HealthStream, Inc.

Good morning and welcome to Healthstream's first quarter 2026 earnings conference call. At this time, I would like to inform you that this conference is being recorded and all participants are in a listen-only mode. At the request of the company, we will open the conference up for questions and answers after the presentation. I will now turn the conference over to Molly Condra, Head of Investor Relations and Corporate Communications. Please go ahead, Ms. Condra.

Thank you and good morning. Thank you for joining us today to discuss our first quarter 2026 results. Also in the conference call with me is Robert A. Frist, Jr., CEO and Chairman of HealthStream, and Scotty Roberts, CFO and Senior Vice President of Finance and Accounting. I would also like to remind you that this conference call may contain forward-looking statements regarding future events and the future performance of HealthStream that could involve risk and uncertainties that could cause the actual results to differ materially from those projected in the forward-looking statements. Information concerning these risks and other factors that could cause the results to differ materially from those forward-looking statements are contained in the company's filings with the SEC, including forms 10-K, 10-Q, and our earnings release. Additionally, we may reference certain non-GAAP financial measures. relating to the company's past and future expected performance on this call. The most directly comparable GAAP financial metrics and reconciliations are included in the earnings release that we issued yesterday. So with that start, I'll now turn the call over to CEO Bobby Frist.

Good morning, everyone. We do have a lot to cover this morning, and I'll ask Scotty and Molly to be on guard in case I have a coffee fit, working off a bit of a cold. That's my issue. I'm going to get through it, though, just in case, Molly, be ready. All right. Well, good morning, everyone. It's our first quarter 2026 earnings call. We have a lot to go over, starting with the strong financial growth we delivered in the quarter, which included record-setting revenues of $81.2 million. That's up 10.5% year-over-year. and record-setting adjusted EBITDA, which has just pushed through the $20 million to $20.1 million. That's up 24.1% year-over-year. Operating income grew 71.6% year-over-year. The strong performance of Q1 is allowing us to increase investment beyond our original plan as we started the year, including in growth initiatives related to our current products, new products on the horizon, and accelerated use of AI. I'm going to talk about some of those investments towards the end of my sections. We're reaffirming our 2026 full-year guidance and continue to anticipate revenue between 323 million to 330 million, net income between 20.4 million and 22.8 million, and adjusted EBITDA between 73 million and 77 million. Our strong cash balance of 66.5 million, an untapped line of credit, and no long-term debt continue to position us well to take advantage of M&A opportunities as they arise, as well as other capital deployment strategies that we believe will benefit our shareholders. As a reminder, last quarter I described four reasons why HealthStream sees real opportunity in today's rapidly expanding AI environment. As AI continues to develop, I am pleased to reaffirm our increasing belief in each of those four reasons today. First, our healthcare user base continues to expand. Unlike companies facing seat compression from AI agents, healthcare keeps hiring and keeps growing. with roughly one quarter of all new U.S. jobs over the next decade projected to come from the healthcare industry. And nurses, our largest user base, are leading that growth. AI is not expected to reduce demand for nurses. If anything, it should free them to spend more time with patients and less time documenting. Second, our data profile remains a meaningful differentiator. Our customers utilize our enterprise applications as system of record for managing their learning, credentialing, and scheduling programs. The data in these applications serves as a source of truth for our customers as they carry out their operations. I believe they'll use that source of truth in training their own AI. Third, in parallel, well, in addition around the data profile, in parallel, our career networks, which is going to be an area of investment, generate proprietary individual-level data that we believe is valuable for finding, developing, retaining, and engaging the healthcare workforce. NurseGrid alone, for example, now reaches roughly one in five US nurses, telling us where, when, and for whom they want to work. Third, our HStream platform is built to incorporate AI as a core element rather than bolting it on. Platform elements like the HStream ID, which we've talked about extensively in the past, and our growing API footprint serve as essential infrastructure to help enable AI-driven innovation in healthcare workforce technology. Fourth, our ecosystem ties it all together. Millions of caregivers, thousands of healthcare organizations, and dozens of industry partners combined with more than 30 years of domain experience in the H-Stream technology platform create something difficult to replicate. AI cannot manufacture an ecosystem like HealthStream's, but it can enhance it and turn our ecosystem In turn, our ecosystem can enhance AI in what we believe will be a virtuous loop of value creation for our customers and investors alike. Building on that foundation, I'm pleased to share that we have meaningfully expanded our internal role of AI across the company and are making great progress. Adoption is broadening across teams. Our employees are putting these tools to work in their day-to-day, and we are encouraged by the early productivity and quality benefits we are already seeing. It's still early days in terms of realizing the benefits of AI, And with driving innovation as one of our company's six constitutional values, I believe our employees are on the front foot of ensuring that Healthstream is an innovator in this promising area. Before we go further in our call, I want to briefly summarize our business for the benefit of anyone who is new to the Healthstream story. And I hope there's lots of you on the call today. First and foremost, Healthstream is a healthcare technology company dedicated to developing, credentialing, and scheduling the healthcare workforce through technology solutions. each of which are becoming more valuable because of the interoperability they're achieving through our H-Stream technology platform. We have also started to open our sales channels directly to healthcare professionals and nursing students through our three career networks. These help nurses, CNAs, and students throughout their career journey. The company holds 20 patents for its innovative products, which have been awarded over 40 Brandon Hall Awards. Historically, we sell our solutions on a subscription basis under contracts that average three to five years in length. which makes our revenues recurring and predictable. In fact, 97% of our revenues are subscription-based. We are profitable, have no interest-bearing debt, and reported a strong cash balance of $66.5 million at the end of the first quarter of 2026. This strong cash balance allows us to allocate capital to product development, M&A, share repurchases, and dividends. We are solely focused on health care, and more specifically, the health care workforce and those preparing to enter it. 12.5 million healthcare professionals and nursing students in the United States comprise the core total addressable market for our solutions. At this time, let's turn it over to Scotty Roberts. We'll turn our attention to our financials and hear a report from Scotty. Scotty, take a look at 2026 first quarter and give us your financial outlook.