Health Catalyst Q3 adjusted EBITDA sharply declines on Vitalware divestiture
HCAT•Health Catalyst’s Q3 revenue fell 26% year over year to $56.28 million, mainly due to the Vitalware divestiture, while adjusted EBITDA was $779,000 and beat analyst expectations. The company expects 2026 revenue of $246 million to $249 million and adjusted EBITDA of $18 million to $18.5 million.
1. Quarterly results
Health Catalyst reported Q3 revenue of $56.28 million, down 26% year over year, and net income of $40.50 million. Adjusted EBITDA was $779,000, above the $17,800 consensus estimate from five analysts, while adjusted gross margin was 44%.
2. Factors and outlook
The company said lower revenue and profitability were mainly due to the sale of its Vitalware business on July 31, 2026. It also cited headwinds from clients migrating from DOS to Ignite; cost-reduction efforts partially offset declines. Health Catalyst expects 2026 revenue of $246 million to $249 million and adjusted EBITDA of $18 million to $18.5 million.
