value is slightly above the Street median, reflecting cautious optimism but pricing in weak near-term growth.
Breaks if: cash from operations falls below $9.9M in any quarter after 2026-Q1
Focus on improving cash flow from operations, which increased significantly in 2026-Q1.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story in the healthcare sector. HCAT is currently facing volatility in management and weak financial performance, which complicates its long-term thesis.
The market appears to be pricing in a stretched valuation, reflecting a medium confidence level. There is an expectations gap suggesting that investors are anticipating some improvement, but the current performance is below that of its peers.
Management is focusing on strategic transformation and has made progress with the divestiture of Vitalware, which strengthens the balance sheet. However, the company remains loss-making, and near-term risks are elevated, particularly with a significant probability of missing earnings expectations.
The future of HCAT hinges on its ability to execute its strategic priorities effectively, particularly in AI-driven technology. Additionally, the performance of sector bellwethers and broader economic indicators, such as job reports, will influence HCAT's trajectory.
The most important moves since the prior daily snapshot.
Signal changed from 'mixed' to 'cautious'.
Yes, our read has weakened. The latest earnings miss has negatively impacted the outlook. Recent financial performance remains weak, which raises concerns about future growth.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: operating loss worsens beyond $106.5M or grows for two consecutive quarters
Breaks if: revenue falls below $260M in FY 2026
Over the next 1 to 3 years, HCAT's performance will depend on management's execution and external economic conditions. Not investment advice.