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Forian (FORA)
NASDAQ:FORA
US Market

Forian (FORA) AI Stock Analysis

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Forian

(NASDAQ:FORA)

Rating:51Neutral
Price Target:
$2.00
▼(-7.41%Downside)
Forian's overall stock score is primarily influenced by its financial performance and earnings call outlook. The company exhibits promising revenue growth and strong gross margins but is hindered by negative profitability and valuation challenges. While the technical analysis suggests a neutral stance, the strategic acquisition of Kyber Data Sciences and committed revenue backlog provide a positive outlook, supporting the company's potential for future improvement.

Forian (FORA) vs. SPDR S&P 500 ETF (SPY)

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 makes money primarily through subscription fees for its software services and data analytics solutions. The company offers a suite of products that cater to both the healthcare and cannabis sectors, enabling clients to access critical insights and tools for regulatory compliance, operational efficiency, and strategic decision-making. Additionally, Forian may generate revenue through professional services, which include consulting and implementation support. Partnerships with industry stakeholders and the integration of third-party data sources can also enhance the company's offerings and contribute to its revenue streams.

Forian Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q1-2025)
|
% Change Since: 6.40%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and a positive outlook for 2025, driven by the successful integration of Kyber Data Sciences. However, the company continues to face challenges with net losses and negative EBITDA, primarily due to increased expenses from acquisitions. Despite these challenges, the growth prospects and committed backlog suggest a positive future trajectory.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Forian's first quarter revenue was $7.1 million, representing a 45% year-over-year growth. This growth was driven by key new pharma projects and health services renewals, as well as the full first quarter integration of Kyber Data Sciences.
Kyber Acquisition Impact
The acquisition of Kyber Data Sciences significantly contributed to revenue growth, adding approximately $1.7 million, or 35%, to the quarter's revenue. Kyber's real-world healthcare insights and analytics provide unique value to investors.
Positive Revenue Outlook for 2025
Forian projects full-year 2025 revenue to be $28 million to $30 million, representing a 39% to 49% growth year-over-year. This is a significant improvement from the previous year.
Committed Contracted Backlog
Forian has approximately $34 million of committed contracted backlog, which includes unearned revenue and unbilled amounts to be recognized as future revenue.
Negative Updates
Net Loss and Negative EBITDA
Forian reported a net loss of $1.1 million for the quarter and an adjusted EBITDA of negative $51,000, compared to a loss of $1.2 million and $104,000 year-over-year, respectively.
Increased Expenses Due to Acquisitions
The changes in expenses and earnings were driven by new investments associated with data contracts and the expense profile of the Kyber acquisition, contributing to the operating loss of approximately $1.4 million.
Company Guidance
During the Forian Inc. First Quarter 2025 Financial Results Conference Call, the company reported a strong start to the fiscal year with a total revenue of $7.1 million, marking a 45% increase year-over-year. The acquisition of Kyber Data Sciences contributed $1.7 million to this growth. Despite a net loss of $1.1 million, Forian's adjusted EBITDA was a negative $51,000, an improvement from the previous year's figures. The company anticipates full-year 2025 revenue between $28 million and $30 million, representing a 39% to 49% growth from the prior year. Additionally, the adjusted EBITDA margin is projected to range from negative $1 million to positive $1 million, largely dependent on the integration and profitability of Kyber. The company ended the quarter with $35.7 million in cash and marketable securities, and $6.8 million in convertible notes maturing in September 2025. Forian remains optimistic about the future, supported by $34 million in committed contracted backlog and a focus on strategic mergers and acquisitions to enhance its market position.

Forian Financial Statement Overview

Summary
Forian demonstrates revenue growth and strong gross profit margins, suggesting potential in core operations. However, persistent negative profitability and return on equity highlight significant challenges. Improvement in cash flow is encouraging, but sustained efforts are needed for long-term stability.
Income Statement
45
Neutral
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
55
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.33M20.15M20.48M28.01M16.88M544.87K
Gross Profit13.57M12.82M15.00M21.13M12.16M506.58K
EBITDA-3.15M-2.91M2.75M-18.25M-24.00M-4.97M
Net Income-3.68M-3.77M11.11M-25.97M-26.55M-4.98M
Balance Sheet
Total Assets48.60M47.17M58.89M46.26M56.84M12.55M
Cash, Cash Equivalents and Short-Term Investments35.67M35.08M48.34M20.72M31.06M12.17M
Total Debt6.77M6.72M24.88M25.75M25.13M0.00
Total Liabilities6.11K17.12M32.71M33.84M31.67M1.29M
Stockholders Equity30.05M30.05M26.18M12.42M25.17M11.27M
Cash Flow
Free Cash Flow2.94M282.83K653.33K-8.63M-18.70M-4.30M
Operating Cash Flow2.94M282.83K728.82K-8.58M-17.26M-4.25M
Investing Cash Flow19.90M17.29M7.12M-6.46M-1.03M-11.40M
Financing Cash Flow-18.16M-19.02M-4.60M-100.53K36.28M16.32M

Forian Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.16
Price Trends
50DMA
2.06
Positive
100DMA
2.09
Positive
200DMA
2.11
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
57.78
Neutral
STOCH
50.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FORA, the sentiment is Positive. The current price of 2.16 is above the 20-day moving average (MA) of 2.05, above the 50-day MA of 2.06, and above the 200-day MA of 2.11, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.78 is Neutral, neither overbought nor oversold. The STOCH value of 50.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$99.88M21.00%-0.45%94.32%
56
Neutral
$45.48M-11.67%5.82%59.86%
52
Neutral
$7.49B0.22-61.87%2.28%16.62%1.08%
51
Neutral
$63.96M-13.02%9.00%-215.40%
43
Neutral
$46.00M-131.17%9.79%-47.01%
38
Underperform
$62.57M-679.15%-56.88%-57.57%
38
Underperform
$5.65M-1949.77%-89.76%80.28%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FORA
Forian
2.16
-0.42
-16.28%
CYCC
Cyclacel Pharmaceuticals
3.73
-365.87
-98.99%
CCLD
CareCloud
2.40
0.24
11.11%
CPIX
Cumberland Pharmaceuticals
3.08
1.64
113.89%
STRO
Sutro Biopharma
0.79
-3.17
-80.05%
PIII
P3 Health Partners
6.40
-19.18
-74.98%

Forian Corporate Events

Executive/Board ChangesShareholder Meetings
Forian Approves Equity Plan Amendment at Annual Meeting
Neutral
Jun 16, 2025

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.

The most recent analyst rating on (FORA) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Forian stock, see the FORA Stock Forecast page.

Executive/Board Changes
Forian’s EVP Edward Spaniel Jr. Announces Resignation
Neutral
May 2, 2025

On April 28, 2025, Edward Spaniel, Jr., the Executive Vice President, General Counsel, and Corporate Secretary of Forian Inc., announced his resignation from all positions within the company, effective May 23, 2025. His departure is not due to any disagreements with the company’s operations, policies, or practices.

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.Date of analysis: Jul 08, 2025