HealthStream, Inc. (HSTM): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear, no-fluff breakdown of HealthStream, Inc.'s business model as of late 2025, and honestly, the story is all about their platform transition and massive recurring revenue base. They are guiding for full-year revenue between $299.5 million and $301.5 million, with subscriptions driving nearly 96% of that-that stickiness is real, especially with a 92% customer retention rate. To see exactly how they are cementing this model, from their hStream PaaS development to integrating recent buys like Virsys12, you need to check out the nine building blocks mapped out below.

HealthStream, Inc. (HSTM) - Canvas Business Model: Key Partnerships

You're looking at how HealthStream, Inc. builds its value by relying on others to deliver key components of its platform. Honestly, in this ecosystem, partnerships aren't just nice-to-haves; they are the infrastructure.

Content providers like Elsevier and Press Ganey

HealthStream, Inc. lists Elsevier Clinical Solutions and Press Ganey as Access Partners. This means these organizations benefit from offering their content or solutions to HealthStream's mutual customers through HealthStream platforms, while keeping control over their own sales and hosting. This structure ensures customers maintain a single point of access for their learning needs on the HealthStream Learning Center (HLC).

For example, Quality Interactions, another partner, reports that 91% of learners say their content impacts how they deliver care. Elsevier is a global provider of information solutions for healthcare professionals, advancing science and technology.

Resuscitation content alliances (e.g., RQI Partners for AHA/Laerdal)

The alliance with RQI Partners, a joint venture between the American Heart Association (AHA) and Laerdal Medical, is critical for resuscitation training delivery via the HLC. These RQI solutions are HLC-validated, meeting HealthStream's standards for high-quality delivery. RQI Partners has a stated goal to save 50,000 more lives per year from cardiac arrest by 2025.

Since 2018, millions of healthcare providers have enrolled in the RQI Program, which uses a low-dose, high-frequency training model.

Financial services partners like Plenary for student debt consolidation

Specific financial details or the direct partnership amount with Plenary for student debt consolidation are not immediately available in the latest public filings. However, the market for these benefits is significant, with some third-party providers reporting over $1.8 billion delivered in student loan relief to individuals.

Technology alliances for seamless content and data integration

Technology alliances focus on ensuring smooth integration across HealthStream's ecosystem, particularly the hStream Platform. The recent acquisition of Virsys12 highlights the strategy to build infrastructure for credentialing, privileging, enrollment, and network management through an intelligent provider data engine that automates data ingestion, cleansing, and monitoring.

Virsys12 (acquired Oct 2025) for payer/health plan solutions

HealthStream, Inc. completed the acquisition of Virsys12 on October 8, 2025. The deal involved a cash payment of up to $17 million, subject to earnout achievement and working capital adjustments. Virsys12's V12 Enterprise application suite serves payers and providers in nine states across the U.S. The target market includes approximately 1,200 health and medical insurance companies in the United States that require credentialing software.

This acquisition expands HealthStream's existing Network by HealthStream credentialing solution. For context, HealthStream, Inc. reported third quarter 2025 revenues of $76.5 million.

Here's a quick look at the scale of some of these strategic relationships and market context:

The integration of these partners supports HealthStream's overall strategy, which saw subscription revenues increase by $4.0 million, or 5.7%, in the third quarter of 2025 compared to the prior year period.

Key elements delivered through these external relationships include:

• Delivery of HLC-validated resuscitation programs.
• Access to thought-leading content from major publishers.
• Expansion into payer-focused provider data management.
• Integration of specialized credentialing technology.
• Continuity of service for shared customers.

Finance: draft 13-week cash view by Friday.

HealthStream, Inc. (HSTM) - Canvas Business Model: Key Activities

The core of HealthStream, Inc.'s operations in late 2025 centers on platform evolution, content delivery, strategic expansion, and high-value sales execution.

Developing and enhancing the hStream PaaS architecture

This activity is central, with 2025 designated as the 'Year of the Platform' to transition from Software-as-a-Service (SaaS) to a Platform-as-a-Service (PaaS) architecture. Investment in this area is reflected in capital expenditures, which were $7.9 million in the first quarter of 2025 and $9.2 million in the second quarter of 2025. The hStream Developer Portal showed traction as of the second quarter of 2025, with over 460 developers from 194 customer accounts accessing the platform APIs. The first hStream platform-native software, an AI-driven Learning Experience application, launched in January 2025.

Curating and licensing mandatory compliance and clinical content

Content licensing remains a significant revenue driver, with subscription revenues increasing by $4.0 million, or 5.7%, in the third quarter of 2025 compared to the third quarter of 2024. While the majority of content falls into the mandatory category, there was a noted drop in demand for elective content, such as diversity, equity, and inclusion programs. HealthStream's Learning Center was ranked #1 among the 50 Best Healthcare Software Products by G2 in February 2025.

Integrating acquired technologies (e.g., CredentialStream, ShiftWizard)

Integration of acquired technologies drives growth across core application suites. As of the first quarter of 2025, year-over-year revenue growth for specific solutions showed strong performance:

• CredentialStream Revenue Growth: 25%
• ShiftWizard Revenue Growth: 19%
• Competency Suite Revenue Growth: 12%

HealthStream, Inc. also completed the acquisition of Virsys12 on October 8, 2025, expanding its Credentialing application solution for payers and health plan enterprises.

Enterprise sales and securing large, multi-year contracts

Direct sales teams market solutions across the full continuum of care. A key metric for this activity is the size of individual contract wins; in the first quarter of 2025, HealthStream, Inc. secured one of its largest deals in history, a $14 million contract with a major health system. Total revenues for the third quarter of 2025 reached a record $76.5 million, contributing to a trailing twelve-month revenue of $298.59 million. The full-year 2025 revenue guidance was set between $297.5 million and $303.5 million.

Managing cloud infrastructure and data security for healthcare systems

Maintaining the underlying hStream technology platform requires ongoing operational focus, reflected in the quarterly Adjusted EBITDA figures, which reached $19.1 million in the third quarter of 2025. The company emphasizes its commitment to data security, noting the hStream platform supports seamless interoperability. HealthStream, Inc. maintains a strong balance sheet to support these operational needs, reporting cash, cash equivalents, and marketable securities of $92.6 million as of September 30, 2025. The Board of Directors also authorized a share repurchase program in May 2025 for up to $25.0 million of outstanding shares.

Key Financial Metrics Supporting Key Activities (2025 Performance to Date)

HealthStream, Inc. (HSTM) - Canvas Business Model: Key Resources

You're looking at the core assets that make HealthStream, Inc. tick as of late 2025. These aren't just line items; they are the engines driving their workforce solutions platform.

Proprietary hStream technology platform and its interoperability

The hStream platform is the central nervous system here, designed to bring learning, scheduling, and credentialing together securely and seamlessly. This is how HealthStream, Inc. fights off vendor sprawl for its clients, managing workforce readiness end-to-end. It's built for healthcare, designed for scale, and backed by trusted interoperability, which helps boost efficiency without sacrificing security or performance. The platform powers various applications, including the HealthStream Learning Center^®, which was ranked #1 in G2's 2025 Best Software in Healthcare list. Also, the launch of the HealthStream Learning Experience™ (HLX) application in early 2025 shows their commitment to an AI-first approach, using data aggregated by the hStream platform for personalized learning pathways.

Extensive, accredited content library for clinical and compliance training

A platform is only as good as the content it delivers, and HealthStream, Inc. maintains a deep library. For instance, their CE Unlimited offering includes an unlimited use CE library of over 1,800 courses covering nursing, allied health, and pharmacy, all integrated with the Learning Center. They are accredited by both the Accreditation Council for Continuing Medical Education (ACCME) and the American Nurses Credentialing Center (ANCC) to provide continuing education. This library is key for meeting federal mandates and accrediting body requirements, like those from OSHA, The Joint Commission, and HIPAA, which all hospital-based professionals must satisfy.

Strong balance sheet with $92.6 million in cash (Q3 2025) and no debt

Financially, HealthStream, Inc. presents a very clean picture heading into the end of 2025. You want to see this kind of liquidity, especially when making strategic moves like the October 2025 acquisition of Virsys12. Here's the quick math on their Q3 2025 position:

This strong cash position, coupled with no outstanding indebtedness from borrowed money, gives them significant operational flexibility. What this estimate hides is the working capital position, which was reported at $35.1 million as of September 30, 2025, a slight decrease from the end of 2024.

Intellectual property, including over 20 patents (one new in GenAI)

Protecting their innovations is crucial, and HealthStream, Inc. relies on a portfolio of intellectual property. They hold over 20 patents related to their solutions, which is a solid moat in the competitive healthcare SaaS space. This includes recent grants, such as a patent in August 2025 for a method of tracking state data, and another in August 2024 for their CredentialStream Privilege Solution. The outline specifically mentions one new patent in GenAI, which aligns with their stated AI-first approach in new product development.

Their IP protection strategy rests on a few pillars:

• Reliance on copyright, trademark, and trade secret laws.
• Contractual provisions with employees and third parties.
• Measures to control access to their software and proprietary information.

Dedicated workforce of approximately 1,093 employees

The human capital supporting this technology and content is substantial. HealthStream, Inc. maintains a dedicated workforce of approximately 1,093 employees as of late 2025. This team is tasked with maintaining and growing the platform, developing new applications like the HLX, and supporting the complex needs of healthcare organizations across the continuum of care. Defintely, scaling this team effectively while managing costs is a constant balancing act.

You can see the scale of their resources here:

• Workforce Size: Approximately 1,093 employees.
• Platform Focus: Powering solutions for learning, credentialing, and scheduling.
• Strategic Alignment: Supporting the integration of acquired assets like Virsys12.

Finance: draft 13-week cash view by Friday.

HealthStream, Inc. (HSTM) - Canvas Business Model: Value Propositions

You're looking at HealthStream, Inc. (HSTM) as of late 2025, and the core value it delivers centers on making the healthcare workforce more capable, compliant, and efficient. Honestly, the numbers coming out of the third quarter show they're hitting milestones, with record quarterly revenue of $76.5 million for Q3 2025, up 4.6% year-over-year. The platform strategy is clearly driving the top line, as subscription revenues for that quarter grew by 5.7%.

The value proposition starts with providing a centralized platform for workforce development, compliance, and scheduling. This isn't just a collection of tools; it's an ecosystem. Consider the market they are operating in: the total addressable market for healthcare professionals is 12.6 million people. HealthStream, Inc. is positioning itself as the enterprise provider connecting these professionals to their employers through the hStream platform. As of Q2 2025, the hStream Developer Portal showed traction with over 460 developers from 194 customer accounts accessing the platform APIs.

Next up is reducing organizational risk via automated credentialing and regulatory tracking. This is where the platform's depth matters for risk mitigation. HealthStream, Inc.'s CredentialStream product earned a spot as the #5 ranked solution among the 50 Best Healthcare Software Products by G2 in February 2025. This focus on automation helps manage the complex web of compliance. For the nine months ended September 30, 2025, the company reported an operating income of $10.3 million over the first six months, showing operational leverage, partially offset by investments in platform and SaaS applications.

Improving clinical outcomes through evidence-based, personalized learning is a key promise. The Learning Center, a core component, was ranked #1 among the 50 Best Healthcare Software Products by G2 in February 2025. This translates directly to better staff competency. Here's a concrete example of the long-term impact: one health system in Tennessee grew its annual revenue per employee from $6.25 in 2004 to $92.86 in 2025 by adding multiple HealthStream, Inc. subscriptions and services. That's a tangible return on investment in workforce quality.

For operational improvements, optimizing staff efficiency with nurse-centric scheduling (ShiftWizard) is critical, especially since 78% of healthcare leaders reported their AI budgets would grow in 2025, signaling a push for productivity. ShiftWizard, which integrates with systems like Workday, has demonstrated strong user acceptance; in a case study, it achieved a staff buy-in and adoption rate over 85%, with a customer retention rate of 97% reported previously. The platform helps managers gain clearer visibility into staffing levels and time-off synchronization.

Finally, the concept of a single source of truth for a healthcare professional's career identity (hStream ID) ties the whole ecosystem together. This identity layer is what enables the platform effect. Financially, HealthStream, Inc. is maintaining a solid position to invest in this platform vision, reporting $92.6 million in cash, cash equivalents, and marketable securities as of September 30, 2025, with no outstanding indebtedness from borrowed money. The company's full-year 2025 revenue guidance sits between $297.5 million and $303.5 million.

Here's a quick look at the financial context for 2025 performance through Q3:

The market values HealthStream, Inc. at a market capitalization of $0.73 Billion USD as of December 2025. This valuation reflects the market's view on the success of this platform strategy.

The value propositions are supported by these key product achievements and platform metrics:

• Learning Center ranked #1 by G2 in February 2025.
• CredentialStream ranked #5 by G2 in February 2025.
• ShiftWizard staff adoption rate over 85% (historical).
• Cash and securities totaled $92.6 million as of September 30, 2025.

Finance: draft 13-week cash view by Friday.

HealthStream, Inc. (HSTM) - Canvas Business Model: Customer Relationships

You're managing relationships with large healthcare systems, so you know that once a system commits to a core platform like HealthStream, Inc.'s, the switching costs-and the integration headaches-are significant. That stickiness is a core part of their financial model.

HealthStream, Inc. structures its customer relationships to ensure deep integration and ongoing value delivery across its enterprise client base. This approach is designed to foster long-term partnerships, which is reflected in their recurring revenue base.

Dedicated Success Managers for enterprise clients (tiered support)

For your largest clients, HealthStream, Inc. assigns specialized, product-specific support from a dedicated HealthStream Success Manager to guide the adoption journey. This support is explicitly tiered support based on contract. This means the level of attention scales with the size and complexity of the organization you are serving.

High-touch implementation and professional services for complex rollouts

When you are rolling out a complex solution, you need hands-on help, not just a manual. HealthStream, Inc. provides high-touch implementation services, as evidenced by the positive feedback on their implementation team being easy to work with for streamlined processes like policy management. Professional services revenue, however, saw a decrease of $0.6 million in the third quarter of 2025 compared to the third quarter of 2024.

Community-driven engagement via HealthStream User Groups (HUGs)

Engagement goes beyond the help desk. HealthStream User Groups (HUGs) are a key mechanism for involving administrators and key stakeholders. These groups collaborate with HealthStream, Inc. to improve outcomes and streamline processes. HUGs facilitate connections locally and nationally through Special Interest Groups (SIGs) and exclusive webinars. This community aspect helps embed the platform deeper into the client's operational fabric.

Self-service support via the Customer Support Portal and Academy

For day-to-day needs, HealthStream, Inc. offers robust self-service options. Administrators can log directly into the Customer Support Portal for assistance. Furthermore, the HealthStream Academy provides educational resources 24/7, including self-paced micro-learning libraries for initial and ongoing product training. The Learning Management System, the HealthStream Learning Center®, was recognized as the #1 spot in G2's 2025 ranking of the best software applications in healthcare.

Long-term, sticky relationships with a 92% customer retention rate

The result of this focused relationship strategy is a highly sticky customer base. HealthStream, Inc. reports a 92% customer retention rate. This stickiness is supported by the growth in their subscription revenue, which increased by $4.0 million, or 5.7%, in the third quarter of 2025. The company's Remaining Performance Obligations grew to $613 million as of Q1 2025.

Here's a quick look at the quantitative support and engagement touchpoints available to HealthStream, Inc. customers:

The relationship strategy also extends into specialized networks that build value for the individual professional, which in turn strengthens the enterprise relationship:

• myClinicalExchange network supports over 250,000 clinical students preparing for healthcare careers.
• NurseGrid solution is used by more than 660,000 nurses to manage and grow their careers.
• CredentialStream grew 25% year-over-year in Q1 2025.
• ShiftWizard grew 19% year-over-year in Q1 2025.
• The Competency Suite grew 12% year-over-year in Q1 2025.

If onboarding takes 14+ days, churn risk rises, so the high-touch implementation team needs to maintain efficiency.

Finance: draft 13-week cash view by Friday.

HealthStream, Inc. (HSTM) - Canvas Business Model: Channels

You're looking at how HealthStream, Inc. gets its workforce solutions in front of healthcare organizations and individual professionals as of late 2025. The channel strategy centers on enterprise sales, a unified platform, and direct-to-user engagement.

Direct enterprise sales team targeting C-suite and HR leaders

HealthStream, Inc. markets its products and services primarily through its direct sales teams, which are positioned throughout the United States to reach a wide array of healthcare organizations. The company had a total of 1,093 employees as of November 2025. This team focuses on selling the consolidated, enterprise approach under the One HealthStream umbrella.

• Sales efforts target private, not-for-profit, and government entities.
• The sales force reaches pharmaceutical and medical device companies.
• The team also engages with nursing schools.

hStream platform and its core application suites (Learning, Credentialing)

The hStream platform is the central connection point for the core application suites, aiming for seamless interoperability. As of Q2 2025, the hStream Developer Portal showed traction, with over 460 developers from 194 customer accounts accessing the platform APIs. The core applications are highly rated by the market; for example, the HealthStream Learning Center (HLC) was ranked the #1 best software product in healthcare by G2 in 2025, and CredentialStream was ranked #5. CredentialStream also achieved the HITRUST r2 Certification, which is the highest standard in healthcare data security.

The company projects consolidated revenue for fiscal year 2025 to be between $297.5 million and $303.5 million.

Direct-to-user career networks like NurseGrid for individual professionals

HealthStream, Inc. also sells certain products directly to individuals in the healthcare industry, generally based on a per-unit retail price. The NurseGrid network, acquired for approximately $25 million in cash, serves as a key direct-to-user channel, particularly for nurses. At the time of acquisition in 2020, NurseGrid Mobile had an audience of over 260,000 monthly active users, with over 40% using the app daily. NurseGrid Enterprise is the SaaS-based product for nurse managers.

Strategic channel partners for content distribution (Access Partners)

While the search results do not provide specific 2025 metrics for 'Access Partners,' the company's structure involves leveraging its ecosystem. The platform strategy is designed to enable integration with partner and customer systems. The NurseGrid integration with hStream was noted to tap into the HealthStream network to expand reach.

Online marketing and webinars for product education and lead generation

The company uses its platform to deliver training, including industry-designed product training directly to care environments via the Learning Center. The overall strategy involves making solutions available through the Internet, leveraging public-cloud infrastructure like Amazon Web Services and Azure, which eliminates the need for onsite local implementations.

Here are the key financial and operational metrics relevant to the channel strategy as of late 2025:

The direct sales teams are supported by the platform's success; for instance, the Learning Center was ranked #1 by G2 in 2025.

HealthStream, Inc. (HSTM) - Canvas Business Model: Customer Segments

You're looking at the core groups HealthStream, Inc. serves as of late 2025. This isn't just about who buys the software; it's about the sheer scale of the healthcare workforce they touch.

US Acute Care Hospitals and Health Systems (primary enterprise base)

This group forms the bedrock of HealthStream, Inc.'s recurring revenue base. They rely on the platform for mandatory compliance and workforce development. The company is still managing the transition away from older systems, noting that legacy product attrition impacted revenue by $1.7 million in Q1 2025 alone, though this is offset by growth in modern SaaS offerings. You see the stickiness here; 80%-90% of their offerings address mandatory or accreditation-linked requirements, like those from CredentialStream, which grew 23% year-over-year in Q3 2025. The company signed one of the largest contracts in its history in Q1 2025 with a large health system where HealthStream previously had no footprint.

Post-Acute Care Facilities (e.g., long-term care, home health)

While the primary focus remains acute care, the platform's solutions for credentialing and workforce management naturally extend here. The overall market HealthStream, Inc. addresses is massive, operating within the $4.9 trillion U.S. healthcare industry, which is 17.6% of U.S. GDP. The company's solutions support the broader ecosystem needing to manage provider qualifications efficiently.

Individual Healthcare Professionals and Nursing Students

This segment is increasingly important, driven by career network products. NurseGrid, for example, is the number one app for nurses, boasting over 660,000 monthly active users and more than 3 million social connections as of Q3 2025. Furthermore, the myClinicalExchange product serves over 250,000 clinical students, capturing talent early in their careers. The total addressable market for healthcare professionals is estimated at 12.6 million individuals.

Health Plans and Payers (growing segment via Virsys12 acquisition)

This is a key area of strategic expansion following the October 2025 acquisition of Virsys12. The deal, valued at up to $17 million in cash subject to earnout, immediately strengthened HealthStream, Inc.'s offering for payers. There are approximately 1,200 health and medical insurance companies in the U.S. that fall into this payer category. Post-acquisition, combined with the Network product, HealthStream, Inc. now has over 25 active accounts in this space. Virsys12's V12 Enterprise application suite was already in use across nine states.

Medical Device and Pharmaceutical Companies (for product training)

This segment is served through the core Workforce Solutions, which includes subscription-based products for learning and competency management. The company generates a significant portion of its revenue from these enterprise contracts; 96% of Q3 2025 revenues were subscription-based. The overall strength of the enterprise base is reflected in the Remaining Performance Obligations, which stood at $621 million at the end of Q3 2025, with 39% expected to convert to revenue over the next 12 months.

Here's a quick look at the scale of the platform's reach as of late 2025:

The growth in core SaaS products shows the enterprise adoption is strong:

• CredentialStream grew 23% year-over-year in Q3 2025.
• ShiftWizard grew 29% year-over-year in Q3 2025.
• Competency Suite grew 18% year-over-year in Q3 2025.

If onboarding takes 14+ days, churn risk rises. Finance: draft 13-week cash view by Friday.

HealthStream, Inc. (HSTM) - Canvas Business Model: Cost Structure

You're looking at the expense side of HealthStream, Inc.'s (HSTM) operations as of late 2025, which is heavily influenced by the ongoing platform transition. The cost structure reflects a necessary trade-off: investing heavily for the future while managing the drag from older systems.

High cost of revenue driven by cloud hosting and third-party software licensing

The pressure on gross margin clearly shows where the immediate costs are hitting. For the third quarter of 2025, the gross margin stood at 65.3%, a dip from 66.5% in the prior year quarter. CFO Scott A. Roberts directly attributed this decline to increased cloud hosting costs and software licensing costs. This is the real-time cost of running modern, scalable SaaS applications.

Significant investment in Product Development (R&D) for platform transition

The company is clearly putting resources into its platform strategy. While operating expenses overall were only up 0.6% in Q3 2025, the breakdown shows where the focus is. Product Development spending was reported as flat, which, in the context of inflation and platform build-out, suggests a tight control or that a significant portion of the development labor is being capitalized rather than expensed immediately.

Amortization of capitalized software costs (CapEx guidance is $33M-$34M)

The investment in the platform is visible through the capital expenditure guidance and related amortization. HealthStream, Inc. is guiding for full-year 2025 consolidated Capital Expenditures in the range of $33 million to $34 million. This is a substantial outlay, and it's being funded by operations, as year-to-date free cash flow of $24.7 million was down $0.5 million primarily due to $4.1 million higher capital expenditures year-to-date. Capital expenditures incurred specifically in Q3 2025 were $7.5 million, and for Q2 2025, they were $9.2 million. These capitalized costs will eventually hit the income statement as amortization expense, which was noted as a factor increasing expenses in Q3 2025.

Labor costs, especially for platform development and sales/marketing staff

Labor is a major component, both as an operating expense and as a capitalized asset. The Q3 2025 results showed Sales and Marketing operating expenses were up 5.6%. Furthermore, the increase in expenses to support platform and SaaS applications included higher labor costs, which is a direct indicator of staffing up for the transition. For context in 2024, an increase in capitalized labor associated with software development activities was a primary driver for higher operating income, showing how much development work is being moved to the balance sheet.

Here's a quick look at the Q3 2025 Operating Expense movement compared to the prior year:

Costs associated with supporting legacy applications that are in decline

The company is actively managing the sunsetting of older technology, but it still carries a cost. In Q3 2025, Legacy Application Revenue declined by $1.7 million compared to the prior year. Management expects this pressure to continue, forecasting a drop-off in legacy software revenue up to $3 million in the fourth quarter of 2025. These legacy systems require maintenance and support labor that doesn't contribute to the high-growth subscription revenue streams, creating an efficiency drag.

The cost structure is defined by these key pressures:

• Gross Margin pressure from cloud hosting and software licensing costs.
• Significant investment reflected in $33M-$34M full-year 2025 CapEx guidance.
• Operating expense increases driven by Sales and Marketing at 5.6% in Q3 2025.
• Direct cost impact from the $1.7 million Q3 2025 revenue decline in legacy products.
• Higher expenses noted for labor costs, cloud hosting, and amortization of capitalized software.

Finance: draft 13-week cash view by Friday.

HealthStream, Inc. (HSTM) - Canvas Business Model: Revenue Streams

HealthStream, Inc. (HSTM) revenue streams are heavily weighted toward recurring software-as-a-service (SaaS) offerings as of late 2025.

Recurring Subscription Revenue: Approximately 96% of total revenue.

The core subscription business showed strong momentum in the third quarter of 2025, evidenced by the following growth rates:

• CredentialStream up 23% in Q3 2025.
• ShiftWizard up 29% in Q3 2025.
• Competency Suite up 18% in Q3 2025.

This core subscription growth, which excludes legacy product erosion, resulted in an 8% year-over-year revenue growth for the core business in Q3 2025. The total revenue for the third quarter of 2025 was a record $76.5 million.

The revenue composition for the third quarter of 2025 shows the clear shift in focus:

Professional Services Revenue, which includes implementation and consulting, saw a year-over-year decrease of 18.6% in Q3 2025. Furthermore, revenues from legacy credentialing and scheduling applications declined by $1.7 million compared to the prior year period.

Other revenue streams include revenue-share agreements with content and financial partners, such as Plenary.

Management reiterated and narrowed its full-year 2025 financial guidance following the third quarter results:

• Full-year 2025 Net Income guidance is $20.3 million-$21.5 million.
• Full-year 2025 Revenue guidance is $299.5 million-$301.5 million.

Finance: draft 13-week cash view by Friday.