Health Catalyst Q1 Revenue Drops 11% to $70.8M as Adjusted EBITDA Jumps 46%
Health Catalyst’s first-quarter revenue declined 11% year-over-year to $70.8 million while GAAP net loss widened to $111.0 million as the company pursued a strategic operating-model reset. Adjusted EBITDA rose 46% to $9.1 million and adjusted gross margin expanded two points to 51%.
1. Q1 Financial Results
Health Catalyst reported total revenue of $70.8 million for the quarter ended March 31, down 11% year-over-year from $79.4 million. Gross profit was $27.7 million, a 3% decrease, while gross margin rose to 39% from 36%.
2. Profitability Metrics
On a non-GAAP basis, adjusted gross profit fell 7% to $36.4 million but adjusted gross margin expanded to 51% from 49%. Adjusted EBITDA climbed 46% to $9.1 million, reflecting improved operational efficiency despite a GAAP net loss of $111.0 million versus $23.7 million last year.
3. Strategic Reset
Management initiated a strategic reset to focus on its highest-conviction technology opportunities and transform its operating model. The CEO emphasized this as a durable repositioning rather than a short-term cost exercise.
4. Guidance
For second quarter 2026, the company expects revenue between $68 million and $70 million and adjusted EBITDA of $9 million to $10 million. Full-year guidance projects revenue of $260 million to $265 million and adjusted EBITDA of $30 million to $33 million.