Investment Thesis
Health Catalyst is fundamentally unprofitable with a $111.0M net loss on $70.8M revenue, indicating severe operating inefficiency and an unsustainable business model. Anemic 1.5% revenue growth combined with a 1.11x debt-to-equity ratio and $153.4M long-term debt creates a precarious financial position requiring urgent restructuring or significant operational transformation.
Strengths
- Positive free cash flow of $18.2M despite accounting losses, suggesting potential non-cash charge distortions
- Healthy liquidity metrics (1.69x current ratio) with $59.9M cash reserves providing near-term runway
- Positive stockholders' equity of $138.1M maintains balance sheet solvency
Risks
- Operating loss of $106.5M (150.5% negative margin) indicates broken unit economics at current scale
- Minimal revenue growth of 1.5% YoY fails to support debt service and operating losses, requiring unsustainable cash burn
- High leverage (1.11x debt-to-equity, $153.4M long-term debt) with massive losses creates refinancing and covenant risk
- Severely negative ROE (-80.4%) and ROA (-26.9%) demonstrate capital destruction and operational failure
Key Metrics to Watch
- Quarterly revenue growth rate trajectory and ability to achieve meaningful acceleration
- Operating expense reduction progress and path to operating margin breakeven
- Cash burn rate and runway relative to debt maturities and refinancing needs
Financial Metrics
Revenue
70.8M
Net Income
-111.0M
EPS (Diluted)
$-1.53
Free Cash Flow
18.2M
Total Assets
412.2M
Cash
59.9M
Profitability Ratios
Gross Margin
168.4%
Operating Margin
-150.5%
Net Margin
-156.9%
ROE
-80.4%
ROA
-26.9%
FCF Margin
25.7%
Balance Sheet & Liquidity
Current Ratio
1.69x
Quick Ratio
1.69x
Debt/Equity
1.11x
Debt/Assets
66.5%
Interest Coverage
N/A
Long-term Debt
153.4M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-12T07:36:25.489774 |
Data as of: 2026-03-31 |
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