Executive Summary

Q3 2022 delivered the fourth consecutive quarter of top-line growth: revenue $16.6M (+15% YoY), with gross profit $9.7M and gross margin 58%, the highest since Q4 2020 .
Profitability deteriorated sequentially as SG&A rose to $16.6M and R&D to $6.3M; GAAP net loss was $13.7M ($0.12/share) vs. $12.5M ($0.11/share) in Q2 .
Liquidity tightened meaningfully: cash and equivalents fell to $0.6M from $5.7M in Q2 and $16.1M in Q1, elevating near-term funding risk despite operating momentum .
Commercial traction continued: URAC accreditation renewed through 2025; contract extensions/renewals (including a 3‑year extension post‑quarter with a large national commercial insurer and a Maryland Physicians Care 2‑year renewal) support Eviti demand .

What Went Well and What Went Wrong

What Went Well

Sustained top-line momentum and mix: “Net revenue was $16.6 million… the fourth consecutive quarter of top-line growth,” with gross margin at 58%, the highest since Q4 2020 .
Strategic validation and customer durability: Eviti Connect earned full URAC accreditation for Health Utilization Management through 2025; renewals and an expanded solution set (formulary redirection) with a large national commercial insurer and Maryland Physicians Care underline platform relevance .
Product expansion and pipeline: Management cited “a broadened product portfolio” and a new four-year customer agreement with a provider of technology-enabled payment integrity/analytics services, supporting multi-solution cross-sell across Eviti, NaviNet and OpenNMS .

What Went Wrong

Expense growth outpaced revenue: SG&A climbed to $16.6M (from $14.0M in Q2), R&D rose to $6.3M (from $5.9M), widening operating losses sequentially .
Liquidity constraints: Cash and equivalents dropped to $0.6M (Q2: $5.7M; Q1: $16.1M), tightening flexibility amid continued losses and a substantial debt/related-party liability stack and stockholders’ deficit of $(201.2)M at quarter-end .
Continued GAAP and non-GAAP losses: GAAP net loss was $13.7M ($0.12/share) and non‑GAAP net loss was $14.0M ($0.12/share), both worse than Q2 non‑GAAP and up YoY .

Financial Results

Quarterly performance (sequential comparison)

Metric	Q1 2022	Q2 2022	Q3 2022
Revenue ($USD Millions)	$16.373	$16.498	$16.633
Gross Profit ($USD Millions)	$9.194	$9.151	$9.705
Gross Margin (%)	56%	55%	58%
SG&A ($USD Millions)	$14.980	$14.017	$16.580
R&D ($USD Millions)	$5.715	$5.861	$6.299
GAAP Net Loss ($USD Millions)	$(15.950)	$(12.512)	$(13.657)
GAAP Diluted EPS ($)	$(0.14)	$(0.11)	$(0.12)
Non-GAAP Net Loss ($USD Millions)	$(12.237)	$(11.370)	$(13.964)
Non-GAAP Diluted EPS ($)	$(0.11)	$(0.10)	$(0.12)
Cash & Equivalents ($USD Millions)	$16.078	$5.711	$0.635

Year-over-year (Q3 2022 vs. Q3 2021)

Metric	Q3 2021	Q3 2022
Revenue ($USD Millions)	$14.359	$16.633
Gross Profit ($USD Millions)	$7.530	$9.705
Gross Margin (%)	52%	58%
SG&A ($USD Millions)	$12.969	$16.580
R&D ($USD Millions)	$4.648	$6.299
GAAP Net Loss ($USD Millions)	$(10.843)	$(13.657)
GAAP Diluted EPS ($)	$(0.09)	$(0.12)
Non-GAAP Net Loss ($USD Millions)	$(11.451)	$(13.964)
Non-GAAP Diluted EPS ($)	$(0.10)	$(0.12)

Segment revenue breakdown

Revenue Category ($USD Thousands)	Q2 2022	Q3 2022
Software-as-a-service related	$15,861	$16,161
Maintenance	$428	$398
Professional Services	$208	$73
Other	$1	$1
Total Net Revenue	$16,498	$16,633

KPIs and balance sheet indicators

KPI ($USD Thousands)	Q1 2022	Q2 2022	Q3 2022
Cash & Equivalents	$16,078	$5,711	$635
Accounts Receivable, net	$5,025	$5,049	$5,299
Deferred Revenue (current)	$2,704	$2,518	$2,663

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial guidance	FY/quarter	Not provided	Not provided	Maintained (no formal guidance)

Management did not issue quantitative revenue, margin, or EPS guidance in the Q3 materials; call details referenced forward-looking statements but no numeric outlook ranges were furnished .

Earnings Call Themes & Trends

Note: Our document system experienced an error retrieving the Q3 2022 transcript; we relied on company disclosures and quarterly press materials for thematic continuity.

Topic	Previous Mentions (Q1 2022)	Previous Mentions (Q2 2022)	Current Period (Q3 2022)	Trend
Eviti delegated services/autoimmune expansion	Full delegation expanded to radiation oncology; multi-year renewal with a nonprofit multi-state health plan	Delegated Entity status in MS/VA/IA; expanded autoimmune coverage; added site-of-service functionality	2‑year renewal with Maryland Physicians Care; URAC accreditation through 2025; formulary redirection added in insurer extension	Ongoing expansion and validation across customers and capabilities
NaviNet prior authorization enhancements	HITRUST certification; automation to speed approvals	New capabilities to collect situational info; new line of business going live H2	Open Prior Authorization went live for key customer; functionality to speed prior authorization	Product enhancements translating to deployments and added membership
OpenNMS product releases and MSP support	Meridian 2022 release; hardware appliances rollout	Horizon 30; Helm 8.0; ALEC 2.0; Plugin API 1.0	Mini appliances for user testing; VMware SD‑WAN monitoring capability progress; multiple service engagements delivered	Continuous innovation and enterprise adoption
AI/Quadris/data analytics	Cloud/data analytics investments; new apps on cloud platform	Expanding pilot programs for AI and Quadris	Broadened product portfolio aiding multi‑solution adoption	Building pipeline and cross‑sell opportunity
Customer renewals/new contracts	Multi‑year payer renewal (Eviti)	New line of business with major payer	Post‑quarter: 3‑year insurer extension incl. formulary redirection; new 4‑year analytics customer	Strengthening customer base and expanding scope

Management Commentary

“Net revenue was $16.6 million for the third quarter of 2022, representing the fourth consecutive quarter of top-line growth.” — Ron Louks, COO .
“Our gross profit of $9.7 million and gross margin of 58 percent for the quarter were the highest since the fourth quarter of 2020.” — Ron Louks, COO .
“We expect to continue the positive momentum… signed a new customer… to a four‑year agreement… benefiting from a broadened product portfolio, with existing customers appreciating the value of our multiple solutions and services.” — Ron Louks, COO .

Q&A Highlights

We attempted to retrieve the Q3 2022 earnings call transcript via our document system, but encountered a database inconsistency error; we identified the transcript on Seeking Alpha (NantHealth, Inc. (NH) Q3 2022 Earnings Call Transcript) but could not programmatically ingest the full text for direct citation in this report . We will update Q&A themes and any guidance clarifications once the primary-source transcript can be read in full.

Estimates Context

Consensus estimates from S&P Global could not be retrieved due to a missing CIQ mapping for the ticker, so a comparison to Wall Street consensus is unavailable at this time [GetEstimates error]. We will provide an estimates comparison once S&P Global data access is resolved.

Key Takeaways for Investors

Operating momentum continues: revenue up sequentially and YoY with SaaS mix driving margin expansion (58% GM), but expenses outpaced growth, widening the operating loss QoQ .
Liquidity risk elevated: cash fell to $0.6M at quarter-end; investors should monitor funding actions or working capital improvements to sustain operations and product investment .
Commercial validation and durability: URAC accreditation, payer renewals, and post‑quarter insurer extension (including formulary redirection) support continued Eviti adoption and cross‑sell potential across NaviNet/OpenNMS .
Non‑GAAP loss increased QoQ and YoY, suggesting near‑term path to profitability will require both top-line acceleration and cost discipline; watch SG&A and R&D spend trajectory vs. revenue growth .
Product velocity remains a differentiator: continued releases in OpenNMS, prior‑auth deployment in NaviNet, and autoimmune/oncology enhancements in Eviti position the portfolio for sticky enterprise relationships .
No formal guidance provided; near‑term narrative hinges on contract wins/renewals, margin mix, and resolving liquidity constraints; lack of S&P consensus access precludes estimate‑based beat/miss framing today .
Actionable: focus on funding updates, contract expansion cadence, and evidence of operating leverage from SaaS scale; these will be key catalysts for sentiment and stock reaction around future prints .

Sources: Q3 earnings 8‑K press release and financial tables ; Q2 8‑K press release and financial tables ; Q1 8‑K press release and financial tables .

NantHealth, Inc. (NHIQ)·Q3 2022 Earnings Summary