Revenue Continues to Decline, EBITDA is also Under Pressure Despite Ongoing Cost Reduction Efforts; Maintain Neutral

Research evidence excerpt

Revenue Continues to Decline, EBITDA is also Under Pressure Despite Ongoing Cost Reduction Efforts; Maintain Neutral

May 11, 2026 Health Catalyst, Inc.

(HCAT, Neutral)

David Larsen, CFA

Revenue Continues to Decline, EBITDA is also Under Pressure Despite (212) 738-6161 dlarsen@btig.comHEALTHCARE Ongoing Cost Reduction Efforts; Maintain Neutral Jenny Shen

(212) 738-6136 jshen@btig.com

IT WHAT YOU SHOULD KNOW: On Monday, 5/11/26 AMC, HCAT reported 1Q:26 results. Company Data

Revenue of $70.8M -11% y/y exceeded BTIG / consensus / guidance of $69.6M E / Closing Price $1.38

$69.2M / $68M-$70M and adjusted EBITDA of $9.1M +46% y/y also exceeded BTIG /AND Price Target - consensus / guidance of $7.5M E / $8.3M / $7M-$8M. While we like the beat in

the quarter, the 2026E revenue and EBITDA guide were both low, relative to our Market Cap (M) $97.57

previous expectations, HCAT continues to face churn, and we worry that the business Enterprise Value (M) $178.00

continues to shrink. HCAT provided 2026 guidance that was disappointing, below Shares Out (M) 70.70DIGITAL us and consensus for both revenue ($260M-$265M vs. $285.3M E / $278.8M) and Avg Daily Vol-3 Months (M) 0.75

adjusted EBITDA ($30M-$33M vs. $35.6M E / $34.2M). The key coming into the Dividend / Yield $0.00 / 0.0%

year was revenue growth expectations for 2026E, which has been a struggle for the

last several quarters as HCAT navigates a challenging hospital buying environment Revisions

and churn from client migrations onto the Ignite platform. We had been under the Previous CurrentHEALTH impression that revenue would be approximately ~flat y/y in 2026E, or "down a few Rating Neutral Neutral

points," so we were negatively surprised to see HCAT guiding to a ~16% y/y decline in Price Target - -

2026E revenue at the midpoint.