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1. Company Snapshot

1.a. Company Description

HealthStream, Inc.provides workforce and provider solutions for healthcare organizations in the United States.It operates through two segments, Workforce Solutions and Provider Solutions.


The company offers workforce solutions, including software-as-a-service (SaaS) based services and subscription-based solutions to meet the range of its clinical development, talent management, training, education, certification, scheduling, competency assessment, performance appraisal, and other needs, as well as implementation and account management services.It also provides applications for learning, performance appraisal, competency management, disclosure management, clinical assessment and development, simulation-based education, quality management, and industry training.In addition, the company offers VerityStream that delivers enterprise-class solutions to transform the healthcare provider experience for ambulatory surgery centers, urgent care facilities, clinics, medical groups, and other healthcare organizations; EchoCredentialing and MSOW platforms that manage medical staff credentialing, enrollment, and privileging processes for hospitals; and EchoOneApp, a provider enrollment platform for medical groups.


Further, it provides CredentialMyDoc, a credentialing and enrollment SaaS solution for medical groups and surgery centers; CredentialStream, a SaaS-based provider credentialing, privileging, and enrollment solution; and NurseGrid Mobile for nurse managers.The company offers its solutions in healthcare industry companies that include private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies through direct sales teams.HealthStream, Inc.


was incorporated in 1990 and is headquartered in Nashville, Tennessee.

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1.b. Last Insights on HSTM

HealthStream's recent performance was driven by strong Q3 earnings, surpassing estimates with $0.19 per share, compared to $0.13 per share a year ago. The company's acquisition of two clinical rotation management businesses, TCPS and The Clinical Hub, Inc., expands its clinical rotations offering for students, schools, and healthcare organizations. This strategic move is expected to enhance its market position and drive growth. Additionally, the company's recent 52-week high suggests investor confidence in its fundamentals.

1.c. Company Highlights

2. HealthStream's Q3 2025 Earnings: A Strong Performance

HealthStream reported a record high revenue of $76.5 million in Q3 2025, representing a 4.6% year-over-year increase. The company's operating income was $7.6 million, up 16.5%, while net income was $6.1 million, up 6.3%. Adjusted EBITDA was $19.1 million, a 7.9% increase from the same quarter last year. Earnings per share (EPS) came in at $0.20, beating analyst estimates of $0.17. The company's strong financial performance was driven by the growth of its Workforce Development business, with the Competency Suite revenue rising 18% year-over-year.

Publication Date: Nov -17

📋 Highlights
  • Record Revenue Growth: Q3 2025 revenue hit $76.5M, up 4.6% YoY, with adjusted EBITDA rising 7.9% to $19.1M
  • Virsys12 Acquisition: Payer market expansion via $11.2M cash purchase, with potential $4M in earnouts over three years
  • Product Suite Success: ShiftWizard grew 29% YoY, CredentialStream 23%, and HLC Learning Center became #1 on G2
  • Strong Financial Position: $92.6M cash balance, no debt, and EBITDA margins at 55–65% driven by SaaS/PaaS growth
  • Career Network Scale: 660,000 nurses and 250,000 clinical students on platforms, with $2M+ in loan consolidations via partnerships

Revenue Growth Drivers

The company's CredentialStream application, a flagship product within its credentialing application suite, saw revenues increase approximately 23% over the same quarter last year. ShiftWizard, its enterprise-class scheduling application, had a 29% revenue growth in the third quarter compared to the previous year. The recent acquisition of Virsys12 is expected to contribute around $900,000 in revenue in the fourth quarter, with a mix of subscription and consulting revenue.

Valuation Metrics

HealthStream's current valuation metrics suggest a relatively high price for its shares. The company's P/E Ratio is 35.65, P/B Ratio is 2.11, and P/S Ratio is 2.43. The EV/EBITDA ratio is 10.13, indicating a reasonable valuation relative to its earnings before interest, taxes, depreciation, and amortization. With a strong cash balance of $92.6 million and no interest-bearing debt, the company's Net Debt / EBITDA is -0.56, highlighting its healthy financial position.

Growth Prospects

HealthStream is focusing on its nursing core as central to its overall strategy for success. The company aims to align its ambition with that of Doximity and LinkedIn, and is starting to see multiple paths to monetizing its nursing education. With the launch of several new services in the last 6 months, the company is well-positioned for future growth. Analysts estimate next year's revenue growth at 4.9%, indicating a continued upward trend for the company.

Operational Highlights

The company's hStream platform connects its career networks with enterprise software application suites, enabling seamless integration and data sharing. HealthStream's career networks, including NurseGrid and myClinicalExchange, are experiencing organic growth, with NurseGrid having over 2,000 subscribers weekly with low marketing spend. The company has multiple monetization strategies, including education, job postings, and partnerships.

3. NewsRoom

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HealthStream (NASDAQ:HSTM) to Buyback $10.00 million in Outstanding Stock

Nov -12

Source: defenseworld.net

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HealthStream, Inc. (HSTM) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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HealthStream Announces Third Quarter 2025 Results

Nov -03

Source: businesswire.com

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HealthStream Acquires Virsys12, Expanding its Credentialing Application Solution for Payers and Health Plan Enterprises

Oct -08

Source: businesswire.com

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HealthStream: Why I Am Buying More Despite The Valuation (Rating Upgrade)

Aug -13

Source: seekingalpha.com

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HealthStream, Inc. (HSTM) Q2 2025 Earnings Call Transcript

Aug -06

Source: seekingalpha.com

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HealthStream (HSTM) Q2 Revenue Up 4%

Aug -05

Source: fool.com

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HealthStream (HSTM) Surpasses Q2 Earnings Estimates

Aug -04

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Workforce Solutions

Expected Growth: 5%

HealthStream's Workforce Solutions segment growth is driven by increasing demand for healthcare workforce development, strategic partnerships, and expansion of its platform into new markets. The company's focus on improving patient outcomes, reducing healthcare costs, and enhancing workforce productivity also contributes to its growth. Additionally, the need for healthcare organizations to comply with regulatory requirements and adapt to changing industry standards fuels demand for HealthStream's solutions.

7. Detailed Products

HealthStream Learning Center

A learning management system that enables healthcare organizations to manage and track employee training and education

SimCenter

A simulation-based training platform that allows healthcare professionals to practice and improve their skills in a realistic and safe environment

NurseGrid

A mobile app that helps nurses manage their schedules, communicate with colleagues, and access important resources and information

Echo

A video-based training platform that allows healthcare organizations to create, manage, and track video-based training content

HLC Analytics

A data analytics platform that provides insights and metrics on healthcare workforce development and training

VerityStream

A credentialing and privileging platform that helps healthcare organizations manage provider data and streamline credentialing processes

8. HealthStream, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

HealthStream, Inc. has a low threat of substitutes due to its unique platform and services, making it difficult for customers to find alternative solutions.

Bargaining Power Of Customers

HealthStream, Inc. has a medium bargaining power of customers due to the presence of a few large customers, but the company's diversified customer base and long-term contracts mitigate this risk.

Bargaining Power Of Suppliers

HealthStream, Inc. has a low bargaining power of suppliers due to its ability to negotiate favorable terms with its suppliers and the availability of alternative suppliers.

Threat Of New Entrants

HealthStream, Inc. has a medium threat of new entrants due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles, but the company must still be vigilant to new market entrants.

Intensity Of Rivalry

HealthStream, Inc. operates in a highly competitive industry, with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.38%
Debt Cost 3.95%
Equity Weight 93.62%
Equity Cost 5.87%
WACC 5.75%
Leverage 6.81%

11. Quality Control: HealthStream, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Premier

A-Score: 5.6/10

Value: 4.0

Growth: 2.1

Quality: 5.2

Yield: 5.0

Momentum: 9.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
HealthStream

A-Score: 4.8/10

Value: 3.7

Growth: 5.2

Quality: 6.9

Yield: 0.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Forian

A-Score: 4.3/10

Value: 6.0

Growth: 6.4

Quality: 5.5

Yield: 0.0

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
National Research

A-Score: 4.0/10

Value: 3.4

Growth: 3.6

Quality: 6.0

Yield: 6.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
GeneDx

A-Score: 3.4/10

Value: 0.2

Growth: 4.3

Quality: 5.3

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Simulations Plus

A-Score: 3.0/10

Value: 5.6

Growth: 5.7

Quality: 4.2

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.19$

Current Price

24.2$

Potential

-0.00%

Expected Cash-Flows