H
HealthStream
👤 Robert A. Frist Jr. (Co-founded in 1990; still CEO and chairman 35 years on, now embedded in most US hospitals' compliance.)🌐 site
A 35-year-old Nashville SaaS that turned mandatory clinical training into recurring hospital revenue.
Will it work? · our read
Compliance annuity. Growth is pedestrian, about 4% a year, and hospital consolidation shrinks its base. But accreditation makes the training non-optional, so revenue is sticky and cash-rich.
01How the money moves
Accreditors and law mandate clinical training + credentialing
→
US hospitals run and track all of it on HealthStream
→
Per-professional annual subscriptions renew
02The numbers
$304.1MFiledFY2025 revenue (10-K)
2025-12-31
Filed figures from HealthStream's FY2025 Form 10-K (SEC). FY2025 10-K
Up about 4% from $291.6M in 2024; roughly 97% is recurring subscription.
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HealthStream FY2025 Form 10-K - SEC EDGAR: $304.1M revenue, $18.3M net income, about 97% subscription; incorporated 1990, R. A. Frist Jr. CEO and chairman since 1990.SEC XBRL - HealthStream annual revenue: FY2025 $304.06M, FY2024 $291.65M, FY2023 $279.06M (all filed on Form 10-K).SEC XBRL - HealthStream net income: FY2025 $18.34M net income; profitable and paying a dividend since 2023.
Revenue is FILED: HealthStream's FY2025 Form 10-K (SEC, filed 2026-02-27) states net revenue of $304.1M, and the SEC XBRL series confirms $304.06M - matching, not massaged. Net income ($18.3M) and the roughly 97% subscription share come from the same filing's line items. Re-verified by fetching the filed HTML directly with a compliant SEC User-Agent header, since the WebFetch tool alone returns 403 on sec.gov as bot-protection, not a data problem; the raw page text prints all of it verbatim - '$304.1 million' revenue, 'Net income decreased to $18.3 million', 'approximately 97% of our net revenue', 'incorporated in 1990', and Frist as CEO and chairman 'since 1990'. The regulatory demand - Joint Commission accreditation, OSHA-mandated safety training, CMS programs, and state continuing-education rules - is quoted from the 10-K's own Business section. The switching-cost / system-of-record argument is our read, not a disclosed figure. No manufactured drama: this is a 35-year, founder-led compounder that won on patience in a boring, legally mandated niche. Founder links limited to the product site because Frist's personal profiles could not be first-party verified without search. verified:true (first-party filing, re-fetched directly). We never score you.