Data and analytics firm Health Catalyst's Q4 revenue fell
Overview
U.S. healthcare analytics firm's Q4 revenue fell 6% yr/yr
Q4 adjusted EBITDA rose sharply and beat analyst expectations
Company posted large net loss due to goodwill and intangible asset impairments
Outlook
Health Catalyst expects Q1 2026 revenue between $68 mln and $70 mln
Company sees Q1 2026 Adjusted EBITDA between $7 mln and $8 mln
Company is not providing full-year 2026 guidance due to ongoing internal review and CEO transition
Result Drivers
IMPAIRMENT CHARGES - Co said net loss was driven by impairment of goodwill and intangible assets following impairment indicators and quantitative tests
COST REDUCTIONS - Gross margin improved due to lower costs, especially in professional services
CLIENT RETENTION - Dollar-based retention rate fell to 93% from 102%, indicating reduced client spend or attrition
Company press release: ID:nGNX4tHzSS
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Technology Revenue |
| $74.68 mln |
|
Q4 Net Income |
| -$91.03 mln |
|
Q4 Adjusted EBITDA | Beat | $13.79 mln | $13.18 mln (10 Analysts) |
Q4 Adj. Technology Gross Margin |
| 53.50% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Health Catalyst Inc is $3.88, about 108.3% above its March 11 closing price of $1.86
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 9 three months ago
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