Stock Track | HealthStream Plunges 13.90% in Pre-market as Q1 Earnings Miss Estimates and Guidance Lowered

Stock Track
06 May

HealthStream (NASDAQ: HSTM) saw its stock price plummet 13.90% in pre-market trading on Tuesday following the release of disappointing first-quarter 2025 financial results and reduced full-year guidance.

The healthcare technology platform provider reported quarterly earnings of $0.14 per share, missing the consensus analyst estimate of $0.16 per share. This represents a 17.65% decrease from earnings of $0.17 per share in the same quarter last year. Revenue for Q1 came in at $73.49 million, also falling short of analyst expectations of $74.93 million, though it was up 1% year-over-year.

Adding to investor concerns, HealthStream lowered its full-year 2025 revenue guidance to a range of $297.5 million to $303.5 million, down from its previous outlook. The company cited several factors impacting its performance, including a $1.7 million reduction from attrition in legacy applications, a $0.9 million reduction in perpetual license sales, and a $0.6 million reduction from customer bankruptcies. Management also noted ongoing investments in platform development and increased costs associated with sales and marketing efforts, which contributed to the 23.1% decline in operating income to $4.4 million for the quarter.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10