HealthStream Inc (HSTM) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 13, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 6, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the HSTM SEC filings page.
HealthStream Inc (HSTM) reported $321.1M in revenue over the twelve months to Jun 30, 2026, up 8.8% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
HealthStream converts modest growth into cash, but 2025 margin compression and tighter working-capital coverage show growth is not fully reaching profit.
Cash conversion is stronger than earnings alone suggest: across FY2023-FY2025, free cash flow exceeded net income every year. In FY2025, free cash flow of$59.6M versus net income of$18.3M means accounting profit is a poor standalone proxy for cash generation.
Margin shape weakened even as revenue advanced: FY2025 revenue reached
Short-term balance-sheet flexibility narrowed: the current ratio dropped from 1.3x in FY2024 to 1.0x in FY2025. Current liabilities rose to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of HealthStream Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
HealthStream Inc has an operating margin of 6.7%, meaning the company retains $7 of operating profit per $100 of revenue. This results in a moderate score of 60/100, indicating healthy but not exceptional operating efficiency. This is down from 7.3% the prior year.
HealthStream Inc's revenue grew a modest 4.3% year-over-year to $304.1M. This slow but positive growth earns a score of 47/100.
HealthStream Inc has a moderate D/E ratio of 0.47. This balance of debt and equity financing earns a leverage score of 62/100.
HealthStream Inc's current ratio of 0.96 is below the typical benchmark, resulting in a score of 17/100. This tight liquidity could limit financial flexibility if cash inflows slow.
HealthStream Inc converts 19.6% of revenue into free cash flow ($59.6M). This strong cash generation earns a score of 86/100.
HealthStream Inc's ROE of 5.2% shows moderate profitability relative to equity, earning a score of 55/100. This is down from 5.6% the prior year.
HealthStream Inc scores 4.76, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($1.0B) relative to total liabilities ($166.4M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
HealthStream Inc passes 5 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, HealthStream Inc generates $3.45 in operating cash flow ($63.3M OCF vs $18.3M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
HealthStream Inc generated $83.7M in revenue in Q2 2026. This represents an increase of 12.5% from the same quarter a year earlier. Against the prior quarter it is up 3.1%.
HealthStream Inc's EBITDA was $19.6M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 17.0% from the same quarter a year earlier. Against the prior quarter it is up 3.8%.
HealthStream Inc reported $6.7M in net income in Q2 2026. This represents an increase of 23.8% from the same quarter a year earlier. Against the prior quarter it is up 12.8%.
HealthStream Inc earned $0.23 per diluted share (EPS) in Q2 2026. This represents an increase of 27.8% from the same quarter a year earlier. Against the prior quarter it is up 15.0%.
Cash & Balance Sheet
HealthStream Inc generated $12.5M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 362.7% from the same quarter a year earlier. Against the prior quarter it is down 52.6%.
HealthStream Inc held $46.2M in cash as of Q2 2026; long-term debt is not reported for that period.
HealthStream Inc paid $0.04 per share in dividends in Q2 2026. This represents an increase of 12.9% from the same quarter a year earlier. It is unchanged from the prior quarter.
Margins & Returns
HealthStream Inc's gross margin was 65.3% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is up 0.8 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.5 percentage points.
HealthStream Inc's operating margin was 9.9% in Q2 2026, reflecting core business profitability. This is up 2.0 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.7 percentage points.
HealthStream Inc's net profit margin was 8.0% in Q2 2026, showing the share of revenue converted to profit. This is up 0.7 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.7 percentage points.
HealthStream Inc's ROE was 1.9% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 0.3 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.2 percentage points.
Capital Allocation
HealthStream Inc invested $13.6M in research and development in Q2 2026. This represents an increase of 12.5% from the same quarter a year earlier. Against the prior quarter it is down 0.2%.
HealthStream Inc spent $2.6M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 85.7% from the same quarter a year earlier. Against the prior quarter it is down 61.6%.
HealthStream Inc invested $910K in capex in Q2 2026, funding long-term assets and infrastructure. This represents a decrease of 60.7% from the same quarter a year earlier. Against the prior quarter it is up 23.0%.
HSTM Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $83.7M+12.5% | $81.2M+10.5% | $79.7M+7.4% | $76.5M+4.6% | $74.4M+4.0% | $73.5M+1.0% | $74.2M+5.2% | $73.1M+3.9% |
| Cost of Revenue | $29.0M+10.1% | $27.8M+8.9% | $28.9M+14.9% | $26.5M+8.3% | $26.4M+11.1% | $25.5M+3.5% | $25.1M+4.6% | $24.5M+3.7% |
| Gross Profit | $54.7M+13.9% | $53.4M+11.3% | $50.9M+3.5% | $50.0M+2.8% | $48.0M+0.4% | $48.0M-0.3% | $49.1M+5.5% | $48.6M+4.0% |
| R&D Expenses | $13.6M+12.5% | $13.6M+12.9% | $14.8M+16.4% | $12.1M+0.1% | $12.1M0.0% | $12.0M+0.1% | $12.7M+6.3% | $12.1M+11.0% |
| Operating Income | $8.3M+41.4% | $7.5M+71.6% | $2.4M-48.7% | $7.6M+16.5% | $5.9M+33.4% | $4.4M-23.1% | $4.7M+10.1% | $6.5M+33.6% |
| EBITDA | $19.6M+17.0% | $18.9M+24.7% | $13.4M-11.3% | $18.4M+11.0% | $16.8M+13.3% | $15.1M-5.6% | $15.2M+2.5% | $16.6M+8.5% |
| Income Tax | $2.0M+37.1% | $1.9M+108.5% | $316K-46.8% | $2.2M+23.5% | $1.5M+30.6% | $916K-30.4% | $594K-28.2% | $1.8M+10.6% |
| Net Income | $6.7M+23.8% | $5.9M+36.4% | $2.5M-48.1% | $6.1M+6.3% | $5.4M+29.3% | $4.3M-17.1% | $4.9M+6.5% | $5.7M+48.0% |
| EPS (Basic) | $0.23+27.8% | $0.20+42.9% | $0.09-43.8% | $0.20+5.3% | $0.18+28.6% | $0.14-17.6% | $0.16+6.7% | $0.19+46.2% |
| EPS (Diluted) | $0.23+27.8% | $0.20+42.9% | $0.09-43.8% | $0.20+5.3% | $0.18+28.6% | $0.14-17.6% | $0.16+6.7% | $0.19+46.2% |
| Diluted Shares (Avg) | 29M-3.7% | 29M-3.8% | N/A | 30M-2.5% | 30M-0.2% | 31M+0.6% | N/A | 31M-0.6% |
Not reported in any period shown, so not listed: SG&A Expenses, Interest Expense.
HSTM Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $521.6M+4.3% | $527.4M+0.6% | $520.4M+1.9% | $499.9M-0.6% | $500.1M+0.1% | $524.0M+2.4% | $510.8M+2.2% | $502.8M+1.0% |
| Current Assets | $130.2M-9.8% | $133.0M-21.6% | $119.7M-21.9% | $147.6M+1.3% | $144.4M+3.8% | $169.7M+15.1% | $153.1M+17.6% | $145.6M+14.8% |
| Cash & Equivalents | $46.2M-11.4% | $48.7M-37.0% | $36.2M-39.2% | $53.5M-6.9% | $52.1M+12.9% | $77.3M+47.5% | $59.5M+47.4% | $57.5M+30.3% |
| Short-Term Investments | $20.6M-46.6% | $17.8M-50.6% | $20.8M-44.8% | $39.0M+4.4% | $38.5M+4.5% | $36.0M+15.2% | $37.7M+22.6% | $37.4M+35.1% |
| Accounts Receivable | $31.1M+15.7% | $38.4M+24.6% | $32.2M+6.5% | $27.7M+5.1% | $26.9M-15.3% | $30.8M-22.2% | $30.2M-12.1% | $26.3M-12.8% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $212.7M+10.9% | $212.7M+11.2% | $217.5M+13.8% | $191.6M+0.3% | $191.8M+0.5% | $191.2M+0.1% | $191.2M-0.1% | $191.1M+0.1% |
| Total Liabilities | $165.0M+10.3% | $175.4M+8.8% | $166.4M+9.9% | $150.7M+2.3% | $149.6M-0.5% | $161.2M-3.3% | $151.4M-4.9% | $147.3M-5.4% |
| Current Liabilities | $122.6M+6.3% | $136.5M+8.5% | $124.1M+7.3% | $112.5M+1.7% | $115.4M+3.1% | $125.9M-0.2% | $115.7M-2.3% | $110.6M-3.5% |
| Non-Current Liabilities | $42.4M+23.8% | $38.9M+10.1% | $42.2M+18.2% | $38.2M+4.0% | $34.2M-11.1% | $35.4M-13.1% | $35.7M-12.5% | $36.8M-10.8% |
| Total Equity | $356.6M+1.7% | $352.0M-3.0% | $354.0M-1.5% | $349.2M-1.8% | $350.6M+0.4% | $362.8M+5.2% | $359.4M+5.5% | $355.5M+3.9% |
| Retained Earnings | $134.1M+14.8% | $128.5M+14.3% | $123.6M+13.4% | $122.0M+16.2% | $116.8M+16.7% | $112.4M+16.1% | $109.0M+18.0% | $104.9M+18.5% |
Not reported in any period shown, so not listed: Inventory, Long-Term Debt.
HSTM Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $13.4M+167.4% | $27.1M+0.2% | $13.2M+18.2% | $18.0M-5.7% | $5.0M-22.1% | $27.1M+29.3% | $11.2M-19.2% | $19.1M-22.5% |
| Depreciation & Amortization | $11.3M+3.8% | $11.4M+5.7% | $11.0M+5.5% | $10.8M+7.4% | $10.9M+4.8% | $10.8M+4.1% | $10.5M-0.6% | $10.1M-3.2% |
| Stock-Based Compensation | $1.1M+32.3% | $1.3M+18.6% | N/A | $794K-29.8% | $836K-23.6% | $1.1M+4.2% | N/A | $1.1M+9.0% |
| Capital Expenditures | $910K-60.7% | $740K-29.9% | $204K+0.5% | $109K-61.6% | $2.3M+1247.1% | $1.1M+42.2% | $203K-41.3% | $284K-39.8% |
| Free Cash Flow | $12.5M+362.7% | $26.4M+1.4% | $13.0M+18.5% | $17.9M-4.8% | $2.7M-56.9% | $26.0M+28.8% | $11.0M-18.6% | $18.8M-22.2% |
| Investing Cash Flow | -$11.9M-6.6% | -$6.3M+12.9% | -$23.3M-188.9% | -$8.6M-25.8% | -$11.2M+6.4% | -$7.2M-1.8% | -$8.1M+14.0% | -$6.9M-75.2% |
| Financing Cash Flow | -$4.0M+79.0% | -$8.3M-314.0% | -$7.2M-601.3% | -$7.9M-760.8% | -$19.1M-2125.6% | -$2.0M-18.1% | -$1.0M+87.5% | -$922K+62.1% |
| Dividends Paid | $1.0M+8.4% | $1.0M+9.0% | $891K+4.9% | $919K+8.0% | $947K+11.3% | $943K+11.1% | $849K+6.3% | $851K+11.0% |
| Share Buybacks | $2.6M-85.7% | $6.7M | $5.0M | $6.9M | $18.1M | $0 | $0-100.0% | $0-100.0% |
HSTM Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.3%+0.8pp | 65.8%+0.5pp | 63.8%-2.4pp | 65.3%-1.2pp | 64.6%-2.3pp | 65.3%-0.8pp | 66.2%+0.2pp | 66.5%+0.1pp |
| Operating Margin | 9.9%+2.0pp | 9.3%+3.3pp | 3.0%-3.3pp | 9.9%+1.0pp | 7.9%+1.8pp | 6.0%-1.9pp | 6.3%+0.3pp | 8.9%+2.0pp |
| Net Margin | 8.0%+0.7pp | 7.3%+1.4pp | 3.2%-3.4pp | 8.0%+0.1pp | 7.2%+1.4pp | 5.9%-1.3pp | 6.6%+0.1pp | 7.8%+2.3pp |
| Return on Equity | 1.9%+0.3pp | 1.7%+0.5pp | 0.7%-0.6pp | 1.7%+0.1pp | 1.5%+0.3pp | 1.2%-0.3pp | 1.4%0.0pp | 1.6%+0.5pp |
| Return on Assets | 1.3%+0.2pp | 1.1%+0.3pp | 0.5%-0.5pp | 1.2%+0.1pp | 1.1%+0.3pp | 0.8%-0.2pp | 1.0%0.0pp | 1.1%+0.4pp |
| Current Ratio | 1.06-0.2x | 0.97-0.4x | 0.96-0.4x | 1.310.0x | 1.250.0x | 1.35+0.2x | 1.32+0.2x | 1.32+0.2x |
| Debt-to-Equity | 0.460.0x | 0.50+0.1x | 0.470.0x | 0.430.0x | 0.430.0x | 0.440.0x | 0.420.0x | 0.410.0x |
| Asset Turnover | 0.160.0x | 0.150.0x | 0.150.0x | 0.150.0x | 0.150.0x | 0.140.0x | 0.150.0x | 0.150.0x |
| FCF Margin | 14.9%+11.3pp | 32.5%-2.9pp | 16.3%+1.5pp | 23.4%-2.3pp | 3.6%-5.1pp | 35.4%+7.7pp | 14.8%-4.3pp | 25.8%-8.6pp |
Note: The current ratio is below 1.0 (0.96), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| HealthStream Inc HSTM | FY2025 | $304.1M | $18.3M | 6.0% | $1.0B | 55/100 |
| Evolent Health, Inc EVH | FY2025 | $1.9B | -$579.4M | -30.9% | $480.5M | 21/100 |
| Weave Communications, Inc. WEAV | FY2025 | $239.0M | -$28.1M | -11.7% | $593.7M | 43/100 |
| Performant Healthcare, Inc. PHLT | FY2024 | $123.0M | -$9.9M | -8.1% | $623.4M | 56/100 |
| Omnicell Inc OMCL | FY2025 | $1.2B | $2.1M | 0.2% | $1.7B | 42/100 |
| Phreesia, Inc. PHR | FY2026 | $480.6M | $2.3M | 0.5% | $671.6M | 45/100 |
Where HealthStream Inc Ranks
Frequently Asked Questions
What is HealthStream Inc's annual revenue?
HealthStream Inc (HSTM) reported $304.1M in total revenue for fiscal year 2025. This represents a 4.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is HealthStream Inc's revenue growing?
HealthStream Inc (HSTM) revenue grew by 4.3% year-over-year, from $291.6M to $304.1M in fiscal year 2025.
Is HealthStream Inc profitable?
Yes, HealthStream Inc (HSTM) reported a net income of $18.3M in fiscal year 2025, with a net profit margin of 6.0%.
What is HealthStream Inc's EBITDA?
HealthStream Inc (HSTM) had EBITDA of $63.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is HealthStream Inc's gross margin?
HealthStream Inc (HSTM) had a gross margin of 64.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is HealthStream Inc's operating margin?
HealthStream Inc (HSTM) had an operating margin of 6.7% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is HealthStream Inc's net profit margin?
HealthStream Inc (HSTM) had a net profit margin of 6.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does HealthStream Inc pay dividends?
Yes, HealthStream Inc (HSTM) paid $0.12 per share in dividends during fiscal year 2025.
What is HealthStream Inc's return on equity (ROE)?
HealthStream Inc (HSTM) has a return on equity of 5.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is HealthStream Inc's free cash flow?
HealthStream Inc (HSTM) generated $59.6M in free cash flow during fiscal year 2025. This represents a 6.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is HealthStream Inc's operating cash flow?
HealthStream Inc (HSTM) generated $63.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are HealthStream Inc's total assets?
HealthStream Inc (HSTM) had $520.4M in total assets as of fiscal year 2025, including both current and long-term assets.
What are HealthStream Inc's capital expenditures?
HealthStream Inc (HSTM) invested $3.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does HealthStream Inc spend on research and development?
HealthStream Inc (HSTM) invested $51.0M in research and development during fiscal year 2025.
What is HealthStream Inc's current ratio?
HealthStream Inc (HSTM) had a current ratio of 0.96 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is HealthStream Inc's debt-to-equity ratio?
HealthStream Inc (HSTM) had a debt-to-equity ratio of 0.47 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is HealthStream Inc's return on assets (ROA)?
HealthStream Inc (HSTM) had a return on assets of 3.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is HealthStream Inc's P/E ratio?
HealthStream Inc (HSTM) trades at 48.7x earnings, its market capitalization divided by net income of $21.2M net income, trailing 12 months to June 30, 2026. The market capitalization is $1.0B as of Oct 13, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is HealthStream Inc's price-to-sales ratio?
HealthStream Inc (HSTM) trades at 3.2x sales, its market capitalization divided by revenue of $321.1M revenue, trailing 12 months to June 30, 2026. The market capitalization is $1.0B as of Oct 13, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is HealthStream Inc's Altman Z-Score?
HealthStream Inc (HSTM) has an Altman Z-Score of 4.76, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is HealthStream Inc's Piotroski F-Score?
HealthStream Inc (HSTM) has a Piotroski F-Score of 5 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are HealthStream Inc's earnings high quality?
HealthStream Inc (HSTM) has an earnings quality ratio of 3.45x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is HealthStream Inc?
HealthStream Inc (HSTM) scores 55 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.