Performant Healthcare (PHLT) AI Stock Analysis

• Market Cap: $601.96M
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: 15.21%
• EPS Growth: 86.04%
• Country: US
• Employees: 964
• Sector: Healthcare
• Sector Strength: 37
• Industry: Information Technology Services
• EPS (TTM): 0.06
• Shares Outstanding: 78,997,025
• 10 Day Avg. Volume: 2,778,420
• 30 Day Avg. Volume: 1,085,834
• PEG Ratio: -0.79
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 1.90
• P/FCF Ratio: -281.31
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 8.65
• Enterprise Value/Ebitda: 118.61
• 1Y Price Target: $7.75
• Price Target Upside: 1.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $8.50 ▲(11.40% Upside)

Performant Healthcare's overall stock score reflects strong technical momentum and positive corporate developments, countered by financial challenges and valuation concerns. The earnings call provided optimistic guidance, supporting a favorable outlook.

Positive Factors

Financial Performance

The company's Q4 revenue exceeded expectations, indicating strong performance across all segments and end markets.

Shareholder Outcome

The takeout price represents a 118% premium to the previous day's close, indicating a positive outcome for shareholders.

Valuation

Performant's takeout valuation at 4.5x revenue is an attractive and fair valuation, near the top end of historical transactions in the space.

Negative Factors

Market Competition

The transaction's high takeout price might set a precedent that could increase competitive pressures in the market.

Performant Healthcare Business Overview & Revenue Model

Company Description

Performant Healthcare, Inc. provides technology-enabled payment integrity, eligibility, and related analytics services. It supports healthcare payers in identifying, preventing, and recovering waste and improper payments through advanced technology, analytics, and proprietary data assets. The company offers coordination-of-benefits services, as well as claims-based services, which includes the audit and identification of improperly paid claims. It also provides advanced reporting capabilities, support services, customer care, and stakeholder training programs to mitigate future instances of improper payments. The company was formerly known as Performant Financial Corporation and changed its name to Performant Healthcare, Inc. in December 2024. Performant Healthcare, Inc. was founded in 1976 and is headquartered in Plantation, Florida.

How the Company Makes Money

Performant Healthcare Solutions generates revenue through a combination of contingency fees, fixed fees, and subscription-based models for its services. The company earns a significant portion of its income by taking a percentage of the funds recovered on behalf of its clients, aligning its incentives with those of its customers. Additionally, Performant Healthcare partners with government programs such as Medicare and Medicaid to provide audit and recovery services, which contribute to its earnings. By leveraging its proprietary technology and data analytics capabilities, the company is able to deliver value-added services to its clients, driving revenue growth and maintaining strong client relationships.

Performant Healthcare Financial Statement Overview

Summary

Performant Healthcare shows inconsistent revenue performance with ongoing operational challenges, manageable leverage, and erratic cash flow, necessitating strategic improvements.

Income Statement

Performant Healthcare has shown inconsistent revenue performance with significant fluctuations in profitability. The gross profit margin improved from negative to positive in 2024, yet EBIT and net profit margins remain negative, indicating ongoing operational challenges and a need for cost management improvements.

Balance Sheet

The balance sheet reflects moderate stability with a relatively low debt-to-equity ratio, indicating manageable leverage levels. However, declining stockholder equity and a decreasing equity ratio suggest potential financial challenges that need addressing.

Cash Flow

Cash flow analysis reveals erratic free cash flow performance, with recent years showing negative free cash flow figures. The company has improved operating cash flow, but the free cash flow to net income ratio remains weak, indicating cash generation issues relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	128.92M	122.98M	113.74M	109.18M	124.39M	155.94M
Gross Profit	26.67M	122.98M	113.74M	109.18M	124.39M	55.28M
EBITDA	1.95M	-2.21M	828.00K	304.00K	8.08M	-6.94M
Net Income	-5.96M	-9.89M	-7.52M	-6.54M	-10.29M	-13.99M
Balance Sheet
Total Assets	105.36M	101.77M	99.03M	118.83M	121.98M	126.23M
Cash, Cash Equivalents and Short-Term Investments	9.98M	9.29M	7.25M	23.38M	17.35M	16.04M
Total Debt	8.89M	8.85M	5.54M	21.47M	23.24M	65.73M
Total Liabilities	27.23M	25.27M	18.32M	34.35M	39.56M	84.25M
Stockholders Equity	78.13M	76.50M	80.71M	84.48M	82.42M	41.98M
Cash Flow
Free Cash Flow	4.15M	-832.00K	-283.00K	-6.46M	-2.50M	17.02M
Operating Cash Flow	8.96M	6.18M	3.86M	-2.88M	916.00K	20.81M
Investing Cash Flow	-4.81M	-7.01M	-4.14M	1.73M	-270.00K	-3.79M
Financing Cash Flow	2.04M	2.79M	-15.85M	5.06M	608.00K	-3.72M

Performant Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHLT, the sentiment is Positive. The current price of 7.63 is above the 20-day moving average (MA) of 4.75, above the 50-day MA of 4.03, and above the 200-day MA of 3.14, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 86.75 is Negative, neither overbought nor oversold. The STOCH value of 97.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHLT.

Performant Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTW	72 Outperform	$446.59M	9.89	7.21%	―	-2.75%	65.38%
PHLT	71 Outperform	$601.96M	―	-7.65%	―	15.21%	86.04%
FORR	52 Neutral	$195.79M	―	-44.74%	―	-9.11%	-6082.17%
Sector *	51 Neutral	$7.39B	0.36	-62.86%	2.37%	15.48%	-2.68%
TBI	50 Neutral	$182.10M	―	-10.53%	―	-16.76%	-1127.93%
RGP	50 Neutral	$156.36M	―	-61.29%	10.56%	-16.27%	-589.83%
AZULQ	45 Neutral	$104.95M	―		―	-5.34%	-125.18%

Performant Healthcare Corporate Events

Performant Healthcare Announces Merger with Machinify

On July 31, 2025, Performant Healthcare, Inc. entered into an Agreement and Plan of Merger with Machinify, a portfolio company of New Mountain Capital. Under the merger agreement, Performant stockholders will receive $7.75 per share, a 139% premium over the 90-day volume-weighted average price, valuing the acquisition at approximately $670 million. The merger, unanimously approved by Performant’s board, aims to combine Machinify’s healthcare intelligence platform with Performant’s expertise to enhance payment accuracy and reduce administrative costs, benefiting stakeholders like the Centers for Medicare and Medicaid. The transaction is expected to close by the end of 2025, subject to customary conditions, and will result in Performant’s delisting from Nasdaq.

The most recent analyst rating on (PHLT) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Performant Healthcare stock, see the PHLT Stock Forecast page.

Performant Healthcare Holds Annual Stockholders Meeting

On June 18, 2025, Performant Healthcare, Inc. held its Annual Meeting of Stockholders in Weston, Florida, where 86.58% of the company’s shares were represented. During the meeting, stockholders elected three Class I directors and ratified the appointment of Baker Tilly US, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (PHLT) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Performant Healthcare stock, see the PHLT Stock Forecast page.