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- **Revenue Growth**: Q3 2025 revenues rose 4.6% to $76.5 million, driven by CredentialStream (23% YoY) and ShiftWizard (29% YoY) growth.
- **Strategic Expansion**: $11.2M Virsys12 acquisition expands payer market presence, with $900k Q4 contribution and up to $4M contingent payments.
- **Career Networks**: NurseGrid (660K users) and myClinicalExchange (250K students) leverage hStream ID for seamless data integration, with monetization strategies like job postings and education.
- **Financial Strength**: $92.6M cash balance, 7.9% YoY EBITDA growth to $19.1M, and completion of $25M share buyback program.
- **Legacy Transition**: $1.7M decline in legacy revenues offset by core growth, with full-year guidance maintained despite $3M legacy drop in Q4.

**【CEO Summary Section】**
- **Record Financial Performance**: Q3 2025 revenues reached $76.5 million, up 4.6% YoY, with operating income rising 16.5% to $7.6 million. Adjusted EBITDA hit $19.1 million, a 7.9% YoY increase.
- **Strategic Acquisition**: Acquired Virsys12 for $11.2 million, expanding into the payer market with a $900k expected Q4 contribution. The deal includes up to $4 million in contingent payments over 3 years.
- **Career Networks Growth**: NurseGrid boasts 660,000 monthly active users, while myClinicalExchange serves 250,000 clinical students. Both platforms are integrated via hStream ID, enabling seamless data sharing and portfolio management.
- **Product Momentum**: CredentialStream and ShiftWizard grew 23% and 29% YoY, respectively, driven by conversions from legacy systems. The Competency Suite, a bundled offering, saw an 18% YoY revenue increase.
- **Legacy Transition**: Legacy credentialing and scheduling revenues declined $1.7 million YoY, offsetting core growth. Full-year guidance remains unchanged, with narrowed ranges reflecting operational confidence.

**【CFO Financial Commentary】**
- **Financial Health**: Ended Q3 with $92.6 million in cash, up from $90.6 million last quarter. Free cash flow for the year is $24.7 million, down 1.2% YoY due to higher capex.
- **Gross Margin Dynamics**: Gross margin dipped to 65.3% (from 66.5%) due to cloud and software licensing costs. Operating expenses rose 0.6%, with sales and marketing up 5.6% on staffing additions.
- **Shareholder Returns**: Repurchased $6.9 million in shares under a $25 million program, completed in Q3. Dividends of $0.031 per share were declared, maintaining a steady payout.
- **Guidance Update**: Full-year 2025 revenue expected between $299.5M-$301.5M, with adjusted EBITDA of $69.5M-$71.5M. Excludes potential future acquisitions.

**【Q&A Highlights】**
- **Virsys12 Mix**: Revenue from Virsys12 is split between subscription and consulting, with $900k expected in Q4. The acquisition brings payer expertise and a 25+ customer base.
- **Career Network Monetization**: NurseGrid explores LinkedIn-style monetization, including job postings, education, and debt consolidation partnerships. myClinicalExchange generates $30/student, with 2,000 weekly ID additions.
- **Product Growth Drivers**: ShiftWizard and CredentialStream growth reflects competitive takeaways and existing customer expansion. The Competency Suite's 18% YoY growth highlights bundled sales appeal.
- **Small Hospital Strategy**: Bundled solutions like the Critical Access bundle target cost-conscious small hospitals, combining learning, scheduling, and policy management at a discounted rate.


HealthStream, Inc. (HSTM) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HSTM

HSTM fundamentals

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