Healthstream

HSTM on Nasdaq. HealthStream sells online training and software to hospitals and healthcare workers. Market value $922m.

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Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.

We can't read total debt from the filing, so debt is left out.

Should I look at this?

Not a fit for our list right now

See Technology stocks that passed both tests

This is not advice. Check the numbers below.

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Cash yield
past 12 months to June 2026
4.5%fair

For every $100 of what the whole company costs, it produced $4.54 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026
n/a

The filings do not give us enough to work this out.

Return on capital
five annual reports to December 2025
n/a

The filings do not give us enough to work this out.

Quality score: 65 of 100. Price score: 54 of 100. Our list needs 70 on quality and 60 on price.

$31.31 a share, 61% above its 1-year low

Over the past year the price has ranged from $19.50 to $31.84.

Dividend: 0.4% a year

Paid every year for 3 years

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

0.0
0.0
0.0
0.0
0.0
0.0
2021202220232024202512 monthsto Jun '26
Revenue
$257m$267m$279m$292m$304m
Operating margin
3.1%4.7%5.7%7.3%6.7%
Debt to equity
n/an/an/an/an/a
Shares outstanding
0.03bn0.03bn0.03bn0.03bn0.03bn

Health checks

  • Free cash flow positive5 of 5 years
  • Accounting looks honest (Beneish)Not enough data
  • Financial strength (Piotroski)6 of 8 checks we could run
  • Profit backed by cash (accruals)Yes
  • DebtUnknown
  • Revenue growth, five yearsSlow, 4.4% a year
  • Buying back its own sharesYes, 4% fewer since 2021

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $84 million last quarter, up 13% on a year ago.
  • Profit: $7 million, up 24% on a year ago.
  • It keeps 8 cents of each $1 of sales as operating profit, up from 7 cents a year earlier.
  • Spare cash over the past 12 months: $42 million, up from $31 million.
  • 4% fewer shares than a year ago. Each share owns a bit more of the company.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$73m
December 2024$74m
March 2025$73m
June 2025$74m
September 2025$76m
December 2025$80m
March 2026$81m
June 2026$84m
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024$6m
December 2024$5m
March 2025$4m
June 2025$5m
September 2025$6m
December 2025$3m
March 2026$6m
June 2026$7m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
27 February 2026
Next quarterly (estimated, 10-Q)
5 November 2026

Who owns it

2 long-term investors we follow own it, unchanged from 2 last quarter. 219 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

3 investors own more than 5%.

  • BlackRock, Inc.
    Passive investor
    11.9%
    Since 31 March 2025
  • WJRJJ Ventures, LLC
    Passive investor
    9.6%
    Since 14 September 2026
    What they said

    The information set forth in Item 3 of this Schedule is incorporated herein by reference. WJRJJ purchased shares of the Company's common stock pursuant to a Securities Purchase Agreement ("Securities Purchase Agreement"), dated as of September 11, 2026, by and among WJRJJ, the…

    Read the filing
  • 5.3%+0.5 pts
    Since 30 June 2026
  • The Vanguard Group
    Passive investor
    Sold down below 5%
    Since 13 March 2026

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 5 sold $5m, $274,000 of it under preset trading plans.

  • FRIST ROBERT A JR
    CEO and Chairman, Director
    Sold
    Date
    14 September 2026
    Shares
    144,068
    Price
    $29.50
    Value
    $4m
  • REBROVICK LINDA
    Director
    Sold
    under a preset trading plan
    Date
    6 July 2026
    Shares
    6,000
    Price
    $29.00
    Value
    $174,000
  • REBROVICK LINDA
    Director
    Sold
    under a preset trading plan
    Date
    1 June 2026
    Shares
    2,000
    Price
    $25.00
    Value
    $50,000
  • REBROVICK LINDA
    Director
    Sold
    under a preset trading plan
    Date
    28 May 2026
    Shares
    2,000
    Price
    $25.00
    Value
    $50,000
  • O'Hara Kevin P
    Executive Vice President
    Sold
    Date
    20 May 2026
    Shares
    3,000
    Price
    $24.08
    Value
    $72,240
  • Cunningham Jeff
    Chief Technology Officer
    Sold
    Date
    10 December 2025
    Shares
    2,100
    Price
    $24.09
    Value
    $50,589
  • O'Hara Kevin P
    Executive Vice President
    Sold
    Date
    8 December 2025
    Shares
    2,000
    Price
    $24.26
    Value
    $48,520
  • Taylor Tate Deborah
    Director
    Sold
    Date
    26 November 2025
    Shares
    1,580
    Price
    $25.46
    Value
    $40,227

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 27 Feb 2026, plus the 10-Q filed 6 Aug 2026 and 9 later 8-Ks.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.