HSTM

Healthcare

HealthStream, Inc. · Medical - Healthcare Information Services · $700M

UQS Score — Balanced Preset
48.7
Below Average

HealthStream, Inc. scores 48.7/100 using the Balanced preset.

UQS vs Healthcare Sector
HSTM
48.7
Sector avg
32.4
Quality
Neutral
Moat
Weak
Growth
Weak
Risk
Good
Valuation
Good

What is HealthStream, Inc.?

HealthStream, Inc. is a Nashville-based SaaS company serving healthcare organizations across the United States. It focuses on workforce development and provider credentialing solutions designed specifically for the healthcare industry.

HealthStream generates revenue through subscription-based software solutions sold to hospitals, medical groups, and other healthcare organizations. Its Workforce Solutions segment covers training, scheduling, competency assessment, and performance management. Its Provider Solutions segment handles credentialing, privileging, and enrollment workflows. Customers pay recurring subscription fees, giving the business a predictable revenue base tied to healthcare workforce needs.

Founded in 2000 and headquartered in Nashville, Tennessee, HealthStream has built its platform around the unique compliance and training demands of healthcare employers.

  • SaaS-based workforce training and competency management
  • Provider credentialing and privileging platforms (CredentialStream, VerityStream)
  • Medical staff enrollment and disclosure management tools
  • NurseGrid Mobile scheduling for nurse managers

Is HSTM a Good Stock to Buy?

UQS Score rates HSTM as Below Average overall, reflecting meaningful challenges across several key quality dimensions.

The Risk pillar and Valuation pillar are the relative bright spots in HSTM's profile. The company's risk posture is rated Good, suggesting a manageable balance sheet and limited near-term financial stress. Valuation is also rated Good, meaning the stock does not appear significantly stretched relative to its fundamentals.

Growth and Moat are both rated Weak, indicating limited competitive differentiation and sluggish expansion prospects — meaningful concerns for a subscription software business.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does HSTM pay dividends?

Yes — HealthStream, Inc. pays a dividend.

HealthStream pays a regular dividend, which is relatively uncommon among small-cap SaaS companies. This reflects a degree of financial stability and a management preference for returning capital to shareholders alongside reinvestment in the platform. Income-oriented investors may find this noteworthy, though the dividend should be weighed against the company's growth profile.

When does HSTM report earnings?

HealthStream reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.

The company's recent results reflect the dynamics visible in its UQS profile — stable recurring revenue from subscriptions, but limited top-line acceleration. Risk metrics remain manageable, while growth has not meaningfully outpaced sector peers.

For the most recent quarter's results and guidance, visit HealthStream's investor relations page directly.

HSTM Price History

-17.2% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in HealthStream, Inc.?

$
Today it would be worth
$9,789
That's a -2.1% total return, or -0.4% annualized.

Based on HealthStream, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

HSTM Long-term Outlook

HSTM's fundamental outlook is shaped by its Weak Growth and Weak Moat ratings. The company operates in a niche but competitive corner of healthcare IT, and expanding beyond its existing customer base presents a real challenge. On the positive side, Good Risk and Good Valuation ratings suggest the downside may be more contained than for higher-multiple peers. The path to re-rating likely depends on demonstrating accelerating subscription growth or meaningful product differentiation.

Growth drivers

  • Ongoing digitization of healthcare workforce management and credentialing processes
  • Cross-sell opportunities across Workforce and Provider Solutions segments
  • Expansion into ambulatory surgery centers and medical groups

Key risks

  • Weak competitive moat leaves the company exposed to better-resourced healthcare IT rivals
  • Slow growth trajectory limits the case for multiple expansion
  • Healthcare budget pressures could slow enterprise software spending

HSTM vs Peers

HealthStream operates in a crowded healthcare technology landscape alongside companies addressing adjacent workflow and data needs.

NUTXHSTM scores lower
Nutex Health, Inc.

Nutex focuses on hospital facility ownership and management rather than software, representing a fundamentally different business model within the healthcare services space.

PHRHSTM scores lower
Phreesia, Inc.

Phreesia targets patient intake and engagement workflows, competing for healthcare IT budgets but serving a different end-user than HealthStream's workforce and credentialing focus.

GDRXHSTM scores lower
GoodRx Holdings, Inc.

GoodRx operates a consumer-facing prescription pricing platform, making it a healthcare technology peer by sector classification but not a direct competitor in enterprise workforce solutions.

Frequently Asked Questions

What does HealthStream do?

HealthStream provides SaaS-based workforce and provider solutions to healthcare organizations in the US. Its platforms cover employee training, competency management, scheduling, provider credentialing, and enrollment — helping hospitals and medical groups manage compliance and workforce development through subscription software.

Does HSTM pay dividends?

Yes, HealthStream pays a regular dividend. This is relatively uncommon for a small-cap SaaS company and reflects a degree of financial stability. Investors should review the current dividend details on HealthStream's investor relations page for the latest payout information.

When does HSTM report earnings?

HealthStream reports on a standard quarterly cadence. The company does not pre-announce specific dates far in advance, so investors should check the investor relations section of HealthStream's website or financial data providers for the most current schedule.

Is HSTM a good stock to buy?

UQS Score rates HSTM as Below Average overall. While Risk and Valuation are rated Good, Growth and Moat are both rated Weak. Whether that profile suits a given investor depends on their priorities — Pro members can view the complete pillar breakdown to make a more informed assessment.

Is HSTM overvalued?

The UQS Valuation pillar for HSTM is rated Good, suggesting the stock is not significantly overpriced relative to its fundamentals. That said, valuation should always be considered alongside growth and quality factors — both of which are rated Weak for HealthStream.

How does HSTM compare to its competitors?

HealthStream occupies a specific niche in healthcare IT — workforce training and provider credentialing — that differs from peers like Phreesia (patient intake) or GoodRx (consumer drug pricing). Its competitive moat is rated Weak, indicating limited pricing power or switching-cost advantages relative to the broader sector.

What is HSTM's market cap bracket?

HealthStream is classified as a small-cap company. This places it in a segment of the market that can offer growth potential but also carries higher volatility and liquidity risk compared to large- or mega-cap healthcare technology peers.

Who founded HealthStream?

HealthStream was founded in 2000. Detailed founding history, including founder names and early company milestones, is publicly available through the company's official website and SEC filings.

Is HSTM a long-term quality investment?

As a long-term quality indicator, HSTM's UQS profile raises some caution. Weak Growth and Moat ratings suggest the company has not yet demonstrated the durable competitive advantages typically associated with long-term compounders. Good Risk and Valuation ratings provide some stability, but the full picture warrants careful review.

What is the main competitive advantage of HealthStream?

HealthStream's primary advantage is its deep integration into healthcare-specific workflows — credentialing, compliance training, and workforce management — that require regulatory expertise. However, the UQS Moat pillar rates this advantage as Weak, suggesting competitors can and do replicate much of its functionality.

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Pro Analysis

HSTM — Score History

40455055Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 18 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 21, 202648.748.936.038.263.269.1-0.2
May 19, 202648.948.936.038.263.270.1-0.2
May 18, 202649.148.936.038.263.271.6+0.1
May 16, 202649.048.936.038.263.270.90.0
May 14, 202649.048.936.038.263.270.8+0.2
May 12, 202648.848.936.038.263.269.6+0.2
May 7, 202648.647.436.038.163.271.2-0.5
May 3, 202649.147.436.038.163.274.5+0.1
Apr 26, 202649.047.436.038.163.273.9+0.1
Apr 25, 202648.947.436.038.163.273.4-0.1

HSTM — Pillar Breakdown

Quality

48.9/100 (25%)

HealthStream, Inc. has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

38.2/100 (20%)

HealthStream, Inc. shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookModerate

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

63.2/100 (15%)

HealthStream, Inc. maintains a reasonable risk profile with manageable debt levels.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

69.3/100 (15%)

HealthStream, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldWeak

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

36/100 (25%)

HealthStream, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for HSTM.

Score Composition

Quality
48.9×25%12.2
Growth
38.2×20%7.6
Risk
63.2×15%9.5
Valuation
69.3×15%10.4
Moat
36.0×25%9.0
Total
48.7Below Average

Financial Data

More Stock Analysis

How is the HSTM UQS Score Calculated?

The UQS (Unified Quality Score) for HealthStream, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses HealthStream, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether HealthStream, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.