Overview

* HealthStream ( HSTM ) Q2 revenue up 4% to $74.4 mln, meeting analyst expectations

* Adjusted EBITDA for Q2 beats estimates, rising 11.3% to $17.6 mln

* Co repurchased $18.1 mln in shares during Q2 as part of buyback program

Outlook

* Company expects 2025 revenue between $297.5 mln and $303.5 mln

* HealthStream ( HSTM ) projects 2025 net income of $19.5 mln to $22.4 mln

* Company forecasts adjusted EBITDA of $68.5 mln to $72.5 mln for 2025

* HealthStream ( HSTM ) anticipates capital expenditures of $31.0 mln to $34.0 mln in 2025

Result Drivers

* SUBSCRIPTION REVENUES - Subscription revenues increased by $2.9 mln, contributing to overall revenue growth

* SUBLEASE INCOME - Sublease income from a new lease commenced in Q2 2025 supported operating income growth

* HIGHER EXPENSES - Increased costs for platform and SaaS investments partially offset revenue gains

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Meet $74.40 $74.40

Revenue mln mln (5

Analysts

)

Q2 EPS $0.18

Q2 Net $5.40

Income mln

Q2 Beat $17.60 $17.30

Adjusted mln mln (5

EBITDA Analysts

)

Q2 Capex $9.20

mln

Q2 $5.90

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for HealthStream Inc ( HSTM ) is $34.50, about 25.7% above its August 1 closing price of $25.65

* The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 50 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)