Health Catalyst, Inc. (HCAT) SEC Filings & Earnings Calls

Activist pressure may lead to strategic changes

“Palogic Value Management requested that the Board of Directors of the Issuer provide investors a clear, forward-looking business plan.”

Revenue decline of 13% YoY; divestiture impact and potential ongoing headwinds.

“Total revenue $70,487 ... (13)%”

Client concentration risk

“Our three largest clients during 2025 comprised 5.7%, 4.4%, and 3.5% of our revenue, or 13.6% in the aggregate.” · word for word

Restructuring execution risk

“Project Nexus and any other or future restructuring or cost optimizing efforts may disrupt our operations and performance, and could lead to dissatisfaction or a reduction in morale among our workforce, attrition, or otherwise harm our relationship with our team members.” · word for word

Ignite migration churn risk

“We have also continued to experience churn or down-selling particularly related to the migration of our DOS platform clients to our Ignite platform, and may further experience churn or down-selling as a result of the Vitalware Transaction.” · word for word

Macroeconomic and funding cut risk

“These uncertainties in our end market could cause potential delays in client decisions.” · word for word

Potential activist or hedging activity

“Item 4. Purpose of Transaction See the Schedule 13D.” · word for word

Potential activist or hedging activity

“Item 4. Purpose of Transaction See the Schedule 13D.” · word for word

Goodwill Impairment Risk

“The increased net loss in 2025 compared to 2024 is largely driven by $105.4 million of goodwill impairment, which is primarily due to overall declines in our stock price and market capitalization.” · word for word

Revenue Growth Deceleration

“Total revenue was $311.1 million, an increase of 1% year-over-year.” · word for word

Professional Services Revenue Decline

“professional services revenue was $102.9 million, a decrease of 8% year-over-year.” · word for word

Stock Price Decline

“The increased net loss in 2025 compared to 2024 is largely driven by $105.4 million of goodwill impairment, which is primarily due to overall declines in our stock price and market capitalization.” · word for word

Revenue decline of 11% YoY; client churn and down-sell risk from DOS to Ignite migration.

“Total revenue down 11%; at-risk ARR may churn or down-sell in 2026 and 2027.”

Net loss widened to $(111.0)M from $(23.7)M; potential impairment or restructuring charges.

“Net loss $(111.0)M vs $(23.7)M, down 368%.”

Platform Migration Churn

“We have been notified of $12.5 million of ARR down-sell and churn and estimate we have $52.0 million of at risk ARR related to the DOS to Ignite migration.” · word for word

Medicaid Funding Cuts

“On July 4, 2025, President Trump signed the OBBBA into law, which is projected to reduce federal Medicaid spending by nearly $1 trillion over 10 years and will create additional financial strain for many of our clients and prospective clients.” · word for word

Goodwill Impairment Risk

“Further declines in our stock price and market capitalization could result in further impairment charges, which could adversely affect our results of operations.” · word for word

Executive turnover risk

“Daniel Burton retired as Chief Executive Officer effective February 12, 2026; multiple board resignations.”

Goodwill impairment risk

“Impairment of goodwill and intangible assets was recognized... $110,223 thousand.”

Revenue growth shortfall

“Revenue Growth Rate Achievement... Actual Result 1.5% vs. Target 10.0%.”

Workforce reduction may indicate underlying operational or financial challenges, though framed as strategic transformation.

“The Company expects this initiative to reduce its global workforce by approximately 9% and eliminate approximately 100 additional open, budgeted headcount positions... representing a meaningful reduction in the Company's cost structure.”

Significant cash burn: cash and investments declined from $392M to $95.7M; net loss widened to $178M.

“Cash and cash equivalents $50.8M (down from $249.6M); short-term investments $44.9M (down from $142.4M); net loss $(178.0)M”

Client retention declining: dollar-based retention rate dropped to 93% from 102%, indicating churn or downsell.

“Dollar-based Retention Rate 93% vs 102%”

CEO transition and lack of FY2026 guidance create strategic uncertainty.

“We are not providing forward-looking guidance for the full year of 2026 at this time due to an ongoing internal strategic and operational review in connection with our CEO transition.” · word for word

Competitive pressure from larger companies

“many of our competitors and potential competitors have significantly greater financial, technological, and other resources and name recognition than we do” · word for word

Regulatory compliance costs

“Our business is subject to extensive, complex, and rapidly changing federal and state laws and regulations” · word for word

Preliminary results subject to change upon completion of audit; potential adjustments.

“These preliminary unaudited estimated results are subject to change upon completion of the Company’s accounting and annual audit procedures and are therefore subject to adjustment.” · word for word

Ignite migration timeline adjusted; some clients prefer to remain on DOS, posing retention risk.

“We have adjusted our timeline and approach to be more client-centric, recognizing that some organizations prefer to remain on DOS for the near to medium term.” · word for word

Revenue flat YoY, indicating potential market saturation or competitive pressure.

“Total revenue $76,323K vs $76,353K, essentially flat”

Net loss widened to $22.2M from $14.7M, though partly due to non-cash items.

“Net loss $(22,229)K vs $(14,726)K, a 51% increase”

Client concentration risk

“Our three largest clients during 2024 comprised 5.5%, 4.4%, and 3.9% of our revenue, or 13.8% in the aggregate.” · word for word

Platform migration execution risk

“the migration of existing clients using our DOS Solution to Health Catalyst Ignite involves risk and may cause disruptions to our Solution, difficulties as clients acclimate to a new platform, or other challenges that could impair our clients’ use of our technology, any of which could lead to client dissatisfaction, lower revenue, and non-renewals.” · word for word

Macroeconomic and funding cuts risk

“Recent macroeconomic challenges (including high inflationary and/or high interest rate environments, uncertainty with tariffs, cuts in Medicaid and research funding, or market volatility and measures taken in response thereto), and the tight labor market continue to adversely affect workforces, organizations, governments, clients, economies, and financial ma” · word for word