Q3 2025 Health Catalyst Inc Earnings Call Transcript
Key Points
- Health Catalyst Inc (HCAT) exceeded its Q3 2025 guidance with total revenue of $76.3 million and adjusted EBITDA of $12 million.
- The Technology segment recorded revenue of $52.1 million, representing a 7% year-over-year growth.
- Adjusted gross margin increased by approximately 510 basis points year over year to 53%.
- The company expects to add approximately 30 net new platform clients in 2025.
- Health Catalyst Inc (HCAT) reaffirmed its full-year guidance for revenue of $310 million and adjusted EBITDA of $41 million.
- Professional services revenue for Q3 2025 declined by 12% compared to Q3 2024.
- The company is experiencing dollar-based retention pressure due to ongoing Ignite migration efforts.
- Revenue performance in 2026 is anticipated to be a few points lower than in 2025.
- There is a lower net new client count expected in 2026 due to Ignite migration headwinds.
- Health Catalyst Inc (HCAT) is exiting less profitable TEMS relationships, impacting revenue.
Welcome to the Health Catalyst third-quarter 2025 earnings conference call. (Operator Instructions)
I would now like to turn the call over to Matt Hopper, Senior Vice President of Finance and Head of Investor Relations.
Good afternoon, and welcome to Health Catalyst's earnings conference call for the third quarter of 2025, which ended on September 30, 2025. My name is Matt Hopper, Senior Vice President of Finance and Head of Investor Relations. With me today are Dan Burton, our Chief Executive Officer; Ben Albert, our President and Chief Operating Officer; and Jason Alger, our Chief Financial Officer.
A complete disclosure of our results can be found in our press release issued today as well as in our related Form 8-K furnished to the SEC both of which are available on the Investor Relations section of our website at ir.healthcatalyst.com. As a reminder, today's call is being recorded, and a replay will be available following the conclusion of the call.
During today's call, we will make forward-looking
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