Earnings Releases·Nov 2, 2026, 4:35 PM ET

HealthStream — Third Quarter 2026 Earnings Summary

Q3 2026 revenue rose 8.9% YoY to $83.3 million, driven by $3.2 million from the Virsys and MissionCare acquisitions and $3.6 million in organic growth, though operating income and net income declined 13.0% and 11.7% respectively to $6.6 million and $5.4 million due to integration costs and a $250,000 cybersecurity incident.
Full-year 2026 guidance was raised across all key metrics: revenue to $331.0–$333.0 million, net income to $21.8–$22.4 million, and Adjusted EBITDA to $77.0–$78.0 million, reflecting confidence in the 10.6% revenue and 25.7% operating income growth achieved in the first nine months.
The company completed a private placement of common stock in September 2026, raising approximately $40.0 million, while maintaining a strong balance sheet with $115.2 million in cash and no outstanding indebtedness.
Capital allocation included a declared quarterly dividend of $0.035 per share and $9.3 million in share repurchases over the first nine months of 2026, though the specific $10.0 million program authorized in March expired in September with no repurchases made in Q3.