Healthcare software provider HealthStream Q3 revenue beats expectations on subscription growth

HealthStream

03/11/2025 21:43

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.)