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Forian Inc. (FORA)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 marked a return to growth with revenue of $7.06M (+45% YoY), setting a company record; adjusted EBITDA was $(0.05)M and diluted EPS was $(0.04) .
  • Revenue materially beat limited Wall Street consensus, driven by new pharma projects, renewals, and the first full quarter of Kyber integration; EPS was modestly below consensus due to higher data costs and Kyber’s expense profile .
  • FY 2025 guidance initiated: revenue $28–$30M and adjusted EBITDA $(1.0)M to $1.0M, reflecting 39%–49% YoY growth potential from FY 2024 base .
  • Balance sheet remains strong to support growth and M&A (cash and marketable securities $35.7M; convertible notes remaining ~$6.8M maturing Sep-2025), a key positive as Forian adds new data sources and builds pharma exposure .

What Went Well and What Went Wrong

What Went Well

  • “Highest quarterly revenue to date” with Q1 2025 revenue at $7.06M; YoY increase of $2.18M driven by Kyber integration and organic wins in life sciences and healthcare .
  • Kyber integration broadened addressable market and contributed 35% of the YoY revenue growth ($1.7M), strengthening predictive analytics and financial-services exposure .
  • Management secured and integrated new clinical data feeds, easing prior data supply disruptions and supporting 2025 growth initiatives and backlog of ~$34M (unearned and unbilled) .

What Went Wrong

  • Adjusted EBITDA turned negative ($(0.05)M) versus +$0.10M in the prior year as data costs and Kyber expense profile weighed on profitability .
  • Net loss remained elevated at $(1.13)M, with lower interest income year-over-year due to prior note redemptions reducing interest-bearing balances .
  • Industry macro (FDA approvals timing; healthcare data flow disruptions in 2024) continued to lengthen commercialization timelines and complicate near-term sales cycles, though Forian noted insulation from broader executive actions .

Financial Results

Multi-period comparison (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD)$4,686,312 $5,812,472*$7,056,116
Diluted EPS - Continuing Ops ($)$(0.01) $0.0064*$(0.04)
Net Income Margin (%)−4.37%*3.44%*−15.96%*
EBIT Margin (%)−16.95%*−33.22%*−19.77%*

Notes: *Values retrieved from S&P Global.

Adjusted EBITDA

MetricQ1 2024Q1 2025
Adjusted EBITDA ($USD)$104,417 $(50,778)

KPIs

KPIQ1 2025
Cash + Marketable Securities ($USD)$35.7M
Deferred Revenue ($USD)$5,620,817
Convertible Notes Outstanding ($USD)$6,750,326 (current portion; principal held by a related party)
Contracted Backlog (Committed; unearned + unbilled) ($USD)~$34M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD)FY 2025N/A$28–$30M Initiated
Adjusted EBITDA ($USD)FY 2025N/A$(1.0)M to $1.0M Initiated

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024, Q3 2024)Current Period (Q1 2025)Trend
Data supply/integrationIndustry-wide claims/data disruptions; added ~1B annual claims to fortify Cronos Data Lake; investing in diversified sources Integrated new clinical feeds; recurring vendor integrations expected through 2025–26 Improving resilience
Pharma adoption & pipelineRenewals, growing RFPs with larger pharma; macro disruptions slowed near-term upsell Continued growth in pharma and biotech adoption; new projects and health services renewals supported the quarter Improving demand
Kyber acquisition & profitabilityAnnounced acquisition to expand analytics and FS exposure; expected to lift revenue in Q4/Q1 Kyber contributed ~35% of YoY revenue growth; EBITDA path driven by top-line scaling as G&A already cut Integration progressing
M&A environmentEvaluating strategic alternatives; cautious on pricing, seeking accretive deals Bifurcated market; more accretive private opportunities; active in seeking synergistic acquisitions Pipeline active
Regulatory/macrosClaims flow volatility; early-stage customer funding stress Limited impact from executive actions; some delays from FDA approvals timing; competitive pricing + data-driven marketing wins Mixed but manageable

Management Commentary

  • “We delivered first quarter results that continued on the positive momentum... This performance marks a return to growth and reflects our solid assimilation of the Kyber business...” — Max Wygod .
  • “Our consolidated revenues of $7.1 million were up $2.2 million or 45%... Kyber contributed approximately $1.7 million or 35% to the growth, with the remaining increase resulting from organic growth...” — Michael Vesey .
  • “We again took advantage of the opportunity to acquire new data supply contracts... integration of the new vendors will likely be a recurring theme in 2025 and into 2026.” — Max Wygod .
  • “We are optimistic about 2025... approximately $34 million of committed contracted backlog... Revenue of $28 to $30 million and adjusted EBITDA negative $1 million to positive $1 million.” — Max Wygod .
  • “We ended the period with $35.7 million of cash and marketable securities and $6.8 million in convertible notes...” — Michael Vesey .

Q&A Highlights

  • Kyber revenue model is recurring via 1-year SaaS contracts; auto-renew efforts underway .
  • EBITDA range sensitivity primarily tied to Kyber top-line scaling; G&A already streamlined; data contracts in place .
  • M&A backdrop shows accretive opportunities among VC-backed assets; private equity interest rising; focus on valuation discipline and synergy with the Data Factory .
  • Macro/regulatory: limited direct impact from executive actions; delays tied to FDA approvals timing; Forian’s data-driven marketing and competitive pricing winning deals .

Estimates Context

  • Q1 2025 actual vs S&P Global consensus:
MetricActualConsensus*# of Estimates*Result
Revenue ($USD)$7,056,116 $5,365,000*1*Beat (by ~$1.69M; ~31%)
Primary EPS ($)$(0.04) $(0.03)*1*Miss (by $0.01)

Notes: *Values retrieved from S&P Global.

  • Estimate implications: revenue beat likely prompts upward revisions to FY revenue assumptions as integration and data investments scale; EPS may lag near term given elevated data costs and Kyber’s ramp, consistent with management commentary .

Key Takeaways for Investors

  • Revenue momentum is real: record Q1 and broad-based drivers (Kyber + pharma/projects + renewals) support FY 2025 guidance of $28–$30M .
  • Profitability headwinds are transitory: adjusted EBITDA slip reflects growth investments and Kyber’s expense profile; margin improvement hinges on top-line scaling through 2025 .
  • Strong liquidity and reduced leverage: $35.7M cash/marketable securities and only ~$6.8M notes outstanding to Sep-2025 underpin execution and selective M&A .
  • Data moat is deepening: new feeds and vendor integrations aimed at insulating against supply shocks and enabling competitive differentiation in real-world evidence .
  • Expanding pharma footprint: pipeline and adoption in larger pharma/biotech are improving; expect incremental wins as brand recognition rises .
  • Near-term trading setup: clear revenue beat vs consensus, fresh FY guidance, and backlog visibility are positive catalysts; EPS miss is modest and investment-driven .
  • Medium-term thesis: scaling Kyber, diversified data assets, and disciplined M&A should compound revenue while creating leverage in EBITDA as integration costs normalize .

Additional Sources and Prior Periods

  • Q3 2024 earnings: revenue $4.69M; adjusted EBITDA $0.19M; Kyber deal announced; note redemptions reduced future interest income .
  • Q2 2024 earnings: revenue $4.8M; proactive data-source diversification; revised FY 2024 outlook to $19–$20M and EBITDA −$0.5M to +$0.5M amid data flow disruption and early-stage customer funding challenges .
  • Other Q1 2025 press releases: none found beyond the 8-K furnished Exhibit 99.1 for the quarter .