Health Catalyst, Inc.HCAT
Health Catalyst, Inc. Leases Disclosure
Leases
Operating leases
We lease office space under operating leases that expire between 2026 and 2034. The terms of the leases provide for rental payments on a graduated scale, options to renew the leases ( to five years), landlord incentives or allowances, and periods of free rent.
During the year ended December 31, 2020 we took initial possession of the first 118,207 square feet of our headquarters in South Jordan, Utah to begin leasehold improvements, which resulted in an initial right-of-use asset and corresponding operating lease liability of $23.8 million, and commencement of operating lease expense. During the year ended December 31, 2023 the leased square footage of our corporate headquarters expanded and we took possession of an additional 9,830 rentable square feet of office space, which resulted in an additional right-of-use asset and corresponding lease liability of $1.5 million. We have the right to sublease all, or a portion, of this leased office space provided that certain terms and conditions are met.
We subleased portions of our corporate headquarters to various sublessees with subleases commencing at various dates between 2021 and 2025. As of December 31, 2025, 88,164 rentable square feet of our corporate headquarters was subleased. We classified each sublease as an operating lease. The initial subleases have terms ranging from eighteen months to 8.5 years. As indicators of impairment arise, we have performed recoverability tests of the relevant asset groups, comprised of operating lease right-of-use and other related assets, and in some instances have determined that the carrying value of these asset groups were not fully recoverable. As a result, we measured and recognized total impairment charges of $6.9 million, $2.2 million, and $4.1 million during the years ended December 31, 2025, 2024, and 2023, respectively, representing the amount by which the carrying value exceeded the estimated fair value of these asset groups. The impairment charges were recorded as part of general and administrative expense in our consolidated statements of operations and relate to both of our operating segments. During the year ended December 31, 2025, $4.6 million of the impairment charge was allocated to the ROU assets and the remaining $2.3 million was allocated to leasehold improvements, while during the year ended December 31, 2024, $1.5 million of the impairment charge was allocated to the ROU asset and the remaining $0.7 million was allocated to leasehold improvements, and during the year ended December 31, 2023, $2.9 million of the impairment charge was allocated to the ROU asset and the remaining $1.2 million was allocated to leasehold improvements and furniture and fixtures.
Components of lease expense (income) are summarized as follows (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Operating lease expense | $ | 3,174 | $ | 3,313 | $ | 3,077 | |||||||||||
Short-term lease expense | 390 | 209 | 92 | ||||||||||||||
Sublease income | (2,093) | (1,532) | (1,292) | ||||||||||||||
Total | $ | 1,471 | $ | 1,990 | $ | 1,877 | |||||||||||
We also incur immaterial variable costs related to our leased office space, such as maintenance and utilities based on actual usage, which are not included in the measurement of right-of-use assets and lease liabilities, but are expensed as incurred.
Maturities of lease liabilities under operating leases at December 31, 2025 are as follows (in thousands):
| Year ending December 31: | |||||
| 2026 | $ | 3,781 | |||
| 2027 | 3,661 | ||||
| 2028 | 3,691 | ||||
| 2029 | 3,319 | ||||
| 2030 | 3,246 | ||||
Thereafter | 3,315 | ||||
Total lease payments | 21,013 | ||||
Less: Imputed interest | (3,026) | ||||
Total lease liability | $ | 17,987 | |||
Supplemental balance sheet information related to leases as of December 31, 2025 and 2024 is as follows (in thousands other than weighted average amounts):
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
Operating lease right-of-use assets | $ | 6,640 | $ | 12,058 | |||||||
Operating lease liabilities, current | $ | 3,779 | $ | 3,614 | |||||||
Operating lease liabilities, non-current | 14,208 | 16,291 | |||||||||
Total operating lease liabilities | $ | 17,987 | $ | 19,905 | |||||||
Weighted-average remaining operating lease term (years) | 5.9 | 6.7 | |||||||||
Weighted-average operating lease discount rate | 5.5% | 5.4% | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 28, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.