HSTM earnings analysis
What we found in HSTM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
HealthStream, Inc. reported Q1 2026 results with revenues of $81.2 million, exceeding expectations and representing an 11% increase year-over-year. EPS also surpassed estimates at $0.20, up from $0.14 a year prior, driven by strong demand for the company's SaaS applications and successful acquisitions.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 11% Year-over-Year
- Revenue increased to $81.2 million, up from $73.5 million in Q1 2025.
- Operating Income Surged 71.6%
- Operating income rose to $7.5 million from $4.4 million a year ago.
- EPS Outperformance
- Diluted EPS reached $0.20, an increase from $0.14 in Q1 2025.
- Strong Adjusted EBITDA Performance
- Adjusted EBITDA grew to $20.1 million, up 24.1% from $16.2 million in Q1 2025.
- Improvement in Gross Margin
- Gross margin improved to 66.4% in Q1 2026, compared to 65.1% in Q1 2025.
- Launch of New Share Repurchase Program
- A new $10 million share repurchase program was authorized as of March 13, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Healthcare Policy Changes
- Macroeconomic challenges and potential policy changes may impact customer purchasing decisions.
- Dependence on Acquisitions
- Growth is partially dependent on recent acquisitions, which may face integration challenges.
- Negative Working Capital
- As of March 31, 2026, negative working capital improved to -$3.5 million, but could impact liquidity.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.2
- Gross margin
- 66.4%
- Operating margin
- 9.2%
- Segment
- Subscription Services: $78.4 million
- Segment
- Professional Services: $2.8 million
What they said about what is next.
The Company reaffirmed its 2026 revenue guidance of $323 million to $330 million.
The filing reads better than the one before it.
What came before.
- 10-K · February 27, 2026
- HealthStream emphasizes a single-platform SaaS strategy (hStream) and AI-enabled product innovation (including the Competency Suite) while completing four acquisitions since 2023, most recently Virsys12 in October 2025…
- 10-K · February 28, 2025
- HealthStream emphasizes a single-platform SaaS strategy (hStream) and recent product innovation (the AI/ML-driven “Competency Suite”), supported by four acquisitions since 2022 including two asset acquisitions in…
- 10-Q · October 24, 2024
- HealthStream reported Q3 revenue of $73,095,000 (up $2,756,000 or ~3.9% YoY from $70,339,000) and diluted EPS of $0.19 (vs. $0.13 YoY). Operating income expanded to $6,498,000 (operating margin ~8.9% vs ~6.9% a year…
- 10-Q · April 25, 2024
- HealthStream reported a quarter of sequential and year-over-year improvement: revenue rose to $72,760,000 (from $68,946,000 a year ago), operating income nearly doubled to $5,690,000 (from $2,891,000), and diluted EPS…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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