HealthStream (HSTM) AI Stock Analysis

• Market Cap: $762.08M
• Dividend Yield: 0.48%
• Average Volume (3M): 173.33K
• Price to Earnings (P/E): 37.9
• Beta (1Y): 0.66
• Revenue Growth: 3.68%
• EPS Growth: 5.62%
• Country: US
• Employees: 1,083
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.20
• Shares Outstanding: 29,641,207
• 10 Day Avg. Volume: 188,648
• 30 Day Avg. Volume: 173,332
• PEG Ratio: 1.51
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 3.31
• P/FCF Ratio: 32.74
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 3.92
• Enterprise Value/Ebitda: 11.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.65
• Revenue Forecast (FY): $299.93M

• Rating: 67 Neutral
• Price Target: $27.00 ▲(9.00% Upside)

HealthStream's overall stock score reflects strong financial performance and positive earnings call highlights, including record revenues and strategic acquisitions. However, technical analysis indicates bearish trends, and valuation metrics suggest the stock may be overvalued. The mix of positive financials and growth prospects with technical and valuation concerns results in a moderate overall score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong demand for HealthStream's solutions, indicating robust market position and potential for future expansion.

Cash Position

A large cash reserve provides financial flexibility for strategic investments and acquisitions, supporting long-term growth initiatives.

Core Solutions Performance

Strong growth in core solutions demonstrates HealthStream's ability to innovate and meet customer needs, reinforcing its competitive advantage.

Negative Factors

Legacy Product Revenue Decline

Declining legacy product revenues suggest potential challenges in maintaining older product lines, which could impact overall revenue stability.

Gross Margin Decline

A decline in gross margin indicates rising costs, which could pressure profitability if not managed effectively over time.

Professional Service Revenue Decline

Falling professional service revenues may signal reduced demand or competitive pressures, potentially affecting future service-related income.

HealthStream Business Overview & Revenue Model

Company Description

HealthStream (HSTM) is a leading provider of workforce and patient experience solutions for the healthcare industry. The company focuses on improving healthcare organizations' performance through a comprehensive suite of cloud-based solutions that address training, compliance, and engagement needs. HealthStream's core products include learning management systems, workforce management tools, and patient experience solutions, which are designed to enhance the quality of care and operational efficiency within healthcare settings.

How the Company Makes Money

HealthStream generates revenue primarily through subscription fees for its software solutions and services. The company offers various subscription-based products, which provide healthcare organizations with ongoing access to its platforms and resources. Key revenue streams include fees from its learning management systems, which facilitate employee training and compliance, as well as patient engagement solutions that help enhance the patient experience. Additionally, HealthStream benefits from strategic partnerships with healthcare providers and organizations, which can lead to increased adoption of its solutions and additional revenue opportunities. The company's focus on the healthcare sector allows it to capitalize on the growing demand for effective workforce and patient management tools, contributing significantly to its earnings.

HealthStream Financial Statement Overview

Summary

HealthStream exhibits a strong financial performance across all verticals. The income statement shows consistent revenue growth and profitability, while the balance sheet reflects a low-risk financial structure with minimal leverage. The cash flow statement indicates robust cash generation and growth. Overall, the company is well-positioned financially, with strengths in revenue growth, profitability, and financial stability.

Income Statement

HealthStream's income statement shows a solid performance with a consistent revenue growth rate of 1.145% in the TTM period. The gross profit margin remains strong at 65.64%, indicating efficient cost management. The net profit margin of 6.89% is stable, reflecting healthy profitability. EBIT and EBITDA margins are also robust, suggesting effective operational management. Overall, the company demonstrates strong revenue growth and profitability.

Balance Sheet

The balance sheet of HealthStream is strong, with a low debt-to-equity ratio of 0.045, indicating low financial leverage and risk. The return on equity is modest at 5.70%, showing decent profitability relative to shareholder equity. The equity ratio of 69.85% highlights a solid capital structure with a significant portion of assets financed by equity. The company maintains a stable and low-risk financial position.

Cash Flow

HealthStream's cash flow statement reflects a positive trajectory with a free cash flow growth rate of 12.47% in the TTM period. The operating cash flow to net income ratio is 0.54, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.73 further supports the company's ability to generate cash. Overall, the cash flow position is healthy, with good cash generation and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	298.59M	291.65M	279.06M	266.83M	256.71M	244.83M
Gross Profit	195.12M	193.71M	184.04M	175.68M	165.68M	155.49M
EBITDA	65.43M	62.53M	57.09M	50.39M	44.87M	46.01M
Net Income	20.70M	20.01M	15.21M	12.09M	5.84M	14.09M
Balance Sheet
Total Assets	499.93M	510.77M	499.94M	497.74M	486.75M	500.31M
Cash, Cash Equivalents and Short-Term Investments	92.59M	97.22M	71.13M	53.91M	51.95M	46.49M
Total Debt	15.29M	20.17M	20.25M	23.32M	29.11M	31.87M
Total Liabilities	150.74M	151.41M	159.19M	163.68M	147.73M	166.25M
Stockholders Equity	349.19M	359.36M	340.75M	334.06M	339.02M	334.06M
Cash Flow
Free Cash Flow	57.60M	29.52M	61.77M	49.42M	38.97M	33.89M
Operating Cash Flow	61.29M	57.66M	63.97M	51.19M	42.38M	35.87M
Investing Cash Flow	-35.11M	-33.97M	-56.60M	-28.39M	-25.72M	-110.41M
Financing Cash Flow	-30.06M	-4.52M	-13.04M	-23.70M	-6.21M	-20.49M

HealthStream Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSTM, the sentiment is Negative. The current price of 24.77 is below the 20-day moving average (MA) of 25.77, below the 50-day MA of 27.26, and below the 200-day MA of 29.07, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 35.95 is Neutral, neither overbought nor oversold. The STOCH value of 30.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HSTM.

HealthStream Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NUTX	71 Outperform	$729.50M	10.23	―	―	141.25%	―
HSTM	67 Neutral	$762.08M	37.91	5.87%	0.48%	3.68%	5.62%
OMDA	58 Neutral	$1.34B	―	―	―	47.99%	44.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVH	49 Neutral	$746.18M	―	-13.63%	―	-16.65%	-71.92%
HCAT	48 Neutral	$214.64M	―	-28.42%	―	5.55%	-0.99%
DH	48 Neutral	$396.10M	-1.05	-64.27%	―	-5.24%	23.59%

HealthStream Corporate Events

HealthStream’s Earnings Call: Record Revenues Amid Challenges

In the recent earnings call, HealthStream presented a mixed bag of results, showcasing both achievements and challenges. The company celebrated record revenues and robust growth in its core solutions, yet faced hurdles with declining legacy product revenues, a drop in gross margin, and reduced professional service revenues. The acquisition of Virsys12 and a strong cash position were highlighted as positive indicators for future growth.

HealthStream Reports Record Q3 Revenue and Acquisition

On November 3, 2025, HealthStream announced its third-quarter results, reporting a record revenue of $76.5 million, a 4.6% increase from the previous year. The company also declared a quarterly cash dividend and completed the acquisition of Virsys12, enhancing its provider data management capabilities. The acquisition is expected to strengthen HealthStream’s position in the healthcare technology market, particularly in provider network management.

The most recent analyst rating on (HSTM) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on HealthStream stock, see the HSTM Stock Forecast page.

HealthStream Acquires Virsys12 to Enhance Credentialing Suite

On October 8, 2025, HealthStream announced the acquisition of Virsys12, a healthcare technology company known for its provider data management suite. This acquisition aims to enhance HealthStream’s credentialing application suite, Network by HealthStream™, by integrating Virsys12’s V12 Enterprise® application suite. This move is expected to strengthen HealthStream’s market position among payers and health plan enterprises by offering a more comprehensive solution for credentialing, onboarding, and network management. The acquisition also includes the integration of Virsys12’s services into HealthStream’s Professional Services, ensuring optimized workflows for payers.

The most recent analyst rating on (HSTM) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on HealthStream stock, see the HSTM Stock Forecast page.

HealthStream’s Earnings Call Highlights Growth and Innovation

HealthStream’s recent earnings call exuded a positive sentiment, underscoring the company’s significant achievements and strategic advancements. The call highlighted HealthStream’s robust revenue growth, successful large deal closures, and ongoing innovation in AI integration. Despite challenges such as a decline in gross margin and legacy product revenue, HealthStream’s strong cash position and focus on core solutions provided a reassuring outlook for stakeholders.

HealthStream Reports Record Q2 2025 Revenue Growth

HealthStream, Inc. is a healthcare technology platform company specializing in workforce solutions, primarily serving the healthcare industry by enhancing workforce efficiencies and patient care. In its second quarter of 2025, HealthStream reported record revenues of $74.4 million, marking a 4% increase from the previous year. The company also saw a significant rise in operating income and net income, with a 33.4% and 29.3% increase, respectively, compared to the second quarter of 2024. Earnings per share improved to $0.18, up from $0.14 in the same period last year. Additionally, the company completed a substantial share repurchase program, buying back $18.1 million worth of shares, and declared a quarterly cash dividend. HealthStream’s financial performance was bolstered by increased subscription revenues and strategic investments in platform and SaaS applications, despite higher operational costs. Looking ahead, HealthStream remains optimistic about its growth trajectory, with updated guidance projecting revenues between $297.5 million and $303.5 million for the full year 2025, as the company continues to focus on delivering innovative solutions to the healthcare sector.