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.)