HCAT: Balance Sheet Vitals Should Improve with Vitalware Divestiture, but Likely at the Expense of Top-line Growth

研报英文原文证据摘录

HCAT: Balance Sheet Vitals Should Improve with Vitalware Divestiture, but Likely at the Expense of Top-line Growth

Equity Research

Flash Comment — June 4, 2026

Healthcare Technology

Health Catalyst, Inc.

Balance Sheet Vitals Should Improve with Vitalware Equal Weight

Divestiture, but Likely at the Expense of Top-line Growth Price Target: $1.00

Ticker HCAT

Our Call Upside/(Downside) to Target (45.4)%

We view this morning's announced divestiture as a positive development given it will pay Price (06/04/2026) $1.83

down debt and eliminate burdensome interest expense. Somewhat offsetting this is our 52 Week Range $0.96 - 4.29

view that Vitalware has been accretive to top-line growth. Market Cap (MM) $133

Source: Company Data, Wells Fargo Securities estimates, and Factset.

Initial Thoughts NA = Not Available, NC = No Change, NE = No Estimate

Transaction details. HCAT agreed to sell 100% of Vitalware to Med-Metrix for $147MM Stan Berenshteyn, CFA

cash, subject to customary adjustments, with closing expected in 3Q26. Implies an EV/ Equity Analyst | Wells Fargo Securities, LLC

Stan.Berenshteyn@wellsfargo.com | 732-266-3756

Sales of 4.0x (while Vitalware's EBITDA isn't disclosed, we guesstimate 18% EBTIDA

margin and implied ~22x EV/EBITDA). Net proceeds plus cash on hand will repay/ Corey DeVito

terminate HCAT's $160MM senior secured term loan. Associate Equity Analyst | Wells Fargo Securities, LLC Corey.DeVito@wellsfargo.com | 212-214-5444

HCAT is +38% (S&P unch).

Vitalware round-trip. HCAT acquired Vitalware on Aug. 11, 2020 for ~$150MM including

earn-out commitments (in total HCAT acquired Vitalware for $85MM cash with the

balance from issued equity), implying an ~8x EV/Sales on $19MM in revenue.

What is Vitalware.