Health Catalyst Reports Fourth Quarter and Year End 2025 Results

SALT LAKE CITY, March 12, 2026 (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 and year ended December 31, 2025.

"We closed 2025 with solid performance across our business, including total revenue of $311.1 million and Adjusted EBITDA of $41.4 million," said Ben Albert, CEO of Health Catalyst "In 2026, we are focused on the future and on positioning Health Catalyst for long‑term success. As I continue to assess the business, I see both meaningful opportunities and clear areas where we must improve. I am confident in the strengths that continue to differentiate this company. Our mission, our people, and our core capabilities, grounded in thousands of improvement projects and billions of dollars in validated impact, provide a solid foundation for delivering meaningful value to our clients and shareholders. My priority is to build on these strengths, address our challenges with clarity and discipline, and move the company forward with a renewed sense of focus and execution."

Financial Highlights for the Three and Twelve Months Ended December 31, 2025

Key Financial Measures

	Three Months Ended December 31,								Year over Year Change			Twelve Months Ended December 31,								Year over Year Change
		2025				2024							2025				2024
GAAP Financial Measures:	(in thousands, except percentages)											(in thousands, except percentages)
Total revenue	$	74,679			$	79,606			(6	)%		$	311,136			$	306,584			1	%
Gross profit	$	31,385			$	28,618			10	%		$	120,356			$	114,503			5	%
Gross margin		42.0	%			35.9	%						38.7	%			37.3	%
Net loss	$	(91,025	)		$	(20,673	)		(340	)%		$	(177,974	)		$	(69,502	)		(156	)%
Non-GAAP Financial Measures:(1)
Adjusted Gross Profit	$	39,962			$	37,121			8	%		$	159,107			$	149,533			6	%
Adjusted Gross Margin		53.5	%			46.6	%						51.1	%			48.8	%
Adjusted EBITDA	$	13,786			$	7,911			74	%		$	41,408			$	26,105			59	%

________________________

(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.

Other Key Metrics

	As of December 31,
	2025			2024
Platform Clients(1)*	162			130
	Year Ended December 31,
	2025			2024
Dollar-based Retention Rate (Tech + TEMS)(2)*	93	%		102	%

__________________

(1) At the beginning of 2025, we updated the name and definition of this key metric. Platform Clients are defined as: (i) all Platform Clients as of December 31, 2024 under our historical definition (i.e., these clients will be included in our Platform Client count until they cease to have an active subscription as of the end of the period), and (ii) as of January 1, 2025, any technology client that signs contracts with at least $100,000 of incremental total annual recurring revenue (ARR) and non-recurring revenue in a given calendar year, inclusive of clients that come through acquisition if we first begin recognizing revenue for the client post-acquisition and that total ARR and non-recurring revenue exceeds $100,000 in that calendar year, so long as such client maintains an active subscription as of the end of the period. Once a client is designated as a Platform Client, it will continue to be a Platform Client unless it is no longer a client with an active subscription as of the end of the period. Please see our Annual Report on Form 10-K for the year ended December 31, 2025 expected to be filed with the SEC on or about March 12, 2026 for additional information.

(2) Dollar-based Retention Rate (Tech + TEMS) is calculated as of a period end by starting with the sum of the technology ARR and Tech-Enabled Managed Services (TEMS) ARR from our Platform Clients as of the date 12 months prior to such period end (this calculation excludes professional services ARR and non-recurring revenue), calculating the sum of the ARR from these same clients as of the current period end (which includes any upsells and also reflects contraction or attrition over the trailing twelve months but excludes revenue from new Platform Clients added in the current period who were not clients at the beginning of such period; this current period ARR may include acquired ARR from clients that overlap with the Platform Clients in a given calendar year), and then dividing the current period ARR by the prior period ARR. Please see our Annual Report on Form 10-K for the year ended December 31, 2025 expected to be filed with the SEC on or about March 12, 2026 for additional information.

* We anticipate sunsetting our reporting of this metric for 2026 and future years, and we anticipate providing new 2026 growth metrics in lieu of this metric in the future.

Financial Outlook

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

For the first quarter of 2026, we expect:

• Total revenue between $68 and $70 million, and

• Adjusted EBITDA between $7 and $8 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.

We are not providing forward-looking guidance for the full year of 2026 at this time due to an ongoing internal strategic and operational review in connection with our CEO transition.

Quarterly Conference Call Details

We will host a conference call to review the results today, Thursday, March 12, 2026, 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 "HCATQ425." 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 1,200 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/ben-albert-0a763b1/ 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, our growth strategies, our strategic priorities, and our financial outlook for Q1 2026. 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, clients reducing or eliminating their spend with us, client churn or down-selling in connection with the migration to Ignite or otherwise; (v) fluctuations in our project-based, non-recurring revenue, (vi) macroeconomic challenges (including high inflationary and/or high interest rate environments, tariffs, or market volatility and measures taken in response thereto), natural disasters or any new public health crises, and regional or global conflicts (including the conflicts in the Middle East); and (vii) 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 that was filed with the SEC on November 10, 2025 and the Annual Report on Form 10-K for the year ended December 31, 2025 expected to be filed with the SEC on or about March 12, 2026. 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.

Consolidated Balance Sheets (in thousands, except share and per share data)
	As of December 31,
		2025				2024
Assets
Current assets:
Cash and cash equivalents	$	50,814			$	249,645
Short-term investments		44,918				142,355
Accounts receivable, net		59,128				57,182
Prepaid expenses and other assets		14,447				16,468
Total current assets		169,307				465,650
Property and equipment, net		33,838				29,394
Intangible assets, net		77,678				86,052
Operating lease right-of-use assets		6,640				12,058
Goodwill		209,073				259,759
Other assets		6,107				6,016
Total assets	$	502,643			$	858,929
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	9,363			$	11,433
Accrued liabilities		18,697				26,340
Deferred revenue		56,107				53,281
Operating lease liabilities		3,779				3,614
Current portion of long-term debt		1,627				231,182
Total current liabilities		89,573				325,850
Long-term debt, net of current portion		151,624				151,178
Deferred revenue, net of current portion		410				249
Operating lease liabilities, net of current portion		14,208				16,291
Other liabilities		798				154
Total liabilities		256,863				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 December 31, 2025 and 2024		—				—
Common stock, $0.001 par value per share, and additional paid-in capital; 500,000,000 shares authorized as of December 31, 2025 and 2024; 72,027,332 and 64,043,799 shares issued and outstanding as of December 31, 2025 and 2024, respectively		1,608,840				1,552,714
Accumulated deficit		(1,364,646	)			(1,186,672	)
Accumulated other comprehensive income (loss)		1,586				(835	)
Total stockholders' equity		245,780				365,207
Total liabilities and stockholders' equity	$	502,643			$	858,929

Consolidated Statements of Operations (in thousands, except per share data, unaudited)
	Three Months Ended December 31,								Twelve Months Ended December 31,
		2025				2024				2025				2024
Revenue:
Technology	$	51,868			$	51,598			$	208,277			$	194,852
Professional services		22,811				28,008				102,859				111,732
Total revenue		74,679				79,606				311,136				306,584
Cost of revenue, excluding depreciation and amortization:
Technology(1)(2)(3)		16,621				18,821				69,741				67,812
Professional services(1)(2)(3)		18,675				26,094				89,720				97,993
Total cost of revenue, excluding depreciation and amortization		35,296				44,915				159,461				165,805
Operating expenses:
Sales and marketing(1)(2)(3)		10,172				11,242				52,477				54,387
Research and development(1)(2)(3)		9,911				15,002				49,770				57,950
General and administrative(1)(2)(3)(4)		11,044				15,681				49,559				56,817
Depreciation and amortization		12,882				10,266				50,500				41,431
Impairment of goodwill and intangible assets		81,454				—				110,223				—
Total operating expenses		125,463				52,191				312,529				210,585
Loss from operations		(86,080	)			(17,500	)			(160,854	)			(69,806	)
Interest and other expense, net		(4,566	)			(2,548	)			(16,404	)			637
Loss before income taxes		(90,646	)			(20,048	)			(177,258	)			(69,169	)
Income tax provision		379				625				716				333
Net loss	$	(91,025	)		$	(20,673	)		$	(177,974	)		$	(69,502	)
Net loss per share, basic and diluted	$	(1.28	)		$	(0.33	)		$	(2.55	)		$	(1.15	)
Weighted-average shares outstanding used in calculating net loss per share, basic and diluted		70,998				62,377				69,896				60,185

_______________

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2025			2024			2025			2024
Stock-Based Compensation Expense:	(in thousands)						(in thousands)
Cost of revenue, excluding depreciation and amortization:
Technology	$	103		$	494		$	822		$	1,700
Professional services		466			1,759			3,653			6,041
Sales and marketing		1,077			3,123			7,866			12,120
Research and development		322			2,305			3,743			7,696
General and administrative		2,139			3,131			10,928			12,571
Total	$	4,107		$	10,812		$	27,012		$	40,128

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2025			2024				2025			2024
Acquisition-related costs, net:	(in thousands)						(in thousands)
Cost of revenue, excluding depreciation and amortization:
Technology	$	2		$	74		$	120			$	320
Professional services		8			103			208				433
Sales and marketing		5			53			421				791
Research and development		9			91			366				703
General and administrative		397			4,012			(3,201	)			7,817
Total	$	421		$	4,333		$	(2,086	)		$	10,064

(3) Includes restructuring costs, as follows:

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2025			2024			2025			2024
Restructuring costs:	(in thousands)						(in thousands)
Cost of revenue, excluding depreciation and amortization:
Technology	$	—		$	—		$	837		$	79
Professional services		—			—			1,792			181
Sales and marketing		206			—			2,505			449
Research and development		35			—			3,317			443
General and administrative		761			—			1,262			936
Total	$	1,002		$	—		$	9,713		$	2,088

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2025			2024			2025			2024
Non-recurring lease-related charges:	(in thousands)						(in thousands)
General and administrative	$	—		$	—		$	6,900		$	2,200

Consolidated Statements of Cash Flows (in thousands)
	Year Ended December 31,
		2025				2024
Cash flows from operating activities
Net loss	$	(177,974	)		$	(69,502	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation expense		27,012				40,128
Depreciation and amortization		50,500				41,431
Investment discount and premium accretion		(1,565	)			(4,757	)
Impairment of long-lived assets		6,900				2,200
Non-cash operating lease expense		2,930				2,685
Provision for expected credit losses		1,503				1,202
Amortization of debt discount, issuance costs, and deferred financing costs		3,725				3,256
Deferred tax provision		81				77
Change in fair value of contingent consideration liabilities		(7,063	)			(1,642	)
Impairment of goodwill and intangible assets		110,223				—
Other		(429	)			141
Change in operating assets and liabilities:
Accounts receivable, net		(1,809	)			4,281
Prepaid expenses and other assets		1,569				(50	)
Accounts payable, accrued liabilities, and other liabilities		(11,512	)			5,581
Deferred revenue		607				(7,012	)
Operating lease liabilities		(3,967	)			(3,460	)
Net cash provided by operating activities		731				14,559
Cash flows from investing activities
Proceeds from the sale and maturity of short-term investments		163,948				242,067
Purchases of short-term investments		(65,132	)			(168,307	)
Capitalization of internal-use software		(19,780	)			(14,274	)
Acquisition of businesses, net of cash acquired		(41,114	)			(80,277	)
Purchases of property and equipment		(968	)			(1,616	)
Purchases of intangible assets		(805	)			(508	)
Proceeds from the sale of property and equipment		44				13
Net cash provided by (used in) investing activities		36,193				(22,902	)
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of issuance costs		—				152,277
Payment of deferred financing costs		—				(2,152	)
Repayment of debt		(232,292	)			(959	)
Proceeds from employee stock purchase plan		1,510				2,411
Proceeds from exercise of stock options		—				169
Repurchase of common stock		(5,000	)			—
Net cash (used in) provided by financing activities		(235,782	)			151,746
Effect of exchange rate changes on cash and cash equivalents		27				(34	)
Net (decrease) increase in cash and cash equivalents		(198,831	)			143,369
Cash and cash equivalents at beginning of period		249,645				106,276
Cash and cash equivalents at end of period	$	50,814			$	249,645

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 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 reconciliation of our Adjusted Gross Profit and Adjusted Gross Margin, in total and for technology and professional services, to gross profit and gross margin, the most directly comparable financial measures calculated in accordance with GAAP, for the three and twelve months ended December 31, 2025 and 2024:

	Three Months Ended December 31, 2025
	(in thousands, except percentages)
	Technology				Professional Services				Total
Revenue	$	51,868			$	22,811			$	74,679
Cost of revenue, excluding depreciation and amortization		(16,621	)			(18,675	)			(35,296	)
Amortization of intangible assets, cost of revenue		(4,581	)			—				(4,581	)
Depreciation of property and equipment, cost of revenue		(3,417	)			—				(3,417	)
Gross profit		27,249				4,136				31,385
Gross margin		52.5	%			18.1	%			42.0	%
Add:
Amortization of intangible assets, cost of revenue		4,581				—				4,581
Depreciation of property and equipment, cost of revenue		3,417				—				3,417
Stock-based compensation		103				466				569
Acquisition-related costs, net(1)		2				8				10
Adjusted Gross Profit	$	35,352			$	4,610			$	39,962
Adjusted Gross Margin		68.2	%			20.2	%			53.5	%

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(1) Acquisition-related costs, net include deferred retention expenses attributable to the Upfront, Intraprise, ARMUS, and KPI Ninja acquisitions. For additional details refer to Notes 1, 2, and 7 in our consolidated financial statements.

	Three Months Ended December 31, 2024
	(in thousands, except percentages)
	Technology				Professional Services				Total
Revenue	$	51,598			$	28,008			$	79,606
Cost of revenue, excluding depreciation and amortization		(18,821	)			(26,094	)			(44,915	)
Amortization of intangible assets, cost of revenue		(3,455	)			—				(3,455	)
Depreciation of property and equipment, cost of revenue		(2,618	)			—				(2,618	)
Gross profit		26,704				1,914				28,618
Gross margin		51.8	%			6.8	%			35.9	%
Add:
Amortization of intangible assets, cost of revenue		3,455				—				3,455
Depreciation of property and equipment, cost of revenue		2,618				—				2,618
Stock-based compensation		494				1,759				2,253
Acquisition-related costs, net(1)		74				103				177
Adjusted Gross Profit	$	33,345			$	3,776			$	37,121
Adjusted Gross Margin		64.6	%			13.5	%			46.6	%

___________________

(1) Acquisition-related costs, net include deferred retention expenses following the Lumeon, Carevive, ARMUS, and KPI Ninja acquisitions. For additional details refer to Notes 1, 2, and 7 in our consolidated financial statements.

	Twelve Months Ended December 31, 2025
	(in thousands, except percentages)
	Technology				Professional Services				Total
Revenue	$	208,277			$	102,859			$	311,136
Cost of revenue, excluding depreciation and amortization		(69,741	)			(89,720	)			(159,461	)
Amortization of intangible assets, cost of revenue		(18,588	)			—				(18,588	)
Depreciation of property and equipment, cost of revenue		(12,731	)			—				(12,731	)
Gross profit		107,217				13,139				120,356
Gross margin		51.5	%			12.8	%			38.7	%
Add:
Amortization of intangible assets, cost of revenue		18,588				—				18,588
Depreciation of property and equipment, cost of revenue		12,731				—				12,731
Stock-based compensation		822				3,653				4,475
Acquisition-related costs, net(1)		120				208				328
Restructuring costs(2)		837				1,792				2,629
Adjusted Gross Profit	$	140,315			$	18,792			$	159,107
Adjusted Gross Margin		67.4	%			18.3	%			51.1	%

__________________

(1) Acquisition-related costs, net include deferred retention expenses attributable to the Upfront, Intraprise, ARMUS, and KPI Ninja acquisitions. For additional details refer to Notes 1, 2, and 7 in our consolidated financial statements.

(2) Restructuring costs include severance and other team member costs from workforce reductions and restructuring. For additional details refer to Note 11 in our consolidated financial statements.

	Twelve Months Ended December 31, 2024
	(in thousands, except percentages)
	Technology				Professional Services				Total
Revenue	$	194,852			$	111,732			$	306,584
Cost of revenue, excluding depreciation and amortization		(67,812	)			(97,993	)			(165,805	)
Amortization of intangible assets, cost of revenue		(16,150	)			—				(16,150	)
Depreciation of property and equipment, cost of revenue		(10,126	)			—				(10,126	)
Gross profit		100,764				13,739				114,503
Gross margin		51.7	%			12.3	%			37.3	%
Add:
Amortization of intangible assets, cost of revenue		16,150				—				16,150
Depreciation of property and equipment, cost of revenue		10,126				—				10,126
Stock-based compensation		1,700				6,041				7,741
Acquisition-related costs, net(1)		320				433				753
Restructuring costs(2)		79				181				260
Adjusted Gross Profit	$	129,139			$	20,394			$	149,533
Adjusted Gross Margin		66.3	%			18.3	%			48.8	%

___________________

(1) Acquisition-related costs, net include deferred retention expenses attributable to the Lumeon, Carevive, ARMUS, and KPI Ninja acquisitions. For additional details refer to Notes 1, 2, and 7 in our consolidated financial statements.

(2) Restructuring costs include severance and other team member costs from workforce reductions and restructuring. For additional details refer to Note 11 in our consolidated financial statements.

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 (benefit), (iii) depreciation and amortization, (iv) stock-based compensation, (v) acquisition-related costs, net, including the change in fair value of contingent consideration liabilities for potential earn-out payments, (vi) restructuring costs, (vii) impairment of goodwill and intangible assets, and (viii) 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, impairment of goodwill and intangible assets, 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 and twelve months ended December 31, 2025 and 2024:

	Three Months Ended December 31,								Twelve Months Ended December 31,
		2025				2024				2025				2024
	(in thousands)								(in thousands)
Net loss	$	(91,025	)		$	(20,673	)		$	(177,974	)		$	(69,502	)
Add:
Interest and other (income) expense, net		4,566				2,548				16,404				(637	)
Income tax provision		379				625				716				333
Depreciation and amortization		12,882				10,266				50,500				41,431
Stock-based compensation		4,107				10,812				27,012				40,128
Acquisition-related costs, net(1)		421				4,333				(2,086	)			10,064
Restructuring costs(2)		1,002				—				9,713				2,088
Impairment of goodwill and intangible assets(3)		81,454				—				110,223				—
Non-recurring lease-related charges(4)		—				—				6,900				2,200
Adjusted EBITDA	$	13,786			$	7,911			$	41,408			$	26,105

__________________

(1) 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. For additional details refer to Notes 1, 2, and 7 in our consolidated financial statements.

(2) Restructuring costs include severance and other team member costs from workforce reductions and restructuring, impairment of discontinued capitalized software projects, and other miscellaneous charges. For additional details, refer to Note 11 in our consolidated financial statements.

(3) Impairment of goodwill and intangible assets was recognized as a result of impairment indicators and quantitative tests indicating the fair values of the Technology and the Professional Services reporting units were below their respective carrying values as of June 30, 2025 and December 31, 2025. For additional details, refer to Note 4 in our consolidated financial statements.

(4) Non-recurring lease-related charges includes lease-related impairment charges for the subleased portion of our office space. For additional details refer to Note 9 in our 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, including the change in fair value of contingent consideration liabilities for potential earn-out payments, (iv) impairment of goodwill and intangible assets, (v) restructuring costs, and (vi) 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, as well as a calculation of total operating expenses and Adjusted Operating Expenses as a percentage of total revenue, for the three and twelve months ended December 31, 2025 and 2024:

	Three Months Ended December 31,								Twelve Months Ended December 31,
		2025				2024				2025				2024
	(in thousands)								(in thousands)
Total operating expenses	$	125,463			$	52,191			$	312,529			$	210,585
Less:
Depreciation and amortization		(12,882	)			(10,266	)			(50,500	)			(41,431	)
Stock-based compensation		(3,538	)			(8,559	)			(22,537	)			(32,387	)
Acquisition-related costs, net(1)		(411	)			(4,156	)			2,414				(9,311	)
Impairment of goodwill and intangible assets(2)		(81,454	)			—				(110,223	)			—
Restructuring costs(3)		(1,002	)			—				(7,084	)			(1,828	)
Non-recurring lease-related charges(4)		—				—				(6,900	)			(2,200	)
Adjusted Operating Expenses	$	26,176			$	29,210			$	117,699			$	123,428
Total operating expenses as a percentage of total revenue		168	%			66	%			100	%			69	%
Adjusted Operating Expenses as a percentage of total revenue		35	%			37	%			38	%			40	%

__________________

(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) Impairment of goodwill and intangible assets was recognized as a result of impairment indicators and quantitative tests indicating the fair values of the Technology and the Professional Services reporting units were below their respective carrying values as of June 30, 2025 and December 31, 2025. For additional details, refer to Note 4 in our consolidated financial statements.

(3) Restructuring costs include severance and other team member costs from workforce reductions. For additional details, refer to Note 11 in our consolidated financial statements.

(4) 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 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) acquisition-related costs, net, including the change in fair value of contingent consideration liabilities for potential earn-out payments, (iv) impairment of goodwill and intangible assets, (v) restructuring costs, (vi) non-recurring lease-related charges, and (vii) non-cash interest expense related to our convertible senior notes, 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 and twelve months ended December 31, 2025 and 2024:

	Three Months Ended December 31,								Twelve Months Ended December 31,
		2025				2024				2025				2024
Numerator:	(in thousands, except share and per share amounts)
Net loss	$	(91,025	)		$	(20,673	)		$	(177,974	)		$	(69,502	)
Add:
Stock-based compensation		4,107				10,812				27,012				40,128
Amortization of acquired intangibles		8,885				7,029				35,487				28,654
Loss on extinguishment of debt		—				—				—				—
Acquisition-related costs, net(1)		421				4,333				(2,086	)			10,064
Impairment of goodwill and intangible assets(2)		81,454				—				110,223				—
Restructuring costs(3)		1,002				—				9,713				2,088
Non-recurring lease-related charges(4)		—				—				6,900				2,200
Non-cash interest expense related to debt		819				1,178				3,725				3,256
Adjusted Net Income	$	5,663			$	2,679			$	13,000			$	16,888
Denominator:
Weighted-average number of shares used in calculating net loss per share, basic		70,997,994				62,376,784				69,896,134				60,184,920
Non-GAAP weighted-average effect of dilutive securities		655,353				536,029				440,780				305,370
Non-GAAP weighted-average number of shares used in calculating Adjusted Net Income per share, diluted		71,653,347				62,912,813				70,336,914				60,490,290
Net loss per share, basic and diluted	$	(1.28	)		$	(0.33	)		$	(2.55	)		$	(1.15	)
Adjusted Net Income per share, basic	$	0.08			$	0.04			$	0.19			$	0.28
Adjusted Net Income per share, diluted	$	0.08			$	0.04			$	0.18			$	0.28

______________

(1) 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, changes in fair value of contingent consideration liabilities for potential earn-out payments, and the deferred tax valuation allowance release from acquisitions. For additional details refer to Notes 1, 2, 7, and 15 in our consolidated financial statements.

(2) Impairment of goodwill and intangible assets was recognized as a result of impairment indicators and quantitative tests indicating the fair values of the Technology and the Professional Services reporting units were below their respective carrying values as of June 30, 2025 and December 31, 2025.For additional details, refer to Note 4 in our consolidated financial statements.

(3) Restructuring costs include severance and other team member costs from workforce reductions, impairment of discontinued capitalized software projects, and other miscellaneous charges. For additional details, refer to Note 11 in our consolidated financial statements.

(4) Includes the lease-related impairment charge for the subleased portion of our corporate headquarters. For additional details refer to Note 9 in our consolidated financial statements.

Health Catalyst Media Contact:

Kathryn Mykleseth

Director of Public Relations and Communications

[email protected]

Health Catalyst Investor Relations Contact:

Matt Hopper

SVP of Finance and Head of Investor Relations

[email protected]