HSTM
HealthStream, Inc.
HSTM's fundamentals are strong and it looks cheap: trading at 40x earnings, below its usual 50x. Analysts expect strong earnings growth.
HSTM Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Strong | |
| Strong |
HSTM's revenue, profitability, cash flow and balance sheet are all currently healthy.
HSTM PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 38x | $28.29 | — |
| Cheap | 40x | $27.80 | -1.7% |
| Current | 40x | $28.29 | — |
| Fair | 50x | $35.27 | +25% |
| Expensive | 97x | $67.62 | +139% |
Historical ranges are pointers, not guarantees.
HSTM's PE is in its cheap range at 40x. If earnings grow as analysts expect, today's price would be 38x next year's earnings.
HSTM Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Strong growth | |
| Growth | |
| Improving | |
| Limited | |
| Moderate |
Analysts expect earnings and revenue growth for HSTM, with profitability improving.
HSTM Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $0.74 | +6.3% |
| Q3 2026 | $0.70 | +2.9% |
| Q2 2026 | $0.72 | +7.5% |
| Q1 2026 | $0.67 | +6.3% |
| Q4 2025 | $0.61 | -7.6% |
| Q3 2025 | $0.68 | +4.6% |
| Q2 2025 | $0.67 | +14% |
| Q1 2025 | $0.63 | +8.6% |
| Q4 2024 | $0.66 | +32% |
HSTM earned $0.70 per share over the past year, up 2.9% from the year before.
HSTM Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $83.3M | +8.9% |
| Q2 2026 | $83.7M | +13% |
| Q1 2026 | $81.2M | +11% |
| Q4 2025 | $79.7M | +7.4% |
| Q3 2025 | $76.5M | +4.6% |
| Q2 2025 | $74.4M | +4% |
| Q1 2025 | $73.5M | +1% |
| Q4 2024 | $74.2M | +5.2% |
HSTM's revenue has grown year over year for 23 quarters in a row: $83M last quarter, up 8.9% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 7.9% | -2 points |
| Q2 2026 | 9.9% | +2 points |
| Q1 2026 | 9.3% | +3.3 points |
| Q4 2025 | 3% | -3.3 points |
| Q3 2025 | 9.9% | +1 points |
| Q2 2025 | 7.9% | +1.8 points |
| Q1 2025 | 6% | -1.9 points |
| Q4 2024 | 6.3% | +0.3 points |
HSTM's operating margin was 7.9% last quarter, down 2 points from the same quarter a year ago.
HSTM Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $17.1M | -4.8% |
| Q2 2026 | $12.5M | +363% |
| Q1 2026 | $26.4M | +1.4% |
| Q4 2025 | $13M | +19% |
| Q3 2025 | $17.9M | -4.8% |
| Q2 2025 | $2.7M | -57% |
| Q1 2025 | $26M | +29% |
| Q4 2024 | $11M | -19% |
HSTM's free cash flow has been positive every quarter for seven years: $69M over the past year, up 20% from the year before.
HSTM Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +1.2% | +342K shares |
| 1 year | -0.5% | -155K shares |
| 3 years | -3.6% | -1.1M shares |
| 5 years | -6.4% | -2M shares |
| Available history | -8.5% | -2.8M shares |
HSTM has 30M diluted shares, down 0.5% from a year ago, with $14M in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | — |
| Q2 2026 | $2.6M |
| Q1 2026 | $6.7M |
| Q4 2025 | $5M |
| Q3 2025 | $6.9M |
| Q4 2024 | — |
| Q4 2023 | $7.3M |
| Q3 2023 | $1.6M |
HSTM spent $14M buying back its own shares over the past year.
HSTM Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -0.9x | Net Cash |
| Q2 2026 | -0.7x | Net Cash |
| Q1 2026 | -0.7x | Net Cash |
| Q4 2025 | -0.6x | Net Cash |
| Q3 2025 | -0.8x | Net Cash |
| Q2 2025 | -0.8x | Net Cash |
| Q1 2025 | -1.3x | Net Cash |
| Q4 2024 | -1.0x | Net Cash |
HSTM has more cash than debt.
HSTM Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 48.3 | Neutral |
| Stochastic | 34.3 | Neutral |
HSTM's weekly RSI is 48 (neutral) and its Stochastic is 34 (neutral).
HSTM PE vs Healthcare Sector
| Metric | HSTM | Sector median | Relative |
|---|---|---|---|
| PE | 40x | 26x | 56% above |
| PE % | 19 | 29 | 10 pts below |
HSTM is trading at 40x earnings, a 56% premium to the Healthcare sector's median of 26x.
HSTM Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $31.5 | 10% below |
| 20 week MA | $29.8 | 5% below |
| 50 week MA | $25.4 | 11% above |
| 100 week MA | $27.3 | 3.7% above |
| 200 week MA | $26.7 | 5.9% above |
HSTM has pulled back, but its long-term trend is still up: it's below its 8- and 20-week averages, but 5.9% above its 200-week average.
HSTM Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $27.6 | $21.7 | -21% |
| 2021 | $21.7 | $26.1 | +20% |
| 2022 | $26.1 | $24.6 | -5.9% |
| 2023 | $24.6 | $27.0 | +9.9% |
| 2024 | $27.0 | $31.8 | +17% |
| 2025 | $31.8 | $23.6 | -26% |
| 2026 YTD | $23.6 | $28.3 | +20% |
HSTM has finished lower in three of the last six years. It's up 20% so far in 2026.