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Medical technology and health companies · United States

Health Catalyst

healthcatalyst.com ↗

Health Catalyst sells data analytics and outcomes software to over 1,000 hospitals and health systems.

Protection under test
Assessed 22 July 2026 · Evidence as of 22 July 2026
Something worth protecting exists and is being tested right now.
On the recordSince 22 July 2026 · Checkable from late 2026 · Every call on the record Checkpoint: CEO's comprehensive strategic review, including possible sale, concludes
The call

Health Catalyst has the health system relationships and data history Epic can't instantly copy, but shrinking revenue and an open sale process mean the next owner may not be Health Catalyst itself.

Health Catalyst builds software that helps hospitals analyze their patient and financial data to make better decisions. It has built strong relationships over 18 years with over 1,000 health systems and stores deep records of their data, which is hard to recreate. However, Epic Systems, which already sells the main record-keeping software that hospitals use, is now building its own analytics tools into its system, so hospitals may not need to buy from Health Catalyst separately. Meanwhile, generic artificial intelligence tools are automating the manual work that analysts do, and cheaper cloud platforms like Databricks and Microsoft Fabric can do some of the same analysis work. The big wildcard is whether Health Catalyst gets acquired by a larger company or stays independent, which will be decided in a sale process happening now through mid-2026.

Why
01
AI pressure: Epic's Cogito, generic LLM tools for chart abstraction, Databricks/Microsoft Fabric. AI can automate the reporting and abstraction work Health Catalyst's consultants do, and hyperscalers offer analytics without the health data specialization. Could AI do the core job? Only partly.
02
Bigger players: Epic Systems and Oracle Health. Epic owns the EHR data pipes and is building analytics right into the record, Oracle Health is doing the same via its Cerner base. Could a giant copy it? Yes, easily.
03
What protects it. Eighteen years of clinical data models across 1,000+ health systems that took years to build and are hard to rip out mid-migration.
What would change this call
Outcome of Health Catalyst's CEO-announced strategic review/possible sale, expected within ~6 months of March 2026. Would show whether the company survives independently or gets absorbed by an acquirer.
Whether FY2026 revenue lands within the $260-265 million guided range or is cut again at Q2/Q3 2026 earnings. Would show whether the revenue decline is stabilizing or accelerating as customers migrate away.
Epic's Cogito analytics product adoption or public customer wins/losses reported in trade press through 2026. Would show whether Epic is directly displacing Health Catalyst inside existing hospital accounts.
Key numbers
  • FY2026 revenue guided down 11-16% to $260-265M (May 2026)
  • FY2025 net loss ~$178M with $110.2M impairment (Dec 2025)
  • Headcount down ~20% year over year to ~1,200 (Dec 2025)
Named risks
  • Revenue actively shrinking with FY2026 guided down 11-16% amid DOS to Ignite migration churn. Severity: high
  • Company under active exploration of sale, creating ownership and strategy uncertainty. Severity: high
  • Upstream EHR incumbents Epic and Oracle Health building competing analytics with no structural barrier. Severity: high
  • Professional services revenue erosion as generic AI automates chart abstraction and reporting work. Severity: medium
  • Governance tension: board declassification vote rejected July 2026 amid concentrated ~19% shareholder stake. Severity: medium
Rivals, as read in July 2026
RivalDirectionEvidence
Epic Systemslosing toOwns upstream EHR data, building embedded analytics via Cogito, no structural barrier stops encroachment as of 2026-07
Oracle Healthlosing toCleveland Clinic and G42 AI healthcare-delivery partnership announced 2025-05-16, live through 2026
Databricks/Microsoft FabriccontestingHealth Catalyst builds its own AI products (Ignite Spark, Ambulatory Intelligence) on these hyperscaler rails rather than owned infrastructure, 2025-2026
Innovaccergaining onCited by analysts as a newer platform squeezing Health Catalyst from below in the analytics market, 2025-10
Questions people ask
Is Health Catalyst profitable in 2026?
No. Health Catalyst posted a FY2025 net loss of about $178 million, including a $110.2 million goodwill and intangible impairment, and guided FY2026 revenue down 11-16% to $260-265 million with adjusted EBITDA of only $30-33 million, as of May 11, 2026.
Is Health Catalyst for sale?
Yes, a sale is actively being explored. New CEO Ben Albert said in March 2026 the company is 'turning over every rock,' explicitly including 'the possibility of a sale,' as part of a comprehensive strategic review announced after Q4 2025 earnings.
Could AI replace Health Catalyst's services?
Partially. Health Catalyst's own management said in May 2026 that professional-services revenue like chart abstraction and standard reporting will keep shrinking because generic AI tools are automating that work, though the company argues its 18 years of clinical data models remain harder to replicate.
Who is Health Catalyst's biggest competitor?
Epic Systems is the most-cited threat since it owns the underlying EHR data and is building embedded analytics via its Cogito product; Oracle Health is also expanding analytics, including a May 2025 Cleveland Clinic and G42 partnership for an AI healthcare-delivery platform.
Is Health Catalyst's stock still worth much?
The stock has collapsed from an all-time high of $59.50 to about $2.06 as of July 22, 2026, giving a market cap near $154 million and a 52-week range of $0.96 to $4.12, reflecting sustained revenue declines and sale speculation.
Why did Health Catalyst sell Vitalware?
Health Catalyst sold its Vitalware mid-revenue-cycle coding business, which generated about $37 million in FY2025 revenue, to Med-Metrix for $147 million cash in June 2026, explicitly to sharpen focus on AI and core clinical and operational technology.
Timeline
  • 2026-07-16Shareholders reject board declassification proposal at annual meeting
  • 2026-06-04Announces Vitalware divestiture to Med-Metrix for $147 million cash
  • 2026-05-11Q1 2026 results: revenue $70.76M down 10.9% YoY; issues FY2026 guidance of $260-265M
  • 2026-03-12Q4 2025 earnings call; CEO says sale is being explored
  • 2026-02-18Ben Albert appointed CEO, board size reduction planned
  • 2026-02-12Ben Albert becomes CEO, replacing Dan Burton
  • 2025-07-01Launches 10 AI-integrated data toolkits on Databricks Marketplace
  • 2025-05-16Oracle, Cleveland Clinic and G42 announce AI healthcare-delivery partnership
  • 2025-04Health Catalyst partners with Microsoft on AI initiatives
Revision history
22 July 2026
First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.
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