Overview

• Healthcare technology platform's Q1 revenue rose 10.5%, beating analyst expectations

• Adjusted EBITDA for Q1 beat analyst estimates, rising 24.1% yr/yr

• Company authorized $10 mln share repurchase program and repurchased $7.5 mln in shares

Outlook

• Company reaffirms 2026 revenue guidance of $323 mln to $330 mln

• HealthStream expects 2026 net income of $20.4 mln to $22.8 mln

• Company sees 2026 adjusted EBITDA between $73 mln and $77 mln

Result Drivers

• ACQUISITIONS - Co said Q1 revenue growth was boosted by $3.4 mln from acquisitions of Virsys12 and MissionCare Collective completed in Q4 2025

• ORGANIC PORTFOLIO GROWTH - Co said Q1 revenue rose $4.3 mln from growth across its existing portfolio of solutions

• SUBSCRIPTION REVENUE - Co said subscription revenues increased $7.6 mln, or 10.7%, yr/yr

Company press release: ID:nBw6RsxXJa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$81.20 mln	$79.67 mln (5 Analysts)
Q1 EPS		$0.20
Q1 Net Income		$5.90 mln
Q1 Adjusted EBITDA	Beat	$20.10 mln	$17.99 mln (5 Analysts)
Q1 Capex		$7.30 mln
Q1 Operating Income		$7.50 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for HealthStream Inc is $21.00, about 1.4% above its May 1 closing price of $20.72

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 29 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.