Health Catalyst (HCAT) opened Q1 2026 with total revenue of US$70.8 million and a basic EPS loss of US$1.53, setting a clear tone for another quarter where the income statement remains under pressure. Over recent periods, revenue has moved from US$79.4 million in Q1 2025 through US$80.7 million in Q2 2025 and US$76.3 million in Q3 2025 to US$74.7 million in Q4 2025. Basic EPS losses shifted from US$0.35 in Q1 2025 to US$0.59 in Q2 2025, US$0.32 in Q3 2025 and US$1.28 in Q4 2025, giving investors a clear view of how top line and per share losses have tracked into this latest quarter. With this backdrop, the focus now is on how much of the current revenue base can ultimately translate into healthier margins and a more sustainable earnings profile.

See our full analysis for Health Catalyst.

With the headline numbers on the table, the next step is to see how these results line up against the prevailing narratives around Health Catalyst's growth potential, risk profile and path toward improving margins.

Losses Deepen To US$111 Million On LTM Basis

• On a trailing 12 month view to Q1 2026, Health Catalyst reported a net loss of US$265.3 million on US$302.5 million of revenue, compared with US$177.9 million of losses on US$311.1 million of revenue at the end of 2025.
• Bears argue that client budget cuts and cautious spending could keep pressure on revenue, and the data does line up with that concern as trailing 12 month revenue fell from US$316.1 million in Q2 2025 to US$302.5 million in Q1 2026 while losses widened from US$100.1 million to US$265.3 million.
  • Critics highlight that Q1 2026 quarterly revenue of US$70.8 million is below the US$80.7 million reported in Q2 2025, which fits the bearish view that top line trends are soft.
  • Bears also point to the step up in quarterly losses, with net loss moving from US$22.2 million in Q3 2025 to US$111.0 million in Q1 2026, as evidence that profitability remains under strain even as management focuses on efficiency.

On this earnings track, skeptics see plenty of fuel for their case that revenue pressure and losses could persist, and they unpack that in more detail in the 🐻 Health Catalyst Bear Case.

Trailing EPS Loss Of US$3.74 Versus Bearish Profitability Concerns

• Trailing 12 month basic EPS loss widened from US$2.55 at Q4 2025 to US$3.74 at Q1 2026, compared with a quarterly EPS loss of US$1.53 in Q1 2026 and US$1.28 in Q4 2025.
• Consensus narrative notes that losses have been trimmed over the past five years at about 1.1% per year, yet the recent EPS path still challenges a quick turnaround story because quarterly EPS moved from a loss of US$0.35 in Q1 2025 to a loss of US$1.53 in Q1 2026 while the trailing 12 month EPS loss increased by about US$1.19 over the last year.
  • What stands out is that this deeper trailing loss comes alongside trailing 12 month revenue easing from US$316.1 million in Q2 2025 to US$302.5 million in Q1 2026, which is consistent with forecasts for revenue to fall about 9.4% per year over the next three years.
  • At the same time, forecasts still do not call for a move to profitability within three years, so the current EPS trend reinforces the idea that any improvement in margins could be gradual rather than immediate.

P/S Of 0.4x Versus DCF Fair Value And Bullish Hopes

• Using the current share price of US$1.48 and trailing 12 month revenue of US$302.5 million, Health Catalyst is quoted at a P/S of about 0.4x, below both the 0.7x peer average and the 2.1x US Healthcare Services industry average, while the cited DCF fair value is US$0.83.
• Bulls lean on the idea that expanding AI driven analytics and high margin applications can eventually support stronger margins and justify higher valuations, but the numbers here create tension with that view because the stock trades above the DCF fair value of US$0.83 even as revenue is expected to fall about 9.4% per year over the next three years and the company is still not forecast to become profitable in that period.
  • Supporters highlight that losses have been reduced at about 1.1% per year over five years, yet trailing 12 month net loss is now US$265.3 million, which is much larger than the US$69.5 million loss reported at Q4 2024, so the margin path remains uneven.
  • At the same time, the relatively low 0.4x P/S multiple compared with peers and the sector shows why some bullish investors focus on sales based valuation, even though the current market price stands above the DCF fair value estimate.

If you want to see how the more optimistic investors connect these valuation and growth pieces, it is worth reading the full bull case in 🐂 Health Catalyst Bull Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Health Catalyst on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With sentiment clearly split between concern over losses and interest in potential upside, this is a good moment to review the numbers yourself and move quickly to form your own view. To round out that picture, take a close look at the 1 key reward and 2 important warning signs.

See What Else Is Out There

Health Catalyst is facing falling revenue, deepening losses and forecasts that do not call for profitability within three years, which raises clear risk concerns.

If that risk profile makes you uneasy, it is worth urgently shifting some research time toward companies screened as 69 resilient stocks with low risk scores that aim to keep volatility and downside pressure in check.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.