Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments: Technology and Professional Services. The company offers the Ignite data and analytics platform, which provides a single environment to integrate and organize data from disparate software systems, along with software analytics applications built for the Ignite platform. It also provides expertise solutions including data and analytics, domain expertise and education, tech-enabled managed services, and implementation services. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Founded in 2008, it is headquartered in South Jordan, Utah.
Health Catalyst Names Simeon Kohl CEO and President
Health Catalyst, Inc. has appointed Simeon Kohl as Chief Executive Officer and President, effective September 14, 2026, and he will also join the Board of Directors. Kohl previously led Performant Healthcare through a transformation that culminated in its sale to Machinify for approximately $670 million. Current CEO and President Ben Albert will transition to Chief Business Officer and step down from the Board on September 13, 2026. Albert's tenure included divesting Vitalware, which helped retire the company's approximately $160 million credit facility. Kohl cited Health Catalyst's $2.8 billion in documented outcomes as a key attraction to the role.
HCAT · · Neutral Health Catalyst appoints Simeon Kohl as CEO/President, a leadership change with no clear positive or negative operational driver stated.
Performant Healthcare · · Neutral Referenced only as the prior company Kohl led through a transformation and sale to Machinify.
Health Catalyst Completes Vitalware Divestiture and Debt Repayment
Health Catalyst reported second quarter 2026 results and announced the completion of its Vitalware divestiture and full repayment of credit facility debt. Total revenue was $70.5 million, a 13% decrease from $80.7 million in the prior year period, while adjusted EBITDA was $9.9 million compared to $9.3 million a year earlier. The company sold Vitalware to Med-Metrix for $147 million in total cash consideration, using the proceeds plus cash on hand to retire approximately $160 million in credit facility debt, eliminating an estimated $19 million in annual GAAP interest expense. Full year 2026 revenue guidance was updated to $246 million to $249 million, reflecting the removal of five months of Vitalware revenue, and adjusted EBITDA guidance was set at $18 million to $18.5 million. Management also noted $12.5 million of notified annual recurring revenue down-sell and churn related to the DOS-to-Ignite platform migration, with approximately $52 million in additional ARR identified as at risk.
Health Catalyst, Commerce, and Paycom Shares Fall Amid Tech Selloff
Shares of Health Catalyst, Commerce, and Paycom declined in afternoon trading as tech stocks faced pressure from rising oil prices and an unwinding of retail leverage. Health Catalyst fell 2.2%, Commerce dropped 1.5%, and Paycom slid 2.8%. The selloff was driven by a reinstated U.S. naval blockade on Iran that pushed Brent crude above $85 a barrel, fueling expectations the Federal Reserve will hold rates in the 3.50%–3.75% range and raising the cost of capital for software firms. Paycom, which is down 3.5% year-to-date and trading 38.4% below its 52-week high, saw its move considered meaningful but not fundamentally business-altering by the market.
Health Catalyst Faces Headwinds from Stalled Billings, Low Gross Margins, and Inefficient Customer Acquisition
Health Catalyst has been flagged as a stock to sell due to three fundamental weaknesses. The company's billings plateaued at $84.21 million in the latest quarter, signaling challenges in customer acquisition and retention. Its gross margin averaged just 50.4% over the past year, meaning it spent $49.56 on service costs for every $100 in revenue, a level substantially worse than most software businesses. Additionally, the customer acquisition cost payback period turned negative, indicating that incremental sales and marketing investments are outpacing revenue and highlighting intense competitive pressure. The stock has lost 3.6% over the past six months, underperforming the S&P 500's 8.2% gain, and currently trades at 0.7 times forward price-to-sales.
AI in Patient Engagement Market to Hit $24.74 Billion by 2030
The global AI in patient engagement market is projected to reach $24.74 billion by 2030, growing at a compound annual growth rate of 21.7% from its 2025 valuation of $9.28 billion. Key drivers include the increasing adoption of electronic health records, advancements in AI and machine learning, and the integration of computer vision in patient monitoring. North America was the largest region in 2025, while Asia-Pacific is expected to be the fastest-growing region during the forecast period. Leading companies such as ZS Associates, Health Catalyst, Ada Health GmbH, and Zocdoc Inc. are leveraging technologies like chatbots and natural language processing to enhance patient care. The market encompasses applications from outpatient health management to population health management, serving healthcare providers and payers.
HCAT · Demand · Positive Health Catalyst is a leading company in the AI patient engagement market, which is projected to grow significantly, indicating increased demand for its services.
Ada Health GmbH · Demand · Positive Ada Health GmbH is a leading company in the AI patient engagement market, benefiting from the projected market growth.
Zocdoc · Demand · Positive Zocdoc is a leading company in the AI patient engagement market, poised to benefit from the market expansion.
ZS Associates · Demand · Positive ZS Associates is a leading company in the AI patient engagement market, with growth prospects from the market forecast.
Palantir Technologies Leads Data Analytics Q1 Earnings with 84.7% Revenue Surge
Palantir Technologies delivered the strongest performance among data analytics stocks in the first quarter, with revenue jumping 84.7% year on year to $1.63 billion, beating analyst estimates by 6.1%. The company also posted the largest analyst estimate beat, the highest guidance raise, and the fastest revenue growth in the group. CLEAR Secure reported revenue of $253 million, up 19.7% and exceeding expectations by 3.5%, while Domo was the weakest performer with flat revenue of $79.4 million that missed estimates by 0.6%. Health Catalyst saw revenue decline 10.9% to $70.76 million, and Strategy grew revenue 11.9% to $124.3 million. Despite the strong results, Palantir's stock fell 19.7% after reporting, reflecting investor expectations that were even higher than published analyst projections.
Three Software Stocks Face Trouble Amid Industry Decline
StockStory identifies Commerce, Health Catalyst, and Teradata as software stocks that may face trouble. Commerce posted underwhelming annual recurring revenue growth of 2.5% and projected sales growth of 3.3%, with its free cash flow margin expected to shrink by 3.2 percentage points. Health Catalyst saw flat billings and a gross margin of 50.4%, one of the worst among software companies, alongside long payback periods on sales and marketing. Teradata recorded average billings growth of 3.7% and a 7.2 percentage point drop in operating margin, with its free cash flow margin projected to decline by 20.2 percentage points next year.
CMRC · Capital · Negative Underwhelming ARR growth of 2.5%, projected sales growth of 3.3%, and expected free cash flow margin shrinkage of 3.2 percentage points.
HCAT · Capital · Negative Flat billings, gross margin of 50.4% (one of worst among software companies), and long payback periods on sales and marketing.
TDC · Capital · Negative Average billings growth of 3.7%, 7.2 percentage point drop in operating margin, and projected free cash flow margin decline of 20.2 percentage points next year.
Health Catalyst and Paycom Shares Fall as Investors Rotate from Growth Stocks
Health Catalyst and Paycom shares fell in afternoon trading as investors rotated out of high-multiple growth names. Health Catalyst dropped 3.6% and Paycom declined 3.5%, pressured by a hotter-than-expected May import price report that showed a 1.9% monthly rise versus a 1.1% forecast and an annual gain of 6.7%, the largest since August 2022. The data complicated the view that the Iran peace deal had resolved inflation concerns, and investors positioned cautiously ahead of new Federal Reserve Chairman Kevin Warsh's first meeting later in the week. Additional pressure came from the Bank of America fund manager survey, where 28% of respondents cited an AI bubble as the second-largest tail risk, and from SpaceX's announcement that it is acquiring AI coding platform Cursor for $60 billion, signaling consolidation of valuable AI software assets. Health Catalyst is down 23% year-to-date and trades at $1.76 per share, 57.1% below its 52-week high of $4.09 from July 2025.
HCAT · Monetary · Negative Hotter-than-expected import price data and cautious positioning ahead of Fed meeting pressure high-multiple growth stocks like Health Catalyst.
PAYC · Monetary · Negative Hotter-than-expected import price data and cautious positioning ahead of Fed meeting pressure high-multiple growth stocks like Paycom.
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