HCAT Stock Forecast & Price Target

Health Catalyst Inc. reported a revenue increase of 6% year-over-year, totaling $79.6 million, which aligns closely with expectations, indicating strong performance in its Technology segment driven by cloud-based subscription arrangements. The company is on track to achieve significant growth in higher-margin, recurring technology revenue, with plans to add approximately 40 net new platform clients in fiscal year 2025, significantly up from the 21 clients added the previous year. Additionally, Health Catalyst has revised its EBITDA guidance upward by $2 million, reflecting confidence in delivering operational synergies ahead of schedule and an optimistic outlook for demand in its analytics and data solutions offerings.

Health Catalyst Inc. has issued a revised EBITDA guidance of approximately $4 million for 2025, which significantly falls short of the consensus estimate of $8.8 million by around 55%, suggesting a challenging ramp-up in the second half of the year. Additionally, the company's revenue guidance of around $79 million for the first quarter of 2025 also lags behind consensus expectations by 4%, reflecting continued pressures from migration to the new Ignite platform and a negative mix shift in business performance. The reliance on acquisitions for tech revenue, amidst a slowdown in merger and acquisition activity, further complicates Health Catalyst's path to achieving its profitability goals, creating additional headwinds for gross margins.