HealthStream Q2 revenue beats estimates, helped by acquisitions

HealthStream

03/08/2026 21:54

Overview
US healthcare tech platform's Q2 revenue rose 12.5%, beating analyst expectations
Adjusted EBITDA for Q2 up 16.9%, beating analyst expectations
Revenue growth aided by acquisitions and a $2 mln contract catch-up

Outlook
HealthStream raises 2026 revenue guidance to $327.0-$332.0 mln from $323.0-$330.0 mln
Company sees 2026 net income of $19.5-$22.2 mln, down from prior $20.4-$22.8 mln range
HealthStream expects 2026 adjusted EBITDA of $74.0-$78.0 mln, up from prior $73.0-$77.0 mln

Result Drivers
ACQUISITIONS - Co said Q2 revenue growth was positively impacted by acquisitions of Virsys12 and MissionCare Collective completed in Q4 2025
CONTRACT CATCH-UP - Co recognized $2 mln in Q2 from resolution of previously constrained estimates under a customer contract
SUBLEASE INCOME - Co said operating income improvement was partly due to income associated with a sublease that commenced in Q2 2025

Company press release: ID:nBw1V2q3qa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$83.7 mln
$80.83 mln (5 Analysts)
Q2 EPS
 
$0.23
 
Q2 Net Income
 
$6.7 mln
 
Q2 Adjusted EBITDA
Beat
$20.6 mln
$18.31 mln (5 Analysts)
Q2 Capex
 
$8.5 mln
 
Q2 Operating Income
 
$8.3 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 $33.50, about 19.5% above its July 31 closing price of $28.04
The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 27 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)