SALT LAKE CITY, Aug. 06, 2026 (GLOBE NEWSWIRE) — Health Catalyst, Inc. (“Health Catalyst,” Nasdaq: HCAT), a healthcare intelligence company designed to accelerate measurable improvement for health systems, today reported financial results for the quarter ended June 30, 2026.

“We delivered a very productive second quarter, exceeding the high end of our revenue guidance and the midpoint of our adjusted EBITDA guidance,” said Ben Albert, Chief Executive Officer of Health Catalyst. “More importantly, we recently closed the Vitalware divestiture and fully repaid our credit facility debt, which significantly improves our balance sheet and provides flexibility to make measured near-term bets in the work we believe in most. After eighteen years working with health systems, we know how to drive outcomes. We believe our intelligence products can help them improve outcomes faster. That’s the company we’re working to build.”

Financial Highlights for the Three Months Ended June 30, 2026

Key Financial Metrics

  Three Months Ended June 30,   Year over Year Change
    2026       2025    
GAAP Financial Measures: (in thousands, except percentages, unaudited)
Total revenue $ 70,487     $ 80,721     (13)%
Gross profit $ 27,856     $ 30,333     (8)%
Gross margin   40 %     38 %    
Net loss $ (40,537 )   $ (40,978 )   1%
Non-GAAP Financial Measures:(1)          
Adjusted Gross Profit $ 35,837     $ 39,964     (10)%
Adjusted Gross Margin   51 %     50 %    
Adjusted EBITDA $ 9,919     $ 9,344     6%

________________________
(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.

Financial Outlook

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

For the third quarter of 2026, we expect:

  • Total revenue of $55 million to $56 million, and
  • Adjusted EBITDA of $0 to $0.5 million.

For the full year of 2026, we expect:

  • Total revenue of $246 million to $249 million, and
  • Adjusted EBITDA of $18 million to $18.5 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.

Quarterly Conference Call Details

We will host a conference call to review the results today, Thursday, August 6, 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 “HCATQ226.” 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, Inc. (Nasdaq: HCAT) is a healthcare intelligence company designed to accelerate measurable improvement for health systems across cost, clinical, and consumer performance. Backed by deep domain expertise, proprietary AI-driven technology, and $2.8 billion in documented outcomes, Health Catalyst helps health systems move from data to confident, measurable action.

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 (https://www.linkedin.com/company/healthcatalyst) and our CEO’s social media accounts such as LinkedIn (https://www.linkedin.com/in/ben-albert-0a763b1/), 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 and transformation strategies, our strategic priorities, our expectations related to the impact of the Vitalware divestiture, our liquidity, and our financial outlook for the third quarter and full year 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 in the Middle East); (vii) the divestiture of Vitalware may not achieve some or all of the expected benefits and may adversely affect our business; and (viii) 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 June 30, 2026, expected to be filed with the SEC on or about August 6, 2026, and the Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on 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.

Condensed Consolidated Balance Sheets
(in thousands, except share and per share data, unaudited)
       
  As of
June 30,		   As of
December 31,
    2026       2025  
  (unaudited)    
Assets      
Current assets:      
Cash and cash equivalents $ 60,589     $ 50,814  
Short-term investments   42,850       44,918  
Accounts receivable, net   41,901       59,128  
Prepaid expenses and other assets   11,627       14,447  
Assets held for sale   91,424       —  
Total current assets   248,391       169,307  
Property and equipment, net   33,472       33,838  
Intangible assets, net   56,121       77,678  
Operating lease right-of-use assets   5,939       6,640  
Goodwill   11,101       209,073  
Other assets   3,580       6,107  
Total assets $ 358,604     $ 502,643  
Liabilities and stockholders’ equity      
Current liabilities:      
Accounts payable $ 8,338     $ 9,363  
Accrued liabilities   23,595       18,697  
Deferred revenue   42,534       56,107  
Operating lease liabilities   3,698       3,779  
Current portion of long-term debt   1,627       1,627  
Liabilities associated with assets held for sale   12,133       —  
Total current liabilities   91,925       89,573  
Long-term debt, net of current portion   151,852       151,624  
Deferred revenue, net of current portion   425       410  
Operating lease liabilities, net of current portion   12,800       14,208  
Contingent consideration liabilities, net of current portion   —       250  
Other liabilities   775       798  
Total liabilities   257,777       256,863  
       
Stockholders’ equity:      
Preferred stock, $0.001 par value per share; 25,000,000 shares authorized and no shares issued and outstanding as of June 30, 2026 and December 31, 2025   —       —  
Common stock, $0.001 par value per share, and additional paid-in capital; 500,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 74,598,492 and 72,027,332 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively   1,616,004       1,608,840  
Accumulated deficit   (1,516,209 )     (1,364,646 )
Accumulated other comprehensive income   1,032       1,586  
Total stockholders’ equity   100,827       245,780  
Total liabilities and stockholders’ equity $ 358,604     $ 502,643  

Condensed Consolidated Statements of Operations
(in thousands, except per share data, unaudited)
       
  Three Months Ended June 30,   Six Months Ended June 30,
    2026       2025       2026       2025  
Revenue:              
Technology $ 48,795     $ 52,876     $ 98,263     $ 104,358  
Professional services   21,692       27,845       42,980       55,776  
Total revenue   70,487       80,721       141,243       160,134  
Cost of revenue, excluding depreciation and amortization:              
Technology(1)(2)(3)   18,188       18,352       35,471       35,917  
Professional services(1)(2)(3)   17,439       24,128       35,449       49,741  
Total cost of revenue, excluding depreciation and amortization   35,627       42,480       70,920       85,658  
Operating expenses:              
Sales and marketing(1)(2)(3)   10,360       13,206       20,945       27,944  
Research and development(1)(2)(3)   11,026       12,392       20,805       27,578  
General and administrative(1)(2)(3)   11,928       8,284       25,888       22,446  
Depreciation and amortization   10,979       12,684       23,094       25,004  
Goodwill impairment   27,047       28,769       122,548       28,769  
Total operating expenses   71,340       75,335       213,280       131,741  
Loss from operations   (36,480 )     (37,094 )     (142,957 )     (57,265 )
Interest and other expense, net   (3,742 )     (3,803 )     (7,877 )     (7,159 )
Loss before income taxes   (40,222 )     (40,897 )     (150,834 )     (64,424 )
Income tax provision   (315 )     (81 )     (729 )     (296 )
Net loss $ (40,537 )   $ (40,978 )   $ (151,563 )   $ (64,720 )
Net loss per share, basic and diluted $ (0.55 )   $ (0.59 )   $ (2.07 )   $ (0.94 )
Weighted-average shares outstanding used in calculating net loss per share, basic and diluted   73,960       69,626       73,280       69,092  

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

  Three Months Ended June 30,   Six Months Ended June 30,
  2026   2025   2026   2025
Stock-Based Compensation Expense: (in thousands)   (in thousands)
Cost of revenue, excluding depreciation and amortization:              
Technology $ 72   $ 295   $ 190   $ 514
Professional services   345     1,194     894     2,196
Sales and marketing   613     2,542     1,409     4,704
Research and development   366     1,316     956     2,449
General and administrative   1,313     2,976     3,030     6,003
Total $ 2,709   $ 8,323   $ 6,479   $ 15,866

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

  Three Months Ended June 30,   Six Months Ended June 30,
  2026   2025   2026   2025
Acquisition-related costs, net: (in thousands)   (in thousands)
Cost of revenue, excluding depreciation and amortization:              
Technology $ —   $ 33     $ 1   $ 107  
Professional services   —     56       6     176  
Sales and marketing   —     (57 )     3     441  
Research and development   —     190       6     357  
General and administrative   1,958     (3,942 )     4,379     (1,772 )
Total $ 1,958   $ (3,720 )   $ 4,395   $ (691 )

(3)  Includes restructuring costs as follows:

  Three Months Ended June 30,   Six Months Ended June 30,
  2026   2025   2026   2025
Restructuring costs: (in thousands)   (in thousands)
Cost of revenue, excluding depreciation and amortization:              
Technology $ 296   $ —   $ 296   $ 401
Professional services   264     145     566     1,142
Sales and marketing   1,251     —     1,360     352
Research and development   1,490     237     1,590     1,909
General and administrative   405     —     1,685     136
Total $ 3,706   $ 382   $ 5,497   $ 3,940

Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
   
  Six Months Ended
June 30,
    2026       2025  
Cash flows from operating activities      
Net loss $ (151,563 )   $ (64,720 )
Adjustments to reconcile net loss to net cash provided by operating activities:      
Stock-based compensation expense   6,479       15,866  
Depreciation and amortization   23,094       25,004  
Non-cash operating lease expense   1,171       1,484  
Amortization of debt discount, issuance costs, and deferred financing costs   1,154       2,089  
Investment discount and premium accretion   (502 )     (933 )
Provision for expected credit losses   1,048       1,110  
Deferred tax provision   104       (157 )
Change in fair value of contingent consideration liabilities   (250 )     (5,168 )
Goodwill impairment   122,548       28,769  
Other   219       (784 )
Change in operating assets and liabilities:      
Accounts receivable, net   10,708       (10,633 )
Prepaid expenses and other assets   3,663       2,468  
Accounts payable, accrued liabilities, and other liabilities   5,080       (12,638 )
Deferred revenue   (2,282 )     11,423  
Operating lease liabilities   (1,885 )     (1,897 )
Net cash provided by (used in) operating activities   18,786       (8,717 )
       
Cash flows from investing activities      
Proceeds from the sale and maturity of short-term investments   46,100       143,208  
Purchase of short-term investments   (43,667 )     (46,760 )
Acquisition of businesses, net of cash acquired   —       (41,114 )
Capitalization of internal-use software   (9,410 )     (10,086 )
Purchases of property and equipment   (683 )     (440 )
Purchase of intangible assets   (859 )     (296 )
Proceeds from the sale of property and equipment   15       25  
Net cash (used in) provided by investing activities   (8,504 )     44,537  
       
Cash flows from financing activities      
Proceeds from employee stock purchase plan   360       1,003  
Repurchase of common stock   —       (5,000 )
Repayment of debt   (814 )     (230,814 )
Net cash used in financing activities   (454 )     (234,811 )
Effect of exchange rate changes on cash and cash equivalents   (53 )     58  
Net increase (decrease) in cash and cash equivalents   9,775       (198,933 )
       
Cash and cash equivalents at beginning of period   50,814       249,645  
Cash and cash equivalents at end of period $ 60,589     $ 50,712  


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 Cost of Revenue, Adjusted Operating Expenses, Adjusted Net Income, and Adjusted Net Income per share, basic and diluted, and Vitalware Adjusted EBITDA 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 financial 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 months ended June 30, 2026 and 2025.

  Three Months Ended June 30, 2026
  (in thousands, except percentages)
  Technology   Professional
Services		   Total
Revenue $ 48,795     $ 21,692     $ 70,487  
Cost of revenue, excluding depreciation and amortization   (18,188 )     (17,439 )     (35,627 )
Amortization of intangible assets, cost of revenue   (3,730 )     —       (3,730 )
Depreciation of property and equipment, cost of revenue   (3,274 )     —       (3,274 )
Gross profit   23,603       4,253       27,856  
Gross margin   48 %     20 %     40 %
Add:          
Amortization of intangible assets, cost of revenue   3,730       —       3,730  
Depreciation of property and equipment, cost of revenue   3,274       —       3,274  
Stock-based compensation   72       345       417  
Restructuring costs(1)   296       264       560  
Adjusted Gross Profit $ 30,975     $ 4,862     $ 35,837  
Adjusted Gross Margin   63 %     22 %     51 %

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(1)  Restructuring costs include severance and other team member costs from workforce reductions and restructuring. For additional details, refer to Note 20 -Restructuring Costs in our condensed consolidated financial statements.

  Three Months Ended June 30, 2025
  (in thousands, except percentages)
  Technology   Professional Services   Total
Revenue $ 52,876     $ 27,845     $ 80,721  
Cost of revenue, excluding depreciation and amortization   (18,352 )     (24,128 )     (42,480 )
Amortization of intangible assets, cost of revenue   (4,857 )     —       (4,857 )
Depreciation of property and equipment, cost of revenue   (3,051 )     —       (3,051 )
Gross profit   26,616       3,717       30,333  
Gross margin   50 %     13 %     38 %
Add:          
Amortization of intangible assets, cost of revenue   4,857       —       4,857  
Depreciation of property and equipment, cost of revenue   3,051       —       3,051  
Stock-based compensation   295       1,194       1,489  
Acquisition-related costs, net(1)   33       56       89  
Restructuring costs(2)   —       145       145  
Adjusted Gross Profit $ 34,852     $ 5,112     $ 39,964  
Adjusted Gross Margin   66 %     18 %     50 %

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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 and 3 in our condensed consolidated financial statements.
(2)  Restructuring costs include severance and other team member costs from workforce reductions and restructuring. For additional details, refer to Note 20-Restructuring Costs in our condensed 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 expense, net, (ii) income tax provision, (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) goodwill impairment, and (viii) non-recurring lease-related charges, as applicable. We view acquisition-related expenses when applicable, such as transaction costs (including third-party fees associated with due diligence, deferred retention expenses, post-acquisition restructuring costs incurred as part of business combinations) 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 Adjusted EBITDA to net loss, the most directly comparable financial measure calculated in accordance with GAAP, for the three months ended June 30, 2026 and 2025.

  Three Months Ended
June 30,
    2026       2025  
  (in thousands)
Net loss $ (40,537 )   $ (40,978 )
Add:      
Interest and other (income) expense, net   3,742       3,803  
Income tax provision   315       81  
Depreciation and amortization   10,979       12,684  
Stock-based compensation   2,709       8,323  
Acquisition-related costs, net(1)   1,958       (3,720 )
Restructuring costs(2)   3,706       382  
Goodwill impairment(3)   27,047       28,769  
Adjusted EBITDA $ 9,919     $ 9,344  

__________________
(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. During the three months ended June 30, 2025, the fair value of the contingent consideration related to the Upfront acquisition earnout decreased, resulting in a net reduction in expense. For additional details refer to Notes 1, 3, and 8 in our condensed consolidated financial statements.
(2)  Restructuring costs include severance and other team member costs from workforce reductions, as well as legal and advisory fees related to significant board of director refreshment that are non-recurring and outside the ordinary course of our business. For additional details, refer to Notes 1 and 20 in our condensed consolidated financial statements.
(3)  Goodwill impairment was recognized as a result of impairment indicators and quantitative tests indicating the fair values of the following were below the carrying values: (i) Technology reporting unit as of June 4, 2026, and (ii) the Technology reporting unit and the Professional Services reporting unit as of June 30, 2025. For additional details, refer to Note 5 in our condensed consolidated financial statements.

Adjusted Cost of Revenue

Adjusted Cost of Revenue is a non-GAAP financial measure that we define as cost of revenue adjusted for (i) depreciation and amortization, (ii) stock-based compensation, (iii) acquisition-related costs, net, and (iv) restructuring costs, 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. Adjusted Cost of Revenue is also computable by subtracting Adjusted Gross Profit from revenue. We believe Adjusted Cost of Revenue 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 Adjusted Cost of Revenue to our cost of revenue, the most directly comparable financial measure calculated in accordance with GAAP, for the three months ended June 30, 2026 and 2025.

  Three Months Ended
June 30,
    2026       2025  
  (in thousands)
Cost of revenue, excluding depreciation and amortization $ 35,627     $ 42,480  
Add:      
Amortization of intangible assets, cost of revenue   3,730       4,857  
Depreciation of property and equipment, cost of revenue   3,274       3,051  
Cost of revenue   42,631       50,388  
Less:      
Amortization of intangible assets, cost of revenue   (3,730 )     (4,857 )
Depreciation of property and equipment, cost of revenue   (3,274 )     (3,051 )
Stock-based compensation   (417 )     (1,489 )
Acquisition-related costs, net(1)   —       (89 )
Restructuring costs(2)   (560 )     (145 )
Adjusted Cost of Revenue $ 34,650     $ 40,757  

__________________
(1)  Acquisition-related costs, net include deferred retention expenses incurred as part of business combinations.
(2)  Restructuring costs include severance and other team member costs from workforce reductions and restructuring. For additional details, refer to Note 20-Restructuring Costs in our condensed 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) goodwill impairment, and (v) restructuring costs, 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 Adjusted Operating Expenses to our total operating expenses, the most directly comparable financial measure calculated in accordance with GAAP, as well as a calculation of total operating expenses and Adjusted Operating Expenses as a percentage of total revenue, for the three months ended June 30, 2026 and 2025.

  Three Months Ended
June 30,
    2026       2025  
  (in thousands)
Total operating expenses $ 71,340     $ 75,335  
Less:      
Depreciation and amortization   (10,979 )     (12,684 )
Stock-based compensation   (2,292 )     (6,834 )
Acquisition-related costs, net(1)   (1,958 )     3,809  
Goodwill impairment(2)   (27,047 )     (28,769 )
Restructuring costs(3)   (3,146 )     (237 )
Adjusted Operating Expenses $ 25,918     $ 30,620  
Total operating expenses as a % of revenue   101 %     93 %
Adjusted Operating Expenses as a % of revenue   37 %     38 %

__________________
(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. For additional details refer to Notes 1, 3 and 8 in our condensed consolidated financial statements.
(2)  Goodwill impairment was recognized as a result of impairment indicators and a quantitative tests indicating the fair values of the following were below the carrying values: (i) Technology reporting unit as of June 4, 2026, and (ii) the Technology reporting unit and the Professional Services reporting unit as of June 30, 2025. For additional details, refer to Note 5 in our condensed consolidated financial statements.
(3)  Restructuring costs include severance and other team member costs from workforce reductions, as well as legal and advisory fees related to significant board of director refreshment that are non-recurring and outside the ordinary course of our business. For additional details, refer to Notes 1 and 20 in our condensed 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) restructuring costs, (iv) acquisition-related costs, net, including the change in fair value of contingent consideration liabilities, (v) goodwill impairment, and (vi) non-cash interest expense related to debt facilities, 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 Adjusted Net Income to our net loss, the most directly comparable financial measure calculated in accordance with GAAP, for the three months ended June 30, 2026 and 2025.

  Three Months Ended
June 30,
    2026       2025  
Numerator: (in thousands, except share and per share amounts)
Net loss $ (40,537 )   $ (40,978 )
Add:      
Stock-based compensation   2,709       8,323  
Amortization of acquired intangibles   7,297       9,047  
Restructuring costs(1)   3,706       382  
Acquisition-related costs, net(2)   1,958       (3,720 )
Goodwill impairment(3)   27,047       28,769  
Non-cash interest expense related to debt facilities   521       881  
Adjusted Net Income $ 2,701     $ 2,704  
Denominator:      
Weighted-average shares outstanding used in calculating net loss per share, basic and diluted, and Adjusted Net Income per share, basic   73,959,819       69,625,540  
Non-GAAP dilutive effect of stock-based awards   275,700       164,532  
Non-GAAP weighted-average shares outstanding used in calculating Adjusted Net Income per share, diluted   74,235,519       69,790,072  
       
Net loss per share, basic and diluted $ (0.55 )   $ (0.59 )
Adjusted Net Income per share, basic and diluted $ 0.04     $ 0.04  

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(1)  Restructuring costs include severance and other team member costs from workforce reductions, as well as legal and advisory fees related to significant board of director refreshment that are non-recurring and outside the ordinary course of our business. For additional details, refer to Notes 1 and 20 in our condensed consolidated financial statements.
(2)  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, 3 and 8 in our condensed consolidated financial statements.
(3)  Goodwill impairment was recognized as a result of impairment indicators and a quantitative tests indicating the fair values of the following were below the carrying values: (i) Technology reporting unit as of June 4, 2026, and (ii) the Technology reporting unit and the Professional Services reporting unit as of June 30, 2025. For additional details, refer to Note 5 in our condensed consolidated financial statements.

Vitalware Adjusted EBITDA

Vitalware Adjusted EBITDA is a non-GAAP financial measure that we define as Vitalware net income adjusted for (i) depreciation and amortization, (ii) stock-based compensation, (iii) and acquisition-related costs. We view acquisition-related expenses when applicable, including third-party fees associated with tail insurance policies that are directly related to business combinations, as costs that are not necessarily reflective of operational performance during a period. Vitalware Adjusted EBITDA, Vitalware net income and the reconciliation below are derived from our unaudited condensed consolidated financial information and related records and reflects certain assumptions and adjustments that management believes are reasonable under the circumstances and given the information available at this time. As a result, Vitalware Adjusted EBITDA, Vitalware net income and the reconciliation below does not necessarily reflect what Vitalware’s Adjusted EBITDA, net income, and related reconciliation would have been on a standalone basis and is not necessarily indicative of future results of operations.

We believe Adjusted EBITDA provides investors with useful information on performance as evaluated by management, and is useful in evaluating Vitalware’s operating performance compared to that of other business units or companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company and business unit to business unit for reasons unrelated to overall operating performance. The following is a reconciliation of our Vitalware Adjusted EBITDA to Vitalware net income, the most directly comparable financial measure calculated in accordance with GAAP, for the six months ended June 30, 2026:

  Six Months Ended
June 30, 2026
  (in thousands)
Vitalware net income $ 7,523
Add:  
Depreciation and amortization   3,710
Stock-based compensation   95
Acquisition-related costs(1)   30
Vitalware Adjusted EBITDA $ 11,358

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(1)  Acquisition-related costs include third-party fees associated with tail insurance policies incurred as part of the Vitalware business combination. For additional details refer to Note 1 in our condensed consolidated financial statements.

Health Catalyst Investor Relations Contact:
Stephanie St. Clair
Finance and Investor Relations, SVP
+1 (855)-309-6800
ir@healthcatalyst.com

Health Catalyst Media Contact:
Kathryn Larson
Director, Public Relations and Communications
media@healthcatalyst.com


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Health Catalyst, Inc.