ACQUISITIONS - Co said Q2 revenue growth was positively impacted by acquisitions of Virsys12 and MissionCare Collective completed in Q4 2025
CONTRACT CATCH-UP - Co recognized $2 mln in Q2 from resolution of previously constrained estimates under a customer contract
SUBLEASE INCOME - Co said operating income improvement was partly due to income associated with a sublease that commenced in Q2 2025
Analyst coverage and valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for HealthStream Inc is $33.50, about 19.5% above its July 31 closing price of $28.04
The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 27 three months ago
Quarterly results beat estimates
US healthcare tech platform's Q2 revenue rose 12.5%, beating analyst expectations
Adjusted EBITDA for Q2 up 16.9%, beating analyst expectations
Revenue growth aided by acquisitions and a $2 mln contract catch-up
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