v3.26.1
Contract Balances and Performance Obligations
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Contract Balances and Performance Obligations Revenue
Disaggregation of Revenue
The following table represents Health Catalyst’s revenue disaggregated by type of arrangement (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(unaudited)(unaudited)
Recurring technology$48,795 $52,876 $98,263 $104,358 
Professional services21,692 27,845 42,980 55,776 
Total revenue$70,487 $80,721 $141,243 $160,134 
Revenue related to contracts with clients located in the United States was 96.8% and 96.4% for the three months ended June 30, 2026 and 2025, respectively, and 96.3% and 96.2% for the six months ended June 30, 2026, and 2025, respectively.
Contract Balances and Performance Obligations
As of June 30, 2026 and December 31, 2025, the unbilled accounts receivable included in accounts receivable on our consolidated balance sheets was $6.3 million and $10.1 million, respectively.
As of June 30, 2026 and December 31, 2025, the total of current and non-current deferred revenue, excluding amounts associated with assets held for sale, on our consolidated balance sheets was $43.0 million and $56.5 million, respectively. Deferred revenue includes advance client payments and billings in excess of revenue recognized. For the three months ended June 30, 2026 and 2025, 52% and 47%, respectively, of the revenue recognized was included in deferred revenue at the beginning of the period. For the six months ended June 30, 2026 and 2025, 31% and 26%, respectively, of the revenue recognized was included in deferred revenue at the beginning of the period.
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 are not associated with assets held for sale and that do not allow the client to cancel within one year or less, we expect to recognize $179.1 million of revenue on unsatisfied performance obligations as of June 30, 2026. We expect to recognize approximately 75% of the remaining performance obligations over the next 24 months, with the balance recognized thereafter.