HealthStream (NASDAQ:HSTM) Announces Quarterly Earnings Results, Beats Estimates By $0.06 EPS

HealthStream (NASDAQ:HSTM) issued its earnings results on Monday. The technology company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.06, FiscalAI reports. The business had revenue of $83.73 million during the quarter, compared to analysts’ expectations of $80.82 million. HealthStream had a return on equity of 6.47% and a net margin of 6.39%.

HealthStream Stock Up 1.0%

Shares of HSTM stock opened at $28.33 on Tuesday. HealthStream has a 52-week low of $19.50 and a 52-week high of $30.00. The stock has a market cap of $827.66 million, a PE ratio of 42.28, a price-to-earnings-growth ratio of 3.18 and a beta of 0.45. The business has a 50-day simple moving average of $26.89 and a 200-day simple moving average of $23.36.

HealthStream Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Monday, August 17th will be paid a dividend of $0.035 per share. The ex-dividend date is Monday, August 17th. This represents a $0.14 dividend on an annualized basis and a dividend yield of 0.5%. HealthStream’s dividend payout ratio (DPR) is presently 20.90%.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. Weiss Ratings raised shares of HealthStream from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. Canaccord Genuity Group increased their price objective on shares of HealthStream from $24.00 to $27.00 and gave the company a “hold” rating in a research note on Tuesday, July 21st. Finally, Wall Street Zen raised shares of HealthStream from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Three equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $27.00.

Trending Headlines about HealthStream

Here are the key news stories impacting HealthStream this week:

• Positive Sentiment: Q2 results beat estimates: HealthStream reported earnings of $0.23 per diluted share, compared with the $0.17 analyst consensus and $0.18 in the year-ago period. Revenue rose 12.5% to a record $83.7 million, ahead of the $80.8 million expected. HealthStream Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved: Operating income climbed 41.4% to $8.3 million, net income increased 23.8% to $6.7 million, and adjusted EBITDA rose 16.9% to $20.6 million. The results indicate operating leverage as revenue growth outpaced expense growth. HealthStream Announces Second Quarter 2026 Results
• Positive Sentiment: Full-year outlook and capital returns: HealthStream updated its 2026 guidance to revenue of $327 million-$332 million and net income of $19.5 million-$22.2 million. The board also declared a $0.035 quarterly dividend, while the company repurchased 432,476 shares during the first half of the year. HealthStream ended June with $66.7 million in cash and marketable securities and no borrowed debt.
• Neutral Sentiment: The revenue outlook is broadly in line with the $327.2 million analyst consensus, so investors may view the guidance as confirmation of continued growth rather than a major upside surprise. The stock’s relatively elevated valuation could also limit further gains unless growth remains strong.
• Negative Sentiment: Recent disclosed insider activity included three sales and no purchases over the past six months. While these transactions are not necessarily related to operating performance, they may be a modest sentiment headwind.

Insiders Place Their Bets

In other HealthStream news, Director Linda Rebrovick sold 6,000 shares of the stock in a transaction on Monday, July 6th. The shares were sold at an average price of $29.00, for a total transaction of $174,000.00. Following the transaction, the director directly owned 51,329 shares of the company’s stock, valued at $1,488,541. This trade represents a 10.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kevin P. O’hara sold 3,000 shares of HealthStream stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $24.08, for a total value of $72,240.00. Following the transaction, the executive vice president owned 20,982 shares in the company, valued at approximately $505,246.56. This represents a 12.51% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 11,000 shares of company stock worth $296,240 over the last three months. 20.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On HealthStream

Large investors have recently bought and sold shares of the stock. JPMorgan Chase & Co. boosted its stake in shares of HealthStream by 4.6% in the 4th quarter. JPMorgan Chase & Co. now owns 452,897 shares of the technology company’s stock valued at $10,448,000 after buying an additional 20,075 shares during the period. Qube Research & Technologies Ltd increased its stake in shares of HealthStream by 9.0% during the third quarter. Qube Research & Technologies Ltd now owns 274,548 shares of the technology company’s stock worth $7,753,000 after buying an additional 22,595 shares during the period. Charles Schwab Investment Management Inc. raised its holdings in HealthStream by 3.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 240,783 shares of the technology company’s stock valued at $5,555,000 after acquiring an additional 8,555 shares in the last quarter. Panagora Asset Management Inc. raised its holdings in HealthStream by 3.3% in the fourth quarter. Panagora Asset Management Inc. now owns 213,749 shares of the technology company’s stock valued at $4,931,000 after acquiring an additional 6,846 shares in the last quarter. Finally, Ameriprise Financial Inc. lifted its stake in HealthStream by 7.7% in the second quarter. Ameriprise Financial Inc. now owns 198,023 shares of the technology company’s stock worth $5,479,000 after acquiring an additional 14,093 shares during the last quarter. Hedge funds and other institutional investors own 69.58% of the company’s stock.

HealthStream Company Profile

HealthStream, Inc is a Nashville, Tennessee–based provider of workforce development and learning management solutions for healthcare organizations. Since its founding in 1990, the company has focused on helping hospitals, clinics and other care providers streamline staff training, ensure regulatory compliance and monitor employee performance. HealthStream’s platform integrates online courses, skill competency assessments and credential management tools to support workforce readiness across the healthcare continuum.

The company’s core offerings include a learning management system (LMS) designed specifically for clinical and nonclinical personnel, a competency management suite that tracks skill acquisition and validation, and a content library featuring evidence-based clinical and compliance training modules.