Forian (FORA) AI Stock Analysis

• Market Cap: $63.96M
• Dividend Yield: N/A
• Average Volume (3M): 7.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 9.00%
• EPS Growth: -215.40%
• Country: US
• Employees: 47
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.04
• Shares Outstanding: 31,202,312
• 10 Day Avg. Volume: 8,693
• 30 Day Avg. Volume: 7,944
• PEG Ratio: 0.94
• Price to Book (P/B): 7.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.34
• Enterprise Value/Market Cap: 10.68
• Enterprise Value/Revenue: 8.27
• Enterprise Value/Gross Profit: 50.35
• Enterprise Value/Ebitda: -93.35
• 1Y Price Target: $3.50
• Price Target Upside: 62.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• 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 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 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 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

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	22.33M	20.15M	20.48M	28.01M	16.88M	544.87K
Gross Profit	13.57M	12.82M	15.00M	21.13M	12.16M	506.58K
EBITDA	-3.15M	-2.91M	2.75M	-18.25M	-24.00M	-4.97M
Net Income	-3.68M	-3.77M	11.11M	-25.97M	-26.55M	-4.98M
Balance Sheet
Total Assets	48.60M	47.17M	58.89M	46.26M	56.84M	12.55M
Cash, Cash Equivalents and Short-Term Investments	35.67M	35.08M	48.34M	20.72M	31.06M	12.17M
Total Debt	6.77M	6.72M	24.88M	25.75M	25.13M	0.00
Total Liabilities	6.11K	17.12M	32.71M	33.84M	31.67M	1.29M
Stockholders Equity	30.05M	30.05M	26.18M	12.42M	25.17M	11.27M
Cash Flow
Free Cash Flow	2.94M	282.83K	653.33K	-8.63M	-18.70M	-4.30M
Operating Cash Flow	2.94M	282.83K	728.82K	-8.58M	-17.26M	-4.25M
Investing Cash Flow	19.90M	17.29M	7.12M	-6.46M	-1.03M	-11.40M
Financing Cash Flow	-18.16M	-19.02M	-4.60M	-100.53K	36.28M	16.32M

Forian Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCLD	69 Neutral	$99.88M	―	21.00%	―	-0.45%	94.32%
CPIX	56 Neutral	$45.48M	―	-11.67%	―	5.82%	59.86%
Sector *	52 Neutral	$7.49B	0.22	-61.87%	2.28%	16.62%	1.08%
FORA	51 Neutral	$63.96M	―	-13.02%	―	9.00%	-215.40%
PIII	43 Neutral	$46.00M	―	-131.17%	―	9.79%	-47.01%
STRO	38 Underperform	$62.57M	―	-679.15%	―	-56.88%	-57.57%
CYCC	38 Underperform	$5.65M	―	-1949.77%	―	-89.76%	80.28%

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.

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.

Forian’s EVP Edward Spaniel Jr. Announces Resignation

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.