NASHVILLE, Tenn.--(BUSINESS WIRE)--HealthStream® (Nasdaq: HSTM), a leading healthcare technology platform company for clinical workforce solutions, announced today that Virsys12® has been recognized as a Leader in the IDC MarketScape: U.S. Provider Data Management for Payers 2025–2026 Vendor Assessment (Doc #US52986825, December 2025). Virsys12 and its V12 Enterprise® Suite offer payers and health plans an innovative provider data management suite used for onboarding, credentialing, and network. ...

HealthStream, Inc. (NASDAQ:HSTM) is among the 12 Most Promising Small-Cap Stocks According to Wall Street Analysts. Canaccord Notes HealthStream, Inc. (HSTM) Well-Positioned Amid Rising AI Pressures on Software Firms HealthStream, Inc. (NASDAQ:HSTM) is next on our list of most promising stocks. TheFly reported on February 25 that Canaccord reduced its price target for HSTM from $25 to $21 and maintained a Hold rating. According to the firm, despite mounting investor fears about AI impacting SaaS firms, ...

Core Insights - Small-cap stocks are gaining renewed investor interest in 2026 as capital shifts away from mega-cap stocks, with Goldman Sachs highlighting potential opportunities among AI ecosystem suppliers [2][3] - The easing rate environment is expected to benefit small-cap stocks, with anticipated rate cuts and accelerating earnings providing compelling investment opportunities [3] - The S&P 500 index has remained flat year-to-date, indicating a shift in the AI narrative and a drag from large-cap tech stocks, while the equal-weight S&P 500 shows positive performance [4][5] Company Summaries CeriBell, Inc. (NASDAQ:CBLL) - CeriBell reported Q4 2025 sales of $24.8 million, a 34% increase from the previous year, driven by growth in new and existing accounts [11] - The company achieved a gross profit of $21.6 million with a gross margin of 87%, but reported a net loss of $13.5 million [11] - For the full year, total income reached $89.1 million, up 36% from 2024, with a gross margin of 88% and expectations of $111 million to $115 million in sales for 2026 [12][13] HealthStream, Inc. (NASDAQ:HSTM) - HealthStream's Q4 2025 revenue was $79.7 million, a 7.4% increase year-over-year, with operational income impacted by a stock-based compensation charge [15] - The company reported a full-year revenue of $304.1 million, up 4.3%, and adjusted EBITDA growth of 7.5% to $71.8 million [16] - HealthStream is focused on providing healthcare workforce solutions, enhancing staff competency and regulatory adherence through its cloud-based platforms [17]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 000-27701 HEALTHSTREAM, INC. (Exact name of registrant as specified in its charter) incorporation or organization) Tennessee 62-14 ...

Core Insights - HealthStream reported a strong performance in Q4 with record revenue of $79.7 million, up 7.4% year over year, and adjusted EBITDA of $18.8 million, an increase of 16.4% [3][7] - The company is optimistic about future growth, projecting 2026 revenue between $323 million and $330 million, representing a growth rate of 6.2% to 8.5% [5][15] Financial Performance - On a non-GAAP basis, HealthStream's operating income was $6.2 million, up 31.7%, and net income was $5.4 million, up 9.5%, with non-GAAP EPS of $0.18, an increase of $0.02 year over year [1] - In contrast, during the quarter, operating income fell to $2.4 million, down 48.8%, and net income declined to $2.5 million, down 48.1%, attributed largely to a $3.8 million stock contribution by the CEO [2][3] Subscription Revenue Growth - Subscription revenue grew by 8.2%, driven by strong adoption of products like CredentialStream (+21%), ShiftWizard (+31%), and Competency Suite (+27%) [6][11] - Legacy application revenue, however, declined by approximately 27% year over year, indicating a shift towards newer subscription-based offerings [7] Acquisitions and Strategic Investments - HealthStream completed two acquisitions in Q4: Virsys12 and MissionCare, contributing $1.6 million in revenue for the quarter and expected to generate approximately $13 million in inorganic revenue in 2026 [12][5] - The company is focusing on strategic investments in platform interoperability, career networks, and artificial intelligence to enhance its service offerings [4][17] Capital Allocation and Financial Position - HealthStream ended the quarter with $57 million in cash and investments, down from $92.6 million, reflecting capital deployment for acquisitions and capital expenditures [14] - The company returned capital through $5 million in share repurchases and declared a quarterly dividend of $0.035 per share, a 12.9% increase over the prior dividend [14] Future Outlook - Management expects first-quarter growth in 2026 to be around 8%, with sequential revenue improvement anticipated throughout the year [15] - The company is also guiding for capital expenditures of $31 million to $34 million and an effective tax rate of approximately 22% [16] Workforce Development and AI Strategy - HealthStream is positioned to capitalize on the expanding healthcare workforce, particularly in nursing, and is enhancing its tools for workforce development [17] - The company emphasizes its role as a "system of record" for learning and credentialing data, with significant user engagement in its career networks [18]

Financial Data and Key Metrics Changes - For the full year 2025, revenues increased by 4.3% and Adjusted EBITDA rose by 7.5% year-over-year [5] - In Q4 2025, revenues were up 7.4% and Adjusted EBITDA increased by 16.4% year-over-year [5] - The company expects 2026 revenues to be between $323 million and $330 million, with net income projected between $20.4 million and $22.8 million [6][41] Business Line Data and Key Metrics Changes - Subscription product revenues increased by $5.8 million, or 8.2%, while professional service revenues decreased by $0.3 million, or 11.6% [29] - CredentialStream revenue grew by 21%, ShiftWizard by 31%, and Competency Suite by 27% [30] - Revenues from recent acquisitions contributed $1.6 million in the quarter [31] Market Data and Key Metrics Changes - The healthcare sector added approximately 82,000 jobs in January 2026, with a significant portion in nursing, indicating a growing user base for HealthStream [9] - Hospitals hired an average of 13,600 new personnel each month in 2025, with registered nurses increasing by 9.4% and nurse practitioners by 38.5% from 2020 to 2024 [10] Company Strategy and Development Direction - HealthStream is focusing on expanding its user base in the healthcare sector, particularly among nursing professionals [9] - The company is investing in its hStream platform to enhance interoperability among its applications, positioning itself as a system of record for healthcare organizations [18][22] - The acquisition strategy includes integrating new companies to enhance service offerings and expand market reach [27][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by the expanding healthcare workforce and the integration of AI into their services [11][15] - The company anticipates that AI will enhance the roles of healthcare workers rather than replace them, allowing for more patient interaction [11] - Management highlighted the importance of being a system of record in the evolving healthcare landscape, which is crucial for long-term success [60][61] Other Important Information - The company completed two acquisitions in Q4 2025, which are expected to contribute to future revenue growth [27] - HealthStream maintains a strong cash position of $57 million and has no long-term debt, allowing for strategic investments and shareholder returns [24][35] Q&A Session Summary Question: What are the margins for MissionCare and potential for improvement? - Management indicated that they do not report margins on a per product line basis but noted that overall margins may experience some compression due to rising costs [55] Question: How does AI impact HealthStream's stickiness and potential M&A opportunities? - Management emphasized that AI is a fundamental component of their platform and that being a system of record enhances their competitive position [58][60] Question: What interoperability features are resonating with customers in the career network? - Management highlighted the growth of myClinicalExchange and its integration with hospital HR systems to improve recruitment opportunities for clinical students [64][66] Question: What is the status of legacy product revenues and potential sunsetting strategies? - Management stated that legacy revenues now account for about 10% of total revenues, and while they are not growing, they still provide value and margin [70]

Financial Data and Key Metrics Changes - For the full year 2025, revenues increased by 4.3% and Adjusted EBITDA rose by 7.5% year-over-year [5] - In Q4 2025, revenues were up 7.4% and Adjusted EBITDA increased by 16.4% year-over-year [5] - The company expects 2026 revenues to range between $323 million and $330 million, with net income projected between $20.4 million and $22.8 million [6][41] Business Line Data and Key Metrics Changes - Subscription product revenues increased by $5.8 million, or 8.2%, while professional service revenues decreased by $0.3 million, or 11.6% [29] - CredentialStream revenue grew by 21%, ShiftWizard by 31%, and Competency Suite by 27% [30] - Revenues from two recent acquisitions contributed $1.6 million in the quarter [31] Market Data and Key Metrics Changes - The healthcare sector added approximately 82,000 new jobs in January 2026, with a significant portion in nursing, indicating a growing user base for HealthStream [9] - The company reported a Remaining Performance Obligations increase of 11.2%, totaling $691 million [32] Company Strategy and Development Direction - HealthStream is focusing on expanding its ecosystem by integrating various applications and services to enhance user experience and operational efficiency [21][22] - The company is investing in AI and interoperability to strengthen its position as a system of record for healthcare organizations [11][63] - The acquisition strategy includes targeting companies that enhance the healthcare workforce and technology capabilities [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by the expanding healthcare workforce and the integration of AI into their services [10][42] - The company anticipates that AI will enhance the roles of healthcare providers rather than replace them, positioning HealthStream favorably in the evolving market [11][63] Other Important Information - HealthStream completed two acquisitions in Q4 2025, which are expected to contribute to future growth [27] - The company maintains a strong cash balance of $57 million and has no long-term debt, allowing for strategic investments and shareholder returns [24][35] Q&A Session Summary Question: What are the margins for MissionCare and potential for improvement? - Management indicated that they do not report margins on a per product line basis but noted that overall margins may experience some compression due to rising costs [57] Question: How does AI impact HealthStream's stickiness and market position? - Management emphasized that being a system of record differentiates HealthStream from competitors and that AI will enhance their offerings rather than displace them [59][63] Question: What interoperability features are resonating with customers in the career network? - Management highlighted the growth of myClinicalExchange and its integration with hospital HR systems to improve recruitment opportunities for clinical students [67][70] Question: What is the status of legacy product revenues and potential sunsetting? - Management stated that legacy revenues now account for about 10% of total revenues, and while they are not growing, they still provide value until customers transition to newer solutions [72][74]

Financial Data and Key Metrics Changes - For the full year 2025, revenues increased by 4.3% and Adjusted EBITDA rose by 7.5% year-over-year. In Q4, revenues were up 7.4% and Adjusted EBITDA increased by 16.4% year-over-year [4][5]. - The company expects 2026 revenues to range between $323 million and $330 million, with net income projected between $20.4 million and $22.8 million, and Adjusted EBITDA between $73 million and $77 million [5][36]. Business Line Data and Key Metrics Changes - Subscription revenues grew by $5.8 million, or 8.2%, while professional service revenues decreased by $0.3 million, or 11.6% [27]. - CredentialStream revenue grew by 21%, ShiftWizard by 31%, and Competency Suite by 27% [28][41][44]. - Revenues from two recent acquisitions contributed $1.6 million in the quarter [28]. Market Data and Key Metrics Changes - The healthcare sector added approximately 82,000 new jobs in January 2026, with a significant portion in nursing, indicating a growing user base for the company [7]. - The company reported that hospitals hired an average of 13,600 new personnel each month in 2025, with registered nurses increasing by 9.4% and nurse practitioners by 38.5% from 2020 to 2024 [8]. Company Strategy and Development Direction - The company is focusing on the integration of AI into its services, emphasizing the importance of being a system of record for healthcare organizations [9][12]. - The hStream platform is designed to enhance interoperability among applications, creating an ecosystem that combines various healthcare solutions [16][20]. - The company aims to connect individual caregivers with healthcare organizations through career networks, enhancing recruitment and retention strategies [47][49]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the evolving landscape influenced by AI, suggesting that AI will enhance rather than replace the roles of healthcare workers [9][59]. - The company believes that its strong cash position and lack of debt will allow it to pursue growth opportunities through acquisitions and investments [5][22]. Other Important Information - The company completed two acquisitions in Q4 2025, which are expected to contribute to future revenue growth [25][34]. - A $10 million share repurchase program was authorized, with $5 million executed in Q4 2025 [25][35]. Q&A Session Summary Question: What are the margins for MissionCare and potential for improvement? - The company does not report margins on a per product line basis but acknowledges some compression in blended gross margins due to rising costs [53][55]. Question: How does AI impact the stickiness of HealthStream's platform? - Management believes that being a system of record differentiates the company from competitors and enhances its resilience in the face of AI advancements [56][59]. Question: What interoperability features are resonating with customers in the career network? - The company highlighted the growth of MyClinicalExchange and its ability to connect clinical students with hospitals for recruitment opportunities [64][66]. Question: What is the status of legacy revenues and potential sunset strategies? - Legacy revenues account for about 10% of total revenues, and while they are not growing, they are still desired by customers. The company is encouraging transitions to newer applications [70][72].

Core Viewpoint - HealthStream (HSTM) reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing an increase from $0.16 per share a year ago [1] Financial Performance - The earnings surprise for the quarter was +12.50%, with the company previously expected to post earnings of $0.17 per share but actually reporting $0.20, resulting in a surprise of +17.65% [2] - HealthStream's revenues for the quarter were $79.71 million, surpassing the Zacks Consensus Estimate by 4.63%, compared to $74.24 million in the same quarter last year [3] Stock Performance and Outlook - HealthStream shares have declined approximately 11.8% since the beginning of the year, while the S&P 500 has gained 0.9% [4] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market [7] Future Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $78.1 million, and for the current fiscal year, it is $0.77 on revenues of $317.2 million [8] Industry Context - The Internet - Services industry, to which HealthStream belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges ahead [9]

HealthStream Announces Fourth Quarter and Full-Year 2025 Results Page 1 February 23, 2026 Exhibit 99.1 Contact: Scott A. Roberts Chief Financial Officer (615) 301-3182 ir@healthstream.com Media: Mollie Condra, Ph.D. Head, Investor Relations & Communications (615) 301-3237 mollie.condra@healthstream.com HealthStream Announces Fourth Quarter & Full-Year 2025 Results NASHVILLE, Tenn. (February 23, 2026)—HealthStream, Inc. (the "Company") (Nasdaq: HSTM), a leading healthcare technology platform company for clin ...