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Dec 31, 2025
HealthStream Q4 2025 Earnings Report
HealthStream reported record quarterly revenue for the fourth quarter of 2025, despite a one-time CEO stock gift impacting GAAP profitability.
Key Takeaways
HealthStream achieved record quarterly revenue of $79.7 million in Q4 2025, up 7.4% year-over-year. While GAAP net income and operating income declined due to a $3.8 million non-cash charge related to a CEO stock gift to employees, non-GAAP measures showed strong growth, with adjusted EBITDA increasing by 16.4%.
Achieved record quarterly revenue of $79.7 million, driven by 8.2% growth in subscription services.
CEO Robert A. Frist, Jr. contributed $3.8 million of personal stock to grant shares to over 700 non-officer employees.
Non-GAAP operating income rose 31.7% to $6.2 million when excluding the impact of the CEO stock gift.
Completed two strategic acquisitions in Q4: Virsys12 and MissionCare Collective to expand the healthcare technology platform.
Revenue by Segment
Forward Guidance
HealthStream provides a positive outlook for 2026, projecting revenue growth and increased profitability as it leverages its position in the AI-driven healthcare landscape.
Positive Outlook
- Projected 2026 revenue between $323.0 million and $330.0 million.
- Expected Adjusted EBITDA growth to a range of $73.0 million to $77.0 million.
- Anticipated net income between $20.4 million and $22.8 million.
- Strong positioning to play an instrumental role in the emerging AI-driven healthcare landscape.
- Expansion of the clinical healthcare workforce user base.
Challenges Ahead
- Capital expenditures projected to remain high between $31.0 million and $34.0 million.
- Guidance assumes general economic conditions do not deteriorate.
- Guidance does not include the impact of potential future acquisitions or dispositions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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