Health Catalyst, Inc.HCAT

Health Catalyst, Inc. Revenue Disclosure

10-KFiled Mar 12, 20262 min read
Revenue
Disaggregation of revenue
The following table represents Health Catalyst’s revenue disaggregated by type of arrangement (in thousands):
Year Ended December 31,
202520242023
Recurring technology$208,277 $194,852 $187,226 
One-time technology (i.e., perpetual license)— — 357 
Professional services102,859 111,732 108,355 
Total revenue
$311,136 $306,584 $295,938 
For the years ended December 31, 2025, 2024, and 2023, 96.3%, 97.2%, and 98.3% of revenue, respectively, was related to contracts with clients located in the United States.
Contract Balances and Performance Obligations
Contract balances
As of December 31, 2025 and 2024, the unbilled accounts receivable included in accounts receivable on our consolidated balance sheets was $10.1 million and $11.8 million, respectively.
As of December 31, 2025 and 2024, the total of current and non-current deferred revenue on our consolidated balance sheets was $56.5 million and $53.5 million, respectively. Deferred revenue includes advance client payments and billings in excess of revenue recognized. For the years ended December 31, 2025, 2024, and 2023 approximately $50.9 million (16%), $52.0 million (17%), and $52.9 million (18%), respectively, of the revenue recognized was included in deferred revenue at the beginning of the period.
Transaction price allocated to the remaining performance obligations
Most of our technology and professional services contracts have a three or five-year term, of which many are terminable after one year upon 90 days’ notice. For arrangements that do not allow the client to cancel within one year or less, we expect to recognize $254.4 million of revenue on unsatisfied performance obligations as of December 31, 2025. We expect to recognize approximately 70% of the remaining performance obligations over the next 24 months, with the balance recognized thereafter.

Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Feb 26, 2025
2023Feb 22, 2024
2022Feb 28, 2023
2021Mar 1, 2022
2020Feb 25, 2021
2019Feb 28, 2020

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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