HCAT · CIK 1636422
What Health Catalyst, Inc. told the SEC could break it.
Health Catalyst's disclosures center on the stability of its client base for a healthcare data and analytics business. It depends on a limited set of clients — its three largest were 13.6% of 2025 revenue combined — and is absorbing elevated churn as it migrates legacy DOS clients onto its newer Ignite platform, a transition that partly offsets technology revenue growth. Compounding that, its health-system clients face financial strain from the OBBBA's projected roughly $1 trillion cut to federal Medicaid spending over ten years, which the company says is already weighing on its business.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- Top three clients ~13.6% of revenuemedium
Health Catalyst relies on a limited number of clients for a meaningful share of revenue — its three largest clients were 5.7%, 4.4%, and 3.5% of revenue (13.6% aggregate) in 2025 — so sudden loss or renegotiation of a large client could adversely affect results.
“Our three largest clients during 2025 comprised 5.7%, 4.4%, and 3.5% of our revenue, or 13.6% in the aggregate.”
SEC filing →As of 2026
Other disclosures
- Client churn from migration of legacy DOS clients to the Ignite platformmedium
Health Catalyst experienced elevated churn primarily from migrating legacy DOS clients to its newer Ignite platform, partially offsetting technology revenue growth and creating transition risk to its recurring-revenue base.
“partially offset by elevated churn levels primarily from the migration of DOS clients to Ignite.”
SEC filing →As of 2026
Regulatory & policy
- Medicaid funding cuts (OBBBA ~$1T over 10 years) straining health-system clientsmedium
Health Catalyst's health-system clients face financial strain from the OBBBA's projected ~$1 trillion reduction in federal Medicaid spending over 10 years (plus research-funding cuts and tariffs), which is already negatively affecting Health Catalyst's business.
“On July 4, 2025, President Trump signed the OBBBA into law, which is projected to reduce federal Medicaid spending by nearly $1 trillion over 10 years and will create additional financial strain for many of our clients”
SEC filing →As of 2026
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its suppliers
“We rely on third-party providers, including Microsoft Azure, for computing infrastructure, network connectivity, and other technology-related services needed to deliver our Solution.”
Cited →
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