Health Catalyst 2025 Q3 Earnings Revenue Beats Estimates, Net Loss Widens 51%

Health Catalyst (HCAT) reported mixed third-quarter 2025 results, with revenue slightly exceeding expectations but net losses widening significantly. The company’s total revenue of $76.32 million matched 2024 levels, beating analyst estimates by $1.24 million. However, its non-GAAP EPS of $0.06 fell $0.01 below forecasts. Guidance for Q4 2025 was in line with expectations, while full-year adjusted EBITDA of $41 million exceeded Wall Street estimates.

Revenue

Health Catalyst’s total revenue remained flat year-over-year at $76.32 million, driven by a 7% increase in Technology segment revenue to $52.05 million. This growth was partially offset by a 12% decline in Professional services revenue to $24.27 million, attributed to the exit of less profitable TEMS contracts. The Technology segment’s performance reflected strong demand for applications, while Professional services faced headwinds from strategic restructuring.

Earnings/Net Income

The company’s financial losses deepened in Q3 2025, with a net loss of $22.23 million ($0.32 per share), representing a 51% increase from the $14.73 million ($0.24 per share) loss in the prior-year period. The widening losses highlight ongoing profitability challenges despite revenue stability.

Post-Earnings Price Action Review

Following the earnings release, Health Catalyst’s stock experienced significant volatility. Shares fell 12.66% during the latest trading day and 11.22% over the past week, though they edged up 1.51% month-to-date. Analysts noted mixed reactions, with some citing improved EBITDA guidance as a positive, while others highlighted revenue contraction and margin pressures.

CEO Commentary

CEO Dan Burton emphasized exceeding revenue and Adjusted EBITDA guidance, crediting high-impact solutions and cost discipline. He reiterated confidence in 2025 full-year targets and highlighted strategic investments in AI-driven applications and operational efficiency.

Guidance

Health Catalyst provided Q4 2025 guidance of $73.5 million in revenue and $13.4 million in Adjusted EBITDA. For full-year 2025, it reiterated $310 million in revenue and $41 million in Adjusted EBITDA. Management noted that Adjusted EBITDA figures exclude uncontrollable items like stock-based compensation.

Additional News

Health Catalyst recently appointed Ben Albert as President and COO, following his acquisition of Upfront Healthcare Services. The leadership change aims to strengthen operational execution and client retention. Additionally, the company announced a strategic restructuring of less profitable TEMS contracts, focusing on profitability over growth. Analysts also highlighted the stock’s 6.8% monthly gain, outperforming the S&P 500, though its Zacks Rank #3 (Hold) suggests cautious optimism.

Health Catalyst’s Q3 results underscore a delicate balance between revenue resilience and persistent profitability challenges. While the company’s Technology segment demonstrated growth, Professional services and broader margin pressures remain concerns. Investors will closely watch Q4 execution and the impact of strategic shifts, such as Ignite platform migration flexibility and AI integration, on long-term value creation.