HEALTHSTREAM INC (HSTM) Earnings History

HEALTHSTREAM INC - Q4 FY2025 EarningsMissed

Filed at: Feb 23, 2026, 4:35 PM EST|Read from source

EXECUTIVE SUMMARY

HealthStream reported record quarterly revenue in Q4 2025, driven by subscription revenue growth and strategic acquisitions. Despite a significant one-time CEO stock gift impacting reported GAAP figures, the company demonstrated non-GAAP operational improvements in net income and adjusted EBITDA, with a positive outlook for 2026.

POSITIVE HIGHLIGHTS

  • •

    Fourth quarter revenues reached a new Company record of $79.7 million, up 7.4% year-over-year.

    positive
  • •

    Full-year 2025 revenues increased by 4.3% to $304.1 million.

    positive
  • •

    Adjusted EBITDA for Q4 2025 increased 16.4% to $18.8 million, and for full-year 2025 increased 7.5% to $71.8 million.

    positive
  • •

    The Board declared a quarterly cash dividend of $0.035 per share, an increase of 12.9% over the previous quarter.

    positive

CONCERNS & RISKS

  • •

    Reported GAAP operating income for Q4 2025 decreased 48.8% to $2.4 million due to a $3.8 million charge from the CEO Stock Gift.

    attention
  • •

    Reported GAAP net income for Q4 2025 decreased 48.1% to $2.5 million due to a $2.8 million charge from the CEO Stock Gift.

    attention
  • •

    Reported GAAP diluted EPS for Q4 2025 decreased to $0.09 from $0.16 in Q4 2024, impacted by a $0.09 per share charge from the CEO Stock Gift.

    attention
  • •

    Full-year 2025 GAAP operating income decreased 4.9% to $20.2 million, and GAAP net income decreased 8.3% to $18.3 million, both impacted by the CEO Stock Gift.

    attention
  • •

    Full-year 2025 GAAP diluted EPS decreased to $0.61 from $0.66 in 2024, impacted by the CEO Stock Gift.

    attention
  • •

    Capital expenditures for Q4 2025 were $7.0 million, and for full-year 2025 were $31.9 million, with projected 2026 capital expenditures between $31.0 - $34.0 million.

    neutral

FINANCIAL METRICS

Revenue
Quarterly
$79.71M
+7.4%
Prior year: $74.23M
Annual (YTD)
$304.06M
N/A
Prior year: $291.65M
Net Income
Quarterly
$2.54M
-48.1%
Prior year: $4.89M
Annual (YTD)
$18.34M
N/A
Prior year: $20.01M
EPS (Diluted)
Quarterly
$0.09
-43.8%
Prior year: $0.16
Operating Income
Quarterly
$2.40M
-48.8%
Prior year: $4.69M
Annual (YTD)
$20.24M
N/A
Prior year: $21.29M
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Operating Margin
Current Quarter
3.0%
Prior Year
6.3%
YoY Change
-331 bps
Net Margin
Current Quarter
3.2%
Prior Year
6.6%
YoY Change
-341 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY2026

revenue
$323000.0B—$330000.0B
Mid-point: $326500.0B
net_income
20,400,000—22,800,000
Mid-point: 21,600,000
adjusted_ebitda
73,000,000—77,000,000
Mid-point: 75,000,000
capital_expenditures
31,000,000—34,000,000
Mid-point: 32,500,000

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
CEO Stock Gift - Stock Grant
Non-cash charge
+$3.5M
$0.12 per share
Q4 2025
CEO Stock Gift - Related Cash Expenses
Cash-based charge
+$0.3M
FY2025
CEO Stock Gift - Stock Grant
Non-cash charge
+$3.5M
$0.12 per share
FY2025
CEO Stock Gift - Related Cash Expenses
Cash-based charge
+$0.3M
FY2025
Impairment of long-lived assets
Non-GAAP adjustment
+$0.262M
FY2025
Fair value adjustment on contingent consideration
Non-GAAP adjustment
$0.085M
Total Impact
+$7.777M$0.24 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Our fourth quarter and full-year 2025 results reflect a well-executed finish to the year, driven by broad-based customer demand across our offerings.

— HEALTHSTREAM INC, Q4 FY2025 2025 Earnings Call

We achieved record quarterly revenue of $79.7 million, up 7.4%, and delivered Adjusted EBITDA of $18.8 million, up 16.4% year-over-year.

— HEALTHSTREAM INC, Q4 FY2025 2025 Earnings Call

HealthStream is uniquely well positioned to play an instrumental role in the emerging AI-driven landscape.

— HEALTHSTREAM INC, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.