HealthStream Inc (HSTM)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	24,805	24,740	22,714	21,914	18,512	16,364	15,836	14,968	15,586	11,817	8,578	8,312	7,766	9,401	10,949	12,086	17,823	20,705	22,072	20,689
Revenue (ttm)	US$ in thousands	291,646	287,991	285,235	282,877	279,063	277,019	273,965	270,405	266,826	262,628	259,434	258,612	256,713	254,193	250,985	246,722	244,826	245,703	247,270	250,498
Pretax margin		8.51%	8.59%	7.96%	7.75%	6.63%	5.91%	5.78%	5.54%	5.84%	4.50%	3.31%	3.21%	3.03%	3.70%	4.36%	4.90%	7.28%	8.43%	8.93%	8.26%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $24,805K ÷ $291,646K
= 8.51%

HealthStream Inc's pretax margin has shown some fluctuations over the past five years, with a general downward trend in recent quarters. The pretax margin decreased from 8.26% in March 2020 to 3.03% in December 2021, indicating a declining profitability before taxes during this period.

However, there was a slight improvement in the pretax margin in the subsequent quarters, reaching 8.51% by December 2024. This may suggest some efforts to enhance operational efficiency and control costs, leading to improved profitability.

It is important to note that despite the fluctuations, HealthStream Inc's pretax margin remained above 3% throughout the period under consideration, which indicates that the company has been able to generate profits before accounting for taxes.

Overall, HealthStream Inc's pretax margin analysis shows a mix of challenges and improvements in managing expenses and generating income over the past five years. Continued monitoring of this metric will be essential to ensure sustained profitability in the future.