HealthStream, Inc. Q3 2026 Earnings Recap

HealthStream shares fell 8.4% after earnings, despite the company raising full-year guidance. The transcript offers no clear negative surprise: management cited quarterly revenue and margin ahead of its own August forecast, so the selloff’s driver cannot be identified from the information provided.

Key Takeaways

• Q3 revenue was $83.3 million, up 8.9% year over year; adjusted EBITDA was $19.3 million, a 23.2% margin.
• The company raised full-year guidance to revenue of $331 million–$333 million, net income of $21.8 million–$22.4 million, and adjusted EBITDA of $77 million–$78 million.
• For the first nine months, revenue increased 10.6% to $248.2 million and adjusted EBITDA rose 13.4% to $60 million.
• HealthStream received approximately $40 million from a private placement in September and ended the quarter with $115.2 million in cash and marketable securities and no debt.
• Management said it is investing more in hStream, career networks, and its sales organization; it pointed to suite sales momentum but gave no quantified update on their contribution.