STREAMLINE HEALTH SOLUTIONS INC. (STRM)·Q1 2026 Earnings Summary

Executive Summary

• Q1 2026 (company’s fiscal Q1 ending April 30, 2025) delivered modest topline growth and improved profitability metrics: revenue rose to $4.81M, SaaS mix expanded to 69.9%, and adjusted EBITDA turned positive at $0.23M; GAAP net loss narrowed to $1.65M .
• Against external consensus, STRM beat on both EPS and revenue: EPS of -$0.40 vs -$0.45 and revenue of $4.81M vs $4.70M; both modest beats reduced near-term estimate risk .
• Pending all-cash acquisition by MDaudit at $5.34 per share (~138% premium to pre-announcement close) is the primary stock-catalyst and likely ceiling on near-term trading range; close expected in 3Q 2025 subject to customary conditions .
• Liquidity remains tight (cash $1.45M; line of credit balance $2.0M); interest expense increased YoY, underscoring financing constraints despite improving operating metrics .

What Went Well and What Went Wrong

What Went Well

• SaaS growth and mix: SaaS revenue increased 23% YoY to $3.36M and represented ~70% of revenue, supporting higher-quality, recurring revenue mix .
• Profitability progress: Adjusted EBITDA turned positive to $0.226M vs -$0.703M YoY, reflecting cost actions and SaaS scaling .
• Strategic positioning and customer momentum: Management emphasized expanding product capabilities (eValuator denial prevention, RevID footprint) and confident path to profitable growth; “We’re focused on deepening that impact with targeted innovation in fiscal 2025… we remain confident in our path toward profitable growth.” — Ben Stilwill, CEO (Q4 FY2024 release) .
• Takeout premium: MDaudit agreement provides 138% premium to pre-announcement close, potentially de-risking execution concerns .

What Went Wrong

• Continued GAAP losses and financing costs: Net loss remained elevated at -$1.65M; interest expense rose to $0.543M, tempering operating improvements .
• Liquidity pressure: Cash decreased to $1.45M (from $2.18M at prior quarter-end), with increased line-of-credit draw to $2.0M and term loan/notes sizable, highlighting balance sheet constraints .
• Legacy revenue drag: Maintenance/support and professional fees were down YoY (-$0.153M and -$0.003M, respectively), showing continued drag from legacy businesses and non-renewals .

Financial Results

Income Statement and EPS vs Prior Periods and Estimates

Notes: Company documents label the period “fiscal first quarter 2025” (ended Apr 30, 2025), which external sources refer to as Q1 2026 .

Segment Mix and Margins

KPIs and Balance Sheet

Guidance Changes

No specific numeric guidance was provided for revenue, margins, OpEx, OI&E, or tax rate in the Q1 release .

Earnings Call Themes & Trends

Note: A Q1 2026 earnings call transcript was not available in the document archive or company IR site. Themes below reflect management communications across Q3, Q4 releases and Q1 press materials.

Management Commentary

• “As of January 31, 2025, our solutions are delivering an annualized financial impact of more than $210 million to our clients… We’re focused on deepening that impact with targeted innovation in fiscal 2025… We remain confident in our path toward profitable growth.” — Ben Stilwill, CEO (Q4 FY2024 release) .
• “MDaudit and Streamline have always believed that the most sophisticated technology won’t drive successful outcomes without an unwavering focus on customer satisfaction… Together, we’re delivering foresight and action; not just reports or alerts.” — Ben Stilwill, CEO (Merger PR) .
• “Streamline’s eValuator and RevID solutions complement MDaudit’s current strengths… by enabling pre-bill visibility in real-time to unlock revenue opportunities.” — Ritesh Ramesh, CEO of MDaudit (Merger PR) .

Q&A Highlights

• The Q1 2026 earnings call transcript was not available from company IR or our document catalog; therefore, Q&A highlights and any call-specific guidance clarifications are unavailable based on primary sources [List: earnings-call-transcript unavailable for Q1; only Q4 transcripts listed 5/2/2025] [17] [18].

Estimates Context

• External consensus indicated modest beats: EPS -$0.40 vs -$0.45 and revenue $4.81M vs $4.70M for Q1 2026 .
• S&P Global (Capital IQ) consensus was unavailable via our data connector for STRM; as a result, we anchored comparisons to MarketBeat public estimate data and noted the SPGI limitation (mapping not available) [GetEstimates error: Missing CIQ mapping].
• Implication: modest estimate beats on both lines reduce near-term downward revision risk; however, financing costs and liquidity constraints could temper forward EPS trajectories absent transaction close .

Key Takeaways for Investors

• Near-term de-risking via MDaudit all-cash acquisition at $5.34 (~138% premium), with expected close in 3Q 2025; this likely caps upside near the deal price and shifts focus to closing certainty .
• Operationally, STRM is executing: revenue grew to $4.81M, SaaS mix reached ~70%, and adjusted EBITDA turned positive; these are important proof points of restructuring efficacy .
• Liquidity remains tight (cash $1.45M, LoC $2.0M), and interest expense rose to $0.54M; monitor covenant compliance and cash generation until transaction closes .
• Legacy revenue headwinds persist (maintenance/support and professional services), but continued eValuator/RevID wins and implementations support mix improvement toward SaaS .
• With consensus beats, estimate risk moderates; however, absent new guidance or call transcript, visibility remains limited—transaction process and regulatory milestones are the primary catalysts in the next 1-2 quarters .
• Medium-term thesis (if standalone): expanding SaaS ARR and positive adjusted EBITDA trajectory; yet balance sheet constraints and financing costs are material; as a private entity under MDaudit, strategic integration could unlock broader revenue cycle synergies .