HCAT Stock Forecast & Price Target

Health Catalyst Inc. reported revenue of $79.6 million for the latest period, marking a 6% year-over-year increase and aligning closely with expectations. The company’s strategy of focusing on higher-margin, recurring technology revenue is underscored by its goal to add approximately 40 new platform clients in FY25, which represents a significant increase from the prior year, supported by encouraging early additions. Additionally, Health Catalyst has revised its EBITDA guidance upward by $2 million, reflecting confidence in achieving operational synergies ahead of schedule and consistent demand for its analytics technology and services.

The financial outlook for Health Catalyst Inc is negatively impacted by a revised EBITDA guidance of approximately $4 million for 2025, significantly below the consensus estimate of $8.8 million, reflecting a considerable -55% shortfall. Additionally, revenue guidance for 1Q25 is projected at $79 million, which is 4% lower than the consensus expectation of $82 million, indicating a struggle to meet market expectations in a challenging operating environment. Furthermore, a slowdown in mergers and acquisitions, coupled with difficulties from client migrations to the new Ignite platform, is leading to headwinds for revenue growth and negatively affecting the gross margin mix.