HealthStream Inc (HSTM)

HealthStream Announces First Quarter 2026 ResultsMay 4, 2026 4:30 PM
Business Wire HealthStream, Inc. (the "Company") (Nasdaq: HSTM), a leading healthcare technology platform company for clinical workforce solutions, today announced results for the first quarter ended March 31, 2026. First Quarter 2026 Revenues of $81.2 million, up 10.5% from $73.5 million in the first quarter of 2025, setting a new Company record for quarterly revenue Operating income of $7.5 million, up 71.6% from $4.4 million in the first quarter of 2025 Net income of $5.9 million, up 36.4% from $4.3 million in the first quarter of 2025 Earnings per share (EPS) of $0.20 per share (diluted), up from $0.14 per share (diluted) in the first quarter of 2025 Adjusted EBITDA1 of $20.1 million, up 24.1% from $16.2 million in the first quarter of 2025 Board of Directors declared a quarterly cash dividend of $0.035 per share, payable on May 29, 2026 to holders of record on May 18, 2026 Authorized a share repurchase program to repurchase up to $10.0 million of outstanding shares of common stock on March 13, 2026 Michael M. Collier named Chief Operating Officer & Executive Vice President 1 Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of adjusted EBITDA to net income and disclosure regarding why we believe adjusted EBITDA provides useful information to investors is included later in this release. Financial Results: First Quarter 2026 Compared to First Quarter 2025 Revenues for the first quarter of 2026 increased by $7.7 million, or 10.5%, to $81.2 million, compared to $73.5 million for the first quarter of 2025. Subscription revenues increased by $7.6 million, or 10.7%, and professional services revenues increased by $0.1 million compared to the first quarter of 2025. Compared to the first quarter of 2025, revenue growth for the first quarter of 2026 was positively impacted by $3.4 million from our acquisitions of Virsys12 and MissionCare Collective completed during the fourth quarter of 2025 and $4.3 million from growth across our existing portfolio of solutions. Operating income was $7.5 million for the first quarter of 2026, up 71.6% from $4.4 million in the first quarter of 2025. The improvement in operating income was primarily attributable to increased revenues and sublease income associated with our sublease that commenced during the second quarter of 2025. These improvements were partially offset by higher expenses in the first quarter of 2026 to support investments in several areas of the business, primarily in our platform and enterprise applications, resulting in higher labor costs, increased royalties expense, and higher cloud hosting and third-party software expenses, along with increased amortization expense from our fourth quarter 2025 acquisitions. Net income was $5.9 million in the first quarter of 2026, up 36.4% from $4.3 million in the first quarter of 2025, and EPS was $0.20 per share (diluted) in the first quarter of 2026, up from $0.14 per share (diluted) in the first quarter of 2025. Adjusted EBITDA was $20.1 million for the first quarter of 2026, up 24.1% from $16.2 million in the first quarter of 2025. At March 31, 2026, the Company had cash, cash equivalents, and marketable securities of $66.5 million. The Company does not have any outstanding indebtedness from borrowed money. Capital expenditures incurred during the first quarter of 2026 were $7.3 million. Other Business Updates On March 13, 2026, the Company announced a new share repurchase program approved by the Board of Directors under which the Company is authorized to repurchase up to $10.0 million of its outstanding shares of common stock. Pursuant to this authorization, the Company is authorized to make repurchases in the open market, including under Rule 10b5-1 plans, through privately negotiated transactions, or otherwise. This share repurchase program will terminate on the earlier of September 12, 2026 or when the maximum dollar amount under the plan is expended. During the three months ended March 31, 2026, the Company repurchased 119,367 shares of common stock at an aggregate fair value of $2.5 million under this authorization, and the Company continued to repurchase shares pursuant to this authorization during the second quarter of 2026, repurchasing 90,131 additional shares valued at $1.8 million through April 30, 2026. Additionally, during the three months ended March 31, 2026, the Company repurchased 222,978 shares of common stock at an aggregate fair value of $5.0 million under its previously announced share repurchase program that was authorized on November 11, 2025. This program authorized the Company to repurchase up to $10.0 million of its outstanding shares of common stock and terminated during the three months ended March 31, 2026 when the maximum dollar amount under the program was expended. In total during the first quarter of 2026, the Company repurchased 342,345 shares of common stock under the share repurchase programs described above at an aggregate fair value of $7.5 million, reflecting an average purchase of $21.91 per share. On May 4, 2026, the Board of Directors approved a quarterly cash dividend under the Company's dividend policy of $0.035 per share, payable on May 29, 2026 to holders of record on May 18, 2026. Financial Outlook for 2026 The Company reaffirms its guidance for 2026 for the measures set forth below as previously announced on February 23, 2026.     Full Year 2026 Guidance       Low         High     Revenue   $ 323.0   -   $ 330.0   million                       Net Income   $ 20.4   -   $ 22.8   million                       Adjusted EBITDA1   $ 73.0   -   $ 77.0   million                       Capital Expenditures   $ 31.0   -   $ 34.0   million   1 Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of projected adjusted EBITDA to projected net income (the most comparable GAAP measure) is included later in this release. The Company’s guidance for 2026, as set forth above, reflects the Company’s assumptions regarding, among other things, expectations for new sales and renewals, and assumes that general economic conditions do not deteriorate. This guidance does not include the impact of any future acquisitions or dispositions that we may complete during 2026, gains or losses from changes in the fair value of non-marketable equity investments or contingent consideration, or impairment of long-lived assets. Executive Personnel Announcement Today, HealthStream announced the promotion of Michael M. Collier from Executive Vice President to Chief Operating Officer (COO) & Executive Vice President. In this expanded role, Mr. Collier will lead enterprise operations across HealthStream, including customer experience functions, corporate development and mergers and acquisitions, implementations, legal, human resources, partnerships, business enablement, and other critical areas. He will also serve as executive sponsor for the Company’s AI transformation, driving AI readiness across operational teams and advancing the use of AI to support the workforce and internal business processes. Since joining HealthStream in 2011 as a corporate attorney, Mr. Collier has advanced through roles of increasing responsibility and has been instrumental in the Company’s growth, including leading more than two dozen successful acquisitions. Robert A. Frist, Jr., Chief Executive Officer, HealthStream, said “HealthStream delivered strong first quarter results in 2026 with revenues up 10.5%, operating income up 71.6%, and adjusted EBITDA up 24.1%, compared to the first quarter of 2025. These results reflect disciplined execution and continued momentum across our business. Our results give us flexibility to invest in areas that we believe will drive ongoing growth and expansion—like our Career Networks and enterprise application suites—as well as our hStream platform and the AI elements that are increasingly at its core.” A conference call with Robert A. Frist, Jr., Chief Executive Officer, Scott A. Roberts, Chief Financial Officer and Senior Vice President, and Mollie Condra, Head, Investor Relations and Communications, will be held on Tuesday, May 5, 2026 at 9:00 a.m. (ET). Participants may access the conference call live via webcast using this link: https://edge.media-server.com/mmc/p/5oqw9zvm. To participate via telephone, please register in advance using this link: https://register-conf.media-server.com/register/BI5e8b8a5e7bce472e817c80491726179a. A replay of the conference call and webcast will be archived on the Company’s website in the Investor Relations section under “Events & Presentations.” Use of Non-GAAP Financial Measures This press release presents adjusted EBITDA, a non-GAAP financial measure used by management in analyzing the Company’s financial results and ongoing operational performance. In order to better assess the Company’s financial results, management believes that net income before interest, income taxes, stock-based compensation, depreciation and amortization, impairments of long-lived assets, changes in fair value of contingent consideration, and changes in fair value of, including gains (losses) on the sale of, non-marketable equity investments (“adjusted EBITDA”) is a useful measure for evaluating the operating performance of the Company because adjusted EBITDA reflects net income adjusted for certain GAAP accounting, non-cash, and/or non-operating items which may not, in any such case, fully reflect the underlying operating performance of our business. Beginning with the presentation of adjusted EBITDA for the year ended December 31, 2025, the Company has included adjustments in the definition of adjusted EBITDA for impairment of long-lived assets and changes in fair value of contingent consideration because the Company believes that these amounts may not be reflective of the underlying operational performance of our business and that including these adjustments is consistent with the intended purpose of adjusted EBITDA with respect to reflecting the underlying operating performance of our business and comparing the Company’s operational performance between periods. We believe that adjusted EBITDA is useful to investors to assess the Company’s ongoing operating performance and to compare the Company’s operating performance between periods. In addition, certain short-term cash incentive bonuses and performance-based equity awards are based on the achievement of adjusted EBITDA (as defined in applicable bonus and equity grant documentation) targets. Adjusted EBITDA is a non-GAAP financial measure and should not be considered as a measure of financial performance under GAAP. Because adjusted EBITDA is not a measurement determined in accordance with GAAP, adjusted EBITDA is susceptible to varying calculations. Accordingly, adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies and has limitations as an analytical tool. Adjusted EBITDA should not be considered a substitute for, or superior to, measures of financial performance, which are prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of adjusted EBITDA to net income (the most comparable GAAP measure), which is set forth below in this release. About HealthStream HealthStream (Nasdaq: HSTM) is the healthcare industry’s largest ecosystem of platform-delivered clinical workforce solutions that empowers healthcare professionals to do what they do best: deliver excellence in patient care. For more information about HealthStream, visit www.healthstream.com or call 615-301-3100. HEALTHSTREAM, INC. Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited)       Three Months Ended     March 31, 2026   March 31, 2025 Revenues, net   $ 81,203     $ 73,485   Operating costs and expenses:         Cost of revenues (excluding depreciation and amortization)     27,758       25,487   Product development     13,606       12,047   Sales and marketing     12,960       12,149   General and administrative     8,002       8,669   Depreciation and amortization     11,365       10,755   Total operating costs and expenses     73,691       69,107             Operating income     7,512       4,378             Interest income     414       931   Other expense, net     (106 )     (61 )           Income before income tax provision     7,820       5,248   Income tax provision     1,910       916   Net income   $ 5,910     $ 4,332             Net income per share:         Basic   $ 0.20     $ 0.14   Diluted   $ 0.20     $ 0.14             Weighted average shares of common stock outstanding:         Basic     29,376       30,444   Diluted     29,424       30,587   Dividends declared per share   $ 0.035     $ 0.031   HEALTHSTREAM, INC. Condensed Consolidated Balance Sheets (In thousands) (Unaudited)       March 31,   December 31,     2026   2025 ASSETS         Current assets:         Cash and cash equivalents   $ 48,711     $ 36,161   Marketable securities     17,787       20,843   Accounts and unbilled receivables, net     43,444       38,998   Prepaid and other current assets     23,081       23,654   Total current assets     133,023       119,656             Capitalized software development, net     45,621       45,581   Property and equipment, net     10,203       10,661   Operating lease right of use assets, net     14,445       15,272   Goodwill and intangible assets, net     276,358       282,448   Other assets     47,791       46,756   Total assets   $ 527,441     $ 520,374             LIABILITIES AND SHAREHOLDERS’ EQUITY         Current liabilities:         Accounts payable, accrued, and other liabilities   $ 30,112     $ 35,729   Deferred revenue     106,402       88,417   Total current liabilities     136,514       124,146   Deferred tax liabilities     17,977       18,246   Deferred revenue, noncurrent     1,320       1,344   Operating lease liability, noncurrent     14,067       14,684   Other long-term liabilities     5,571       7,931   Total liabilities     175,449       166,351             Shareholders’ equity:         Common stock     225,089       231,797   Accumulated other comprehensive loss     (1,566 )     (1,361 ) Retained earnings     128,469       123,587   Total shareholders’ equity     351,992       354,023   Total liabilities and shareholders' equity   $ 527,441     $ 520,374   HEALTHSTREAM, INC. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)       Three Months Ended     March 31,   March 31,     2026   2025 Operating activities:         Net income   $ 5,910     $ 4,332   Adjustments to reconcile net income to net cash provided by operating activities:         Depreciation and amortization     11,365       10,755   Stock-based compensation     1,309       1,104   Amortization of deferred commissions     3,286       3,150   Deferred income taxes     —       751   Provision for credit losses     92       237   Loss on equity method investments     40       72   Other     (160 )     (399 ) Changes in assets and liabilities:         Accounts and unbilled receivables     (4,550 )     (1,002 ) Prepaid and other assets     (2,006 )     (2,512 ) Accounts payable, accrued, and other liabilities     (6,050 )     (6,871 ) Deferred revenue     17,900       17,457   Net cash provided by operating activities     27,136       27,074             Investing activities:         Cash paid for acquisitions     (302 )     —   Proceeds from marketable securities, net of purchases     3,203       2,097   Purchase of other investments     (1,750 )     (500 ) Purchases of property and equipment     (740 )     (1,055 ) Payments associated with capitalized software development     (6,727 )     (7,790 ) Net cash used in investing activities     (6,316 )     (7,248 )           Financing activities:         Taxes paid related to net settlement of equity awards     (582 )     (1,070 ) Payment of cash dividends     (1,028 )     (943 ) Repurchases of common stock     (6,723 )     —   Net cash used in financing activities     (8,333 )     (2,013 )           Effect of exchange rate changes on cash and cash equivalents     63       7   Net increase in cash and cash equivalents     12,550       17,820   Cash and cash equivalents at beginning of period     36,161       59,469   Cash and cash equivalents at end of period   $ 48,711     $ 77,289   Reconciliation of GAAP to Non-GAAP Financial Measures(1) Operating Results Summary (In thousands) (Unaudited)       Three Months Ended March 31,     2026   2025 GAAP net income   $ 5,910     $ 4,332   Interest income     (414 )     (931 ) Interest expense     25       25   Income tax provision     1,910       916   Stock-based compensation expense     1,309       1,104   Depreciation and amortization     11,365       10,755   Adjusted EBITDA   $ 20,105     $ 16,201     (1) This press release presents adjusted EBITDA, which is a non-GAAP financial measure used by management in analyzing its financial results and ongoing operational performance. Reconciliation of GAAP to Non-GAAP Financial Measures Financial Outlook for 2026 (In thousands) (Unaudited)       Low   High Net income   $ 20,400     $ 22,800   Interest income     (1,900 )     (2,100 ) Interest expense     100       100   Income tax provision     5,700       6,500   Stock-based compensation expense     3,900       4,500   Depreciation and amortization     44,800       45,200   Adjusted EBITDA   $ 73,000     $ 77,000   This press release includes certain forward-looking statements (statements other than solely with respect to historical fact), including statements regarding expectations for financial performance for 2026 and our quarterly dividend that involve risks and uncertainties regarding HealthStream. These statements are based upon management’s beliefs, as well as assumptions made by and data currently available to management. This information has been, or in the future may be, included in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company cautions that forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by the forward-looking statements, including as a result of negative economic conditions, changes in U.S. policy, adverse developments impacting the technology and healthcare industry, tariff and trade-related developments, inflationary pressures, geopolitical instability, and legal requirements and contractual restrictions which may affect continuation of our quarterly cash dividend policy and the declaration and/or payment of dividends thereunder, which may be modified, suspended, or canceled in any manner and at any time that our Board may deem necessary or appropriate, as well as risks referenced in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed on February 27, 2026, and in the Company’s other filings with the Securities and Exchange Commission from time to time. Consequently, such forward-looking information should not be regarded as a representation or warranty or statement by the Company that such projections will be realized. Many of the factors that will determine the Company’s future results are beyond the ability of the Company to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. The Company undertakes no obligation to update or revise any such forward-looking statements. View source version on businesswire.com: https://www.businesswire.com/news/home/20260504088266/en/ Scott A. Roberts
Chief Financial Officer
(615) 301-3182
ir@healthstream.com Media:
Mollie Condra, Ph.D.
Head, Investor Relations & Communications
(615) 301-3237
mollie.condra@healthstream.com Original: HealthStream Announces First Quarter 2026 Results

HealthStream to Host First Quarter 2026 Earnings Conference CallApril 21, 2026 9:25 AM
Business Wire
HealthStream, Inc. (Nasdaq: HSTM), a leading healthcare technology platform company for clinical workforce solutions, announced today that it will host a conference call and webcast to discuss its first quarter 2026 financial results on Tuesday, May 5, 2026. The Company’s financial results for the first quarter 2026, ended March 31, 2026, will be released after the routine time for the close of the market on Monday, May 4, 2026.


HealthStream’s first quarter 2026 earnings conference call will begin at 9:00 a.m. Eastern Time on Tuesday, May 5, 2026. Participants may access the conference call live via webcast using this LINK. To participate via telephone, please register in advance using this LINK. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. All participants are instructed to dial-in 15 minutes prior to the start time. A replay of the conference call and webcast will be archived on the Company's website for at least 30 days.


About HealthStream


HealthStream (Nasdaq: HSTM) is the healthcare industry’s largest ecosystem of platform-delivered clinical workforce solutions that empowers healthcare professionals to do what they do best: deliver excellence in patient care. For more information, visit http://www.healthstream.com or call 615-301-3100.


This press release contains forward-looking statements that involve risks and uncertainties regarding HealthStream. This information has been included in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such results or events predicted in these statements may differ materially from actual future events or results. These forward-looking statements are based on a variety of assumptions that may not be realized, and which are subject to significant risks and uncertainties, including that the anticipated financial and strategic benefits of the acquisition may not be realized, as well as risks and uncertainties referenced from time to time in the Company’s filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260421744748/en/
Mollie Condra, Ph.D.

Head, Investor Relations &

Communications

HealthStream

(615) 301-3237

mollie.condra@healthstream.com


Original: HealthStream to Host First Quarter 2026 Earnings Conference Call

Virsys12® Named a Leader in the IDC MarketScape: U.S. Provider Data Management for Payers 2025–2026 Vendor AssessmentMarch 26, 2026 9:25 AM
Business Wire
HealthStream® (Nasdaq: HSTM), a leading healthcare technology platform company for clinical workforce solutions, announced today that Virsys12® has been recognized as a Leader in the IDC MarketScape: U.S. Provider Data Management for Payers 2025–2026 Vendor Assessment (Doc #US52986825, December 2025). Virsys12 and its V12 Enterprise® Suite offer payers and health plans an innovative provider data management suite used for onboarding, credentialing, and network management.


As one of the most widely respected, independent research firms in healthcare, IDC MarketScape’s assessment of marketplace vendors is comprehensive and rigorous. Their criteria include deep analyses of both a vendor’s core capabilities that reflect its current execution and its strategy that reflects its future-readiness. In the IDC MarketScape Vendor Assessment for 2025–2026 U.S. Provider Data Management for Payers, twelve vendors were evaluated in the provider data management market space.


“We believe being recognized as a Leader in the IDC MarketScape Vendor Assessment underscores our continued focus on delivering trusted, end-to-end provider data management solutions for payers,” said Tammy Hawes, Vice President, Payer Market & Credentialing, HealthStream. “As provider data becomes increasingly central to payer operations, compliance, and member experience, we remain committed to helping organizations maintain accurate, connected, and actionable provider data across the enterprise.”


The IDC MarketScape Vendor Assessment highlights several key strengths of the V12 Enterprise Suite:



Single source of truth architecture: Provider data entered once flows into credentialing, contracting, roster management, and directory workflows without duplication




Configurable cross-module workflows: Automated handoffs between credentialing, contracting, and directory publishing (e.g., activate provider in directory after contract approval)




Real-time visibility: Role-based dashboards and shared provider records giving operations, credentialing, and network teams access to consistent data




Embedding document and task sharing: Embedded document and task sharing across credentialing and contracting teams using Salesforce Files and assignment workflows




Provider data quality dashboards: Provider data quality dashboards that surface duplicate records, missing fields, inactive NPIs, and outdated demographic details (These dashboards provide a visual, networkwide view of provider data health, with overall and component-level scores [e.g., update frequency, completion rates, duplication scores] to help payers prioritize cleanup and proactively resolve issues.)



In October of 2025, Virsys12 was acquired by HealthStream and was added to their broader, market-leading Credentialing Application Suite and industry-leading healthcare ecosystem. For its customers, Virsys12 serves as a centralized source of truth for provider data, enabling automation, continuous data monitoring, and integration across payer systems. The IDC MarketScape directly states that Virsys12 “positions itself as the trusted partner to streamline provider operations across credentialing, directory, and network management—all in one solution.”


The IDC MarketScape Vendor Assessment provides a detailed analysis of vendors serving the U.S. payer provider data management market and is available directly from IDC. To learn more about Virsys12, click HERE.


About HealthStream


HealthStream (Nasdaq: HSTM) is the healthcare industry’s largest ecosystem of platform-delivered clinical workforce solutions that empowers healthcare professionals to do what they do best: deliver excellence in patient care. Virsys12 was acquired by HealthStream in October of 2025. The Virsys12 Enterprise® Suite supports provider onboarding, credentialing, data governance, and ongoing network maintenance, helping organizations improve operational efficiency and data accuracy. For more information, visit http://www.healthstream.com or call 615-301-3100.


About IDC MarketScape


IDC MarketScape vendor assessment model is designed to provide an overview of the competitive fitness of technology and service suppliers in a given market. The research utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each supplier’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of technology suppliers can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective suppliers.


This press release contains forward-looking statements that involve risks and uncertainties regarding HealthStream. This information has been included in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such results or events predicted in these statements may differ materially from actual future events or results. These forward-looking statements are based on a variety of assumptions that may not be realized, and which are subject to significant risks and uncertainties, including that the anticipated financial and strategic benefits of the acquisition may not be realized, as well as risks and uncertainties referenced from time to time in the Company’s filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260326031749/en/
Mollie Condra, Ph.D.

Head, Investor Relations & Communications

HealthStream

(615) 301-3237

mollie.condra@healthstream.com


Original: Virsys12® Named a Leader in the IDC MarketScape: U.S. Provider Data Management for Payers 2025–2026 Vendor Assessment

HealthStream Announces Share Repurchase ProgramMarch 13, 2026 4:05 PM
Business Wire
HealthStream (Nasdaq: HSTM), a leading healthcare technology platform company for clinical workforce solutions, today announced that its Board of Directors has approved a new share repurchase program for the Company’s common stock, under which the Company may repurchase up to $10 million of outstanding shares of common stock.


Pursuant to the authorization, repurchases may be made from time to time in the open market, including under Rule 10b5-1 plans, through privately negotiated transactions, or otherwise. In addition, any repurchases under the authorization will be subject to prevailing market conditions, liquidity and cash flow considerations, applicable securities laws requirements (including under Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, as applicable), and other factors. The share repurchase program will terminate on the earlier of September 12, 2026 or when the maximum dollar amount has been expended. The share repurchase program does not require the Company to acquire any amount of shares and may be suspended, modified, or discontinued at any time.


About HealthStream


HealthStream (Nasdaq: HSTM) is the healthcare industry’s largest ecosystem of platform-delivered clinical workforce solutions that empowers healthcare professionals to do what they do best: deliver excellence in patient care. For more information, visit http://www.healthstream.com or call 615-301-3100.


This press release contains forward-looking statements that involve risks and uncertainties regarding HealthStream. This information has been included in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company cautions that forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to be materially different from results or events implied by forward-looking statements, including as a result of the risks disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed on February 27, 2026, and in the Company’s other filings with the Securities and Exchange Commission from time to time. Many of the factors that will impact future results or events are beyond the ability of the Company to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. The Company undertakes no obligation to update or revise any such forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260313646637/en/
Mollie Condra, Ph.D.

Head, Investor Relations & Communications

HealthStream

(615)-301-3237

mollie.condra@healthstream.com


Original: HealthStream Announces Share Repurchase Program

HealthStream Announces Fourth Quarter & Full-Year 2025 ResultsFebruary 23, 2026 4:30 PM
Business Wire
HealthStream, Inc. (the "Company") (Nasdaq: HSTM), a leading healthcare technology platform company for clinical workforce solutions, announced today results for the fourth quarter and full-year ended December 31, 2025.


Fourth Quarter 2025



Revenues of $79.7 million, up 7.4% from $74.2 million in the fourth quarter of 2024, setting a new Company record for quarterly revenue



Our CEO contributed $3.8 million of his personally owned HealthStream stock to the Company in order to facilitate the grant of 146,286 shares of common stock to over 700 non-officer employees under our 2022 Omnibus Incentive Plan, which resulted in a corresponding $3.8 million charge for stock-based compensation and related payroll taxes and administrative expenses in the fourth quarter, as further described below (the "CEO Stock Gift")



Operating income of $2.4 million, down 48.8% from $4.7 million in the fourth quarter of 2024, with the CEO Stock Gift resulting in a $3.8 million negative impact to the comparison. Absent this impact from the CEO Stock Gift, non-GAAP operating income1 was $6.2 million in the fourth quarter of 2025, up 31.7% from $4.7 million in the fourth quarter of 2024.



Net income of $2.5 million, down 48.1% from $4.9 million in the fourth quarter of 2024, with the CEO Stock Gift resulting in a $2.8 million negative impact to the comparison. Absent this impact from the CEO Stock Gift, non-GAAP net income1 was $5.4 million in the fourth quarter of 2025, up 9.5% from $4.9 million in the fourth quarter of 2024.



Earnings per share (EPS) of $0.09 per share (diluted), down from $0.16 per share (diluted) in the fourth quarter of 2024, with the CEO Stock Gift resulting in a $0.09 per share negative impact to the comparison. Absent this impact from the CEO Stock Gift, non-GAAP EPS1 was $0.18 per share (diluted) in the fourth quarter of 2025, up $0.02 per share (diluted) from $0.16 per share (diluted) in the fourth quarter of 2024.



Adjusted EBITDA2 of $18.8 million, up 16.4% from $16.2 million in the fourth quarter of 2024



Completed the acquisitions of two companies: Virsys12 and MissionCare Collective



Authorized a share repurchase program to repurchase up to $10.0 million of outstanding shares of common stock on November 11, 2025, with shares valued at $5.0 million purchased in the fourth quarter and the remaining $5.0 million purchased in January 2026



Full-Year 2025:



Revenues of $304.1 million, up 4.3% from $291.6 million in 2024



Operating income of $20.2 million, down 4.9% from $21.3 million in 2024, with the CEO Stock Gift resulting in a $3.8 million negative impact to the comparison. Absent this impact from the CEO Stock Gift, non-GAAP operating income1 was $24.0 million in 2025, up 12.8% from $21.3 million in 2024.



Net income of $18.3 million, down 8.3% from $20.0 million in 2024, with the CEO Stock Gift resulting in a $2.8 million negative impact to the comparison. Absent this impact from the CEO Stock Gift, non-GAAP net income1 was $21.2 million in 2025, up 5.8% from $20.0 million in 2024.



Earnings per share (EPS) of $0.61 per share (diluted) in 2025, down from $0.66 per share (diluted) in 2024, with the CEO Stock Gift resulting in a $0.09 per share negative impact to the comparison. Absent this impact from the CEO Stock Gift, non-GAAP EPS1 was $0.70 per share (diluted) in 2025, up $0.04 per share (diluted) from $0.66 per share (diluted) in 2024.



Adjusted EBITDA of $71.8 million, up 7.5% from $66.8 million in 2024



2026 Updates:



Executive sales leadership promotion



Board of Directors has declared a quarterly cash dividend of $0.035 per share, an increase of 12.9% over the previous quarter's dividend of $0.031 per share





1 Operating income, net income, and earnings per share, adjusted for the impact of the CEO Stock Gift, are non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures, and disclosure regarding why we believe these non-GAAP financial measures provide useful information to investors, is included later in this release.








2 Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of adjusted EBITDA to net income and disclosure regarding why we believe adjusted EBITDA provides useful information to investors is included later in this release.







CEO Stock Gift


As announced on December 9, 2025, in order to facilitate the grant of equity to Company employees in recognition of their contributions to the Company, and to further align the interests of such employees with our shareholders, our CEO, Robert A. Frist, Jr., contributed $3.8 million of his personally owned shares of HealthStream common stock to the Company in December 2025. The Company then granted $3.5 million of shares of HealthStream common stock (the “Stock Grant”), or 146,286 shares, to over 700 non-officer employees under the Company’s 2022 Omnibus Incentive Plan, while the remaining $0.3 million of shares contributed by our CEO was equivalent in value to the employer payroll taxes and administrative expenses of $0.3 million incurred by the Company associated with the Stock Grant (the “Related Cash Expenses”). These shares granted to our employees were not subject to any vesting conditions. The CEO Stock Gift resulted in no dilution of shares to any existing shareholders of the Company other than Mr. Frist.


As a result of the CEO Stock Gift, which is similar in nature to previously disclosed share contributions made by our CEO for the same purpose in past years, the Company received $3.8 million of shares previously held by our CEO and incurred a corresponding $3.8 million charge in the fourth quarter -- $3.5 million of which was a non-cash based charge arising from the Stock Grant and $0.3 million of which was a cash-based charge arising from the Related Cash Expenses. The CEO Stock Gift adversely impacted adjusted EBITDA in the amount of $0.3 million.


Financial Results:


Fourth Quarter 2025 Compared to Fourth Quarter 2024


Revenues for the fourth quarter of 2025 increased by $5.5 million, or 7.4%, to $79.7 million, compared to $74.2 million for the fourth quarter of 2024. Subscription revenues increased $5.8 million, or 8.2%, and professional services revenues decreased by $0.3 million.


Operating income was $2.4 million for the fourth quarter of 2025, down 48.8% from $4.7 million for the fourth quarter of 2024, with the decrease primarily attributable to the $3.8 million charge related to the CEO Stock Gift. Absent this impact from the CEO Stock Gift, non-GAAP operating income was $6.2 million for the fourth quarter of 2025, up 31.7% from $4.7 million for the fourth quarter of 2024. Also contributing to the quarter were higher operating expenses, including royalties, labor and benefits, cloud hosting and amortization related to recently acquired businesses; partially offset by growth in revenues and sublease income associated with our sublease that commenced during the second quarter of 2025.


Net income was $2.5 million in the fourth quarter of 2025, down 48.1% from $4.9 million in the fourth quarter of 2024, and EPS was $0.09 per share (diluted) in the fourth quarter of 2025, down from $0.16 per share (diluted) for the fourth quarter of 2024, with the decrease primarily attributable to the $2.8 million, or $0.09 per share (diluted) charge related to the CEO Stock Gift. Absent this impact from the CEO Stock Gift, non-GAAP net income was $5.4 million for the fourth quarter of 2025, up 9.5% from $4.9 million for the fourth quarter of 2024, and EPS was $0.18 per share (diluted) in the fourth quarter of 2025, up $0.02 per share (diluted) from $0.16 per share (diluted) for the fourth quarter of 2024.


Adjusted EBITDA was $18.8 million for the fourth quarter of 2025, up 16.4% from $16.2 million in the fourth quarter of 2024.


At December 31, 2025, the Company had cash and cash equivalents and marketable securities of $57.0 million. Capital expenditures incurred during the fourth quarter of 2025 were $7.0 million.


Full-Year 2025 Compared to Full-Year 2024


For 2025, revenues were $304.1 million, an increase of 4.3% from revenues of $291.6 million for 2024. Operating income for 2025 decreased by 4.9% to $20.2 million, compared to $21.3 million for 2024. Additionally, absent the impact of the CEO Stock Gift, non-GAAP operating income increased by 12.8% to $24.0 million. The decrease in GAAP operating income was primarily attributable to higher expenses, including labor and benefits costs, share-based compensation associated with the CEO Stock Gift, software, cloud hosting, amortization primarily related to capitalized software, and royalties. Operating income was also impacted by higher revenues, sublease income associated with our sublease that commenced during the second quarter of 2025, lower bad debt expense, and lower marketing expenses. Net income for 2025 was $18.3 million, compared to $20.0 million for 2024. Absent the impact of the CEO Stock Gift, non-GAAP net income increased by 5.8% to $21.2 million. Earnings per share were $0.61 per share (diluted) for 2025, compared to $0.66 per share (diluted) for 2024. Absent the impact of the CEO Stock Gift, non-GAAP EPS was $0.70 per share (diluted). Adjusted EBITDA increased by 7.5% to $71.8 million for 2025, compared to $66.8 million for 2024. Capital expenditures incurred during 2025 were $31.9 million.


Other Business Updates


On October 8, 2025, the Company acquired all the equity of Virsys12, LLC, a healthcare technology company that offers payers and health plans an innovative provider data management suite used for onboarding, credentialing, and network management, for $11.4 million in cash, inclusive of a post-closing working capital adjustment, plus up to an additional $4.0 million in cash which may be paid contingent upon the performance of Virsys12, LLC, during a three-year period following the closing.


On November 11, 2025, the Company announced a new share repurchase program approved by the Board of Directors under which the Company was authorized to repurchase up to $10.0 million of its outstanding shares of common stock. Pursuant to this authorization, the Company was authorized to make repurchases in the open market, including under a Rule 10b5-1 plan, through privately negotiated transactions, or otherwise. This share repurchase program provided that it would terminate on the earlier of February 26, 2026 or when the maximum dollar amount under the plan was expended. During the three months ended December 31, 2025, the Company repurchased 205,804 shares of common stock at an aggregate fair value of $5.0 million under this authorization, and the Company continued to repurchase shares pursuant to this authorization during the first quarter of 2026, completing the program in January by repurchasing an additional 222,978 shares at an aggregate fair value of $5.0 million. This share repurchase program terminated in January 2026 when the maximum dollar amount was expended. During the twelve months ended December 31, 2025, the Company repurchased 1,111,590 shares of common stock at an aggregate fair value of $30.0 million, reflecting an average price per share of $26.99, under this November 11, 2025 authorization as noted above, and a prior share repurchase program announced by the Company on May 8, 2025, under which the Company was authorized to repurchase up to $25.0 million of its outstanding shares of common stock, which terminated during the three months ended September 30, 2025 when the maximum dollar amount under the program was expended.


On December 15, 2025, the Company acquired all the equity of MissionCare Collective LLC ("MissionCare"), a healthcare workforce company that includes the largest caregiver network in the U.S., for $24.6 million in cash payable at closing, subject to a post-closing working capital adjustment, plus $4.0 million in shares of HealthStream common stock issued at closing through a private placement, and up to an additional $10.0 million in cash which may be paid contingent upon the performance of MissionCare during a three-year period following the closing.


On February 23, 2026, the Board approved a quarterly cash dividend under the Company's dividend policy of $0.035 per share, reflecting an increase of 12.9% over the previous quarter's dividend of $0.031 per share. The dividend is payable on March 20, 2026 to holders of record on March 9, 2026.


2026 Executive Leadership Promotion


On January 1, 2026, Scott Fenstermacher, Senior Vice President of Sales transitioned to a part-time role as an Executive-in-Residence where he will advise, guide, mentor, and support the Company's sales organization. Concurrently, Jennifer LoPresto, a 13-year veteran sales leader and Vice President at HealthStream, was promoted to Senior Vice President of Sales, assuming the top sales leadership role for the Company. With her promotion, Ms. LoPresto will provide executive leadership across all account management and solution sales teams.


Financial Outlook for 2026


The Company is providing guidance for 2026 for the measures set forth below.




 






Full Year 2026 Guidance








 






 






Low






 






High






 








Revenue






 






$ 323.0






-






$ 330.0






million








 






 






 






 






 






 








Net Income






 






$ 20.4






-






$ 22.8






million








 






 






 






 






 






 








Adjusted EBITDA1






 






$ 73.0






-






$ 77.0






million








 






 






 






 






 






 








Capital Expenditures






 






$ 31.0






-






$ 34.0






million









1 Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of projected adjusted EBITDA to projected net income (the most comparable GAAP measure) is included later in this release.







The Company’s guidance for 2026, as set forth above, reflects the Company’s assumptions regarding, among other things, expectations for new sales and renewals and assumes that general economic conditions do not deteriorate. This consolidated guidance does not include the impact of any acquisitions or dispositions that we may complete during 2026, gains or losses from changes in the fair value of non-marketable equity investments or contingent consideration, or impairment of long-lived assets.


Robert A. Frist, Jr., Chief Executive Officer, HealthStream, said, “Our fourth quarter and full-year 2025 results reflect a well-executed finish to the year, driven by broad-based customer demand across our offerings. We achieved record quarterly revenue of $79.7 million, up 7.4%, and delivered Adjusted EBITDA of $18.8 million, up 16.4% year-over-year.”


CEO Frist continued, “HealthStream is uniquely well positioned to play an instrumental role in the emerging AI-driven landscape. Our core user base, the clinical healthcare workforce, is expanding faster than any other sector of the job market. Moreover, HealthStream serves as the system of record on behalf of our healthcare customers. Our hStream platform increasingly serves as the core infrastructure that unifies our healthcare organization customers, individual caregivers, and industry partners together as the most dynamic ecosystem in healthcare. For all of these reasons, HealthStream is positioned for another exciting year helping the nation’s top health systems find, develop, credential, schedule, onboard, and retain this growing workforce.”


A conference call with Robert A. Frist, Jr., Chief Executive Officer, Scott A. Roberts, Chief Financial Officer and Senior Vice President, and Mollie Condra, Head, Investor Relations and Communications, will be held on Tuesday, February 24, 2026, at 9:00 a.m. (ET). Participants may access the conference call live via webcast using this link: https://edge.media-server.com/mmc/p/tvqyyx3r. To participate via telephone, please register in advance using this link: https://register-conf.media-server.com/register/BIe449b1c906314cccb8111fce04363490. A replay of the conference call and webcast will be archived on the Company’s website in the Investor Relations section under “Events & Presentations.”


Use of Non-GAAP Financial Measures


This press release presents adjusted EBITDA, a non-GAAP financial measure used by management in analyzing the Company’s financial results and ongoing operational performance. In order to better assess the Company’s financial results, management believes that net income before interest, income taxes, stock-based compensation, depreciation and amortization, impairments of long-lived assets, changes in fair value of contingent consideration, and changes in fair value of, including gains (losses) on the sale of, non-marketable equity investments (“adjusted EBITDA”) is a useful measure for evaluating the operating performance of the Company because adjusted EBITDA reflects net income adjusted for certain GAAP accounting, non-cash, and/or non-operating items which may not, in any such case, fully reflect the underlying operating performance of our business. Beginning with the presentation of adjusted EBITDA for the year ended December 31, 2025, the Company has included adjustments in the definition of adjusted EBITDA for impairment of long-lived assets and changes in fair value of contingent consideration because the Company believes that these amounts may not be reflective of the underlying operational performance of our business and that including these adjustments is consistent with the intended purpose of adjusted EBITDA with respect to reflecting the underlying operating performance of our business and comparing the Company’s operational performance between periods. We believe that adjusted EBITDA is useful to investors to assess the Company’s ongoing operating performance and to compare the Company’s operating performance between periods. In addition, certain short-term cash incentive bonuses and performance-based equity awards are based on the achievement of adjusted EBITDA (as defined in applicable bonus and equity grant documentation) targets.


Adjusted EBITDA is a non-GAAP financial measure and should not be considered as a measure of financial performance under GAAP. Because adjusted EBITDA is not a measurement determined in accordance with GAAP, adjusted EBITDA is susceptible to varying calculations. Accordingly, adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies and has limitations as an analytical tool.


In addition, this press release presents operating income, net income, and earnings per share, in each such case, adjusted for the impact of the CEO Stock Gift, which represent non-GAAP financial measures. We believe that the charges associated with the CEO Stock Gift do not reflect the underlying operating performance of our business taking into account the fact that such charges are fully offset by the value of personally owned shares contributed by our CEO to the Company and that these non-GAAP financial measures present useful information to investors in assessing the Company’s ongoing operating performance and comparing the Company’s operating performance between periods by adjusting for the impact of the CEO Stock Gift.


These non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance, which are prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to the most comparable GAAP measures, which are set forth below in this release.


About HealthStream


HealthStream (Nasdaq: HSTM) is the healthcare industry’s largest ecosystem of platform-delivered workforce solutions that empowers healthcare professionals to do what they do best: deliver excellence in patient care. For more information about HealthStream, visit www.healthstream.com or call 800-521-0574.




HEALTHSTREAM, INC.




Condensed Consolidated Statements of Income




(In thousands, except per share data)




(Unaudited)













 



 






 






Three Months Ended

December 31,






 






 






Year Ended

December 31,






 








 






 






2025






 






 






2024






 






 






2025






 






 






2024






 








Revenues, net






 






$






79,708






 






 






$






74,235






 






 






$






304,064






 






 






$






291,646






 








Operating costs and expenses:






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Cost of revenues (excluding depreciation and amortization)






 






 






28,852






 






 






 






25,111






 






 






 






107,209






 






 






 






97,936






 








Product development






 






 






14,757






 






 






 






12,682






 






 






 






50,984






 






 






 






48,890






 








Sales and marketing






 






 






13,288






 






 






 






12,482






 






 






 






49,389






 






 






 






47,158






 








General and administrative expenses






 






 






9,371






 






 






 






8,807






 






 






 






32,768






 






 






 






35,132






 








Depreciation and amortization






 






 






11,037






 






 






 






10,464






 






 






 






43,478






 






 






 






41,243






 








Total operating costs and expenses






 






 






77,305






 






 






 






69,546






 






 






 






283,828






 






 






 






270,359






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Operating income






 






 






2,403






 






 






 






4,689






 






 






 






20,236






 






 






 






21,287






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Interest income






 






 






664






 






 






 






979






 






 






 






3,340






 






 






 






3,834






 








Other (expense) income, net






 






 






(216






)






 






 






(185






)






 






 






(358






)






 






 






(318






)








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Income before income tax provision






 






 






2,851






 






 






 






5,483






 






 






 






23,218






 






 






 






24,803






 








Income tax provision






 






 






316






 






 






 






594






 






 






 






4,876






 






 






 






4,796






 








Net income






 






$






2,535






 






 






$






4,889






 






 






$






18,342






 






 






$






20,007






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Net income per share:






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Basic






 






$






0.09






 






 






$






0.16






 






 






$






0.61






 






 






$






0.66






 








Diluted






 






$






0.09






 






 






$






0.16






 






 






$






0.61






 






 






$






0.66






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Weighted average shares of common stock outstanding:






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Basic






 






 






29,621






 






 






 






30,423






 






 






 






30,018






 






 






 






30,386






 








Diluted






 






 






29,727






 






 






 






30,639






 






 






 






30,144






 






 






 






30,544






 








Dividends declared per share






 






$






0.031






 






 






$






0.028






 






 






$






0.124






 






 






$






0.112






 









HEALTHSTREAM, INC.




Condensed Consolidated Balance Sheets




(In thousands)




(Unaudited)













 



 






 






December 31,






 






 






December 31,






 








 






 






2025






 






 






2024






 








ASSETS






 






 






 






 






 






 






 






 








Current assets:






 






 






 






 






 






 






 






 








Cash and cash equivalents






 






$






36,161






 






 






$






59,469






 








Marketable securities






 






 






20,843






 






 






 






37,748






 








Accounts and unbilled receivables, net






 






 






38,998






 






 






 






35,322






 








Prepaid and other current assets






 






 






23,654






 






 






 






20,583






 








Total current assets






 






 






119,656






 






 






 






153,122






 








 






 






 






 






 






 






 






 






 








Capitalized software development, net






 






 






45,581






 






 






 






43,370






 








Property and equipment, net






 






 






10,661






 






 






 






10,741






 








Operating lease right of use assets, net






 






 






15,272






 






 






 






17,453






 








Goodwill and intangible assets, net






 






 






282,448






 






 






 






246,768






 








Other assets






 






 






46,756






 






 






 






39,312






 








Total assets






 






$






520,374






 






 






$






510,766






 








 






 






 






 






 






 






 






 






 








LIABILITIES AND SHAREHOLDERS’ EQUITY






 






 






 






 






 






 






 






 








Current liabilities:






 






 






 






 






 






 






 






 








Accounts payable, accrued, and other liabilities






 






$






35,729






 






 






$






31,466






 








Deferred revenue






 






 






88,417






 






 






 






84,227






 








Total current liabilities






 






 






124,146






 






 






 






115,693






 








Deferred tax liabilities






 






 






18,246






 






 






 






14,596






 








Deferred revenue, noncurrent






 






 






1,344






 






 






 






1,655






 








Operating lease liability, noncurrent






 






 






14,684






 






 






 






17,366






 








Other long-term liabilities






 






 






7,931






 






 






 






2,101






 








Total liabilities






 






 






166,351






 






 






 






151,411






 








 






 






 






 






 






 






 






 






 








Shareholders’ equity:






 






 






 






 






 






 






 






 








Common stock






 






 






231,797






 






 






 






252,432






 








Accumulated other comprehensive loss






 






 






(1,361






)






 






 






(2,049






)








Retained earnings






 






 






123,587






 






 






 






108,972






 








Total shareholders’ equity






 






 






354,023






 






 






 






359,355






 








Total liabilities and shareholders' equity






 






$






520,374






 






 






$






510,766






 









HEALTHSTREAM, INC.




Condensed Consolidated Statements of Cash Flows




(In thousands)




(Unaudited)










 



 






 






Year Ended






 








 






 






December 31,






 






 






December 31,






 








 






 






2025






 






 






2024






 








Operating activities:






 






 






 






 






 






 






 






 








Net income






 






$






18,342






 






 






$






20,007






 








Adjustments to reconcile net income to net cash provided by operating activities:






 






 






 






 






 






 






 






 








Depreciation and amortization






 






 






43,478






 






 






 






41,243






 








Amortization of deferred commissions






 






 






12,633






 






 






 






12,480






 








Stock-based compensation






 






 






8,145






 






 






 






4,470






 








Deferred income taxes






 






 






5,117






 






 






 






(1,114






)








Provision for credit losses






 






 






1,008






 






 






 






2,595






 








Loss on equity method investments






 






 






190






 






 






 






230






 








Other






 






 






(1,315






)






 






 






(1,639






)








Changes in assets and liabilities:






 






 






 






 






 






 






 






 








Accounts and unbilled receivables






 






 






(3,983






)






 






 






537






 








Prepaid and other assets






 






 






(20,229






)






 






 






(16,425






)








Accounts payable, accrued and other liabilities






 






 






1,826






 






 






 






(4,394






)








Deferred revenue






 






 






(1,893






)






 






 






(330






)








Net cash provided by operating activities






 






 






63,319






 






 






 






57,660






 








 






 






 






 






 






 






 






 






 








Investing activities:






 






 






 






 






 






 






 






 








Cash paid for acquisitions, net of cash acquired






 






 






(35,091






)






 






 






(1,299






)








Proceeds from marketable securities, net of purchases






 






 






8,590






 






 






 






(5,296






)








Proceeds from sale of non-marketable equity investments






 






 






—






 






 






 






765






 








Proceeds from sale of marketable securities






 






 






9,770






 






 






 






—






 








Proceeds from sale of fixed assets






 






 






41






 






 






 






—






 








Purchase of other investments






 






 






(1,500






)






 






 






—






 








Purchases of property and equipment






 






 






(3,685






)






 






 






(1,401






)








Payments associated with capitalized software development






 






 






(28,478






)






 






 






(26,741






)








Net cash used in investing activities






 






 






(50,353






)






 






 






(33,972






)








 






 






 






 






 






 






 






 






 








Financing activities:






 






 






 






 






 






 






 






 








Taxes paid related to net settlement of equity awards






 






 






(2,516






)






 






 






(1,113






)








Repurchases of common stock






 






 






(30,022






)






 






 






—






 








Payment of cash dividends






 






 






(3,729






)






 






 






(3,403






)








Net cash used in financing activities






 






 






(36,267






)






 






 






(4,516






)








 






 






 






 






 






 






 






 






 








Effect of exchange rate changes on cash and cash equivalents






 






 






(7






)






 






 






(36






)








Net (decrease) increase in cash and cash equivalents






 






 






(23,308






)






 






 






19,136






 








Cash and cash equivalents at beginning of period






 






 






59,469






 






 






 






40,333






 








Cash and cash equivalents at end of period






 






$






36,161






 






 






$






59,469






 









Reconciliation of GAAP to Non-GAAP Financial Measures(1)




Operating Results Summary




(In thousands)




(Unaudited)













 



 






 






Three Months Ended

December 31,






 






 






Year Ended

December 31,






 








 






 






2025






 






 






2024






 






 






2025






 






 






2024






 








GAAP net income






 






$






2,535






 






 






$






4,889






 






 






$






18,342






 






 






$






20,007






 








Interest income






 






 






(664






)






 






 






(979






)






 






 






(3,340






)






 






 






(3,834






)








Interest expense






 






 






26






 






 






 






26






 






 






 






101






 






 






 






100






 








Income tax provision






 






 






316






 






 






 






594






 






 






 






4,876






 






 






 






4,796






 








Stock-based compensation expense






 






 






5,411






 






 






 






1,185






 






 






 






8,145






 






 






 






4,470






 








Depreciation and amortization






 






 






11,037






 






 






 






10,464






 






 






 






43,478






 






 






 






41,243






 








Impairment of long-lived assets






 






 






262






 






 






 






—






 






 






 






262






 






 






 






—






 








Fair value adjustment on contingent consideration






 






 






(85






)






 






 






—






 






 






 






(85






)






 






 






—






 








Adjusted EBITDA






 






$






18,838






 






 






$






16,179






 






 






$






71,779






 






 






$






66,782






 









(1) This press release presents adjusted EBITDA, which is a non-GAAP financial measure used by management in analyzing its financial results and ongoing operational performance.









Reconciliation of GAAP to Non-GAAP Financial Measures(2)




Non-GAAP Operating Income, Non-GAAP Net Income, and Non-GAAP Net Income per diluted share




(In thousands)




(Unaudited)













 



 






 






Three Months Ended

December 31,






 






 






Year Ended

December 31,






 








 






 






2025






 






 






2025






 








Operating income






 






$






2,403






 






 






$






20,235






 








Add: CEO Stock gift






 






 






3,775






 






 






 






3,775






 








Non-GAAP Operating income






 






$






6,178






 






 






$






24,010






 








 






 






 






 






 






 






 






 






 








Net income






 






$






2,535






 






 






$






18,342






 








Add: CEO Stock gift






 






 






3,775






 






 






 






3,775






 








Less: Income tax effect






 






 






(956






)






 






 






(956






)








Non-GAAP Net income






 






$






5,354






 






 






$






21,161






 








 






 






 






 






 






 






 






 






 








Net income per share, diluted






 






$






0.09






 






 






$






0.61






 








Add: CEO Stock gift






 






 






0.12






 






 






 






0.12






 








Less: Income tax effect






 






 






(0.03






)






 






 






(0.03






)








Non-GAAP Net income per share, diluted






 






$






0.18






 






 






$






0.70






 









(2) This press release presents operating income, net income, and earnings per share, in each such case, adjusted for the impact of the CEO Stock Gift, which represent non-GAAP financial measures used by management in analyzing its financial results and underlying operational performance.









Reconciliation of GAAP to Non-GAAP Financial Measures




Financial Outlook for 2026




(In thousands)




(Unaudited)













 



 






 






Low






 






 






High






 








Net income






 






$






20,400






 






 






$






22,800






 








Interest income






 






 






(1,900






)






 






 






(2,100






)








Interest expense






 






 






100






 






 






 






100






 








Income tax provision






 






 






5,700






 






 






 






6,500






 








Stock-based compensation expense






 






 






3,900






 






 






 






4,500






 








Depreciation and amortization






 






 






44,800






 






 






 






45,200






 








Adjusted EBITDA






 






$






73,000






 






 






$






77,000






 







This press release includes certain forward-looking statements (statements other than solely with respect to historical fact), including statements regarding expectations for financial performance for 2026 and our quarterly dividend policy, that involve risks and uncertainties regarding HealthStream. These statements are based upon management’s beliefs, as well as assumptions made by and data currently available to management. This information has been, or in the future may be, included in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company cautions that forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by the forward-looking statements, including as a result of negative economic conditions, changes in U.S. policy, adverse developments impacting the technology and healthcare industries, tariff and trade-related developments, inflationary pressures, geopolitical instability, and legal requirements and contractual restrictions which may affect continuation of our quarterly cash dividend policy and the declaration and/or payment of dividends thereunder, which may be modified, suspended, or canceled in any manner and at any time that our Board may deem necessary or appropriate, as well as risks referenced in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed on February 28, 2025, the Company's Quarterly Report on Form 10-Q for the nine months ended September 30, 2025, filed on November 3, 2025, and in the Company’s other filings with the Securities and Exchange Commission from time to time. Consequently, such forward-looking information should not be regarded as a representation or warranty or statement by the Company that such projections will be realized. Many of the factors that will determine the Company’s future results are beyond the ability of the Company to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. The Company undertakes no obligation to update or revise any such forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260223198522/en/
Scott A. Roberts

Chief Financial Officer

(615) 301-3182

ir@healthstream.com


Media:

Mollie Condra, Ph.D.

Head, Investor Relations & Communications

(615) 301-3237

mollie.condra@healthstream.com


Original: HealthStream Announces Fourth Quarter & Full-Year 2025 Results