Revenue growth remains consistently positive at 10.5% in 2026Q1, though operating margins remain compressed within a 3.0% to 9.9% range due to elevated operating expenses.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Sales/Revenue | 311.78M | 304.06M | 291.65M | 279.06M | 266.83M | 256.71M | 244.83M | 254.11M | 231.62M | 247.66M | 225.97M | 209M | 170.69M | 132.27M | 103.73M | 82.07M | 65.75M | 57.4M | 51.6M | 43.95M | 31.78M | 27.36M | 20.06M | 18.2M | 15.79M | 13.5M | 9.65M | 2.6M |
| Revenue Growth % | 6.64% | 4.26% | 4.51% | 4.59% | 3.94% | 4.85% | -3.65% | 9.71% | -6.48% | 9.6% | 8.12% | 22.45% | 29.04% | 27.52% | 26.4% | 24.81% | 14.56% | 11.24% | 17.41% | 38.28% | 16.17% | 36.41% | 10.23% | 15.23% | 16.93% | 39.9% | 271.22% | - |
| Cost of Goods Sold | 109.48M | 107.21M | 97.94M | 95.02M | 91.14M | 91.03M | 89.33M | 103.89M | 96.01M | 106M | 96.63M | 89.39M | 74.14M | 55.6M | 41.66M | 31.07M | 24.19M | 21.34M | 19.65M | 16.16M | 10.87M | 9.75M | 7.28M | 6.27M | 5.97M | 5.77M | -2.64M | 1.7M |
| COGS % of Revenue | - | 35.26% | 33.58% | 34.05% | 34.16% | 35.46% | 36.49% | 40.88% | 41.45% | 42.8% | 42.76% | 42.77% | 43.44% | 42.04% | 40.16% | 37.85% | 36.79% | 37.19% | 38.09% | 36.78% | 34.2% | 35.62% | 36.28% | 34.45% | 37.81% | 42.75% | -27.3% | 65.38% |
| Gross Profit | 202.3M | 196.85M | 193.71M | 184.04M | 175.68M | 165.68M | 155.49M | 150.22M | 135.6M | 141.66M | 129.34M | 119.62M | 96.55M | 76.67M | 62.07M | 51M | 41.56M | 36.05M | 31.95M | 27.79M | 20.91M | 17.61M | 12.78M | 11.93M | 9.82M | 7.73M | 12.29M | 900K |
| Gross Margin % | 64.89% | 64.74% | 66.42% | 65.95% | 65.84% | 64.54% | 63.51% | 59.12% | 58.55% | 57.2% | 57.24% | 57.23% | 56.56% | 57.96% | 59.84% | 62.15% | 63.21% | 62.81% | 61.91% | 63.22% | 65.8% | 64.38% | 63.72% | 65.55% | 62.19% | 57.25% | 127.3% | 34.62% |
| Gross Profit Growth % | - | 1.62% | 5.25% | 4.76% | 6.04% | 6.55% | 3.51% | 10.78% | -4.28% | 9.53% | 8.13% | 23.9% | 25.92% | 23.51% | 21.71% | 22.7% | 15.28% | 12.86% | 14.97% | 32.86% | 18.74% | 37.82% | 7.15% | 21.47% | 27.01% | -37.08% | 1265.24% | - |
| Operating Expenses | 178.93M | 176.62M | 172.42M | 168.02M | 163.23M | 157.62M | 139.68M | 135.5M | 120.11M | 131.86M | 123.77M | 106.06M | 80.17M | 62M | 48.62M | 39.66M | 34.5M | 30.93M | 29.46M | 25.87M | 19.01M | 16.02M | 14.07M | 15.73M | 22.18M | 29.11M | 34.96M | 5.5M |
| OpEx % of Revenue | - | 58.09% | 59.12% | 60.21% | 61.18% | 61.4% | 57.05% | 53.32% | 51.86% | 53.24% | 54.77% | 50.75% | 46.97% | 46.87% | 46.87% | 48.33% | 52.47% | 53.89% | 57.1% | 58.87% | 59.8% | 58.54% | 70.15% | 86.43% | 140.46% | 215.57% | 362.22% | 211.54% |
| Selling, General & Admin | 82.3M | 82.16M | 82.29M | 81.41M | 81.01M | 79.15M | 77.18M | 78.52M | 70.14M | 77.68M | 72.67M | 64.85M | 52.78M | 42.39M | 33.34M | 26.78M | 22.64M | 19.51M | 18.97M | 17.06M | 12.61M | 10.41M | 9.43M | 9.43M | 13.1M | 13.02M | 22.54M | 3M |
| SG&A % of Revenue | - | 27.02% | 28.22% | 29.17% | 30.36% | 30.83% | 31.53% | 30.9% | 30.29% | 31.37% | 32.16% | 31.03% | 30.92% | 32.05% | 32.14% | 32.63% | 34.42% | 33.99% | 36.77% | 38.82% | 39.68% | 38.05% | 47.03% | 51.83% | 82.99% | 96.41% | 233.53% | 115.38% |
| Research & Development | 52.54M | 50.98M | 48.89M | 45.54M | 44.28M | 41.66M | 32.3M | 29.11M | 25.73M | 27.9M | 28.9M | 24.21M | 16.46M | 11.76M | 8.61M | 7.47M | 6.99M | 6.29M | 5.67M | 4.31M | 3.5M | 2.93M | 2.53M | 3.25M | 4.68M | 5.04M | 5.64M | 2M |
| R&D % of Revenue | - | 16.77% | 16.76% | 16.32% | 16.59% | 16.23% | 13.2% | 11.46% | 11.11% | 11.26% | 12.79% | 11.59% | 9.64% | 8.89% | 8.3% | 9.11% | 10.63% | 10.95% | 10.99% | 9.8% | 11.02% | 10.7% | 12.62% | 17.85% | 29.63% | 37.33% | 58.43% | 76.92% |
| Other Operating Expenses | 4M | 43.48M | 41.24M | 41.08M | 37.95M | 36.81M | 30.19M | 27.87M | 1.08M | 733K | 581K | 162K | 146K | 176K | 118K | 5.41M | 4.88M | 5.14M | 4.82M | 21.56M | 15.5M | 13.09M | 11.54M | 12.48M | 17.5M | 11.05M | 6.78M | 3.5M |
| Operating Income | 23.37M | 20.24M | 21.29M | 16.02M | 12.45M | 8.05M | 15.82M | 14.72M | 15.49M | 9.8M | 5.57M | 13.56M | 16.38M | 14.67M | 13.46M | 11.34M | 7.06M | 5.12M | 2.48M | 1.92M | 1.91M | 1.6M | -1.29M | -3.8M | -12.36M | -21.38M | -22.67M | -4.6M |
| Operating Margin % | 7.5% | 6.66% | 7.3% | 5.74% | 4.67% | 3.14% | 6.46% | 5.79% | 6.69% | 3.96% | 2.46% | 6.49% | 9.59% | 11.09% | 12.97% | 13.82% | 10.74% | 8.92% | 4.81% | 4.36% | 6.01% | 5.84% | -6.44% | -20.88% | -78.27% | -158.31% | -234.92% | -176.92% |
| Operating Income Growth % | - | -4.94% | 32.89% | 28.68% | 54.55% | -49.08% | 7.46% | -4.98% | 58.07% | 76.04% | -58.94% | -17.21% | 11.65% | 8.97% | 18.71% | 60.6% | 37.83% | 106.41% | 29.56% | 0.33% | 19.57% | 223.69% | 66.02% | 69.26% | 42.19% | 5.72% | -392.91% | - |
| EBITDA | 67.46M | 63.71M | 62.53M | 57.09M | 50.39M | 44.87M | 46.01M | 42.59M | 39.72M | 33.85M | 27.77M | 30.55M | 27.31M | 22.52M | 20.12M | 16.75M | 11.94M | 10.26M | 7.3M | 6.42M | 4.8M | 4.28M | 815.89K | -751.23K | -7.96M | -11.44M | -15.89M | -4.1M |
| EBITDA Margin % | 21.64% | 20.95% | 21.44% | 20.46% | 18.89% | 17.48% | 18.79% | 16.76% | 17.15% | 13.67% | 12.29% | 14.62% | 16% | 17.02% | 19.4% | 20.41% | 18.16% | 17.88% | 14.15% | 14.6% | 15.1% | 15.63% | 4.07% | -4.13% | -50.44% | -84.73% | -164.66% | -157.69% |
| EBITDA Growth % | 9.44% | 1.89% | 9.52% | 13.3% | 12.32% | -2.48% | 8.03% | 7.22% | 17.36% | 21.87% | -9.1% | 11.89% | 21.26% | 11.92% | 20.12% | 40.29% | 16.36% | 40.49% | 13.79% | 33.77% | 12.24% | 423.98% | 208.61% | 90.57% | 30.39% | 28.01% | -287.62% | - |
| D&A (Non-Cash Add-back) | 44.09M | 43.48M | 41.24M | 41.08M | 37.95M | 36.81M | 30.19M | 27.87M | 24.23M | 24.05M | 22.21M | 17M | 10.93M | 7.85M | 6.66M | 5.41M | 4.88M | 5.14M | 4.82M | 4.5M | 2.89M | 2.68M | 2.11M | 3.05M | 4.39M | 9.94M | 6.78M | 500K |
| EBIT | 24.5M | 23.22M | 21.29M | 16.02M | 12.45M | 8.05M | 15.82M | 14.72M | 15.49M | 9.41M | 6.15M | 13.56M | 16.38M | 14.67M | 13.46M | 11.34M | 7.08M | 5.15M | 2.62M | 1.92M | 1.91M | 1.6M | -1.29M | -3.8M | -12.36M | -21.38M | -22.67M | -4.6M |
| Net Interest Income | 2.82M | 3.34M | 3.83M | 2.36M | 444K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10K | -20.86K | -15.22K | 72.19K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 2.82M | 3.34M | 3.83M | 2.36M | 444K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 58K | 20.07K | 25.47K | 139.8K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 48K | 40.92K | 40.7K | 67.61K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 2.42M | 2.98M | 3.52M | 2.49M | 3.14M | -289K | 2M | 3.21M | 1.08M | 733K | -372K | 162K | 146K | 176K | 118K | 10K | -21K | -15.22K | 72.19K | 226.34K | 618.59K | 337.72K | 242.48K | 3.8M | 12.36M | -1.28M | 0 | 0 |
| Pretax Income | 25.79M | 23.22M | 24.8M | 18.51M | 15.59M | 7.77M | 17.82M | 17.93M | 16.57M | 10.53M | 6.15M | 13.72M | 16.52M | 14.84M | 13.58M | 11.35M | 7.04M | 5.11M | 2.55M | 2.14M | 2.53M | 1.93M | -1.05B | -3.41B | -16.64B | -22.66M | 0 | 0 |
| Pretax Margin % | 8.27% | 7.64% | 8.5% | 6.63% | 5.84% | 3.03% | 7.28% | 7.06% | 7.16% | 4.25% | 2.72% | 6.56% | 9.68% | 11.22% | 13.09% | 13.83% | 10.7% | 8.9% | 4.95% | 4.87% | 7.95% | 7.07% | -5226.92% | -18752.52% | -105393.73% | -167.8% | - | - |
| Income Tax | 5.87M | 4.88M | 4.8M | 3.3M | 3.49M | 1.92M | 3.73M | 3.73M | 3.32M | 529K | 2.39M | 5.1M | 6.13M | 6.42M | 5.93M | 4.4M | 2.88M | -8.87M | -301.09K | -1.95M | 28.04K | 21.5K | -242.48K | -386.66K | 4.28M | -1.8M | -2.39M | -100K |
| Effective Tax Rate % | 22.76% | 21% | 19.34% | 17.82% | 22.42% | 24.74% | 20.94% | 20.82% | 20.05% | 5.02% | 38.92% | 37.16% | 37.09% | 43.28% | 43.69% | 38.81% | 40.98% | -173.59% | -11.79% | -90.84% | 1.11% | 1.11% | 0.02% | 0.01% | -0.03% | 7.95% | - | - |
| Net Income | 19.92M | 18.34M | 20.01M | 15.21M | 12.09M | 5.84M | 14.09M | 15.77M | 32.22M | 10M | 3.75M | 8.62M | 10.39M | 8.42M | 7.64M | 6.94M | 4.15M | 13.97M | 2.85M | 4.09M | 2.5M | 1.91M | -1.05M | -3.41M | -16.64M | -19.58M | -20.29M | -4.5M |
| Net Margin % | 6.39% | 6.03% | 6.86% | 5.45% | 4.53% | 2.28% | 5.76% | 6.21% | 13.91% | 4.04% | 1.66% | 4.12% | 6.09% | 6.36% | 7.37% | 8.46% | 6.32% | 24.34% | 5.53% | 9.3% | 7.86% | 6.99% | -5.23% | -18.75% | -105.39% | -144.97% | -210.17% | -173.08% |
| Net Income Growth % | 4.22% | -8.32% | 31.51% | 25.82% | 106.86% | -58.52% | -10.65% | -51.05% | 222.04% | 166.42% | -56.44% | -17.06% | 23.47% | 10.11% | 10.1% | 67.15% | -70.27% | 389.42% | -30.15% | 63.51% | 30.67% | 282.47% | 69.27% | 79.5% | 14.99% | 3.5% | -350.78% | - |
| Net Income (Continuing) | 19.92M | 18.34M | 20.01M | 15.21M | 12.09M | 5.84M | 14.09M | 14.2M | 13.25M | 8.84M | 4.79M | 8.62M | 10.39M | 8.42M | 7.64M | 6.94M | 4.15M | 13.97M | 2.85M | 4.09M | 2.5M | 1.91M | -1.05M | -3.41M | -11.64M | -19.58M | -20.29M | -4.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.57M | 18.97M | 1.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.68 | 0.61 | 0.66 | 0.50 | 0.39 | 0.18 | 0.44 | 0.44 | 1.00 | 0.31 | 0.12 | 0.28 | 0.37 | 0.30 | 0.28 | 0.29 | 0.18 | 0.64 | 0.13 | 0.18 | 0.11 | 0.09 | -0.05 | -0.17 | -0.82 | -0.98 | -1.29 | -1.20 |
| EPS Growth % | 5.6% | -7.58% | 32% | 28.21% | 116.67% | -59.09% | 0% | -56% | 222.58% | 158.33% | -57.14% | -24.32% | 23.33% | 7.14% | -3.45% | 61.11% | -71.88% | 392.31% | -27.78% | 63.64% | 22.22% | 276.82% | 70.06% | 79.27% | 16.33% | 24.03% | -7.5% | - |
| EPS (Basic) | - | 0.61 | 0.66 | 0.50 | 0.39 | 0.19 | 0.44 | 0.44 | 1.00 | 0.31 | 0.12 | 0.29 | 0.38 | 0.31 | 0.29 | 0.31 | 0.19 | 0.65 | 0.13 | 0.19 | 0.12 | 0.09 | -0.05 | -0.17 | -0.82 | -0.98 | -1.29 | -1.20 |
| Diluted Shares Outstanding | 29.42M | 30.14M | 30.54M | 30.67M | 30.72M | 31.62M | 31.99M | 32.43M | 32.34M | 32.2M | 32.07M | 30.44M | 28.02M | 27.66M | 27.51M | 23.75M | 22.49M | 21.84M | 22.2M | 22.7M | 22.36M | 21.94M | 20.59M | 20.38M | 20.26M | 19.92M | 15.79M | 3.76M |
| Basic Shares Outstanding | 29.38M | 30.02M | 30.39M | 30.57M | 30.65M | 31.53M | 31.96M | 32.37M | 32.26M | 31.86M | 31.72M | 30.06M | 27.57M | 26.85M | 26.13M | 22.45M | 21.77M | 21.46M | 21.71M | 22M | 21.58M | 21.05M | 20.59M | 20.38M | 20.26M | 19.92M | 15.79M | 3.76M |
| Dividend Payout Ratio | - | 20.33% | 17.01% | 20.1% | - | 0.33% | 0.28% | 0.37% | 100.43% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Enterprise ERP Competitive Displacement
According to the provided quarterly income statements, HealthStream has maintained a consistent revenue growth trajectory, culminating in a 10.5% year-over-year increase in 2026Q1, which suggests that the company's core subscription-based model continues to benefit from steady, albeit slow, adoption within the domestic healthcare market.
The recent acceleration to double-digit growth in 2026Q1 warrants further investigation to determine if this represents a sustainable shift or a temporary timing benefit from contract renewals. Given the mature nature of the Workforce Solutions segment, investors should monitor whether this growth is driven by new customer acquisition or price increases within the existing installed base.
As reported in financial statements, HealthStream's gross margin has remained relatively stable, hovering between 63.8% and 66.8% over the last ten quarters, which indicates that the company's cost of service delivery is well-contained despite the ongoing transition toward unified SaaS platform offerings.
The consistency in gross margins suggests that the company possesses a degree of pricing power, likely derived from the regulatory necessity of its accreditation and credentialing tools. However, the lack of significant margin expansion implies that the company has yet to achieve the full economies of scale typically associated with a mature SaaS business model.
Based on the reported figures, the gap between gross profit and operating income has remained wide, with operating margins fluctuating between 3.0% and 9.9%, suggesting that high SG&A and R&D expenses continue to offset the benefits of the company's high-margin subscription revenue streams.
The persistent level of R&D and SG&A spending appears to be a structural requirement to maintain the platform's integration with clinical authorities and to support customer retention. Investors should monitor whether the ongoing consolidation into the 'CredentialStream' platform will eventually allow for a more efficient operating structure and improved profitability.
Analysis of the income statement reveals that net income has been periodically impacted by stock-based compensation, most notably in 2025Q4 when a $5.4 million charge contributed to a significant compression in net margins, highlighting the influence of non-cash expenses on reported bottom-line performance.
While the company maintains a consistent ability to generate positive net income, the variability in quarterly EPS suggests that investors should focus on normalized earnings metrics to gauge true operational performance. The absence of SBC in 2026Q1 may indicate a shift in compensation strategy that warrants further scrutiny in future filings.
While the company's moat appears secure, the potential for enterprise ERP giants to integrate clinical workforce modules into broader HR suites poses a material risk to HealthStream's long-term pricing power and market share, as suggested by the recent competitive context flags in the provided data.
If hospital systems prioritize consolidated HR platforms over specialized clinical tools, HealthStream may face increased pressure to lower prices or increase marketing spend to defend its position. This potential for margin compression remains a key risk that could challenge the current valuation of the company as a stable utility.
Quick answers to the most common questions about buying HSTM stock.
For fiscal year 2025, HealthStream, Inc. (HSTM) reported total revenue of $304.1M. This represents a 11594.8% increase compared to $2.6M in 1999.
HealthStream, Inc. (HSTM) is profitable, generating $18.3M in net income for the fiscal year ending 2025 with a net profit margin of 6.0%.
HealthStream, Inc. (HSTM) reported an operating income of $20.2M, resulting in an operating profit margin of 6.7%. This margin reflects the operational efficiency of the business before interest and taxes.
HealthStream, Inc. (HSTM) generated $196.9M in gross profit for the year, representing a gross profit margin of 64.7%. This demonstrates the company's core pricing power and production efficiency.