Health Catalyst Reports Third Quarter 2025 Results

Rhea-AI Summary

Health Catalyst (Nasdaq: HCAT) reported third-quarter 2025 results for the period ended September 30, 2025: total revenue $76.3M, Adjusted EBITDA $12.0M, and GAAP net loss $(22.2M). Management said results beat quarterly guidance and reaffirmed full-year 2025 guidance. Other reported metrics include adjusted gross profit $40.1M (53% margin) and GAAP gross profit $30.0M (39% margin).

Guidance: Q4 2025 revenue ~$73.5M and Adjusted EBITDA ~$13.4M; full-year 2025 revenue ~$310M and Adjusted EBITDA ~$41M. A conference call was scheduled for November 10, 2025.

Positive

• Adjusted EBITDA +64% year-over-year to $12.0M
• Adjusted gross profit $40.1M (53% adjusted margin)
• Full-year 2025 guidance reaffirmed at $310M revenue and $41M Adjusted EBITDA

Negative

• GAAP net loss widened to $(22.2M) vs $(14.7M) prior (≈51% increase)
• GAAP total revenue essentially flat at $76.3M vs $76.4M year-over-year
• Guidance Adjusted EBITDA is non-GAAP and not reconciled to net loss

Insights

Senior Healthcare SaaS Financial Analyst

Mixed quarter: revenue roughly flat, strong non‑GAAP margin expansion and Adjusted EBITDA, but larger GAAP net loss; guidance reaffirmed.

Health Catalyst delivered $76.3 million in revenue, essentially unchanged year‑over‑year, while management reported a meaningful rise in profitability on a non‑GAAP basis with Adjusted EBITDA of $12.0 million and Adjusted Gross Margin of 53%. These non‑GAAP improvements indicate tighter cost control or favorable mix on the parts of the business measured by the company.

At the same time, GAAP results show a larger net loss of $(22,229)k versus $(14,726)k last year, which offsets some of the upbeat signal from Adjusted EBITDA. Management reaffirmed full‑year 2025 guidance for $310 million revenue and $41 million Adjusted EBITDA, and provided Q4 targets of ~$73.5 million revenue and $13.4 million Adjusted EBITDA; those are concrete near‑term metrics to monitor.

Key dependencies and risks include the divergence between GAAP and non‑GAAP results and any items excluded from Adjusted EBITDA (notably stock‑based compensation and other reconciling items). Watch upcoming disclosures for a clear reconciliation between Adjusted EBITDA and GAAP net loss, plus the company’s ability to hit the Q4 targets on Q4 2025 timing. Over the next 90 days, the earnings call replay and the quarter‑end execution versus guidance are the most actionable checkpoints.

SALT LAKE CITY, Nov. 10, 2025 (GLOBE NEWSWIRE) -- Health Catalyst, Inc. (“Health Catalyst,” Nasdaq: HCAT), a leading provider of data and analytics technology and services to healthcare organizations, today reported financial results for the quarter ended September 30, 2025.

“For the third quarter of 2025, I am pleased by our financial results, including total revenue of $76.3 million and Adjusted EBITDA of $12.0 million, with these results beating our quarterly guidance on each measure,” said Dan Burton, CEO of Health Catalyst. “By focusing on high-impact solutions with proven ROI and maintaining a commitment to understanding and evolving with our clients, we have reaffirmed our full-year 2025 guidance. We believe our commitment to strategic focus, cost management, and targeted investments positions us to drive sustained value for our clients and shareholders.”

Financial Highlights for the Three Months Ended September 30, 2025

Key Financial Metrics

	Three Months Ended September 30,								Year over Year Change
		2025				2024
GAAP Financial Measures:	(in thousands, except percentages, unaudited)
Total revenue	$	76,323			$	76,353			—	%
Gross profit	$	29,979			$	27,758			8	%
Gross margin		39	%			36	%
Net loss	$	(22,229	)		$	(14,726	)		(51	)%
Non-GAAP Financial Measures:(1)
Adjusted Gross Profit	$	40,133			$	36,289			11	%
Adjusted Gross Margin		53	%			48	%
Adjusted EBITDA	$	12,000			$	7,295			64	%

________________________
(1) These measures are not calculated in accordance with generally accepted accounting principles in the United States (GAAP). See the accompanying "Non-GAAP Financial Measures" section below for more information about these financial measures, including the limitations of such measures, and for a reconciliation of each measure to the most directly comparable measure calculated in accordance with GAAP.

Financial Outlook

Health Catalyst provides forward-looking guidance on total revenue, a GAAP measure, and Adjusted EBITDA, a non-GAAP measure.

For the fourth quarter of 2025, we expect:

• Total revenue of approximately $73.5 million, and
• Adjusted EBITDA of approximately $13.4 million

For the full year of 2025, we expect:

• Total revenue of approximately $310 million, and
• Adjusted EBITDA of approximately $41 million

We have not provided forward-looking guidance for net loss, the most directly comparable GAAP measure to Adjusted EBITDA, and therefore have not reconciled guidance for Adjusted EBITDA to net loss, because there are items that may impact net loss, including stock-based compensation, that are not within our control or cannot be reasonably forecasted.

Quarterly Conference Call Details

We will host a conference call to review the results today, Monday, November 10, 2025, at 5:00 p.m. E.T. The conference call can be accessed by dialing (800) 343-5172 for U.S. participants, or (203) 518-9856 for international participants, and referencing conference ID “HCATQ325.” A live audio webcast will be available online at https://ir.healthcatalyst.com/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

About Health Catalyst

Health Catalyst (Nasdaq: HCAT) is a leading provider of data and analytics technology and services that ignite smarter healthcare, lighting the path to measurable clinical, financial, and operational improvement. More than 1,100 organizations worldwide rely on Health Catalyst's offerings, including our cloud-based technology ecosystem Health Catalyst Ignite™, AI-enabled data and analytics solutions, and expert services to drive meaningful outcomes across hundreds of millions of patient records. Powered by high-value data, standardized measures and registries, and deep healthcare domain expertise, Ignite helps organizations transform complex information into actionable insights. Backed by a multi-decade mission and a proven track record of delivering billions of dollars in measurable results, Health Catalyst continues to serve as the catalyst for massive, measurable, data-informed healthcare improvement and innovation.

Available Information

Our investors and others should note that we announce material information to the public about our company, products and services, and other matters related to our company through a variety of means, including our website (https://www.healthcatalyst.com/), our investor relations website (https://ir.healthcatalyst.com/), press releases, SEC filings, public conference calls, and social media, including our and our CEO's social media accounts such as LinkedIn (https://www.linkedin.com/in/danburton/ and https://www.linkedin.com/company/healthcatalyst/), in order to achieve broad, non-exclusionary distribution of information to the public and to comply with our disclosure obligations under Regulation FD.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook for the fourth quarter and full year 2025. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.

Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) changes in laws and regulations applicable to our business model; (ii) changes in market or industry conditions, regulatory environment, and receptivity to our technology and services; (iii) results of litigation or a security incident; (iv) the loss of one or more key clients or partners; (v) macroeconomic challenges (including high inflationary and/or high interest rate environments, tariffs, or market volatility and measures taken in response thereto) and natural disasters or new public health crises; and (vi) changes to our abilities to recruit and retain qualified team members.

For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2025, expected to be filed with the SEC on or about November 10, 2025, and the Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 26, 2025. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.

Condensed Consolidated Balance Sheets (in thousands, except share and per share data, unaudited)
	As of September 30,				As of December 31,
		2025				2024
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	40,305			$	249,645
Short-term investments		51,235				142,355
Accounts receivable, net		60,109				57,182
Prepaid expenses and other assets		13,704				16,468
Total current assets		165,353				465,650
Property and equipment, net		32,609				29,394
Intangible assets, net		89,554				86,052
Operating lease right-of-use assets		7,256				12,058
Goodwill		285,586				259,759
Other assets		6,770				6,016
Total assets	$	587,128			$	858,929
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	4,943			$	11,433
Accrued liabilities		18,644				26,340
Deferred revenue		58,824				53,281
Operating lease liabilities		3,855				3,614
Current portion of long-term debt		1,627				231,182
Total current liabilities		87,893				325,850
Long-term debt, net of current portion		151,512				151,178
Deferred revenue, net of current portion		385				249
Operating lease liabilities, net of current portion		15,125				16,291
Contingent consideration liabilities, net of current portion		250				—
Other liabilities		40				154
Total liabilities		255,205				493,722
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 25,000,000 shares authorized and no shares issued and outstanding as of September 30, 2025 and December 31, 2024		—				—
Common stock, $0.001 par value per share, and additional paid-in capital; 500,000,000 shares authorized as of September 30, 2025 and December 31, 2024; 70,622,681 and 64,043,799 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively		1,604,039				1,552,714
Accumulated deficit		(1,273,621	)			(1,186,672	)
Accumulated other comprehensive income (loss)		1,505				(835	)
Total stockholders’ equity		331,923				365,207
Total liabilities and stockholders’ equity	$	587,128			$	858,929

Condensed Consolidated Statements of Operations (in thousands, except per share data, unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Revenue:
Technology	$	52,051			$	48,653			$	156,409			$	143,254
Professional services		24,272				27,700				80,048				83,724
Total revenue		76,323				76,353				236,457				226,978
Cost of revenue, excluding depreciation and amortization:
Technology(1)(2)(3)		17,203				17,609				53,120				48,991
Professional services(1)(2)(3)		21,304				24,704				71,045				71,899
Total cost of revenue, excluding depreciation and amortization		38,507				42,313				124,165				120,890
Operating expenses:
Sales and marketing(1)(2)(3)		14,361				11,342				42,305				43,145
Research and development(1)(2)(3)		12,281				14,193				39,859				42,948
General and administrative(1)(2)(3)(4)		16,069				12,209				38,515				41,136
Depreciation and amortization		12,614				9,983				37,618				31,165
Goodwill impairment		—				—				28,769				—
Total operating expenses		55,325				47,727				187,066				158,394
Loss from operations		(17,509	)			(13,687	)			(74,774	)			(52,306	)
Interest and other (expense) income, net		(4,679	)			(1,514	)			(11,838	)			3,185
Loss before income taxes		(22,188	)			(15,201	)			(86,612	)			(49,121	)
Income tax provision (benefit)		41				(475	)			337				(292	)
Net loss	$	(22,229	)		$	(14,726	)		$	(86,949	)		$	(48,829	)
Net loss per share, basic and diluted	$	(0.32	)		$	(0.24	)		$	(1.25	)		$	(0.82	)
Weighted-average shares outstanding used in calculating net loss per share, basic and diluted		70,377				60,441				69,525				59,449

_______________
(1) Includes stock-based compensation expense as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Stock-Based Compensation Expense:	(in thousands)						(in thousands)
Cost of revenue, excluding depreciation and amortization:
Technology	$	205		$	450		$	719		$	1,206
Professional services		991			1,601			3,187			4,282
Sales and marketing		2,085			2,555			6,789			8,997
Research and development		972			1,871			3,421			5,391
General and administrative		2,786			3,035			8,789			9,440
Total	$	7,039		$	9,512		$	22,905		$	29,316

(2) Includes acquisition-related costs, net, as follows:

	Three Months Ended September 30,							Nine Months Ended September 30,
		2025				2024			2025				2024
Acquisition-related costs, net:	(in thousands)							(in thousands)
Cost of revenue, excluding depreciation and amortization:
Technology	$	11			$	77		$	118			$	246
Professional services		24				121			200				330
Sales and marketing		(25	)			151			416				738
Research and development		—				183			357				612
General and administrative		(1,826	)			955			(3,598	)			3,805
Total	$	(1,816	)		$	1,487		$	(2,507	)		$	5,731

(3) Includes restructuring costs as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Restructuring costs:	(in thousands)						(in thousands)
Cost of revenue, excluding depreciation and amortization:
Technology	$	436		$	—		$	837		$	79
Professional services		650			—			1,792			181
Sales and marketing		1,947			—			2,299			449
Research and development		1,374			—			3,282			443
General and administrative		365			—			501			936
Total	$	4,772		$	—		$	8,711		$	2,088

(4)   Includes non-recurring lease-related charges as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Non-recurring lease-related charges:	(in thousands)						(in thousands)
General and administrative	$	6,900		$	—		$	6,900		$	2,200
Total	$	6,900		$	—		$	6,900		$	2,200

Condensed Consolidated Statements of Cash Flows (in thousands, unaudited)
	Nine Months Ended September 30,
		2025				2024
Cash flows from operating activities
Net loss	$	(86,949	)		$	(48,829	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation expense		22,905				29,316
Depreciation and amortization		37,618				31,165
Impairment of long-lived assets		6,900				2,200
Non-cash operating lease expense		2,231				1,981
Amortization of debt discount, issuance costs, and deferred financing costs		2,906				2,078
Investment discount and premium accretion		(1,278	)			(3,899	)
Provision for expected credit losses		1,410				3,433
Deferred tax provision		(114	)			(517	)
Change in fair value of contingent consideration liability		(7,063	)			(1,642	)
Goodwill impairment		28,769				—
Other		(410	)			87
Change in operating assets and liabilities:
Accounts receivable, net		(2,709	)			6,304
Prepaid expenses and other assets		1,934				(617	)
Accounts payable, accrued liabilities, and other liabilities		(15,729	)			4,810
Deferred revenue		3,304				(5,259	)
Operating lease liabilities		(2,906	)			(2,525	)
Net cash (used in) provided by operating activities		(9,181	)			18,086
Cash flows from investing activities
Proceeds from the sale and maturity of short-term investments		149,448				206,488
Purchase of short-term investments		(57,224	)			(50,197	)
Acquisition of businesses, net of cash acquired		(41,114	)			(54,889	)
Capitalization of internal-use software		(14,638	)			(9,858	)
Purchases of property and equipment		(695	)			(1,203	)
Purchase of intangible assets		(624	)			(504	)
Proceeds from the sale of property and equipment		31				10
Net cash provided by investing activities		35,184				89,847
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of issuance costs		—				115,472
Proceeds from employee stock purchase plan		1,537				2,061
Repurchase of common stock		(5,000	)			—
Repayment of debt		(231,885	)			(646	)
Payment of deferred financing costs		—				(3,000	)
Proceeds from exercise of stock options		—				169
Net cash (used in) provided by financing activities		(235,348	)			114,056
Effect of exchange rate changes on cash and cash equivalents		5				62
Net (decrease) increase in cash and cash equivalents		(209,340	)			222,051
Cash and cash equivalents at beginning of period		249,645				106,276
Cash and cash equivalents at end of period	$	40,305			$	328,327

Non-GAAP Financial Measures

To supplement our financial information presented in accordance with GAAP, we believe certain non-GAAP financial measures, including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, Adjusted Operating Expenses, Adjusted Net Income, and Adjusted Net Income per share, basic and diluted, are useful in evaluating our operating performance. For example, we exclude stock-based compensation expense because it is non-cash in nature and excluding this expense provides meaningful supplemental information regarding our operational performance and allows investors the ability to make more meaningful comparisons between our operating results and those of other companies. We use this non-GAAP financial information to evaluate our ongoing operations, as a component in determining employee bonus compensation, and for internal planning and forecasting purposes.

We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

Adjusted Gross Profit and Adjusted Gross Margin

Gross profit is a GAAP financial measure that is calculated as revenue less cost of revenue, including depreciation and amortization of capitalized software development costs and acquired technology. We calculate gross margin as gross profit divided by our revenue. Adjusted Gross Profit is a non-GAAP financial measure that we define as gross profit, adjusted for (i) depreciation and amortization, (ii) stock-based compensation, (iii) acquisition-related costs, net, and (iv) restructuring costs, as applicable. We define Adjusted Gross Margin as our Adjusted Gross Profit divided by our revenue. We believe Adjusted Gross Profit and Adjusted Gross Margin are useful to investors as they eliminate the impact of certain non-cash expenses and allow a direct comparison of these measures between periods without the impact of non-cash expenses and certain other non-recurring operating expenses.

We present both of these measures for our technology and professional services business. We believe these non-GAAP financial measures are useful in evaluating our operating performance compared to that of other companies in our industry, as these metrics generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall profitability.

The following is a calculation of our gross profit and gross margin and a reconciliation of gross profit and gross margin, the most directly comparable financial measures calculated in accordance with GAAP, to our Adjusted Gross Profit and Adjusted Gross Margin in total and for technology and professional services for the three months ended September 30, 2025 and 2024.

	Three Months Ended September 30, 2025
	(in thousands, except percentages)
	Technology				Professional Services				Total
Revenue	$	52,051			$	24,272			$	76,323
Cost of revenue, excluding depreciation and amortization		(17,203	)			(21,304	)			(38,507	)
Amortization of intangible assets, cost of revenue		(4,554	)			—				(4,554	)
Depreciation of property and equipment, cost of revenue		(3,283	)			—				(3,283	)
Gross profit		27,011				2,968				29,979
Gross margin		52	%			12	%			39	%
Add:
Amortization of intangible assets, cost of revenue		4,554				—				4,554
Depreciation of property and equipment, cost of revenue		3,283				—				3,283
Stock-based compensation		205				991				1,196
Acquisition-related costs, net(1)		11				24				35
Restructuring costs(2)		436				650				1,086
Adjusted Gross Profit	$	35,500			$	4,633			$	40,133
Adjusted Gross Margin		68	%			19	%			53	%

___________________
(1) Acquisition-related costs, net include deferred retention expenses attributable to the Upfront, Intraprise, and KPI Ninja acquisitions.
(2) Restructuring costs include severance and other team member costs from workforce reductions. For additional details, refer to Note 19 in our condensed consolidated financial statements.

	Three Months Ended September 30, 2024
	(in thousands, except percentages)
	Technology				Professional Services				Total
Revenue	$	48,653			$	27,700			$	76,353
Cost of revenue, excluding depreciation and amortization		(17,609	)			(24,704	)			(42,313	)
Amortization of intangible assets, cost of revenue		(3,741	)			—				(3,741	)
Depreciation of property and equipment, cost of revenue		(2,541	)			—				(2,541	)
Gross profit		24,762				2,996				27,758
Gross margin		51	%			11	%			36	%
Add:
Amortization of intangible assets, cost of revenue		3,741				—				3,741
Depreciation of property and equipment, cost of revenue		2,541				—				2,541
Stock-based compensation		450				1,601				2,051
Acquisition-related costs, net(1)		77				121				198
Adjusted Gross Profit	$	31,571			$	4,718			$	36,289
Adjusted Gross Margin		65	%			17	%			48	%

___________________
(1) Acquisition-related costs, net include deferred retention expenses attributable to the Lumeon, Carevive, ARMUS, and KPI Ninja acquisitions.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that we define as net loss adjusted for (i) interest and other (income) expense, net, (ii) income tax provision, (iii) depreciation and amortization, (iv) stock-based compensation, (v) acquisition-related costs, net, (vi) restructuring costs, and (vii) non-recurring lease-related charges, as applicable. We view acquisition-related expenses when applicable, such as transaction costs and changes in the fair value of contingent consideration liabilities that are directly related to business combinations, as costs that are unpredictable, dependent upon factors outside of our control, and are not necessarily reflective of operational performance during a period. We believe that excluding restructuring costs, and non-recurring lease-related charges, as applicable, allows for more meaningful comparisons between operating results from period to period as these are separate from the core activities that arise in the ordinary course of our business and are not part of our ongoing operations. We believe Adjusted EBITDA provides investors with useful information on period-to-period performance as evaluated by management and a comparison with our past financial performance, and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. The following is a reconciliation of our net loss, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA for the three months ended September 30, 2025 and 2024:

	Three Months Ended September 30,
		2025				2024
	(in thousands)
Net loss	$	(22,229	)		$	(14,726	)
Add:
Interest and other (income) expense, net		4,679				1,514
Income tax provision		41				(475	)
Depreciation and amortization		12,614				9,983
Stock-based compensation		7,039				9,512
Acquisition-related costs, net(1)		(1,816	)			1,487
Restructuring costs(2)		4,772				—
Non-recurring lease-related charges(3)		6,900				—
Adjusted EBITDA	$	12,000			$	7,295

__________________
(1) Acquisition-related costs, net include third-party fees associated with due diligence, deferred retention expenses, post-acquisition restructuring costs incurred as part of business combinations, and changes in fair value of contingent consideration liabilities for potential earn-out payments.
(2) Restructuring costs include severance and other team member costs from workforce reductions. For additional details, refer to Note 19 in our condensed consolidated financial statements.
(3) Non-recurring lease-related charges include the lease-related impairment charge related to our corporate office space designated for subleasing. For additional details, refer to Note 9 in our condensed consolidated financial statements.

Adjusted Operating Expenses

Adjusted Operating Expenses is a non-GAAP financial measure that we define as total operating expenses adjusted for (i) depreciation and amortization, (ii) stock-based compensation, (iii) acquisition-related costs, net, (iv) restructuring costs, and (v) non-recurring lease-related charges, as applicable. We view these adjustments to allow for more meaningful comparisons between operating results from period-to-period as these are separate from the core activities that arise in the ordinary course of our business. We believe Adjusted Operating Expenses provides investors with useful information on period-to-period performance as evaluated by management and a comparison with our past financial performance, and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. The following is a reconciliation of our total operating expenses, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted Operating Expenses for the three months ended September 30, 2025 and 2024:

	Three Months Ended September 30,
		2025				2024
	(in thousands)
Total operating expenses	$	55,325			$	47,727
Less:
Depreciation and amortization		(12,614	)			(9,983	)
Stock-based compensation		(5,843	)			(7,461	)
Acquisition-related costs, net(1)		1,851				(1,289	)
Restructuring costs(2)		(3,686	)			—
Non-recurring lease-related charges(3)		(6,900	)			—
Adjusted Operating Expenses	$	28,133			$	28,994

__________________
(1) Acquisition-related costs, net include third-party fees associated with due diligence, deferred retention expenses, post-acquisition restructuring costs incurred as part of business combinations, and changes in fair value of contingent consideration liabilities for potential earn-out payments.
(2) Restructuring costs include severance and other team member costs from workforce reductions. For additional details, refer to Note 19 in our condensed consolidated financial statements.
(3) Non-recurring lease-related charges include the lease-related impairment charge related to our corporate office space designated for subleasing. For additional details, refer to Note 9 in our condensed consolidated financial statements.

Adjusted Net Income and Adjusted Net Income Per Share

Adjusted Net Income is a non-GAAP financial measure that we define as net loss adjusted for (i) stock-based compensation, (ii) amortization of acquired intangibles, (iii) restructuring costs, (iv) acquisition-related costs, net, including the change in fair value of contingent consideration liabilities, (v) non-cash interest expense related to debt facilities, and (vi) non-recurring lease-related charges, as applicable. We believe Adjusted Net Income provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. The following is a reconciliation of our net loss, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted Net Income, for the three months ended September 30, 2025 and 2024:

	Three Months Ended September 30,
		2025				2024
Numerator:	(in thousands, except share and per share amounts)
Net loss	$	(22,229	)		$	(14,726	)
Add:
Stock-based compensation		7,039				9,512
Amortization of acquired intangibles		8,823				6,839
Restructuring costs(1)		4,772				—
Acquisition-related costs, net(2)		(1,816	)			1,487
Non-cash interest expense related to debt facilities		817				1,319
Non-recurring lease-related charges(3)		6,900				—
Adjusted Net Income	$	4,306			$	4,431
Denominator:
Weighted-average shares outstanding used in calculating net loss per share, basic and diluted, and Adjusted Net Income per share, basic		70,376,760				60,440,694
Non-GAAP dilutive effect of stock-based awards		717,729				265,889
Non-GAAP weighted-average shares outstanding used in calculating Adjusted Net Income per share, diluted		71,094,489				60,706,583
Net loss per share, basic and diluted	$	(0.32	)		$	(0.24	)
Adjusted Net Income per share, basic and diluted	$	0.06			$	0.07

______________
(1) Restructuring costs include severance and other team member costs from workforce reductions. For additional details, refer to Note 19 in our condensed consolidated financial statements.
(2) Acquisition-related costs, net includes third-party fees associated with due diligence, deferred retention expenses, post-acquisition restructuring costs incurred as part of business combinations, and changes in fair value of contingent consideration liabilities for potential earn-out payments.
(3) Non-recurring lease-related charges include the lease-related impairment charge related to our corporate office space designated for subleasing. For additional details, refer to Note 9 in our condensed consolidated financial statements.

Health Catalyst Investor Relations Contact:
Matt Hopper
Senior Vice President, Finance and Head of Investor Relations
+1 (855)-309-6800
ir@healthcatalyst.com

Health Catalyst Media Contact:
Kathryn Mykleseth
Director, Public Relations and Communications
media@healthcatalyst.com

To view this slide as a PDF, please click here: 

http://ml.globenewswire.com/Resource/Download/f1e23a17-4c20-4c4a-a220-2e5d67d02ec0

FAQ

What were Health Catalyst (HCAT) third-quarter 2025 revenue and Adjusted EBITDA?

Health Catalyst reported $76.3M revenue and $12.0M Adjusted EBITDA for Q3 2025.

How did HCAT net loss change in Q3 2025 versus Q3 2024?

GAAP net loss widened to $(22.2M) from $(14.7M), an increase of about 51% year-over-year.

What guidance did Health Catalyst (HCAT) give for Q4 and full-year 2025?

Q4 2025: revenue ~$73.5M and Adjusted EBITDA ~$13.4M. Full-year 2025: revenue ~$310M and Adjusted EBITDA ~$41M.

What margins did Health Catalyst report in Q3 2025?

GAAP gross margin was 39%; adjusted gross margin was 53% for Q3 2025.

Will Health Catalyst reconcile guidance for Adjusted EBITDA to net loss for investors?

The company said it did not reconcile Adjusted EBITDA guidance to net loss because certain items like stock-based compensation cannot be reasonably forecasted.