Healthcare software provider HealthStream Q3 revenue beats expectations on subscription growth

Reuters
Nov 04, 2025
Healthcare software provider HealthStream Q3 revenue beats expectations on subscription growth

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 updates 2025 revenue guidance to $299.5 - $301.5 mln

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

  • HealthStream 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/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$76.5 mln

$75.52 mln (5 Analysts)

Q3 EPS

$0.20

Q3 Net Income

$6.1 mln

Q3 Adjusted EBITDA

Beat

$19.1 mln

$17.8 mln (5 Analysts)

Q3 Capex

$7.8 mln

Q3 Operating Income

$7.6 mln

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 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: ID:nBw9B6Fq7a

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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.)

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