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1. Company Snapshot

1.a. Company Description

HealthStream, Inc.provides workforce and provider solutions for healthcare organizations in the United States.It operates through two segments, Workforce Solutions and Provider Solutions.


The company offers workforce solutions, including software-as-a-service (SaaS) based services and subscription-based solutions to meet the range of its clinical development, talent management, training, education, certification, scheduling, competency assessment, performance appraisal, and other needs, as well as implementation and account management services.It also provides applications for learning, performance appraisal, competency management, disclosure management, clinical assessment and development, simulation-based education, quality management, and industry training.In addition, the company offers VerityStream that delivers enterprise-class solutions to transform the healthcare provider experience for ambulatory surgery centers, urgent care facilities, clinics, medical groups, and other healthcare organizations; EchoCredentialing and MSOW platforms that manage medical staff credentialing, enrollment, and privileging processes for hospitals; and EchoOneApp, a provider enrollment platform for medical groups.


Further, it provides CredentialMyDoc, a credentialing and enrollment SaaS solution for medical groups and surgery centers; CredentialStream, a SaaS-based provider credentialing, privileging, and enrollment solution; and NurseGrid Mobile for nurse managers.The company offers its solutions in healthcare industry companies that include private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies through direct sales teams.HealthStream, Inc.


was incorporated in 1990 and is headquartered in Nashville, Tennessee.

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1.b. Last Insights on HSTM

HealthStream's recent performance was driven by strong Q3 earnings, surpassing estimates with $0.19 per share, compared to $0.13 per share a year ago. The company's acquisition of two clinical rotation management businesses, TCPS and The Clinical Hub, Inc., expands its clinical rotations offering for students, schools, and healthcare organizations. This strategic move is expected to enhance its market position and drive growth. Additionally, the company's recent 52-week high suggests investor confidence in its fundamentals.

1.c. Company Highlights

2. HealthStream's Q4 2025 Earnings: A Strong Performance

HealthStream reported a strong fourth quarter, with revenues reaching $79.7 million, up 7.4% year-over-year. The company's adjusted EBITDA was $18.8 million, up 16.4% year-over-year, with an adjusted EBITDA margin of 23.6%. Earnings per share (EPS) was $0.09, down from $0.16 last year, but non-GAAP net income was $5.4 million, up 9.5%. The company's gross margin was 63.8%, impacted by increased cloud hosting costs and non-cash compensation expense. The sales team finished the year with strong contract bookings, leading to an 11.2% increase in remaining performance obligations to $691 million.

Publication Date: Mar -04

📋 Highlights
  • Revenue Growth: Full year 2025 revenue rose 4.3% to $268.1 million, with Q4 up 7.4% year-over-year to $79.7 million.
  • Adjusted EBITDA Expansion: Full year adjusted EBITDA increased 7.5% to $68.8 million, while Q4 surged 16.4% to $18.8 million.
  • 2026 Guidance: Projects revenue between $323 million and $330 million, with adjusted EBITDA of $73 million–$77 million, reflecting 6.2%–8.5% growth.
  • Core Product Growth: CredentialStream and ShiftWizard drove 21% and 31% revenue growth, respectively, in 2025.
  • Cash Position & Dividends: Ended Q4 with $57 million in cash, $35.1 million deployed for acquisitions, and declared a 12.9% higher dividend of $0.035/share.

Revenue Growth Drivers

The company's core business updates include the learning, credentialing, and scheduling application suites, with strong revenue growth from CredentialStream (21% growth) and ShiftWizard (31% growth). The company also acquired MissionCare Collective, whose primary offering is myCNAjobs.com, a career network that helps recruit and retain home health aides, home care providers, and CNAs. As Robert Frist mentioned, "We're integrating AI into our workflows to automate processes and improve efficiency. Our platform, hStream, is built around AI, and it's part of our DNA."

Valuation Metrics

Looking at HealthStream's valuation metrics, the company trades at a P/E Ratio of 35.04, P/S Ratio of 2.12, and EV/EBITDA of 9.6. The Dividend Yield is 0.57%, and the Free Cash Flow Yield is 9.26%. With the company's strong revenue growth and improving profitability, these valuation metrics suggest that the market is pricing in a moderate growth rate. Analysts estimate next year's revenue growth at 4.9%, which is slightly lower than the company's guidance of 6.2% to 8.5%.

Outlook

For 2026, HealthStream expects consolidated revenues to range between $323 million and $330 million, with a growth rate range of 6.2% to 8.5%. Net income is expected to range between $20.4 million and $22.8 million, while adjusted EBITDA is expected to range between $73 million and $77 million. With the company's strong track record of execution and its focus on AI-driven innovation, investors may want to keep a close eye on HealthStream's progress in the coming year.

3. NewsRoom

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HealthStream, Inc. (HSTM) Q4 2025 Earnings Call Transcript

Feb -24

Source: seekingalpha.com

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HealthStream (HSTM) Tops Q4 Earnings and Revenue Estimates

Feb -24

Source: zacks.com

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HealthStream Announces Fourth Quarter & Full-Year 2025 Results

Feb -23

Source: businesswire.com

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Molina Healthcare and HealthStream's MissionCare Collective Launch Initiative to Create 15,000 Home Health Aide Positions

Jan -28

Source: businesswire.com

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HSTM vs. SHOP: Which Stock Is the Better Value Option?

Jan -12

Source: zacks.com

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Copeland Capital Management LLC Trims Stock Position in HealthStream, Inc. $HSTM

Dec -30

Source: defenseworld.net

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HSTM vs. SHOP: Which Stock Should Value Investors Buy Now?

Dec -26

Source: zacks.com

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Assenagon Asset Management S.A. Makes New Investment in HealthStream, Inc. $HSTM

Dec -25

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Workforce Solutions

Expected Growth: 5%

HealthStream's Workforce Solutions segment growth is driven by increasing demand for healthcare workforce development, strategic partnerships, and expansion of its platform into new markets. The company's focus on improving patient outcomes, reducing healthcare costs, and enhancing workforce productivity also contributes to its growth. Additionally, the need for healthcare organizations to comply with regulatory requirements and adapt to changing industry standards fuels demand for HealthStream's solutions.

7. Detailed Products

HealthStream Learning Center

A learning management system that enables healthcare organizations to manage and track employee training and education

SimCenter

A simulation-based training platform that allows healthcare professionals to practice and improve their skills in a realistic and safe environment

NurseGrid

A mobile app that helps nurses manage their schedules, communicate with colleagues, and access important resources and information

Echo

A video-based training platform that allows healthcare organizations to create, manage, and track video-based training content

HLC Analytics

A data analytics platform that provides insights and metrics on healthcare workforce development and training

VerityStream

A credentialing and privileging platform that helps healthcare organizations manage provider data and streamline credentialing processes

8. HealthStream, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

HealthStream, Inc. has a low threat of substitutes due to its unique platform and services, making it difficult for customers to find alternative solutions.

Bargaining Power Of Customers

HealthStream, Inc. has a medium bargaining power of customers due to the presence of a few large customers, but the company's diversified customer base and long-term contracts mitigate this risk.

Bargaining Power Of Suppliers

HealthStream, Inc. has a low bargaining power of suppliers due to its ability to negotiate favorable terms with its suppliers and the availability of alternative suppliers.

Threat Of New Entrants

HealthStream, Inc. has a medium threat of new entrants due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles, but the company must still be vigilant to new market entrants.

Intensity Of Rivalry

HealthStream, Inc. operates in a highly competitive industry, with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.38%
Debt Cost 3.95%
Equity Weight 93.62%
Equity Cost 5.87%
WACC 5.75%
Leverage 6.81%

11. Quality Control: HealthStream, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Premier

A-Score: 6.0/10

Value: 6.3

Growth: 2.1

Quality: 5.5

Yield: 5.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
HealthStream

A-Score: 4.5/10

Value: 4.4

Growth: 5.2

Quality: 7.0

Yield: 0.0

Momentum: 2.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Forian

A-Score: 4.3/10

Value: 5.7

Growth: 6.4

Quality: 4.5

Yield: 0.0

Momentum: 7.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
National Research

A-Score: 4.0/10

Value: 2.4

Growth: 3.6

Quality: 6.0

Yield: 5.0

Momentum: 3.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
GeneDx

A-Score: 3.4/10

Value: 0.2

Growth: 4.2

Quality: 5.1

Yield: 0.0

Momentum: 9.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Simulations Plus

A-Score: 2.6/10

Value: 3.6

Growth: 4.1

Quality: 4.1

Yield: 0.0

Momentum: 1.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.05$

Current Price

22.05$

Potential

-0.00%

Expected Cash-Flows