Health Catalyst, Inc. (HCAT) · Nov 5, 2026 · Earnings
Beat — Revenue $56.3M vs $55-56M guide; adjusted EBITDA $0.8M vs $0-0.5M guide
Health Catalyst’s Q3 earnings beat revenue and EBITDA guidance, but revenue, margins and adjusted profit fell sharply as Ignite migration continues.
Health Catalyst is rebuilding around its Ignite healthcare-intelligence platform after selling Vitalware and retiring its debt, while management has warned that DOS-to-Ignite migrations can cause client churn, down-selling and near-term margin pressure. Its prior Q3 targets were already low—$55–56 million of revenue and breakeven to $0.5 million of Adjusted EBITDA—alongside full-year guidance of $246–249 million of revenue and $18–18.5 million of Adjusted EBITDA.
The quarter cleared the company’s deliberately low bar. Revenue of $56.3 million came just above the $56 million high end, and Adjusted EBITDA of $0.8 million exceeded the $0.5 million ceiling; revenue also edged past the published consensus of roughly $55.4 million. Management reaffirmed the full-year outlook.
| Metric | Q3 2026 | Q3 2025 | Q3 guide / consensus |
|---|---|---|---|
| Total revenue (Financial Highlights) | $56.3M (+$0.3M vs. guide high end) | $76.3M | $55–56M / ~$55.4M |
| Adjusted EBITDA (Financial Highlights) | $0.8M | $12.0M | $0–0.5M |
| Adjusted gross margin (Financial Highlights) | 44% | 53% | |
| Adjusted net income per share (Adjusted Net Income reconciliation) | $(0.03) | $0.06 |
The beat does not mean the operating business has stabilized. Revenue fell 26% year over year, technology revenue declined to $40.7 million from $52.1 million, and Adjusted EBITDA plunged 94% to $0.8 million. Gross margin also dropped to 31% from 39%, while adjusted gross margin fell to 44% from 53%. The company explicitly attributes the decline to the Vitalware divestiture and DOS-to-Ignite migration headwinds.
The headline profit is mostly transaction accounting, not recurring improvement. GAAP net income was $40.5 million, but it included a $65.9 million gain on the Vitalware sale; after removing that and other adjustments, Health Catalyst posted a $2.5 million adjusted net loss. The balance sheet is cleaner after debt repayment, but the remaining business is smaller and still working through the Ignite transition. 〔0〕
Bottom line: Health Catalyst modestly beat a reset-down quarterly bar and kept its full-year targets intact, but the underlying business remains under pressure. This is execution slightly ahead of plan inside a still-negative transition story, not evidence that the turnaround is complete.
Q4 results and full-year 2026 outlook update
A buy-side analyst on every ticker — it reads every public company's filing the instant it drops and decodes it into plain English.
A buy-side analyst on every ticker — the whole market decoded the second it moves, before it's a headline. Free gives you a taste. Pro takes the cap off and opens the full read on every company.
by Signing in NOW, claim your FREE 14-day Pro trial!