HealthStream, Inc.

healthstream.com

What Do They Do?

Provides workforce software for healthcare organizations to support learning, credentialing and staff scheduling, plus education and career tools for healthcare professionals and students.

How Do They Make Money?

Healthcare organizations subscribe to workforce software, with fees based on subscription counts, solutions and other factors. They also pay for implementation and training services, priced by staff effort and project scope.

revenue

Segment	Share	Revenue	How money arrives
Subscription Services Recurring	97% FY2022: 95%		Recurring
Professional Services	3.4% FY2022: 4.8%

Who Are Their Customers?

Healthcare organizations—including private, nonprofit and government entities, and pharmaceutical and medical-device companies—are reached mainly through direct sales teams; professionals and students can also buy through online channels.

Do Revenues Turn Into Profits?

Yes. It kept 6 cents of every revenue dollar as net income in FY2025 and turned 20 cents into free cash flow.

Operating income, FY2025

7% of revenue

▼ −5% vs FY2024 ($21.3M, 7%)

Net income, FY2025

6% of revenue

▼ −8% vs FY2024 ($20M, 7%)

Free cash flow, FY2025

20% of revenue

▲ +6% vs FY2024 ($56.3M, 19%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +13%; vs $74.4M in Q2 FY2025
Net income: ▲ +24%; vs $5.4M in Q2 FY2025

Subscription Services share of revenue vs 96.7% in Q2 FY2025

Jul 29, 2026 Reported a cybersecurity incident involving employee and customer data The company said files containing employee information and customer billing data were accessed; files also held data for credentialing customers.

Growing. Revenue grew 18% in 4 years, from $256.7M in FY2021 to $304.1M in FY2025, about 4% a year.

More direct tools for students The earlier report described healthcare professionals as end users; the latest also includes nursing students and describes career networks serving professionals and students directly.

Revenue over time

Subscription Services Professional Services

$500M$250M$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Cornerstone OnDemand, Ultimate Kronos Group, Degreed, Oracle, SAP, Infor, Qgenda, Indeed, Workday, Relias Learning, RLDatix, Symplr, Verisys, MD-Staff, and AMN Healthcare

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