Health Catalyst dropped about 25% to US$1.73 after its latest report, even though the headline numbers were not a collapse story. Q2 revenue landed at US$70.5 million and adjusted EBITDA came in at US$9.9 million, with adjusted EPS at US$0.04. The real jolt came from what happens next. The sale of the higher margin Vitalware unit, the shift to the Ignite platform and fresh guidance all reshape the earnings path from here.

Investors may appreciate the recurring software revenue at Health Catalyst but could also be concerned about the changing margin profile following the Vitalware sale and Ignite transition. Take a look at our curated list of stocks with stronger profitability trends and balance sheets in the list of solid balance sheet…