HSTM · HealthStream, Inc.

HealthStream delivered a strong first quarter in 2026, with revenue reaching a record $81.2 million, a 10.5% increase year-over-year. The growth was driven by $3.4 million from the acquisitions of Virsys12 and MissionCare Collective (completed in Q4 2025) and $4.3 million from organic growth across existing solutions. Operating income surged 71.6% to $7.5 million, benefiting from higher revenues and sublease income, partially offset by increased investments in platform and enterprise applications, higher labor costs, royalties, cloud hosting, and amortization from acquisitions. Net income rose 36.4% to $5.9 million, with diluted EPS of $0.20, up from $0.14. Adjusted EBITDA grew 24.1% to $20.1 million, reflecting operational leverage. The company reaffirmed its full-year 2026 guidance, projecting revenue of $323-$330 million, net income of $20.4-$22.8 million, and adjusted EBITDA of $73-$77 million. Management highlighted disciplined execution and momentum across the business, particularly in Career Networks and enterprise application suites, as well as AI initiatives. Additionally, the Board declared a quarterly cash dividend of $0.035 per share, payable on May 29, 2026, and the company continued its share repurchase program, buying back 342,345 shares in Q1 at an average price of $21.91 per share. The strong results and reaffirmed guidance underscore HealthStream's solid financial health and growth trajectory.