Description of Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Allowance For Accounts Receivable

We reassess the adequacy of the allowance for credit losses each reporting period. The following table presents a rollforward of the allowance for credit losses (in thousands):


	Year Ended December 31,
	2025		2024		2023
Balance at beginning of period	$	4,200	$	4,105	$	2,300
Current period provision for expected credit losses	1,503		1,202		1,821
Write-offs, net of recoveries	(2,003)		(1,107)		(16)
Balance at end of period	$	3,700	$	4,200	$	4,105

Schedule of Property and Equipment, Useful Life

The estimated useful life of each asset category is as follows:


Computer equipment			2-3 years
Furniture and fixtures			3-5 years
Leasehold improvements			Lesser of lease term or estimated useful life
Computer software			2-5 years
Capitalized internal-use software costs			2-3 years

Property and equipment consisted of the following (in thousands):


	As of December 31,
	2025		2024

Computer equipment	$	10,027	$	10,309
Leasehold improvements	6,314		8,456
Furniture and fixtures	3,796		3,757
Capitalized internal-use software costs	66,916		46,143
Computer software	111		111

Total property and equipment	87,164		68,776
Less: accumulated depreciation	(53,326)		(39,382)
Property and equipment, net	$	33,838	$	29,394

Schedule of Intangible Asset, Useful Life

The estimated useful life of each asset category is as follows:


Developed technologies			3-10 years
Client relationships and contracts			2-7 years
Computer software licenses			1-5 years
Trademarks			1-5 years

As of December 31, 2025, intangible assets consisted of the following (in thousands):


	Gross		Accumulated Amortization		Net
Developed technologies	$	141,101	$	(110,621)	$	30,480
Client relationships and contracts	115,808		(72,750)		43,058
Computer software licenses	13,600		(11,329)		2,271
Trademarks	5,367		(3,498)		1,869
Total intangible assets	$	275,876	$	(198,198)	$	77,678

As of December 31, 2024, intangible assets consisted of the following (in thousands):


	Gross		Accumulated Amortization		Net
Developed technologies	$	124,109	$	(93,611)	$	30,498
Client relationships and contracts	108,824		(57,020)		51,804
Computer software licenses	11,149		(9,503)		1,646
Trademarks	4,694		(2,590)		2,104
Total intangible assets	$	248,776	$	(162,724)	$	86,052

The weighted-average remaining amortization period by type of intangible assets as of December 31, 2025 is as follows:


			Weighted-Average Remaining Amortization Period (years)
Developed technologies			2.1
Client relationships and contracts			3.8
Computer software licenses			2.1
Trademarks			2.7

Health Catalyst, Inc. 10-K