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HealthStream Announces Second Quarter 2025 Results

NASHVILLE, Tenn.--(BUSINESS WIRE)-- HealthStream, Inc. (the "Company") (Nasdaq: HSTM), a leading healthcare technology platform company for workforce solutions, announced today results for the second quarter ended June 30, 2025.

Second Quarter 2025

• Revenues of $74.4 million in the second quarter of 2025, up 4.0% from $71.6 million in the second quarter of 2024, setting a new Company record for quarterly revenue
• Operating income of $5.9 million in the second quarter of 2025, up 33.4% from $4.4 million in the second quarter of 2024
• Net income of $5.4 million in the second quarter of 2025, up 29.3% from $4.2 million in the second quarter of 2024
• Earnings per share (EPS) of $0.18 per share (diluted) in the second quarter of 2025, up from $0.14 per share (diluted) in the second quarter of 2024
• Adjusted EBITDA¹ of $17.6 million in the second quarter of 2025, up 11.3% from $15.8 million in the second quarter of 2024
• Board of Directors authorized a share repurchase program on May 8, 2025 to repurchase up to $25.0 million of outstanding shares of common stock, with $18.1 million repurchased during the second quarter
• Board of Directors declared a quarterly cash dividend of $0.031 per share, payable on August 29, 2025 to holders of record on August 18, 2025

Financial Results:

Second Quarter 2025 Compared to Second Quarter 2024

Revenues for the second quarter of 2025 increased by $2.8 million, or 4.0%, to $74.4 million, compared to $71.6 million for the second quarter of 2024. Subscription revenues increased by $2.9 million, or 4.2%, and professional services revenues decreased by $0.1 million compared to the second quarter of 2024.

Operating income was $5.9 million for the second quarter of 2025, up 33.4% from $4.4 million in the second quarter of 2024. The improvement in operating income was primarily attributable to increased revenues, sublease income associated with the sublease that commenced during the second quarter of 2025, and lower bad debt expense. These improvements were partially offset by higher expenses to support investments in several areas of the business, primarily in our platform and SaaS applications, resulting in higher labor costs, cloud hosting, third-party software, and amortization of capitalized software costs, along with increased royalties.

Net income was $5.4 million in the second quarter of 2025, up 29.3% from $4.2 million in the second quarter of 2024, and EPS was $0.18 per share (diluted) in the second quarter of 2025, up from $0.14 per share (diluted) in the second quarter of 2024.

Adjusted EBITDA was $17.6 million for the second quarter of 2025, up 11.3% from $15.8 million in the second quarter of 2024.

At June 30, 2025, the Company had cash, cash equivalents, and marketable securities of $90.6 million. The Company does not have any outstanding indebtedness from borrowed money. Capital expenditures incurred during the second quarter of 2025 were $9.2 million.

Year-to-Date 2025 Compared to Year-to-Date 2024

For the six months ended June 30, 2025, revenues were $147.9 million, an increase of 2.5% over revenues of $144.3 million for the first six months of 2024. Operating income for the first six months of 2025 increased by 1.6% to $10.3 million, compared to $10.1 million for the first six months of 2024. The increase in operating income was primarily attributable to higher revenues, sublease income associated with the sublease that commenced during the second quarter of 2025, and lower bad debt expense, partially offset by higher expenses to support investments in several areas of the business, primarily in our platform and SaaS applications, resulting in higher labor costs, cloud hosting, third-party software, and amortization of capitalized software. Net income for the first six months of 2025 increased to $9.7 million, compared to $9.4 million for the first six months of 2024. Earnings per share were $0.32 per share (diluted) for the first six months of 2025, compared to $0.31 per share (diluted) for the first six months of 2024. Adjusted EBITDA increased by 2.8% to $33.8 million for the first six months of 2025, compared to $32.9 million for the first six months of 2024.

Other Business Updates

On May 8, 2025, the Company announced a share repurchase program approved by the Board of Directors under which the Company is authorized to repurchase up to $25.0 million of its outstanding shares of common stock. Pursuant to this authorization, repurchases may be made from time to time in the open market, including under a Rule 10b5-1 plan, through privately negotiated transactions, or otherwise. During the second quarter of 2025, the Company repurchased shares valued at $18.1 million pursuant to this authorization, and the Company continued to repurchase shares pursuant to this authorization during the third quarter, completing the program in July by repurchasing shares valued at $6.9 million. The share repurchase program terminated in July when the maximum dollar amount was expended.

On August 4, 2025, the Board of Directors approved a quarterly cash dividend under the Company's dividend policy of $0.031 per share, payable on August 29, 2025 to holders of record on August 18, 2025.

Financial Outlook for 2025

The Company is updating its guidance for 2025 for certain of the measures set forth below. For a reconciliation of projected adjusted EBITDA, a non-GAAP financial measure defined later in this release, to projected net income (the most comparable GAAP measure) for 2025, see the table included on page nine of this release.

The Company鈥檚 guidance for 2025, as set forth above, reflects the Company鈥檚 assumptions regarding, among other things, expectations for new sales and renewals. This consolidated guidance does not include the impact of any acquisitions or dispositions that we may complete during 2025, gains or losses from changes in the fair value of non-marketable equity investments, or impairment of long-lived assets.

Commenting on HealthStream鈥檚 results, Robert A. Frist, Jr., Chief Executive Officer, HealthStream, said, 鈥淥ur financial performance in the second quarter of 2025 showed year-over-year increases in each of the major categories we highlight in our earnings release, including record quarterly revenues of $74.4 million, up four percent over the second quarter of last year. As we kick-off the second half of the year, I believe HealthStream鈥檚 solutions are well positioned to continue helping healthcare organizations achieve greater workflow efficiencies, which, at this time, is of heightened focus throughout the healthcare industry.鈥�

A conference call with Robert A. Frist, Jr., Chief Executive Officer, Scott A. Roberts, Chief Financial Officer and Senior Vice President, and Mollie Condra, Head, Investor Relations and Communications, will be held on Tuesday, August 5, 2025, at 9:00 a.m. (ET). Participants may access the conference call live via webcast using this link: . To participate via telephone, please register in advance using this link: . A replay of the conference call and webcast will be archived on the Company鈥檚 website in the Investor Relations section under 鈥淓vents & Presentations.鈥�

Use of Non-GAAP Financial Measures

This press release presents adjusted EBITDA, a non-GAAP financial measure used by management in analyzing the Company鈥檚 financial results and ongoing operational performance. In order to better assess the Company鈥檚 financial results, management believes that net income before interest, income taxes, stock-based compensation, depreciation and amortization, and changes in fair value of, including gains (losses) on the sale of, non-marketable equity investments (鈥渁djusted EBITDA鈥�) is a useful measure for evaluating the operating performance of the Company because adjusted EBITDA reflects net income adjusted for certain GAAP accounting, non-cash, and/or non-operating items which may not, in any such case, fully reflect the underlying operating performance of our business. We believe that adjusted EBITDA is useful to investors to assess the Company鈥檚 ongoing operating performance and to compare the Company鈥檚 operating performance between periods. In addition, certain short-term cash incentive bonuses and performance-based equity awards are based on the achievement of adjusted EBITDA (as defined in applicable bonus and equity grant documentation) targets.

Adjusted EBITDA is a non-GAAP financial measure and should not be considered as a measure of financial performance under GAAP. Because adjusted EBITDA is not a measurement determined in accordance with GAAP, adjusted EBITDA is susceptible to varying calculations. Accordingly, adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies and has limitations as an analytical tool.

This non-GAAP financial measure should not be considered a substitute for, or superior to, measures of financial performance, which are prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of adjusted EBITDA to net income (the most comparable GAAP measure), which is set forth below in this release.

About HealthStream

HealthStream (Nasdaq: HSTM) is the healthcare industry鈥檚 largest ecosystem of platform-delivered workforce solutions that empowers healthcare professionals to do what they do best: deliver excellence in patient care. For more information about HealthStream, visit or call 615-301-3100.

This press release includes certain forward-looking statements (statements other than solely with respect to historical fact), including statements regarding expectations for financial performance for 2025 and our quarterly dividend policy, that involve risks and uncertainties regarding HealthStream. These statements are based upon management鈥檚 beliefs, as well as assumptions made by and data currently available to management. This information has been, or in the future may be, included in reliance on the 鈥渟afe harbor鈥� provisions of the Private Securities Litigation Reform Act of 1995. The Company cautions that forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by the forward-looking statements, including as a result of negative economic conditions, changes in U.S. policy, adverse developments impacting the healthcare industry, tariff and trade-related developments, inflationary pressures, geopolitical instability, legal requirements and contractual restrictions which may affect continuation of our quarterly cash dividend policy and the declaration and/or payment of dividends thereunder, which may be modified, suspended, or canceled in any manner and at any time that our Board may deem necessary or appropriate, as well as risks referenced in the Company鈥檚 Annual Report on Form 10-K for the year ended December 31, 2024, filed on February 28, 2025, the Company鈥檚 Quarterly Report on Form 10-Q for the three months ended March 31, 2025, filed on May 9, 2025, and in the Company鈥檚 other filings with the Securities and Exchange Commission from time to time. Consequently, such forward-looking information should not be regarded as a representation or warranty or statement by the Company that such projections will be realized. Many of the factors that will determine the Company鈥檚 future results are beyond the ability of the Company to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management鈥檚 views only as of the date hereof. The Company undertakes no obligation to update or revise any such forward-looking statements.

View source version on businesswire.com:

Scott A. Roberts

Chief Financial Officer

(615) 301-3182

[email protected]

Media:

Mollie Condra, Ph.D.

Head, Investor Relations & Communications

(615) 301-3237

[email protected]

Source: HealthStream, Inc.