HealthStream, Inc.
- Open
- 27.17
- Day high
- 27.92
- Day low
- 27.05
- Prev close
- 27.13
- Volume
- 70K
- Mkt cap
- $793M
- P/E (TTM)
- 40.8
- EPS (TTM)
- $0.67
- P/B
- 2.3
- P/S
- 2.5
- Yield
- 0.49%
- Per share
- $0.13
- ▼Insiders net selling -$172K over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions accumulating (13F)
HealthStream, Inc. (HSTM) is a Healthcare company listed on NASDAQ. The stock is down 2% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4).
HealthStream, Inc. (HSTM) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
HSTM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.16 | $0.20 | +25.0% | $81M | +1.9% |
| Feb 23, 2026 | $0.16 | $0.18 | +12.5% | $80M | +3.5% |
| Oct 21, 2024 | $0.13 | $0.19 | +46.2% | $73M | -0.6% |
| Jul 22, 2024 | $0.12 | $0.14 | +16.7% | $72M | -1.8% |
| Feb 19, 2024 | $0.10 | $0.15 | +50.0% | $71M | -1.7% |
| Jul 24, 2023 | $0.09 | $0.13 | +44.4% | $69M | -2.0% |
| Feb 20, 2023 | $0.05 | $0.08 | +60.0% | $69M | +0.8% |
| Jul 25, 2022 | $0.05 | $0.10 | +100.0% | $66M | -1.0% |
| Feb 21, 2022 | $0.01 | $0.05 | +316.7% | $64M | +0.1% |
| Feb 22, 2021 | $0.04 | $0.03 | -18.2% | $62M | +4.6% |
| Jul 27, 2020 | $0.01 | $0.11 | +2100.0% | $61M | +1000.0% |
| Apr 27, 2020 | $0.11 | $0.14 | +27.3% | $62M | +57.1% |
HSTM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 9, 2026 | Jahangir Amir Alexdirector | Option | 1,126 | — |
| Jun 9, 2026 | DENT THOMPSONdirector | Option | 3,148 | — |
| Jun 9, 2026 | GORDON FRANKdirector | Option | 3,148 | — |
| Jun 9, 2026 | Taylor Tate Deborahdirector | Option | 3,148 | — |
| Jun 9, 2026 | DENT THOMPSONdirector | Option | 1,126 | — |
| Jun 9, 2026 | REBROVICK LINDAdirector | Option | 1,006 | — |
| Jun 9, 2026 | REBROVICK LINDAdirector | Grant | 3,148 | — |
| Jun 9, 2026 | DENT THOMPSONdirector | Option | 1,006 | — |
| Jun 9, 2026 | GORDON FRANKdirector | Option | 1,126 | — |
| Jun 9, 2026 | Jahangir Amir Alexdirector | Option | 1,016 | — |
| Jun 9, 2026 | Taylor Tate Deborahdirector | Option | 1,016 | — |
| Jun 9, 2026 | GORDON FRANKdirector | Option | 1,016 | — |
| Jun 9, 2026 | GORDON FRANKdirector | Option | 1,006 | — |
| Jun 9, 2026 | Taylor Tate Deborahdirector | Option | 1,126 | — |
| Jun 9, 2026 | DENT THOMPSONdirector | Option | 1,016 | — |
Source: HSTM SEC Form 4 filings, latest Jun 9, 2026. For informational purposes only — not investment advice.
See the full HSTM insider & 13F page →HealthStream, Inc. company profile
Overview
HealthStream, Inc. (NASDAQ:HSTM) is a Nashville-based healthcare technology company founded in 1990 that went public in 2000. The company specializes in providing workforce development and provider credentialing solutions to healthcare organizations across the United States. HealthStream has evolved from a traditional healthcare training company into a comprehensive platform provider, serving hospitals, health systems, ambulatory surgery centers, medical groups, and other healthcare entities with software-as-a-service solutions that address critical workforce management challenges in the healthcare industry.
Business
HealthStream operates in the healthcare information services sector, providing technology solutions that help healthcare organizations manage their most critical asset: their workforce. The company's offerings fall into two main categories that address fundamental operational needs in healthcare. Workforce Solutions represent the larger segment, accounting for approximately 75% of total revenue. This division provides software-as-a-service platforms that help healthcare organizations train, assess, and manage their clinical and administrative staff. The core products include learning management systems for mandatory training and continuing education, competency assessment tools that verify clinical skills, performance appraisal systems, and scheduling software called ShiftWizard that helps hospitals manage complex staffing requirements. These solutions are essential because healthcare workers must maintain certifications, complete mandatory training, and demonstrate clinical competencies to meet regulatory requirements and ensure patient safety. Provider Solutions comprise approximately 25% of revenue and focus on credentialing and enrollment services. The flagship product, CredentialStream, helps healthcare organizations verify that doctors, nurses, and other providers have the proper licenses, certifications, and credentials to practice. This is a critical compliance function because healthcare organizations face significant legal and financial risks if they allow unqualified providers to treat patients. The platform also manages the complex process of enrolling providers with insurance networks and government programs like Medicare and Medicaid. The company has built what it calls the "hStream" platform, which serves as the underlying technology infrastructure connecting these various applications. This platform approach allows customers to use integrated solutions rather than disparate systems, and it enables HealthStream to cross-sell multiple products to existing customers. Approximately 96% of HealthStream's revenue comes from subscription-based services, providing predictable recurring revenue streams.
Revenue model
HealthStream generates revenue primarily through software-as-a-service subscriptions, with 96% of total revenue coming from recurring subscription fees. Healthcare organizations pay annual or multi-year contracts to access HealthStream's platforms, with pricing typically based on the number of users or "seats" and the specific modules or applications being used. The remaining 4% of revenue comes from professional services, including implementation support and consulting. The company's customers are healthcare organizations that face mandatory regulatory requirements for workforce training, credentialing, and competency assessment. This creates a relatively stable demand environment because these needs are not discretionary - hospitals and health systems must maintain compliant workforces to operate legally and maintain accreditation. The customer base includes private hospitals, not-for-profit health systems, government healthcare facilities, ambulatory surgery centers, medical groups, and increasingly, health insurance plans. Several factors influence HealthStream's profitability and growth potential. Positive factors include the mandatory nature of most services (80-90% of the product portfolio addresses regulatory requirements), the high switching costs once organizations integrate these systems into their operations, and the company's ability to cross-sell multiple solutions to existing customers. The recurring subscription model provides predictable cash flows, and HealthStream has been implementing pricing escalators in contract renewals to maintain margins. Challenges to profitability include the gradual decline of legacy products as customers migrate to newer platforms, competitive pressure in the healthcare technology space, and the cyclical nature of healthcare spending during economic downturns. Healthcare organizations often delay discretionary technology purchases when facing financial stress, though HealthStream's focus on mandatory compliance requirements provides some insulation from these pressures. The company also faces the ongoing challenge of integrating its various acquired platforms and managing the transition away from older systems.
Competitive moat
HealthStream's competitive moat is moderately strong but not insurmountable, built primarily on switching costs, regulatory specialization, and network effects. The company benefits from high customer retention rates because replacing workforce management and credentialing systems requires significant time, cost, and operational disruption for healthcare organizations. Once implemented, these systems become deeply integrated into daily operations, making switching decisions complex and expensive. The company's specialization in healthcare-specific regulatory requirements creates expertise barriers for potential competitors. HealthStream understands the nuanced compliance needs of different healthcare settings and has built relationships with regulatory bodies and accreditation organizations. This domain expertise is valuable but not impossible for well-funded competitors to replicate. Network effects provide some defensive value, particularly in the credentialing business where having more providers and organizations on the platform creates efficiency benefits for all participants. The NurseGrid social network, with 600,000 monthly active users, represents a potential moat in connecting directly with healthcare professionals. However, HealthStream faces significant competitive threats. Large healthcare technology companies like Epic, Cerner (now Oracle Health), and Workday have the resources to build competing solutions and can bundle workforce management with their existing hospital information systems. Cloud-native startups may offer more modern user experiences and potentially lower costs. The company's platform integration efforts suggest recognition that its current product suite may be fragmented compared to more unified competitive offerings. The moat appears sufficient to protect the existing business but may not be wide enough to prevent market share erosion over time without continued innovation and platform development. The company's "Year of the Platform" initiative in 2025 suggests management recognizes the need to strengthen competitive positioning through better integration and user experience.
Risks & safety
HealthStream demonstrates a strong financial safety profile with minimal solvency risk but trades at elevated valuation multiples. • Liquidity and Debt: Strong balance sheet with $77.3 million in cash and short-term investments, no interest-bearing debt, current ratio of 1.35x, and positive free cash flow of $26 million in Q1 2025 • Profitability: Consistent profitability with 96% recurring subscription revenue providing predictable cash flows, though margins face pressure from platform integration costs and competitive dynamics • Valuation Concerns: Trading at premium multiples with P/E ratio of 56.5x, EV/EBITDA of 15.2x, and price-to-book of 2.7x, suggesting limited margin of safety for value-oriented investors • Operational Risks: Some customer concentration risk, technology scaling challenges noted with CredentialStream, and exposure to healthcare industry spending cycles during economic downturns • Growth Sustainability: Revenue growth has moderated to low single digits, with management targeting 7-10% growth requiring successful execution of platform strategy and potential acquisitions
Recent development
Over the past few years, HealthStream has undergone a significant strategic transformation focused on platform consolidation and integration. The company has moved from operating multiple disparate applications to developing the unified "hStream" platform, which now supports 14 of 27 applications with a common identity system. This platform approach is designed to improve user experience, enable better cross-selling, and reduce operational complexity. Product innovation has accelerated with the launch of the HealthStream Learning Experience (HLX) featuring AI-native design, and the introduction of AI capabilities through the "Jane AI" product for clinical reasoning assessment. The company has also expanded its developer portal, now serving over 400 developers from 184 customer accounts, indicating growing ecosystem engagement. Market expansion efforts include entering the health insurance plan credentialing market with "Network by HealthStream," developing direct-to-professional sales channels through NurseGrid and myClinicalExchange platforms, and targeting nursing students and pre-professional markets. The company has grown NurseGrid to 600,000 monthly active users, representing a significant direct connection to healthcare professionals. Operational improvements include implementing pricing escalators in contract renewals (achieving 95%+ success rates), focusing on cross-selling to increase wallet share with existing customers, and streamlining operations through workforce reductions and organizational restructuring. The company has also established a quarterly dividend policy and made strategic investments like the minority stake in fintech startup Plenary. Leadership changes have positioned the company for its platform strategy, with key promotions including Kevin O'Hara to Executive VP of Enterprise Workforce Platform and organizational restructuring to support integrated operations. Management has declared 2025 as the "Year of the Platform," signaling intensified focus on completing the technology integration and realizing the benefits of the unified approach.
HSTM company profile · for informational purposes only — not investment advice.
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