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1. Company Snapshot

1.a. Company Description

Streamline Health Solutions, Inc.offers health information technology solutions and associated services for hospitals and health systems in the United States and Canada.It provides computer software-based solutions, professional consulting, and auditing and coding services, which capture, aggregate, and translate structured and unstructured data to deliver predictive insights.


The company also offers coding and clinical documentation improvement (CDI) solutions, which include an integrated cloud-based software suite, CDI, and abstracting and physician query; and eValuator, a coding analysis platform, as well as software services.In addition, it provides financial management solutions, including accounts receivable management, denials management, claims processing, spend management, and audit management; patient care solutions; Cerner Command Language (CCL) reporting; and custom integration services for CDI/abstracting, training, and audit services.The company sells its solutions and services through direct sales force and reseller partnerships.


Streamline Health Solutions, Inc.was incorporated in 1989 and is based in Alpharetta, Georgia.

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1.b. Last Insights on STRM

Streamline Health Solutions' recent performance was hindered by a lack of significant contract announcements, unlike its peers. The company's most recent contract win, a fourth CommunityWorks RevID contract with a Kentucky-based health system, was announced in January 2025, but its impact on the company's short-term performance is uncertain. Furthermore, the absence of a recent earnings release makes it challenging to assess the company's financial performance. The company's partnership with Oracle Health, which enables automated charge reconciliation, may have a positive long-term impact, but its immediate effects are unclear.

1.c. Company Highlights

2. Streamline Health Solutions Posts Mixed Q4 Results Amid Strategic Shifts

Streamline Health Solutions delivered a mixed Q4 performance, with revenues of $4.7 million for the quarter and $17.9 million for the fiscal year, slightly below analyst expectations of $18.3 million. The company reported a net loss of $2.1 million for Q4 and $10.2 million for the fiscal year, marking an improvement from the $18.7 million loss in 2023. On a per-share basis, the actual EPS came in at -0.52, worse than the consensus estimate of -0.30. SaaS revenue accounted for 66% of total revenue, reflecting the company's ongoing transition to a more predictable recurring revenue model.

Publication Date: May -03

📋 Highlights
  • Annualized Financial Impact: Clients achieved $210 million in annualized financial impact.
  • SaaS ACV Growth: Booked $14 million as of January 31, 2025, and $14.6 million as of April 30, 2025.
  • New Bookings and Churn: Added $1.4 million in new bookings, offset by $700,000 in churn.
  • Product Strategy Shift: Discontinued quality module to focus on denial prevention, expected to boost impact by 15%+ for inpatient and double for outpatient cases.
  • Financial Performance: Q4 revenue of $4.7 million, with fiscal 2024 revenue at $17.9 million, 66% from SaaS.

Operational Momentum and Client Success

The company highlighted strong operational momentum, with SaaS ACV (Annual Contract Value) reaching $14.6 million as of April 30, 2025, up from $14 million at the end of January. Implemented ACV stood at $13.1 million, with new bookings contributing $1.4 million during the quarter, partially offset by $700,000 in churn. Management emphasized the success of its eValuator platform, particularly in denial prevention functionality, which is expected to boost the financial impact for clients by over 15% for inpatient cases and double for outpatient cases. The company also showcased improved implementation times, with one client going live in just 42 days, underscoring its ability to deliver value faster to healthcare providers.

Financial Position and Outlook

Streamline Health ended the quarter with $2.2 million in cash and cash equivalents, supplemented by an additional $1 million drawn from its revolving credit facility post-period. Despite the net loss, the company reiterated confidence in achieving an EBITDA profitable run rate by the end of Q2 2025. However, the cash burn remains a concern, with free cash flow yield standing at -25.77%, reflecting ongoing investments in product development and go-to-market efforts. Analysts expect modest revenue growth of 4.0% next year, though the company's ability to execute on its profitability targets will be critical to shareholder sentiment.

Valuation and Risk Assessment

From a valuation perspective, Streamline Health's EV/EBITDA ratio of 731.35 indicates a steep premium, reflecting investor optimism around its long-term growth prospects. However, the P/S ratio of 0.7 suggests the market is pricing in significant execution risk. With a net debt-to-EBITDA ratio of 735.76 and an ROIC of -0.02%, the company's financial leverage and profitability challenges remain key areas of concern. While the strategic shift toward denial prevention and improved implementation times are positive signals, the stock's valuation appears stretched relative to its current financial performance.

3. NewsRoom

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STRM.BIO Awarded ARPA-H Contract to Advance Megakaryocyte-Derived Vesicle Platform for In Vivo Cell Engineering and Gene Therapy

Dec -03

Source: prnewswire.com

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Ginkgo Bioworks in Partnership with STRM.BIO and University of British Columbia in Project to Develop In Vivo CAR Therapies Under ARPA-H's EMBODY Program

Oct -23

Source: prnewswire.com

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Storm Exploration Appoints Dr. Alexander Shaw to Board of Directors

Oct -15

Source: accessnewswire.com

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Storm Exploration Appoints Cameron Dorsey to Its Advisory Board

Jul -22

Source: accessnewswire.com

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SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates NVEE and TASK on Behalf of Shareholders

Jul -18

Source: globenewswire.com

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Storm Exploration Effects Share Consolidation

Jul -17

Source: accessnewswire.com

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Streamline Health® Reports Fiscal First Quarter 2025 Financial Results

Jun -16

Source: globenewswire.com

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$HAREHOLDER ALERT: Class Action Attorney Juan Monteverde Investigates the Merger of Streamline Health Solutions, Inc. (NASDAQ: STRM)

Jun -09

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.11%)

6. Segments

Software as a Service

Expected Growth: 11.7%

Streamline Health Solutions' 11.7% growth in Software as a Service is driven by increasing demand for cloud-based healthcare solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on improving operational efficiency, reducing costs, and enhancing patient care through its innovative software solutions has contributed to its growth.

Maintenance and Support

Expected Growth: 10.27%

Streamline Health Solutions' Maintenance and Support segment growth of 10.27% is driven by increasing adoption of cloud-based healthcare solutions, rising demand for cost-effective IT services, and strategic partnerships with healthcare providers. Additionally, the company's focus on delivering high-quality customer support and expanding its service offerings have contributed to the growth.

Professional Fees and Licenses

Expected Growth: 9.9%

Streamline Health Solutions' 9.9% growth in Professional Fees and Licenses is driven by increasing adoption of its cloud-based workflow solutions, expansion into new healthcare markets, and rising demand for revenue cycle management services. Additionally, strategic partnerships and cross-selling opportunities with existing clients contribute to the growth.

7. Detailed Products

Optimize

A cloud-based platform that automates and streamlines clinical document workflow, providing real-time visibility and analytics to improve operational efficiency and reduce costs.

eValuate

A clinical documentation improvement (CDI) solution that provides real-time, evidence-based guidance to clinicians, helping to ensure accurate and complete documentation.

Abstracting

A comprehensive abstracting solution that automates the process of abstracting clinical data from disparate sources, providing a single, unified view of patient data.

Coding Compliance

A coding compliance solution that provides real-time coding guidance, ensuring accurate and compliant coding practices.

Quality Measures

A quality measurement solution that provides real-time analytics and reporting, enabling healthcare providers to track and improve quality of care.

8. Streamline Health Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Streamline Health Solutions, Inc. operates in a niche market with limited substitutes, reducing the threat of substitutes.

Bargaining Power Of Customers

Streamline Health Solutions, Inc. has a diverse customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

Streamline Health Solutions, Inc. relies on a few key suppliers, giving them some bargaining power, but the company's size and reputation mitigate this threat.

Threat Of New Entrants

The healthcare technology industry has high barriers to entry, reducing the threat of new entrants and giving Streamline Health Solutions, Inc. a competitive advantage.

Intensity Of Rivalry

The healthcare technology industry is highly competitive, with many established players, increasing the intensity of rivalry and making it challenging for Streamline Health Solutions, Inc. to differentiate itself.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.96%
Debt Cost 10.16%
Equity Weight 64.04%
Equity Cost 10.38%
WACC 10.30%
Leverage 56.16%

11. Quality Control: Streamline Health Solutions, Inc. passed 1 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
TruBridge

A-Score: 5.1/10

Value: 7.5

Growth: 3.0

Quality: 5.1

Yield: 0.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Streamline Health Solutions

A-Score: 4.1/10

Value: 8.2

Growth: 2.9

Quality: 3.8

Yield: 0.0

Momentum: 9.5

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Cue Health

A-Score: 3.6/10

Value: 10.0

Growth: 3.2

Quality: 3.6

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Sharecare

A-Score: 3.6/10

Value: 8.0

Growth: 3.6

Quality: 4.3

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Amwell

A-Score: 3.5/10

Value: 9.6

Growth: 3.9

Quality: 4.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Ontrak

A-Score: 2.9/10

Value: 10.0

Growth: 4.1

Quality: 3.4

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

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

5.33$

Current Price

5.33$

Potential

-0.00%

Expected Cash-Flows