HealthStream (HSTM) Q1 2026 Earnings Transcript

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Date

Tuesday, May 5, 2026 astatine 9 a.m. ET

Call participants

• Chief Executive Officer — Robert A. Frist

• Chief Financial Officer — Scott Alexander Roberts

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Full Conference Call Transcript

Robert A. Frist: Good morning, everyone. We bash person a batch to screen this morning, and I volition inquire Scotty and Mollie to beryllium connected defender successful lawsuit I person a cough. I americium inactive moving disconnected a spot of a cold. That is my issue. I americium going to get done it, though. Just successful case, Mollie, beryllium ready. Alright. Well, bully morning, everyone. It is our archetypal 4th 2026 net call. We person a batch to spell over, starting with the beardown fiscal maturation we delivered successful the quarter, which included record-setting revenues of $81.2 million, up 10.5% year-over-year, and record-setting adjusted EBITDA, which conscionable pushed done $20 cardinal to $20.1 million, up 24.1% year-over-year. Operating income grew 71% year-over-year.

The beardown show successful Q1 is allowing america to summation concern beyond our archetypal plan, including successful maturation initiatives related to our existent products, caller products connected the horizon, and accelerated usage of AI. I americium going to speech astir immoderate of those investments towards the extremity of my section. We are reaffirming our 2026 full-year guidance and proceed to expect gross betwixt $323 cardinal and $330 million, nett income betwixt $20.4 cardinal and $22.8 million, and adjusted EBITDA betwixt $73 cardinal and $77 million.

Our beardown currency equilibrium of $66.5 cardinal and untapped enactment of recognition and nary semipermanent indebtedness proceed to presumption america good to instrumentality vantage of M&A opportunities arsenic they arise, arsenic good arsenic different superior deployment strategies that we judge volition payment our shareholders. As a reminder, past 4th I described 4 reasons wherefore HealthStream, Inc. sees existent accidental successful today’s rapidly expanding AI environment. As AI continues to develop, I americium pleased to reaffirm our expanding content successful each of those 4 reasons today. First, our healthcare idiosyncratic basal continues to expand. Unlike companies facing spot compression from AI agents, healthcare keeps hiring and keeps growing.

Roughly 1 4th of each caller U.S. jobs implicit the adjacent decennary is projected to travel from the healthcare industry, and nurses, our largest idiosyncratic base, are starring that growth. AI is not expected to trim request for nurses. If anything, it should escaped them to walk much clip with patients and little clip documenting. Second, our information illustration remains a meaningful differentiator. Our customers utilize our endeavor applications arsenic a strategy of grounds for managing their learning, credentialing, and scheduling programs. The information successful these applications serves arsenic a root of information for our customers arsenic they transportation retired their operations. I judge they volition usage that root of information successful grooming their ain AI.