One-glance verdict
Undervalued
$75.31 our estimate vs market $29.11
Wall Street consensus: $34.50 (-54.2% lower than our fair-value estimate)
61% below our estimate, below the bear case
Fundamentals snapshot
HealthStream, Inc.
HSTM · NMS · Healthcare · Health Information Services
Current price
$29.11
52-week range
$19.50 - $31.11
Market cap
$851.18M
Balance sheet
Healthy
6.06x Adequate
Net cash $53.30M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 5.6% last year.
- Reward Returns 6.0% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
HealthStream, Inc.
HealthStream provides software to hospitals and other healthcare providers to help them manage important tasks like staff training, scheduling, and verifying doctor and nurse credentials. The company makes its money by selling subscriptions, which creates recurring revenue (predictable income that comes in regularly, like a gym membership) and makes its sales more stable than one-time purchases.
How the company got here
HealthStream was founded in 1990 in Nashville, Tennessee, with the goal of using technology to help train and educate people in the healthcare industry. It started by focusing on providing online learning tools for hospitals. In 2000, the company became publicly traded on the Nasdaq stock exchange. Over the years, HealthStream expanded from just offering training content to providing a wider range of software that helps healthcare organizations manage their staff, a strategy that included buying other companies to add new capabilities.
What it actually does
Think of HealthStream as a company that provides the software and tools hospitals and other healthcare facilities use to manage their employees. This includes everything from online training courses that teach nurses new procedures to software that helps schedule staff shifts. They also offer systems that check and manage doctors' credentials (their qualifications and licenses) to ensure they are allowed to practice. Essentially, HealthStream's products help healthcare organizations handle the critical behind-the-scenes work of managing their most important asset: their people.
Workforce Solutions
This is the company's original and largest area of business, focused on the healthcare workforce. It provides a wide range of software delivered online, often called SaaS (Software-as-a-Service), which is like a subscription for software instead of buying it outright. This segment offers tools for employee training, compliance (making sure the hospital follows all the rules), performance reviews, and even staff scheduling. Hospitals and other healthcare providers pay subscription fees to use these tools to make sure their staff is well-trained, qualified, and scheduled efficiently.
Provider Solutions
This part of the business focuses specifically on doctors and other healthcare providers. It offers software that helps hospitals manage the entire lifecycle of a provider, from hiring and checking their credentials to granting them privileges to work in the facility. This is a critical process for patient safety and hospital administration. Healthcare organizations pay HealthStream to use these tools to streamline what can be a very complicated and paper-heavy process, ensuring that all their providers are properly vetted and approved.
What management is betting on now
HealthStream's main focus is on becoming a single, integrated platform for healthcare workforce management. They are moving from offering separate software products to creating a connected system, called hStream, where all their tools work together seamlessly. The company is also focused on cross-selling, which means encouraging existing customers who use one of their services (like training) to also buy their other services (like scheduling or credentialing). By getting their customers to use more of their interconnected products, they aim to become an essential partner that is deeply embedded in the daily operations of healthcare organizations.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$18.83M
FY2024 Q4
$10.96M
FY2025 Q1
$26.02M
FY2025 Q2
$2.71M
FY2025 Q3
$17.92M
FY2025 Q4
$12.99M
FY2026 Q1
$26.40M
FY2026 Q2
$12.52M
Revenue
$83.73M
Net income
$6.67M
Diluted EPS
0.23
Operating cash flow
$13.43M
Free cash flow
$12.52M
Fetching…
Sources
Revenue
$81.20M
Net income
$5.91M
Diluted EPS
0.20
Operating cash flow
$27.14M
Free cash flow
$26.40M
Fetching…
Sources
Revenue
$79.71M
Net income
$2.54M
Diluted EPS
0.09
Operating cash flow
$13.19M
Free cash flow
$12.99M
Fetching…
Sources
Revenue
$76.47M
Net income
$6.09M
Diluted EPS
0.20
Operating cash flow
$18.03M
Free cash flow
$17.92M
Fetching…
Sources
Revenue
$74.40M
Net income
$5.39M
Diluted EPS
0.18
Operating cash flow
$5.02M
Free cash flow
$2.71M
Fetching…
Sources
Revenue
$73.48M
Net income
$4.33M
Diluted EPS
0.14
Operating cash flow
$27.07M
Free cash flow
$26.02M
Fetching…
Sources
Revenue
$74.23M
Net income
$4.89M
Diluted EPS
0.16
Operating cash flow
$11.16M
Free cash flow
$10.96M
Fetching…
Sources
Revenue
$73.09M
Net income
$5.72M
Diluted EPS
0.19
Operating cash flow
$19.11M
Free cash flow
$18.83M
Fetching…
Sources
Is it cheap or expensive?
Fair value $75.31 vs current price $29.11
Wall Street consensus is the average analyst price target: $34.50 (-54.2% lower than our fair-value estimate).
Our most-likely fair value is $75.31 a share — about 158.7% above today's price of $29.11, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $53.3M - more cash than debt. Interest coverage 6.1x.
Net debt
$-53.30M
Interest coverage
6.06x
HealthStream, Inc.'s profit covers its interest bill about 6.1 times over. which is stronger than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
HSTM
BASELINE
HealthStream, Inc.
Total debt $13.43M Interest coverage 6.06x This is the baseline the peer rows are being compared against.
Total debt $67.95M Interest coverage -0.95x -100% vs HSTM This peer has almost no interest-payment cushion compared with HSTM.
Total debt $51.38M Interest coverage -18.01x -100% vs HSTM This peer has almost no interest-payment cushion compared with HSTM.
Total debt $5.75M Interest coverage 24.60x +306% vs HSTM Carries about 4.1x more debt cushion than HSTM.
Total debt $169.98M Interest coverage -1.76x -100% vs HSTM This peer has almost no interest-payment cushion compared with HSTM.
Total debt $167.06M Interest coverage -1.82x -100% vs HSTM This peer has almost no interest-payment cushion compared with HSTM.
What you should know
The case for and against HSTM
3 Rewards
0 Risks
Rewards
-
Revenue grew 5.6% last year.
-
Returns 6.0% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
40.43x
Forward P/E
32.89x
P/B
2.39x
P/S
2.65x
EV/EBITDA
17.77x
PEG ratio
2.81x
Profitability
How much profit each dollar creates
Gross margin
65.1%
Operating margin
9.9%
Net margin
6.6%
ROE
6.0%
ROA
3.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.04x
Current ratio
1.06x
Quick ratio
0.84x
Total debt
$13.43M
Total cash
$66.73M
Growth
How the business has been compounding
Revenue TTM
$321.12M
Revenue 5Y CAGR
4.3%
EPS TTM
0.72
EPS 5Y CAGR
16.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$71.79M
Free CF TTM
$59.63M
FCF margin
18.6%
Dividend
Shareholder payout
Yield
0.5%
Payout ratio
18.3%
Last ex-div date
2026-08-17