NASDAQ · HSTM

HealthStream, Inc.

Healthcare · Medical - Healthcare Information Services

$29.21▼ 0.07% ($0.02)today

As of 9:54 AM ET

52-week

$19.50$31.11

Market cap

$853.38M

P/E

What the market price implies · Reverse DCF

To support a price of $29.21, this model requires Stage 1 FCFF to grow by 3.72%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 6.32%/yr over the past 10 years. The required annual growth rate is 2.60 percentage points lower.

Selected forecast · Base scenario

6.32%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

3.72%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$29.21

Estimated value / share

$32.46

Base scenario

This estimate is 11.14% above the price used.

USD · TTM ending 2026-06-30

FCFF base normalized by replacing latest capex with the company's trailing median capex-to-revenue ratio.

CapEx normalization was capped: company appears to be in a multi-year investment cycle. Median-based capex floor applied at 60% of TTM capex.

Working capital change smoothed: single-period ΔOWC exceeded ±5% of revenue and was capped to reduce timing noise.

Historical FCFF CAGR and the default growth rates are taken from the raw historical series. The valuation base is normalized for the current-period DCF.

Market beta (0.44) is below the minimum default of 0.5 — short lookback windows can understate systematic risk. Beta floored at 0.5 for default assumptions; adjust manually if needed.

Reported total debt includes capitalised leases (~100% of the total). They are excluded from net debt and from the WACC weights because rent is already charged inside operating income. The Net Debt shown here is therefore lower than the balance-sheet figure elsewhere on this page.

Stage 1 6.32% · Stage 2 3.5% · Discount rate 7.72%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 21, 2026, 1:54 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 21, 2026, 1:54 PM UTC · provider

Why this method?

FCFF is positive, but the year-to-year swings are too large for a direct CAGR. Normalize the cash-flow base first, then run DCF.

Is FCFF positive and has it been for 3+ consecutive years? 19 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 226.1%.

Price vs Fundamentals

Why The Stock Is Moving

Mixed / unclearLow confidence

1Y Price: -0.41%Revenue (TTM): 8.78%FCF (TTM): -5.98%P/FCF: 35th pct

What changed

The stock fell 0.41% over the last year. Revenue grew 8.78% over the trailing twelve months. Operating margin moved from 7.27% to 8.04%. Free cash flow declined 5.98% over the trailing twelve months.

What the market seems to be pricing

The stock has moved lower against modestly improving underlying metrics. The operating data does not yet tell a clear story — the move may reflect sentiment, sector rotation, or macro factors rather than company-specific earnings power.

What would invalidate this read

Operating margin currently stands at 8.04%. A decisive move in revenue — currently up 8.78% — would be the clearest signal to resolve the ambiguity.

Performance

Return analysis

Company profile

HealthStream, Inc., established in 1990 and headquartered in Nashville, Tennessee, delivers specialized workforce and provider solutions to healthcare organizations throughout the United States.

CEORobert A. Frist Jr.

SectorHealthcare

IndustryMedical - Healthcare Information Services

Employees1,150

IPO dateApr 11, 2000

https://www.healthstream.com

Market multiples

Forward P/E—

EV/EBITDA10.06

Enterprise value$671.04M

Stock splits

No stock splits recorded for this ticker.

Profitability & growth

Revenue growth12.55%

Gross margin (FY2025)64.74%▼1.7ppvs FY2024

Operating margin (FY2025)6.66%▼0.6ppvs FY2024

ROE6%▲0.9ppvs FY2025

Analyst consensus

RatingHold

Target price$27.00▼7.57%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 2, 2026

Q4 FY26 · EPS est $0.15 · Revenue est $82.24M

View

Dividends

$0.14/shareQuarterlySafe

HSTM pays a dividend with a 0.47% dividend yield, covered 16.0× by free cash flow.

Dividend Yield

0.47%

Annual Div / Share

$0.14

3yr CAGR

-49.8%

Payout Ratio

18.37%

Safe

Dividend Growth Rate

3yr CAGR

-49.8%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$0.14+12.4%

2025$0.12+11.0%

2024$0.11-89.9%

2023$1.08—

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$5/yr

$0/mo

In 5 yrs

$5/yr

$0/mo

In 10 yrs

$5/yr

$0/mo

Today	In 5 yrs	In 10 yrs
$5/yr $0/mo	$5/yr $0/mo	$5/yr $0/mo

Analysis

Dividend Strengths

Well-covered by free cash flow

The dividend is covered 16.0× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Risks to Watch

No strong risk signal stands out from the latest period pair.

NASDAQ · HSTM

HealthStream, Inc.

Healthcare · Medical - Healthcare Information Services

$29.21▼ 0.07% ($0.02)today

As of 9:54 AM ET

52-week

$19.50$31.11

Market cap

$853.38M

P/E

What the market price implies · Reverse DCF

To support a price of $29.21, this model requires Stage 1 FCFF to grow by 3.72%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 6.32%/yr over the past 10 years. The required annual growth rate is 2.60 percentage points lower.

Selected forecast · Base scenario

6.32%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

3.72%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$29.21

Estimated value / share

$32.46

Base scenario

This estimate is 11.14% above the price used.

USD · TTM ending 2026-06-30

FCFF base normalized by replacing latest capex with the company's trailing median capex-to-revenue ratio.

CapEx normalization was capped: company appears to be in a multi-year investment cycle. Median-based capex floor applied at 60% of TTM capex.

Working capital change smoothed: single-period ΔOWC exceeded ±5% of revenue and was capped to reduce timing noise.

Historical FCFF CAGR and the default growth rates are taken from the raw historical series. The valuation base is normalized for the current-period DCF.

Market beta (0.44) is below the minimum default of 0.5 — short lookback windows can understate systematic risk. Beta floored at 0.5 for default assumptions; adjust manually if needed.

Stage 1 6.32% · Stage 2 3.5% · Discount rate 7.72%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 21, 2026, 1:54 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 21, 2026, 1:54 PM UTC · provider

Why this method?

FCFF is positive, but the year-to-year swings are too large for a direct CAGR. Normalize the cash-flow base first, then run DCF.

Is FCFF positive and has it been for 3+ consecutive years? 19 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 226.1%.

Price vs Fundamentals

Why The Stock Is Moving

Mixed / unclearLow confidence

1Y Price: -0.41%Revenue (TTM): 8.78%FCF (TTM): -5.98%P/FCF: 35th pct

What changed

The stock fell 0.41% over the last year. Revenue grew 8.78% over the trailing twelve months. Operating margin moved from 7.27% to 8.04%. Free cash flow declined 5.98% over the trailing twelve months.

What the market seems to be pricing

What would invalidate this read

Operating margin currently stands at 8.04%. A decisive move in revenue — currently up 8.78% — would be the clearest signal to resolve the ambiguity.

Performance

Return analysis

Company profile

HealthStream, Inc., established in 1990 and headquartered in Nashville, Tennessee, delivers specialized workforce and provider solutions to healthcare organizations throughout the United States.

CEORobert A. Frist Jr.

SectorHealthcare

IndustryMedical - Healthcare Information Services

Employees1,150

IPO dateApr 11, 2000

https://www.healthstream.com

Market multiples

Forward P/E—

EV/EBITDA10.06

Enterprise value$671.04M

Stock splits

No stock splits recorded for this ticker.

Profitability & growth

Revenue growth12.55%

Gross margin (FY2025)64.74%▼1.7ppvs FY2024

Operating margin (FY2025)6.66%▼0.6ppvs FY2024

ROE6%▲0.9ppvs FY2025

Analyst consensus

RatingHold

Target price$27.00▼7.57%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 2, 2026

Q4 FY26 · EPS est $0.15 · Revenue est $82.24M

View

Dividends

$0.14/shareQuarterlySafe

HSTM pays a dividend with a 0.47% dividend yield, covered 16.0× by free cash flow.

Dividend Yield

0.47%

Annual Div / Share

$0.14

3yr CAGR

-49.8%

Payout Ratio

18.37%

Safe

Dividend Growth Rate

3yr CAGR

-49.8%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$0.14+12.4%

2025$0.12+11.0%

2024$0.11-89.9%

2023$1.08—

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$5/yr

$0/mo

In 5 yrs

$5/yr

$0/mo

In 10 yrs

$5/yr

$0/mo

Today	In 5 yrs	In 10 yrs
$5/yr $0/mo	$5/yr $0/mo	$5/yr $0/mo

Analysis

Dividend Strengths

Well-covered by free cash flow

The dividend is covered 16.0× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Risks to Watch

No strong risk signal stands out from the latest period pair.