HEALTHSTREAM INC (HSTM) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does HEALTHSTREAM INC Do?
HealthStream, Inc. provides workforce and provider solutions for healthcare organizations in the United States. It operates through two segments, Workforce Solutions and Provider Solutions. The company offers workforce solutions, including software-as-a-service (SaaS) based services and subscription-based solutions to meet the range of its clinical development, talent management, training, education, certification, scheduling, competency assessment, performance appraisal, and other needs, as well as implementation and account management services. It also provides applications for learning, performance appraisal, competency management, disclosure management, clinical assessment and development, simulation-based education, quality management, and industry training. In addition, the company offers VerityStream that delivers enterprise-class solutions to transform the healthcare provider experience for ambulatory surgery centers, urgent care facilities, clinics, medical groups, and other healthcare organizations; EchoCredentialing and MSOW platforms that manage medical staff credentialing, enrollment, and privileging processes for hospitals; and EchoOneApp, a provider enrollment platform for medical groups. Further, it provides CredentialMyDoc, a credentialing and enrollment SaaS solution for medical groups and surgery centers; CredentialStream, a SaaS-based provider credentialing, privileging, and enrollment solution; and NurseGrid Mobile for nurse managers. The company offers its solutions in healthcare industry companies that include private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies through direct sales teams. HealthStream, Inc. was incorporated in 1990 and is headquartered in Nashville, Tennessee. HEALTHSTREAM INC (HSTM) is classified as a small-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Robert A. Frist and employs approximately 1,140 people, headquartered in NASHVILLE, Tennessee. With a market capitalization of $599M, HSTM is one of the notable companies in the Technology sector.
HEALTHSTREAM INC (HSTM) Stock Rating — Reduce (April 2026)
As of April 2026, HEALTHSTREAM INC receives a Reduce rating with a composite score of 39.2/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.HSTM ranks #3,273 out of 4,446 stocks in our coverage universe. Within the Technology sector, HEALTHSTREAM INC ranks #382 of 584 stocks, placing it in the lower half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
HSTM Stock Price and 52-Week Range
HEALTHSTREAM INC (HSTM) currently trades at $19.88. The stock lost $0.03 (0.2%) in the most recent trading session. The 52-week high for HSTM is $34.13, which means the stock is currently trading -41.8% from its annual peak. The 52-week low is $19.50, putting the stock 1.9% above its annual trough. Recent trading volume was 264K shares, suggesting relatively thin trading activity.
Is HSTM Overvalued or Undervalued? — Valuation Analysis
HEALTHSTREAM INC (HSTM) carries a value factor score of 54/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 28.02x, compared to the Technology sector average of 45.27x — a discount of 38%. The price-to-book ratio stands at 1.70x, versus the sector average of 3.16x. The price-to-sales ratio is 2.03x, compared to 1.06x for the average Technology stock. On an enterprise value basis, HSTM trades at 24.80x EV/EBITDA, versus 12.79x for the sector.
Overall, HSTM's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
HEALTHSTREAM INC Profitability — ROE, Margins, and Quality Score
HEALTHSTREAM INC (HSTM) earns a quality factor score of 42/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 6.1%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 4.1% versus the sector average of -1.0%.
On a margin basis, HEALTHSTREAM INC reports gross margins of 65.0%, compared to 50.9% for the sector. The operating margin is 8.2% (sector: -0.5%). Net profit margin stands at 7.2%, versus -1.5% for the average Technology stock. Revenue growth is running at 6.9% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
HSTM Debt, Balance Sheet, and Financial Health
HEALTHSTREAM INC has a debt-to-equity ratio of 47.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 0.96x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $0. Cash and equivalents stand at $54M.
HSTM has a beta of 0.46, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for HEALTHSTREAM INC is 74/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
HEALTHSTREAM INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, HEALTHSTREAM INC reported revenue of $297M and earnings per share (EPS) of $0.61. Net income for the quarter was $22M. Gross margin was 65.0%. Operating income came in at $24M.
In FY 2025, HEALTHSTREAM INC reported revenue of $304M and earnings per share (EPS) of $0.61. Net income for the quarter was $18M. Revenue grew 4.3% year-over-year compared to FY 2024. Operating income came in at $20M.
In Q3 2025, HEALTHSTREAM INC reported revenue of $76M and earnings per share (EPS) of $0.20. Net income for the quarter was $6M. Revenue grew 4.6% year-over-year compared to Q3 2024. Operating income came in at $8M.
In Q2 2025, HEALTHSTREAM INC reported revenue of $74M and earnings per share (EPS) of $0.18. Net income for the quarter was $5M. Revenue grew 4.0% year-over-year compared to Q2 2024. Operating income came in at $6M.
Over the past 8 quarters, HEALTHSTREAM INC has demonstrated a growth trajectory, with revenue expanding from $72M to $297M. Investors analyzing HSTM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
HSTM Dividend Yield and Income Analysis
HEALTHSTREAM INC (HSTM) currently pays a dividend yield of 0.4%. At this yield, a $10,000 investment in HSTM stock would generate approximately $$43.00 in annual dividend income. The net margin of 7.2% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
HSTM Momentum and Technical Analysis Profile
HEALTHSTREAM INC (HSTM) has a momentum factor score of 24/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 21/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
HSTM vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, HEALTHSTREAM INC (HSTM) ranks #382 out of 584 stocks based on the Blank Capital composite score. This places HSTM in the lower half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing HSTM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full HSTM vs S&P 500 (SPY) comparison to assess how HEALTHSTREAM INC stacks up against the broader market across all factor dimensions.
HSTM Next Earnings Date
No upcoming earnings date has been announced for HEALTHSTREAM INC (HSTM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy HSTM? — Investment Thesis Summary
The quantitative profile for HEALTHSTREAM INC suggests caution. Momentum is weak at 24/100, a headwind for near-term performance. Low volatility (stability score 74/100) reduces downside risk.
In summary, HEALTHSTREAM INC (HSTM) earns a Reduce rating with a composite score of 39.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on HSTM stock.
Related Resources for HSTM Investors
Explore more research and tools: HSTM vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare HSTM head-to-head with peers: HSTM vs IHS, HSTM vs VRSN, HSTM vs ESE.