HealthStream, Inc. (HSTM) AI Stock Analysis

HealthStream, Inc. specializes in workforce and provider solutions tailored for healthcare organizations across the United States through software-as-a-service (SaaS) and subscription-based offerings. The company operates through two core segments: Workforce Solutions and Provider Solutions. Within Workforce Solutions, it delivers applications for clinical development, talent management, learning management, performance appraisal, competency assessment, and training. Its Provider Solutions segment includes VerityStream, EchoCredentialing, and MSOW platforms, which streamline administrative workflows, staff credentialing, enrollment, and privileging processes for hospitals, ambulatory surgery centers, urgent care facilities, and medical clinics.

Between FY2021 and FY2025, HealthStream grew annual revenue from $256.7M to $304.1M, representing a five-year revenue CAGR of 4.4%. Over that period, net income rose from $5.8M in FY2021 to $18.3M in FY2025, while diluted EPS increased from $0.23 to $0.70. Gross margin stood at 64.7% in FY2025, compared to 64.5% in FY2021, and operating margin reached 6.7%. For the latest quarter ended June 30, 2026, quarterly revenue expanded 12.5% year-over-year, and quarterly earnings grew 28.4% year-over-year. Over the trailing twelve months, revenue totaled $321.1M with a profit margin of 6.6% and EPS of $0.72.

As of June 30, 2026, HealthStream held $66.7M in cash and short-term investments alongside $13.4M in total debt, resulting in net cash of $53.3M. Total assets were $521.6M against shareholders' equity of $356.6M, with a current ratio of 1.06 and a debt-to-equity ratio of 0.04. In FY2025, operating cash flow reached $63.3M and free cash flow was $59.6M. Capital expenditures were $3.7M, while the company returned capital through $30.0M in share buybacks and $3.7M in dividends paid.

At a share price of $33.13, HealthStream has a market capitalization of $1.01B and an enterprise value of $826.6M. The stock trades at a trailing P/E of 46.0x and a forward P/E of 33.8x, both above the median of its US-listed Healthcare peers of 24.6x and 17.3x, respectively. Its price-to-sales multiple is 3.2x, below the peer median of 4.1x, while EV/EBITDA is 11.8x compared to the peer median of 12.0x. Over the past year, HSTM returned 26.8%, outperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of 21.2% trails SPY's 83.0%.

HealthStream pays an annual forward dividend of $0.14 per share, translating to a dividend yield of 0.41%. Dividends are distributed on a quarterly frequency, with a payout ratio of 16.8%. The company has paid dividends for 4 consecutive years, and its most recent ex-dividend date was August 17, 2026.

Wall Street coverage consists of 2 Strong Buy ratings and 4 Hold ratings, with no Buy, Sell, or Strong Sell recommendations. The mean price target of $35.00 implies an upside of 5.6% from the last close of $33.13. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $0.73 and revenue of $329.5M. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 2, 2026.

This page is an AI-written research summary of HealthStream, Inc. (HSTM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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