Key Highlights

  • HSTM third-quarter 2026 Revenue came to $83.3 million, a figure 8.9% above the prior-year level of $76.5 million.
  • Net income declined by 11.7%, reaching $5.4 million, with Diluted Earnings per Share landing at $0.18 against $0.20 a year before.
  • Adjusted EBITDA ticked higher by 1.0%, landing at $19.3 million for the period ended Sep 30, 2026.
  • The company now projects 2026 revenue between $331.0 million and $333.0 million.
  • A $0.035 per-share quarterly Dividend was approved, while a private Placement raised roughly $40 million.

Subscription Sales and Two Acquisitions Drive the Quarter's Top Line

HealthStream (NASDAQ:HSTM) issued its third-quarter 2026 report on Nov 2, 2026, for the period ended Sep 30, 2026. Sales totaled $83.3 million, which was 8.9% above the $76.5 million of the year-earlier quarter, a gain of $6.8 million. Subscription sales increased 8.0%, adding $6.2 million, and professional services contributed an extra $0.7 million.

Based in Nashville, the firm runs software that helps care providers such as hospitals recruit, train, verify credentials for, book and keep clinical employees. Two acquisitions from the final quarter of 2025 accounted for $3.2 million of the quarterly increase, while the existing portfolio supplied $3.6 million.

Spending on Platform Expansion and a Cyber Event Trim Operating Income

Operating income declined to $6.6 million, a 13.0% drop from $7.6 million in the prior-year quarter. Management pointed to higher platform and enterprise application spending, including staffing, outside software, cloud hosting and acquisition-related amortization. Aggregate operating costs and expenses reached $76.7 million, versus $68.9 million a year ago.

The quarter also carried roughly $250,000 of expense tied to the Cybersecurity incident disclosed on Jul 29, 2026, net of insurance recoveries. Net Income was $5.4 million, a decline of 11.7%, with diluted EPS at $0.18 versus $0.20. Excluding the incident costs, adjusted EBITDA, a non-GAAP figure, advanced 1.0% to $19.3 million.

Across the first nine months of 2026, sales reached $248.2 million, a 10.6% increase, and a 25.7% gain lifted Operating Income to $22.4 million. Net income reached $18.0 million, up 13.6%, equal to $0.61 per diluted share, while adjusted EBITDA reached $60.0 million, up 13.4%.

Projection Changes for Revenue, Net Income and Adjusted EBITDA

The 2026 revenue band was lifted to a new $331.0 million to $333.0 million span, previously $327.0 million to $332.0 million. For net income, the forecast now reads $21.8 million through $22.4 million, earlier $19.5 million through $22.2 million. Adjusted EBITDA is expected to land between $77.0 million and $78.0 million, against an older $74.0 million to $78.0 million range.

Capex is forecast at $31.0 million to $34.0 million. Those projections rest on sales and renewals meeting plan and on no broad economic slowdown, and they leave out any acquisitions or divestitures that may happen later.

A $40 Million Placement and $115.2 Million in Cash Frame the Dividend Decision

At $29.50 each, 1,355,932 shares were sold in a private placement on Sep 14, 2026, bringing in about $40.0 million. Proceeds are earmarked for general corporate uses such as product development, Working Capital and potential deals. Quarter-end cash, equivalents and marketable securities totaled $115.2 million, with no borrowed debt.

Nine-month Operating Cash Flow reached $58.0 million, against $50.1 million before. Buybacks over those months totaled 432,476 shares, costing $9.3 million, while a $10.0 million buyback plan ceased on Sep 12, 2026.

Directors approved a $0.035 per-share payout for the quarter, with the Record Date set at Nov 16, 2026 and payment arriving Nov 27, 2026. The raised annual ranges frame the fourth quarter.