Forian (FORA) AI Stock Analysis

• Market Cap: $54.45M
• Dividend Yield: N/A
• Average Volume (3M): 16.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 22.87%
• EPS Growth: -152.62%
• Country: US
• Employees: 47
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Healthcare Information Services
• EPS (TTM): <0.01
• Shares Outstanding: 31,112,312
• 10 Day Avg. Volume: 21,650
• 30 Day Avg. Volume: 16,023
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 2.19
• Enterprise Value/Ebitda: -140.43
• 1Y Price Target: $3.50
• Price Target Upside: 97.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: $2.00 ▲(12.99% Upside)

Forian's overall stock score reflects a company with promising revenue growth but significant challenges in profitability and valuation. The financial performance is hindered by negative margins and weak cash flow, while technical analysis indicates bearish trends. The earnings call provides a cautiously optimistic outlook, but risks remain due to market conditions and dependency on renewals.

Forian Business Overview & Revenue Model

Company Description

Forian 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 Money

Forian makes money through a diversified revenue model primarily centered around subscription fees for its software-as-a-service (SaaS) platforms. The company offers various analytics and data management solutions that clients subscribe to on an annual or multi-year basis. Additionally, Forian generates revenue from professional services, which include consulting and implementation services to ensure the effective integration of its technologies into clients' existing systems. Forian's strategic partnerships with healthcare providers, cannabis operators, and other industry stakeholders also play a crucial role in expanding its market reach and enhancing its revenue streams.

Forian Financial Statement Overview

Summary

Forian's financial performance shows a mix of strengths and weaknesses. While revenue growth and gross profit margins are positive, persistent negative profitability and negative return on equity are significant challenges. Cash flow improvements are encouraging but need to be sustained for long-term stability.

Income Statement

Forian's income statement reveals a mixed performance. While there is modest revenue growth from the previous year (10.82% TTM vs. 2024), the company has not achieved profitability, with negative EBIT and net income margins (-29.59% and -16.49% respectively). The gross profit margin remains healthy at 60.75% TTM, indicating efficient core operations, but high operating costs and negative net income are significant concerns.

Balance Sheet

The balance sheet shows a relatively stable position with a debt-to-equity ratio of 0.23 TTM, which is manageable. The equity ratio of 61.85% TTM suggests a strong equity base. However, the return on equity is negative (-12.26% TTM), indicating that the company is not generating positive returns on its equity, which is a potential risk.

Cash Flow

Forian's cash flow is showing improvement, particularly with a positive free cash flow of $2,939,077 TTM, indicating better cash management. The operating cash flow to net income ratio is negative as the net income remains negative, but the company has positive cash flows from operations, which supports liquidity. The free cash flow to net income ratio is not meaningful due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.03M	20.15M	20.48M	28.01M	16.88M	544.87K
Gross Profit	14.85M	12.82M	15.00M	21.13M	12.16M	506.58K
EBITDA	-231.53K	-2.91M	2.75M	-18.25M	-24.00M	-4.97M
Net Income	-675.14K	-3.77M	11.11M	-25.97M	-26.55M	-4.98M
Balance Sheet
Total Assets	48.46M	47.17M	58.89M	46.26M	56.84M	12.55M
Cash, Cash Equivalents and Short-Term Investments	35.65M	35.08M	48.34M	20.72M	31.06M	12.17M
Total Debt	6.83M	6.72M	24.88M	25.75M	25.13M	0.00
Total Liabilities	17.52M	17.12M	32.71M	33.84M	31.67M	1.29M
Stockholders Equity	30.94M	30.05M	26.18M	12.42M	25.17M	11.27M
Cash Flow
Free Cash Flow	2.62M	282.83K	653.33K	-8.63M	-18.70M	-4.30M
Operating Cash Flow	2.62M	282.83K	728.82K	-8.58M	-17.26M	-4.25M
Investing Cash Flow	18.89M	17.29M	7.12M	-6.46M	-1.03M	-11.40M
Financing Cash Flow	-18.14M	-19.02M	-4.60M	-100.53K	36.28M	16.32M

Forian Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.77 is below the 20-day moving average (MA) of 1.92, below the 50-day MA of 1.98, and below the 200-day MA of 2.08, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 32.59 is Neutral, neither overbought nor oversold. The STOCH value of 2.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FORA.

Forian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCLD	68 Neutral	$115.12M	―	22.69%	―	0.04%	98.87%
Sector *	54 Neutral	€4.21B	12.58	-36.14%	2.43%	22.52%	-22.08%
FORA	46 Neutral	$54.45M	―	-3.20%	―	22.87%	-152.62%
ZCMD	43 Neutral	$22.75M	―	-3.31%	―	-18.37%	97.16%
ONMD	―	$35.08M	―		―	―	―
BEAT	34 Underperform	$37.74M	―	-315.70%	―	―	-9.13%
HCTI	27 Underperform	$16.04M	―	-118.48%	―	-45.90%	59.17%

Forian Corporate Events

Forian Approves Equity Plan Amendment at Annual Meeting

On June 11, 2025, Forian Inc. held its Annual Meeting of Stockholders, where an amendment to the 2020 Equity Incentive Plan was approved. This amendment increases the number of shares available for issuance by 4,000,000, bringing the total to 10,400,000 shares. Additionally, the election of two Class I directors and the ratification of CBIZ CPAS P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, were also approved.