Overview
HealthStream Q2 revenue up 4% to $74.4 mln, meeting analyst expectations
Adjusted EBITDA for Q2 beats estimates, rising 11.3% to $17.6 mln
Co repurchased $18.1 mln in shares during Q2 as part of buyback program
Outlook
Company expects 2025 revenue between $297.5 mln and $303.5 mln
HealthStream projects 2025 net income of $19.5 mln to $22.4 mln
Company forecasts adjusted EBITDA of $68.5 mln to $72.5 mln for 2025
HealthStream anticipates capital expenditures of $31.0 mln to $34.0 mln in 2025
Result Drivers
SUBSCRIPTION REVENUES - Subscription revenues increased by $2.9 mln, contributing to overall revenue growth
SUBLEASE INCOME - Sublease income from a new lease commenced in Q2 2025 supported operating income growth
HIGHER EXPENSES - Increased costs for platform and SaaS investments partially offset revenue gains
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Meet
$74.40 mln
$74.40 mln (5 Analysts)
Q2 EPS
$0.18
Q2 Net Income
$5.40 mln
Q2 Adjusted EBITDA
Beat
$17.60 mln
$17.30 mln (5 Analysts)
Q2 Capex
$9.20 mln
Q2 Operating Income
$5.90 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 $34.50, about 25.7% above its August 1 closing price of $25.65
The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 50 three months ago
Press Release: ID:nBw6WS6GPa
(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.)