HealthStream Q2 Net Income Dips Slightly to $29,897

TL;DR

**HealthStream's Q2 was flat, showing minimal growth and a slight profit dip – not a strong buy signal.**

AI Summary

HEALTHSTREAM INC reported a net income of $29,897 for the three months ended June 30, 2025, a decrease from $30,432 in the same period of 2024. Diluted earnings per share also saw a slight decline to $0.031 in Q2 2025 from $0.028 in Q2 2024. The company's customer-related intangible assets remained stable at $75,000 as of June 30, 2025, consistent with December 31, 2024. Other intangible assets also held steady at $10,000 over the same period. The filing indicates no significant changes in the company's capital structure, with common stock and additional paid-in capital, retained earnings, and accumulated other comprehensive income showing minor fluctuations. The strategic outlook appears focused on maintaining existing asset values and managing profitability in a competitive healthcare technology market.

Why It Matters

For investors, the slight dip in net income and diluted EPS for HEALTHSTREAM INC suggests a period of stabilization rather than significant growth, which could impact valuation. Employees might see this as a signal for continued operational efficiency, while customers can expect consistent service given the stable intangible asset values. In the broader market, this performance indicates the competitive pressures within the healthcare technology sector, where even established players like HealthStream face challenges in expanding profitability. Competitors will be watching to see if this trend continues, potentially influencing their own strategic decisions.

Risk Assessment

Risk Level: medium — The risk level is medium due to the slight decline in net income from $30,432 in Q2 2024 to $29,897 in Q2 2025, and a decrease in diluted EPS from $0.028 to $0.031. While not a drastic drop, it indicates potential challenges in maintaining or growing profitability, which could impact future investor returns.

Analyst Insight

Investors should hold their positions on HEALTHSTREAM INC, monitoring future filings for signs of revenue growth or further profit erosion. A wait-and-see approach is warranted until a clearer trend in profitability emerges, as the current data suggests a period of stagnation.

Financial Highlights

net Income

$29,897

eps

$0.031

Key Numbers

• $29,897 — Net Income (Decreased from $30,432 in Q2 2024, indicating a slight profit decline.)
• $0.031 — Diluted EPS (Decreased from $0.028 in Q2 2024, reflecting lower per-share earnings.)
• $75,000 — Customer-Related Intangible Assets (Stable compared to December 31, 2024, showing consistent asset valuation.)
• $10,000 — Other Intangible Assets (Stable compared to December 31, 2024, indicating no significant changes in other intangible holdings.)

Key Players & Entities

• HEALTHSTREAM INC (company) — filer of the 10-Q
• $29,897 (dollar_amount) — net income for Q2 2025
• $30,432 (dollar_amount) — net income for Q2 2024
• $0.031 (dollar_amount) — diluted EPS for Q2 2025
• $0.028 (dollar_amount) — diluted EPS for Q2 2024
• $75,000 (dollar_amount) — customer-related intangible assets as of June 30, 2025
• $10,000 (dollar_amount) — other intangible assets as of June 30, 2025
• June 30, 2025 (date) — end of the reporting period
• December 31, 2024 (date) — previous fiscal year-end

FAQ

Industry Context

HealthStream Inc. operates within the healthcare technology sector, a dynamic market characterized by continuous innovation and evolving regulatory landscapes. The industry is driven by the demand for solutions that improve patient outcomes, enhance operational efficiency, and ensure compliance with healthcare regulations. Key trends include the adoption of digital health platforms, data analytics for personalized medicine, and cybersecurity measures to protect sensitive patient information.

Regulatory Implications

Companies in the healthcare technology sector are subject to stringent regulations, including HIPAA for patient data privacy and security. Compliance with these regulations is critical to avoid significant penalties and maintain customer trust. Changes in healthcare policy or reimbursement models can also impact revenue streams and the demand for specific technology solutions.

What Investors Should Do

1. Monitor revenue trends and segment performance.
2. Analyze the stability of intangible assets.
3. Evaluate competitive positioning.

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reporting period for the 10-Q filing, showing net income of $29,897 and diluted EPS of $0.031.
• 2024-06-30: End of Second Quarter 2024 — Comparative period for Q2 2025 results, with net income of $30,432 and diluted EPS of $0.028.
• 2024-12-31: End of Fiscal Year 2024 — Baseline for intangible asset valuation, with customer-related intangible assets at $75,000 and other intangible assets at $10,000.

Glossary

Customer-Related Intangible Assets

Assets that arise from a company's relationships with its customers, such as customer lists or contracts, which are expected to generate future economic benefits. (These assets remained stable at $75,000 as of June 30, 2025, indicating consistent valuation of customer relationships.)

Other Intangible Assets

Intangible assets that do not fall into specific categories like patents or customer relationships, but still possess value and are expected to provide future economic benefits. (These assets were also stable at $10,000 as of June 30, 2025, suggesting no significant additions or disposals.)

Diluted Earnings Per Share (EPS)

A measure of a company's profit allocated to each outstanding share of common stock, assuming all convertible securities and stock options were exercised. (The diluted EPS decreased to $0.031 in Q2 2025 from $0.028 in Q2 2024, reflecting a slight decrease in profitability on a per-share basis.)

Year-Over-Year Comparison

Compared to the prior year's second quarter, HealthStream Inc. experienced a slight decrease in net income from $30,432 to $29,897 and a marginal dip in diluted EPS from $0.028 to $0.031. The company's intangible asset valuations, specifically customer-related intangible assets ($75,000) and other intangible assets ($10,000), remained consistent between the end of fiscal year 2024 and the second quarter of 2025, indicating no significant changes in these asset categories.

Key Financial Figures

• $0.00 — ch registered Common Stock (Par Value $0.00) HSTM Nasdaq Global Select Market

Filing Documents

• hstm20250630_10q.htm (10-Q) — 833KB
• ex_826775.htm (EX-31.1) — 9KB
• ex_826776.htm (EX-31.2) — 9KB
• ex_826777.htm (EX-32.1) — 5KB
• ex_826778.htm (EX-32.2) — 5KB
• 0001437749-25-025468.txt ( ) — 4000KB
• hstm-20250630.xsd (EX-101.SCH) — 31KB
• hstm-20250630_cal.xml (EX-101.CAL) — 37KB
• hstm-20250630_def.xml (EX-101.DEF) — 231KB
• hstm-20250630_lab.xml (EX-101.LAB) — 232KB
• hstm-20250630_pre.xml (EX-101.PRE) — 256KB
• hstm20250630_10q_htm.xml (XML) — 490KB

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets (Unaudited) – June 30, 2025 and December 31, 2024 1 Condensed Consolidated Statements of Income (Unaudited) – Three and Six Months ended June 30, 2025 and 2024 2 Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Three and Six Months ended June 30, 2025 and 2024 3 Condensed Consolidated Statement of Shareholders' Equity (Unaudited) – Three and Six Months ended June 30, 2025 and 2024 4 Condensed Consolidated Statements of Cash Flows (Unaudited) – Six Months ended June 30, 2025 and 2024 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 12 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 18 Item 4.

Controls and Procedures

Controls and Procedures 18 Part II. Other Information 19 Item 1.

Legal Proceedings

Legal Proceedings 19 Item 1A.

Risk Factors

Risk Factors 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20 Item 5. Other Information 20 Item 6. Exhibits 21 SIGNATURE 22 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements HEALTHSTREAM, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands) June 30, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 52,102 $ 59,469 Marketable securities 38,517 37,748 Accounts receivable, net 26,926 30,189 Accounts receivable - unbilled 4,541 5,133 Prepaid and other current assets 22,310 20,583 Total current assets 144,396 153,122 Property and equipment, net 11,914 10,741 Capitalized software development, net 44,580 43,370 Operating lease right of use assets, net 16,262 17,453 Goodwill 191,845 191,220 Intangibles, net 48,865 55,548 Other assets 42,286 39,312 Total assets $ 500,148 $ 510,766 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,043 $ 6,628 Accrued royalties 4,824 5,190 Accrued liabilities 11,815 10,141 Accrued compensation 6,320 9,507 Deferred revenue 88,376 84,227 Total current liabilities 115,378 115,693 Deferred tax liabilities 15,101 14,596 Deferred revenue, noncurrent 1,198 1,655 Operating lease liability, noncurrent 15,891 17,366 Other long-term liabilities 2,013 2,101 Commitments and contingencies Shareholders' equity: Preferred Stock, no par value, 10,000 shares authorized, no shares issued or outstanding — — Common stock, no par value, 75,000 shares authorized; 29,897 and 30,432 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 235,041 252,432 Retained earnings 116,804 108,972 Accumulated other comprehensive loss ( 1,278 ) ( 2,049 ) Total shareholders' equity 350,567 359,355 Total liabilities and shareholders' equity $ 500,148 $ 510,766 See accompanying Notes to the unaudited Condensed Consolidated Financial Statements. 1 Table of Contents HEALTHSTREAM, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands, except per share data) Three Months Ended Six Months Ende

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