HealthStream (NASDAQ:HSTM) reported record second-quarter revenue and adjusted EBITDA for 2026, citing growth in core subscription products, contributions from recent acquisitions and a one-time revenue catch-up tied to customer cost savings.
The healthcare workforce technology company also raised its full-year revenue and adjusted EBITDA outlook while modestly lowering its net-income guidance as it increases investments in growth initiatives
Revenue for the quarter rose 12.5% year over year to $83.7 million. Operating income increased 41.4% to $8.3 million, while net income grew 23.8% to $6.7 million, or $0.23 per share, compared with $0.18 per share a year earlier. Adjusted EBITDA reached a record $20.6 million, up 16.9%, and adjusted EBITDA margin expanded to 24.6% from 23.7%.
Revenue Drivers Include Core Products, Acquisitions and Catch-Up Payment Chief Financial Officer Scotty Roberts said subscription revenue increased $8 million, or 11.2%, while professional-services revenue rose $1.3 million, or 52.6%. The company reported 8.3% organic revenue growth, led by CredentialStream, which grew 14%; ShiftWizard, which grew 30%; Competency Suite, which grew 12%; and myClinicalExchange, which grew 29%. Second-quarter results also included approximately $2 million in revenue from a contract containing contingent fees that HealthStream acquired in its 2020 acquisition of ANSOS.