HealthStream (HSTM) AI Stock Analysis

• Market Cap: $709.96M
• Dividend Yield: 0.52%
• Average Volume (3M): 215.55K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 0.62
• 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: 29,668,137
• 10 Day Avg. Volume: 287,357
• 30 Day Avg. Volume: 215,553
• 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: 1.08
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 3.92
• Enterprise Value/Ebitda: 11.56
• 1Y Price Target: $28.00
• Price Target Upside: 16.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $27.00 ▲(12.45% Upside)

HealthStream's overall stock score reflects strong financial performance and positive earnings call highlights, tempered by a bearish technical outlook and high valuation. The company's strategic acquisitions and strong cash position support future growth prospects.

Positive Factors

Strategic Acquisitions

The acquisition of MissionCare Collective enhances HealthStream’s workforce ecosystem, offering comprehensive career tools and professional development opportunities, thus creating synergies and adding value for stakeholders in the healthcare industry.

Strong Cash Position

A robust cash position provides HealthStream with the financial flexibility to invest in growth opportunities, manage debt, and return value to shareholders, supporting long-term business stability.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing HealthStream's competitive position in the healthcare information services industry.

Negative Factors

Declining Legacy Product Revenues

The decline in legacy product revenues suggests potential challenges in maintaining older product lines, which may impact overall revenue growth and necessitate increased focus on innovation and new product development.

Gross Margin Decline

A decline in gross margin can indicate rising costs or pricing pressures, potentially affecting profitability if not addressed through cost management or pricing strategies.

Professional Service Revenues Decline

A decrease in professional service revenues may reflect reduced demand or competitive pressures, which could impact future growth if not countered by strategic adjustments or service enhancements.

HealthStream Business Overview & Revenue Model

Company Description

HealthStream (HSTM) is a leading provider of workforce and talent management solutions for the healthcare industry. The company focuses on improving healthcare organizations' operational efficiency and workforce engagement through its innovative technology and services. HealthStream's core offerings include learning management systems, performance management tools, and patient experience solutions, all designed to enhance the skills and capabilities of healthcare professionals while ensuring compliance with regulatory requirements.

How the Company Makes Money

HealthStream generates revenue primarily through subscription-based services and software licensing fees. The company offers its products on a recurring subscription model, allowing healthcare organizations to access its learning and performance management platforms for a monthly or annual fee. Key revenue streams include fees from its online learning courses, performance appraisal systems, and patient experience measurement tools. Additionally, HealthStream may engage in partnerships with healthcare institutions and organizations to provide customized training and consulting services, further contributing to its earnings. The company also benefits from the growing demand for healthcare workforce solutions driven by regulatory changes and the increasing need for skilled healthcare professionals.

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	66.11M	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: 24.01
• 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 24.01 is below the 20-day moving average (MA) of 24.53, below the 50-day MA of 25.05, and below the 200-day MA of 27.81, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 41.05 is Neutral, neither overbought nor oversold. The STOCH value of 30.83 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	74 Outperform	$1.27B	8.68	63.86%	―	236.03%	―
HSTM	69 Neutral	$709.96M	35.19	5.87%	0.52%	3.68%	5.62%
OMDA	56 Neutral	$897.00M	-32.86	―	―	50.51%	50.92%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HCAT	50 Neutral	$172.58M	-1.49	-31.33%	―	4.64%	-17.17%
DH	49 Neutral	$358.38M	-1.50	-47.69%	―	-5.30%	46.01%
EVH	48 Neutral	$448.64M	-2.65	-13.63%	―	-16.65%	-71.92%

HealthStream Corporate Events

HealthStream Acquires MissionCare Collective LLC

On December 15, 2025, HealthStream announced the acquisition of MissionCare Collective LLC, a healthcare workforce company known for its extensive caregiver network and flagship product, myCNAjobs.com. This acquisition marks the addition of HealthStream’s third Career Network, aimed at addressing the urgent need for non-medical caregivers, home health aides, and certified nurse assistants. The acquisition is expected to enhance HealthStream’s workforce ecosystem by offering comprehensive career tools and professional development opportunities, thereby creating synergies and adding value for stakeholders in the healthcare industry.

HealthStream CEO Donates Shares to Employees

On December 9, 2025, HealthStream‘s CEO, Robert A. Frist, Jr., contributed approximately $3.5 million of his personally owned shares to over 700 employees, excluding executives and vice presidents, as part of the company’s 2022 Omnibus Incentive Plan. This contribution, which includes an additional $275,000 to cover related company costs, will result in a compensation expense impacting the company’s financials in the fourth quarter of 2025, but it is seen as a positive move for employee engagement without affecting existing shareholders.

HealthStream Announces $10 Million Share Buyback Program

On November 11, 2025, HealthStream announced that its Board of Directors approved a new share repurchase program, allowing the company to buy back up to $10 million of its outstanding common stock. This initiative, which is set to conclude by February 26, 2026, or when the maximum amount is spent, reflects HealthStream’s strategic financial management and could potentially enhance shareholder value, depending on market conditions and other factors.

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.

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.