Overview

* HealthStream Q3 2025 revenue grows 4.6% yr/yr, beating analyst expectations

* Adjusted EBITDA for Q3 2025 beats analyst expectations

* Company completed acquisition of Virsys12, expanding provider data management solutions

Outlook

* HealthStream ( HSTM ) updates 2025 revenue guidance to $299.5 - $301.5 mln

* Company expects 2025 net income between $20.3 mln and $21.5 mln

* HealthStream ( HSTM ) projects 2025 adjusted EBITDA of $69.5 - $71.5 mln

Result Drivers

* SUBSCRIPTION REVENUE - Subscription revenues increased by 5.7%, contributing to overall revenue growth

* SUBLEASE INCOME - Sublease income contributed to higher operating income

* INVESTMENT COSTS - Higher expenses due to investments in platform and SaaS applications, leading to increased labor and software costs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $76.5 $75.52

Revenue mln mln (5

Analysts

)

Q3 EPS $0.20

Q3 Net $6.1 mln

Income

Q3 Beat $19.1 $17.8

Adjusted mln mln (5

EBITDA Analysts

)

Q3 Capex $7.8 mln

Q3 $7.6 mln

Operatin

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 $34.00, about 27.6% above its October 31 closing price of $24.60

* The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release:

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(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.)