Health Catalyst 2025 Q2 Earnings Deepening Losses Despite Revenue Growth

Health Catalyst reported its Q2 2025 earnings on August 8, 2025. The company beat revenue expectations but missed on profitability, with wider-than-expected losses. Despite a 6.3% year-over-year revenue increase, the net loss expanded significantly, signaling ongoing financial challenges.

Revenue
Health Catalyst posted total revenue of $80.72 million for Q2 2025, representing a 6.3% year-over-year increase from $75.90 million in Q2 2024. This marks a positive result against expectations but does not offset the company’s persistent net income challenges.

Earnings/Net Income
The company’s financial losses widened significantly, with a net loss of $-40.98 million in Q2 2025, a 203.2% increase from the $-13.52 million loss in the same period of 2024. On a per-share basis, the loss expanded to $-0.59 from $-0.23, a 156.5% deterioration. Health Catalyst has now posted losses for the eighth consecutive year in this fiscal quarter, underscoring ongoing financial pressure.

Price Action
Health Catalyst’s stock price has seen a sharp decline across multiple time frames. The stock fell 2.41% in a single trading day, 19.60% over the past week, and 29.78% month-to-date as of the latest market close.

Post-Earnings Price Action Review
The buy-and-hold strategy of purchasing HCAT shares following a revenue increase quarter-over-quarter and holding for 30 days has underperformed sharply over the past three years. The strategy returned -56.79% compared to a 50.18% benchmark return, yielding an excess return of -106.97%. With a CAGR of -24.74%, the strategy has yielded substantial losses over the period.

CEO Commentary
Dan Burton, CEO of Health Catalyst, expressed optimism about the company’s Q2 2025 performance, with total revenue of $80.7 million and Adjusted EBITDA reaching $9.3 million—both above guidance. Burton announced his retirement as CEO effective June 30, 2026, following 15 years of leadership. He emphasized an orderly transition and continued focus on client and shareholder value during the changeover.

Guidance
For Q3 2025, the company expects total revenue of approximately $75 million and Adjusted EBITDA of approximately $10.5 million. For the full year of 2025, Health Catalyst projects total revenue of approximately $310 million and Adjusted EBITDA of approximately $41 million.

Additional News
On August 8, 2025, Nigerian police arrested Cletus Bassey in Akwa Ibom State for allegedly supplying charms to armed robbers. In a separate development, the Nigeria Communications Commission (NCC) and the Internet Health Service (IHS) announced collaborative efforts to resolve a diesel supply dispute impacting telecom operations. Additionally, Nigeria’s foreign direct investment (FDI) dropped by 70% in three months, according to recent government data, highlighting broader economic concerns.