Start here if you're new
what it is
HealthStream sells software that helps hospitals train, certify, and manage staff.
how it gets paid
Last year Healthstream made $304M in revenue.
why it's growing
Revenue grew 4.3% last year. EDGAR showed revenue up 193% vs. prior year and EPS up 160%.
what just happened
Quarter revenue hit $224M, and EPS came in at $0.52.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
55/100 earnings predictability — expect surprises
33.1x trailing p/e — you're paying up for this one
0.7% dividend yield — cash in your pocket every quarter
5.6% return on capital — nothing to write home about
xvary composite: 52/100 — below average
What they do
HealthStream sells software that helps hospitals train, certify, and manage staff.
HealthStream was founded in 1990. That gives it 35 years inside hospital workflows. You do not rip out training, certification, and credentialing systems fast. Leaving is painful because those systems touch nurses, providers, and compliance at the same time.
How they make money
$304M
annual revenue · their business grew +4.3% last year
total revenue
$304M
+4.3%
The products that matter
workforce training platform
Learning Center
top 50 placement on G2's 2026 healthcare software list
This is one of the products keeping HealthStream relevant inside hospital training budgets. The external proof point here is qualitative, not financial: it landed on G2's 2026 top 50 list, but this snapshot does not break out revenue for it.
training core
compliance and safety software
SafetyQ®/ComplyQ®
top 50 placement on G2's 2026 healthcare software list
The appeal is obvious: hospitals do not get paid extra for compliance mistakes. This product also made G2's 2026 top 50 list, which supports product relevance even if the company does not give you segment-level dollars.
compliance spend
clinical decision support
EBSCO Dynamic Health
#1 clinical decision support solution for nurses
This is the product with the clearest category claim in the snapshot. It is delivered through a partnership with EBSCO, which adds credibility, but again the company is thin on disclosing how much revenue this specific product contributes.
clinical workflow
Key numbers
$304M
ttm revenue
You get a $304M top line. That is small next to giant software names, but it still supports a public company and a premium price.
33.1x
trailing p/e
Trailing P/E → price divided by last year's profit → you are paying 33.1 times earnings for one year of profit.
6.7%
operating margin
Operating margin → profit from the core business → 6.7% leaves little room for bad quarters.
$15M
long-term debt
Debt → money you owe → $15M is tiny against $304M of revenue, so leverage is not the real story.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 4 — safer than 20% of stocks
- price stability 80 / 100
- long-term debt $15M (3% of capital)
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for HSTM right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Quarter revenue hit $224M, and EPS came in at $0.52.
EDGAR showed revenue up 193% vs. prior year and EPS up 160%. That is a big jump, but the market still cares more about whether growth holds than whether one quarter looks flashy.
$76M
revenue
$0.52
eps
193%
revenue growth
the number that mattered
Revenue at $224M mattered most because it showed the business can still grow fast enough to keep investors awake.
source: company earnings report, 2026
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What could go wrong
the #1 risk is margin compression inside a recurring-revenue healthcare software business.
med
profit keeps lagging revenue
Q4 revenue rose 7.4% from a year ago. Net profit fell 48% to $2.53M. That is the kind of mismatch premium multiples do not forgive for long.
A repeat of that pattern would pressure the 33.1x trailing p/e first, even if sales stay intact.
med
2026 guidance proves too optimistic
Management's $323M–$330M revenue target implies about 6–8% growth. Miss the low end, and the market stops treating this like a steady subscription story.
That would turn a "growth plus stability" narrative into a "why is this still expensive" debate.
med
product relevance stays hard to measure
The company cites top 50 placements on G2's 2026 healthcare software list and a #1 nurse-focused decision support product. Useful signals, but the snapshot is thin on product-level revenue disclosure.
If you cannot see which products drive growth, you are trusting management's packaging more than segment proof.
A company that produced $78.5M in quarterly revenue and only $2.53M in net profit last quarter does not have much room for execution mistakes at 33.1x earnings.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the number that mattered
net profit versus subscription growth
Subscription revenue rose 8.2% last quarter. Net profit fell 48%. Until those two lines stop moving in opposite directions, the stock stays hard to defend at a premium multiple.
guidance
2026 revenue target: $323M–$330M
This is the first checkpoint for the thesis. If revenue lands below $323M, the "steady grower" story gets weaker fast.
capital return
$10M buyback execution
The authorization matters less than the follow-through. If management buys aggressively near $22–$23, that tells you they see the stock as mispriced.
disclosure quality
which products are driving growth
The page gives you product names and outside rankings, but not product revenue. Watch future filings and commentary for better segment detail. Small-cap software stories get easier to trust when management shows its work.
Analyst rankings
earnings predictability
55 / 100
in human-speak, analysts do not see this as a smooth quarterly operator. Expect some noise.
price stability
80 / 100
The stock has traded with more stability than the earnings line. That helps if you own it, but price calm does not solve operating slippage.
risk rank
4
This is not a balance-sheet panic story. The risk is paying too much for a business that has not turned revenue growth into cleaner profit.
source: institutional data
Institutional activity
institutional ownership data for HSTM is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$23
current price
n/a
target midpoint · n/a from current
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