Healthstream Financials
This page shows Healthstream (HSTM) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 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).
Low-capex, intangible-heavy economics let HealthStream turn modest reported earnings into consistently larger free cash flow.
From FY2023 through FY2025, operating cash flow stayed above$57M while net income remained below$21M , showing that a large non-cash amortization and depreciation burden pulls accounting profit well below the cash the business actually produces. Because annual capex stayed under$3.7M and free-cash-flow margin hovered near20% , most of that cash was available after maintenance spending instead of being trapped in reinvestment.
FY2025’s current ratio slipped to 0.96x and cash fell to
The balance sheet is becoming more intangible-heavy: goodwill reached
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'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 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 62/100, indicating healthy but not exceptional operating efficiency. This is down from 7.3% the prior year.
Healthstream's revenue grew a modest 4.3% year-over-year to $304.1M. This slow but positive growth earns a score of 48/100.
Healthstream has a moderate D/E ratio of 0.47. This balance of debt and equity financing earns a leverage score of 61/100.
Healthstream'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 converts 19.6% of revenue into free cash flow ($59.6M). This strong cash generation earns a score of 87/100.
Healthstream's ROE of 5.2% shows moderate profitability relative to equity, earning a score of 56/100. This is down from 5.6% the prior year.
Healthstream scores 3.99, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($818.6M) 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 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 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 generated $304.1M in revenue in fiscal year 2025. This represents an increase of 4.3% from the prior year.
Healthstream's EBITDA was $63.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 1.9% from the prior year.
Healthstream reported $18.3M in net income in fiscal year 2025. This represents a decrease of 8.3% from the prior year.
Healthstream earned $0.61 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 7.6% from the prior year.
Cash & Balance Sheet
Healthstream generated $59.6M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 6.0% from the prior year.
Healthstream held $36.2M in cash against $0 in long-term debt as of fiscal year 2025.
Healthstream paid $0.12 per share in dividends in fiscal year 2025. This represents an increase of 10.7% from the prior year.
Healthstream had 30M shares outstanding in fiscal year 2025. This represents a decrease of 2.8% from the prior year.
Margins & Returns
Healthstream's gross margin was 64.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.7 percentage points from the prior year.
Healthstream's operating margin was 6.7% in fiscal year 2025, reflecting core business profitability. This is down 0.6 percentage points from the prior year.
Healthstream's net profit margin was 6.0% in fiscal year 2025, showing the share of revenue converted to profit. This is down 0.8 percentage points from the prior year.
Healthstream's ROE was 5.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 0.4 percentage points from the prior year.
Capital Allocation
Healthstream invested $51.0M in research and development in fiscal year 2025. This represents an increase of 4.3% from the prior year.
Healthstream spent $30.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
Healthstream invested $3.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 163.0% from the prior year.
HSTM Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $81.2M+1.9% | $79.7M+4.2% | $76.5M+2.8% | $74.4M+1.2% | $73.5M-1.0% | $74.2M+1.6% | $73.1M+2.2% | $71.6M |
| Cost of Revenue | $27.8M-3.8% | $28.9M+8.8% | $26.5M+0.5% | $26.4M+3.4% | $25.5M+1.5% | $25.1M+2.6% | $24.5M+3.1% | $23.7M |
| Gross Profit | $53.4M+5.1% | $50.9M+1.8% | $50.0M+4.0% | $48.0M+0.1% | $48.0M-2.3% | $49.1M+1.0% | $48.6M+1.7% | $47.8M |
| R&D Expenses | $13.6M-7.8% | $14.8M+21.9% | $12.1M+0.3% | $12.1M+0.2% | $12.0M-5.0% | $12.7M+4.8% | $12.1M+0.2% | $12.1M |
| SG&A Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Income | $7.5M+212.3% | $2.4M-68.2% | $7.6M+28.6% | $5.9M+34.4% | $4.4M-6.6% | $4.7M-27.9% | $6.5M+47.3% | $4.4M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $1.9M+504.4% | $316K-85.4% | $2.2M+46.5% | $1.5M+61.4% | $916K+54.2% | $594K-66.1% | $1.8M+54.9% | $1.1M |
| Net Income | $5.9M+133.1% | $2.5M-58.3% | $6.1M+12.9% | $5.4M+24.4% | $4.3M-11.4% | $4.9M-14.6% | $5.7M+37.4% | $4.2M |
| EPS (Diluted) | $0.20 | N/A | $0.20+11.1% | $0.18+28.6% | $0.14 | N/A | $0.19+35.7% | $0.14 |
HSTM Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $527.4M+1.4% | $520.4M+4.1% | $499.9M0.0% | $500.1M-4.6% | $524.0M+2.6% | $510.8M+1.6% | $502.8M+0.7% | $499.6M |
| Current Assets | $133.0M+11.2% | $119.7M-18.9% | $147.6M+2.2% | $144.4M-14.9% | $169.7M+10.8% | $153.1M+5.1% | $145.6M+4.7% | $139.1M |
| Cash & Equivalents | $48.7M+34.7% | $36.2M-32.5% | $53.5M+2.8% | $52.1M-32.6% | $77.3M+30.0% | $59.5M+3.4% | $57.5M+24.6% | $46.1M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $38.4M+19.5% | $32.2M+16.2% | $27.7M+2.8% | $26.9M-12.7% | $30.8M+2.2% | $30.2M+14.7% | $26.3M-17.2% | $31.8M |
| Goodwill | $212.7M-2.2% | $217.5M+13.5% | $191.6M-0.1% | $191.8M+0.3% | $191.2M0.0% | $191.2M0.0% | $191.1M+0.1% | $191.0M |
| Total Liabilities | $175.4M+5.5% | $166.4M+10.4% | $150.7M+0.8% | $149.6M-7.2% | $161.2M+6.5% | $151.4M+2.8% | $147.3M-2.0% | $150.3M |
| Current Liabilities | $136.5M+10.0% | $124.1M+10.4% | $112.5M-2.5% | $115.4M-8.3% | $125.9M+8.8% | $115.7M+4.6% | $110.6M-1.2% | $111.9M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $352.0M-0.6% | $354.0M+1.4% | $349.2M-0.4% | $350.6M-3.4% | $362.8M+1.0% | $359.4M+1.1% | $355.5M+1.8% | $349.2M |
| Retained Earnings | $128.5M+4.0% | $123.6M+1.3% | $122.0M+4.4% | $116.8M+4.0% | $112.4M+3.1% | $109.0M+3.8% | $104.9M+4.9% | $100.1M |
HSTM Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $27.1M+105.7% | $13.2M-26.8% | $18.0M+258.9% | $5.0M-81.4% | $27.1M+142.6% | $11.2M-41.6% | $19.1M+196.2% | $6.5M |
| Capital Expenditures | $740K+262.7% | $204K+87.2% | $109K-95.3% | $2.3M+119.6% | $1.1M+419.7% | $203K-28.5% | $284K+65.1% | $172K |
| Free Cash Flow | $26.4M+103.2% | $13.0M-27.5% | $17.9M+562.3% | $2.7M-89.6% | $26.0M+137.5% | $11.0M-41.8% | $18.8M+199.8% | $6.3M |
| Investing Cash Flow | -$6.3M+72.9% | -$23.3M-169.8% | -$8.6M+22.5% | -$11.2M-53.8% | -$7.2M+10.2% | -$8.1M-17.5% | -$6.9M+42.3% | -$11.9M |
| Financing Cash Flow | -$8.3M-15.0% | -$7.2M+8.7% | -$7.9M+58.4% | -$19.1M-847.5% | -$2.0M-94.9% | -$1.0M-12.0% | -$922K-7.6% | -$857K |
| Dividends Paid | $1.0M+15.4% | $891K-3.0% | $919K-3.0% | $947K+0.4% | $943K+11.1% | $849K-0.2% | $851K0.0% | $851K |
| Share Buybacks | $6.7M+34.4% | $5.0M-27.4% | $6.9M-61.9% | $18.1M | $0 | $0 | $0 | N/A |
HSTM Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.8%+2.0pp | 63.8%-1.5pp | 65.3%+0.8pp | 64.6%-0.8pp | 65.3%-0.8pp | 66.2%-0.4pp | 66.5%-0.3pp | 66.8% |
| Operating Margin | 9.3%+6.2pp | 3.0%-6.9pp | 9.9%+2.0pp | 7.9%+2.0pp | 6.0%-0.4pp | 6.3%-2.6pp | 8.9%+2.7pp | 6.2% |
| Net Margin | 7.3%+4.1pp | 3.2%-4.8pp | 8.0%+0.7pp | 7.2%+1.3pp | 5.9%-0.7pp | 6.6%-1.2pp | 7.8%+2.0pp | 5.8% |
| Return on Equity | 1.7%+1.0pp | 0.7%-1.0pp | 1.7%+0.2pp | 1.5%+0.3pp | 1.2%-0.2pp | 1.4%-0.3pp | 1.6%+0.4pp | 1.2% |
| Return on Assets | 1.1%+0.6pp | 0.5%-0.7pp | 1.2%+0.1pp | 1.1%+0.3pp | 0.8%-0.1pp | 1.0%-0.2pp | 1.1%+0.3pp | 0.8% |
| Current Ratio | 0.97+0.0 | 0.96-0.3 | 1.31+0.1 | 1.25-0.1 | 1.35+0.0 | 1.320.0 | 1.32+0.1 | 1.24 |
| Debt-to-Equity | 0.50+0.0 | 0.47+0.0 | 0.430.0 | 0.43-0.0 | 0.44+0.0 | 0.420.0 | 0.41-0.0 | 0.43 |
| FCF Margin | 32.5%+16.2pp | 16.3%-7.1pp | 23.4%+19.8pp | 3.6%-31.8pp | 35.4%+20.7pp | 14.8%-11.0pp | 25.8%+17.0pp | 8.8% |
Note: The current ratio is below 1.0 (0.96), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Healthstream's annual revenue?
Healthstream (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's revenue growing?
Healthstream (HSTM) revenue grew by 4.3% year-over-year, from $291.6M to $304.1M in fiscal year 2025.
Is Healthstream profitable?
Yes, Healthstream (HSTM) reported a net income of $18.3M in fiscal year 2025, with a net profit margin of 6.0%.
What is Healthstream's EBITDA?
Healthstream (HSTM) had EBITDA of $63.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Healthstream's gross margin?
Healthstream (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's operating margin?
Healthstream (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's net profit margin?
Healthstream (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 pay dividends?
Yes, Healthstream (HSTM) paid $0.12 per share in dividends during fiscal year 2025.
What is Healthstream's return on equity (ROE)?
Healthstream (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's free cash flow?
Healthstream (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's operating cash flow?
Healthstream (HSTM) generated $63.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Healthstream's total assets?
Healthstream (HSTM) had $520.4M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Healthstream's capital expenditures?
Healthstream (HSTM) invested $3.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Healthstream spend on research and development?
Healthstream (HSTM) invested $51.0M in research and development during fiscal year 2025.
What is Healthstream's current ratio?
Healthstream (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's debt-to-equity ratio?
Healthstream (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's return on assets (ROA)?
Healthstream (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's Altman Z-Score?
Healthstream (HSTM) has an Altman Z-Score of 3.99, 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's Piotroski F-Score?
Healthstream (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's earnings high quality?
Healthstream (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?
Healthstream (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.