HealthStream CEO Frist Donates $3.5M in Stock to Incentivize Employees
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Should l Buy HSTM?
Source: Businesswire
- Employee Incentive Program: HealthStream CEO Robert A. Frist, Jr. donated approximately $3.5 million in personal stock to grant 146,286 shares to over 700 employees with at least three years of service, aiming to enhance employee engagement and morale.
- No Dilution Impact: The stock grant will not dilute existing shareholders' equity, except for Frist's personal shares, ensuring that shareholder interests remain intact while fostering a sense of ownership among employees.
- Financial Impact: The company will record approximately $3.5 million in compensation expenses and $275,000 in administrative costs in Q4 2025, leading to a decrease in operating income by $3.775 million, net income by $2.955 million, and a diluted EPS impact of $0.10.
- Strategic Significance: Frist emphasized that this stock contribution not only recognizes employee efforts but also aims to improve overall company performance by enhancing employee engagement, reflecting the company's commitment to valuing its workforce.
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Analyst Views on HSTM
Wall Street analysts forecast HSTM stock price to rise
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 20.000
Low
25.00
Averages
25.00
High
25.00
Current: 20.000
Low
25.00
Averages
25.00
High
25.00
About HSTM
HealthStream, Inc. provides platform-delivered workforce solutions. Its solutions include Software-as-a-Service (SaaS), subscription-based applications used by healthcare organizations to meet a range of their workforce development needs around learning, clinical development, credentialing, and scheduling. Its content libraries allow customers to subscribe to an array of courseware, which includes content from healthcare and nursing associations, medical and healthcare publishers, and other content providers. Its scheduling solutions provide customers with real-time visibility into clinical staff scheduling. Its credentialing, privileging, and enrollment solution, CredentialStream, provides customers a user experience with a continual stream of enhancements, evidence-based content, and curated data, which provides healthcare organizations with tools to support the provider lifecycle management from recruiting, application submission, verification of licensure, and other credentials.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Release Schedule: HealthStream will release its financial results for Q4 and full-year 2025 after market close on February 23, 2026, indicating ongoing growth in the healthcare technology platform sector.
- Conference Call Timing: The earnings call is scheduled for February 24, 2026, at 9:00 a.m. Eastern Time, aimed at sharing financial performance and future outlook with investors.
- Participation Method: Investors can join the call via webcast or telephone, requiring advance registration to obtain dial-in details, reflecting the company's commitment to transparency and investor relations.
- Replay Archive: A replay of the call and webcast will be archived on the company's website for at least 30 days post-event, enhancing accessibility for investors who cannot attend live, thereby improving information dissemination.
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- Acquisition Expansion: HealthStream's acquisition of MissionCare Collective for up to $40 million enhances its competitive edge in healthcare workforce solutions, particularly in recruiting and retaining non-medical caregivers.
- Market Demand: MissionCare's myCNAjobs.com platform currently connects 5.2 million caregivers, addressing the growing demand for home care in the U.S., with the 65+ population projected to reach 20.6% by 2030.
- Technology Integration: This acquisition integrates MissionCare's technological tools with HealthStream's hStream platform, enhancing support and professional development opportunities for caregivers, thereby strengthening the company's service capabilities.
- Industry Challenge Response: With staffing identified as the biggest challenge in home care by 2025, this acquisition positions HealthStream to better address this issue, potentially increasing market share and customer satisfaction.
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- Employee Incentive Program: HealthStream CEO Robert A. Frist, Jr. donated approximately $3.5 million in personal stock to grant 146,286 shares to over 700 employees with at least three years of service, aiming to enhance employee engagement and morale.
- No Dilution Impact: The stock grant will not dilute existing shareholders' equity, except for Frist's personal shares, ensuring that shareholder interests remain intact while fostering a sense of ownership among employees.
- Financial Impact: The company will record approximately $3.5 million in compensation expenses and $275,000 in administrative costs in Q4 2025, leading to a decrease in operating income by $3.775 million, net income by $2.955 million, and a diluted EPS impact of $0.10.
- Strategic Significance: Frist emphasized that this stock contribution not only recognizes employee efforts but also aims to improve overall company performance by enhancing employee engagement, reflecting the company's commitment to valuing its workforce.
See More
- Employee Incentive Program: HealthStream CEO Robert A. Frist, Jr. has donated approximately $3.5 million in personal stock, distributing 146,286 shares to over 700 employees with at least three years of service, aiming to enhance employee engagement and loyalty.
- No Dilution Impact: The stock grant will not dilute existing shareholders, except for Frist's personal shares, ensuring that shareholder interests remain intact while simultaneously boosting employee morale and sense of belonging.
- Financial Impact: This transaction is expected to reduce operating income by approximately $3.775 million, net income by $2.955 million, and earnings per share by $0.10 in Q4 2025, reflecting the accounting treatment of the stock contribution on financial statements.
- Strategic Significance: Frist emphasized recognizing employee efforts through shared ownership, aiming to enhance overall company performance by fostering a more engaged workforce, thereby driving HealthStream's long-term success in the healthcare industry.
See More
Share Repurchase Program: HealthStream's Board of Directors has approved a $10 million share repurchase program, which will end on February 26, 2026, or when the maximum amount is spent.
Company Overview: HealthStream is a healthcare technology platform that offers Software-as-a-Service (SaaS) applications for healthcare organizations in the United States.
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