HealthStream announced its second quarter 2025 financial results on August 4, 2025, reporting record quarterly revenues of $74.4 million, a 4.0% increase from Q2 2024. Subscription revenues grew by 4.2%, contributing to the overall top-line growth.
Operating income for the quarter increased significantly by 33.4% to $5.9 million, and net income rose 29.3% to $5.4 million, resulting in diluted EPS of $0.18. Adjusted EBITDA also saw an 11.3% increase, reaching $17.6 million.
The company updated its full-year 2025 net income guidance, raising it to $19.5 - $22.4 million from the previous range of $18.6 - $21.0 million. Revenue and adjusted EBITDA guidance remained unchanged. HealthStream also completed its $25 million share repurchase program in July 2025, having repurchased $18.1 million in Q2 2025.
HealthStream secured a notable $14 million bundled deal with a new large health system client, highlighting traction for its multi-solution platform sales. The company also reported that legacy product attrition is shrinking, and it has implemented annual price escalators of 3% to 5% across core products over the last 18 months.
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