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Forian (FORA)
NASDAQ:FORA
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Forian
(NASDAQ:FORA)
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Rating:49Neutral
Price Target:
$2.00
▼(-5.66% Downside)
Forian's overall stock score is primarily impacted by its financial performance, which shows positive revenue growth but significant profitability challenges. Technical analysis provides a mixed outlook with some support in longer-term trends, while valuation is weak due to negative earnings and lack of dividends.
Positive Factors
Revenue Growth
Strong revenue growth indicates successful market expansion and product adoption, driven by strategic acquisitions like Kyber Data Science.
Improved Financial Metrics
Improved financial metrics reflect enhanced operational efficiency and profitability potential, supporting long-term financial health.
Strategic Growth and Market Positioning
Strategic acquisitions bolster competitive advantage by expanding data capabilities and product offerings, enhancing market positioning.
Negative Factors
Mixed Spending Environment
A cautious spending environment in key markets may hinder revenue growth and strategic initiatives, impacting long-term performance.
Uncertain EBITDA Margin
Wide EBITDA margin guidance indicates potential volatility in profitability, posing risks to financial stability and investor confidence.
Dependence on Renewals
Revenue reliance on contract renewals presents risks if expectations are not met, potentially affecting revenue stability and growth.
Forian (FORA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.87M
Dividend YieldN/A
Average Volume (3M)272.50K
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth42.60%
EPS Growth67.76%
CountryUS
Employees47
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.00
Shares Outstanding31,072,252
10 Day Avg. Volume42,136
30 Day Avg. Volume272,505
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)2.13
Price to Sales (P/S)3.18
P/FCF Ratio226.31
Enterprise Value/Market Cap0.63
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit2.69
Enterprise Value/Ebitda-194.76
Forecast
1Y Price Target
$2.10Price Target Upside-0.94% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Forian Business Overview & Revenue Model
Company DescriptionForian Inc. provides software solutions, proprietary data driven insights, and predictive analytics to optimize the operational, clinical, and financial performance of its healthcare, cannabis, and government customers. It operates through three segments: Information & Software, Services, and Other. The company's products include BioTrack, a vertically integrated point of sale, manufacturing, delivery, and cultivator software solution for dispensaries, cultivators, manufacturers, and distributors; and Cannalytics, a Software as a Service based analytics solution that provides clients with a presentation of business performance. Its products also comprise BioTrack seed-to-sale compliance traceability platform, which is used to manage the tracking and tracing of various cannabis products from cultivation to sale; BioTrack State Traceability & Enforcement Monitoring System to ensure transparency and accountability throughout cannabis supply chain; and STEMS, a seed-to-sale tracking module, to provide cannabis program management solution to cannabis regulatory agencies. In addition, the company offers security monitoring and web marketing services. The company is headquartered in Newtown, Pennsylvania.
How the Company Makes MoneyForian generates revenue through multiple streams, primarily from subscription services, where clients pay for access to its data analytics platforms and tools. The company also earns income through consulting services, providing tailored analytics and strategic advice to clients in the healthcare and cannabis industries. Additionally, Forian partners with various organizations, including healthcare institutions and cannabis-related businesses, to offer comprehensive data solutions and insights, further contributing to its revenue. The growth in the cannabis market and increasing demand for healthcare analytics are significant factors that enhance Forian's earnings potential.
Forian Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Positive
Forian's earnings call highlighted strong revenue growth and improved financial metrics, largely driven by the strategic acquisition of Kyber Data Science. Despite these positive developments, the company faces challenges such as a mixed spending environment and reliance on contract renewals. The sentiment is cautiously optimistic with strong growth but some risks ahead.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Forian reported a second quarter revenue of $7.5 million, representing a 56% year-over-year growth. This growth was driven largely by the Kyber Data Science acquisition and new pharma projects.
Improved Financial Metrics
The company achieved a net income of $224,000 and adjusted EBITDA of $591,000, improving from a loss of $2.5 million and positive $78,000 year-over-year, respectively.
Kyber Data Science Acquisition Impact
The full quarter impact of the Kyber Data Science acquisition contributed approximately $1.9 million or 39% to the revenue growth, enhancing the company's data capabilities and product offerings.
Strategic Growth and Market Positioning
Forian's acquisition and integration of diverse clinical data sources have strengthened its market position with analytics-ready solutions, enhancing its competitive advantage.
Positive Full Year Outlook
Forian reaffirmed its outlook for full year 2025 revenue of $28 million to $30 million, indicating a projected growth of 39% to 49% year-over-year.
Negative Updates
Mixed Spending Environment
The company faces a mixed spending environment in its healthcare and financial services markets, with cautious pharma companies due to geopolitical and macroeconomic factors.
Uncertain EBITDA Margin
The guidance for adjusted EBITDA margin ranges widely from negative $1 million to positive $1 million for the full year, indicating potential volatility in profitability.
Dependence on Renewals
A significant portion of revenue for the second half of the year depends on renewals, especially from the Kyber acquisition's annual licenses, which presents a risk if renewals do not meet expectations.
Company Guidance
During the Forian Inc. Second Quarter 2025 Financial Results Conference Call, guidance was provided, highlighting several key metrics and projections. Forian reported a second-quarter revenue of $7.5 million, marking a 56% year-over-year growth. The company's net income was $224,000, with an adjusted EBITDA of $591,000, compared to a loss of $2.5 million and an adjusted EBITDA of $78,000 in the previous year. Forian's revenue growth was driven by the Kyber Data Science acquisition, contributing approximately $1.9 million, or 39%, to the overall increase, with the remaining growth attributed to organic expansion in the life sciences data business. Looking ahead, Forian anticipates a full-year 2025 revenue of $28 million to $30 million, representing a 39% to 49% growth year-over-year. The adjusted EBITDA margin is expected to range from negative $1 million to positive $1 million. The company emphasized the importance of renewing annual licenses, primarily stemming from the Kyber acquisition, as a key factor influencing the achievement of its revenue targets. Additionally, Forian is actively exploring strategic acquisitions to further strengthen its financial position and expand its reach in the pharmaceutical sector.Forian Financial Statement Overview
Summary
Forian shows positive revenue growth and improved leverage, but faces challenges with negative margins and returns on equity. Cash flow is stable but needs growth improvement.Income Statement
Forian's income statement shows mixed results. The company has achieved a positive revenue growth rate of 12.29% in the TTM, indicating a recovery from previous declines. However, profitability remains a concern with negative net profit and EBIT margins, suggesting ongoing operational challenges. The gross profit margin has decreased over time, reflecting potential cost pressures or pricing challenges.Balance Sheet
Forian's balance sheet shows improvement in leverage, with a significantly reduced debt-to-equity ratio in the TTM. However, the return on equity remains negative, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is stable, suggesting a balanced asset structure, but the negative ROE highlights profitability issues.Cash Flow
The cash flow statement reveals a decline in free cash flow growth, which is a concern for future liquidity. However, the company has managed to maintain a positive free cash flow to net income ratio, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio is improving, suggesting better cash management.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.11M | 20.15M | 20.48M | 16.42M | 16.88M | 544.87K |
| Gross Profit | 15.52M | 12.82M | 15.00M | 11.37M | 12.16M | 506.58K |
| EBITDA | -214.26K | -2.91M | 2.75M | -18.25M | -24.00M | -4.97M |
| Net Income | -852.58K | -3.77M | 11.11M | -25.97M | -26.55M | -4.98M |
Balance Sheet | ||||||
| Total Assets | 41.25M | 47.17M | 60.90M | 46.26M | 56.84M | 12.55M |
| Cash, Cash Equivalents and Short-Term Investments | 28.23M | 35.08M | 48.34M | 20.19M | 31.06M | 12.17M |
| Total Debt | 18.10K | 6.72M | 23.00M | 25.50M | 25.13M | 0.00 |
| Total Liabilities | 10.17M | 17.12M | 33.18M | 33.84M | 31.67M | 1.29M |
| Stockholders Equity | 31.08M | 30.05M | 27.72M | 12.42M | 25.17M | 11.27M |
Cash Flow | ||||||
| Free Cash Flow | 1.41M | 282.83K | 653.33K | -8.63M | -18.69M | -4.30M |
| Operating Cash Flow | 1.41M | 282.83K | 728.82K | -8.58M | -17.25M | -4.25M |
| Investing Cash Flow | 25.86M | 17.29M | 7.12M | -6.46M | -1.03M | -11.40M |
| Financing Cash Flow | -25.32M | -19.02M | -4.60M | -100.53K | 36.28M | 16.32M |
Forian Technical Analysis
Negative
2.12
Price Trends
2.16
Negative
2.16
Negative
2.08
Positive
Market Momentum
>-0.01
Negative
47.81
Neutral
73.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FORA, the sentiment is Negative. The current price of 2.12 is below the 20-day moving average (MA) of 2.12, below the 50-day MA of 2.16, and above the 200-day MA of 2.08, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 73.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FORA.
Forian Risk Analysis
Forian disclosed 27 risk factors in its most recent earnings report. Forian reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We have a limited operating and financial history. Q4, 2022
2.
Adverse developments affecting the financial services industry could adversely affect our current and projected business operations and our financial condition and results of operations. Q4, 2022
3.
We could lose our access to data from external sources, which could prevent us from providing our solutions. Q4, 2022
Forian Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $130.58M | 75.68 | 21.49% | ― | 2.97% | ― | |
52 Neutral | $81.29M | -3.56 | -792.01% | ― | ― | 4.31% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $65.87M | -77.37 | -2.94% | ― | 42.60% | 67.76% | |
43 Neutral | $13.43M | -2.70 | -8.96% | ― | -24.64% | 92.19% | |
40 Underperform | $3.20M | >-0.01 | -182.56% | ― | -21.88% | 68.40% |
* Healthcare Sector Average
FORA
Forian
2.12
0.03
1.44%
CCLD
CareCloud
3.08
0.15
5.12%
ZCMD
Zhongchao
0.53
-1.22
-69.83%
ONMD
OneMedNet
1.19
0.16
15.53%
HCTI
Healthcare Triangle
0.54
-237.38
-99.77%
BEAT
HeartBeam
2.36
0.31
15.12%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.