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Performant Healthcare (PHLT)
NASDAQ:PHLT
US Market
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Performant Healthcare (PHLT) AI Stock Analysis

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PHLT

Performant Healthcare

(NASDAQ:PHLT)

Rating:71Outperform
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
Revenue Performance
The company's Q4 revenue exceeded expectations, indicating strong performance across all segments and end markets.
Shareholder Outcome
The transaction is viewed as 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 Valuation
Performant is viewed as an attractive risk/reward opportunity with shares trading at just 1.5x the 2025 revenue estimate of $133M.

Performant Healthcare (PHLT) vs. SPDR S&P 500 ETF (SPY)

Performant Healthcare Business Overview & Revenue Model

Company DescriptionPerformant 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 MoneyPerformant Healthcare generates revenue primarily through its service offerings, which include revenue integrity solutions, claims review and management, and analytics services. The company typically charges clients on a fee-for-service basis, where it receives payments contingent on the successful recovery of improper payments. This performance-based model aligns the company’s incentives with those of its clients, as it earns a percentage of the savings it generates for them. Additionally, Performant may enter into long-term contracts with healthcare providers and government agencies, providing ongoing services that create a stable revenue stream. Significant partnerships with key players in the healthcare sector, such as insurers and government entities, also enhance its market presence and revenue potential.

Performant Healthcare Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance with significant revenue growth, a positive adjusted EBITDA, and successful strategic implementations. However, the loss of a CMS RAC contract and potential mid-year EBITDA decline due to strategic investments were noted as challenges. Overall, the positive developments outweigh the challenges.
Q1-2025 Updates
Positive Updates
Significant Revenue Growth
The company reported 29% healthcare revenue growth compared to the same quarter of 2024, and total company revenues of $33.3 million, delivering a year-over-year growth of 22%.
Positive Adjusted EBITDA
The company achieved a positive adjusted EBITDA of $3.3 million in the first quarter, a significant improvement compared to an adjusted EBITDA loss of $1.2 million in the same quarter last year.
Record Implementations
Implemented 13 commercial programs, a record number for the company in a single quarter, expected to contribute $4.5 to $5 million in annualized revenue.
Upward Revision of Full-Year Guidance
Increased full-year revenue guidance to a range of $133 million to $135 million and adjusted EBITDA guidance to $9 million to $10 million.
Strong Performance in Claims-Based Business
Claims-based business revenue was $17.1 million, showing 38% year-over-year growth.
Successful Diversification Strategy
Eligibility revenue for the quarter was $16.1 million, representing a 20% increase year-over-year, driven by commercial client contributions.
Negative Updates
CMS RAC Contract Loss
Performant was not selected for the recent CMS RAC RFP for regions three through five, though two regions were net new opportunities.
Potential Mid-Year EBITDA Decline
Guidance implies a potential adjusted EBITDA decline in the middle of the year due to investments in the New York RAC implementation and the decline of Region 5.
Company Guidance
During the first quarter of 2025, Performant Healthcare, Inc. reported a 29% increase in healthcare revenue compared to the first quarter of 2024, and achieved a positive adjusted EBITDA of $3.3 million, a substantial improvement from the prior year's $1.2 million loss. Total company revenues reached $33.3 million, marking a 22% year-over-year growth, while claims-based business revenue grew by 38% to $17.1 million. The company implemented 13 commercial programs, expected to contribute $4.5 to $5 million in annualized revenue at steady state. Performant also raised its full-year 2025 revenue guidance to $133-$135 million, and adjusted EBITDA guidance to $9-$10 million, reflecting confidence in ongoing growth and profitability.

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
40
Negative
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
55
Neutral
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
45
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue137.36M122.98M113.74M109.18M124.39M155.94M
Gross Profit68.23M122.98M113.74M109.18M124.39M55.28M
EBITDA6.92M-2.21M828.00K304.00K8.08M-6.94M
Net Income-885.00K-9.89M-7.52M-6.54M-10.29M-13.99M
Balance Sheet
Total Assets110.95M101.77M99.03M118.83M121.98M126.23M
Cash, Cash Equivalents and Short-Term Investments9.08M9.29M7.25M23.38M17.35M16.04M
Total Debt9.08M8.85M5.54M21.47M23.24M65.73M
Total Liabilities28.72M25.27M18.32M34.35M39.56M84.25M
Stockholders Equity82.24M76.50M80.71M84.48M82.42M41.98M
Cash Flow
Free Cash Flow-441.00K-832.00K-283.00K-6.46M-2.50M17.02M
Operating Cash Flow4.81M6.18M3.86M-2.88M916.00K20.81M
Investing Cash Flow-5.25M-7.01M-4.14M1.73M-270.00K-3.79M
Financing Cash Flow-907.00K2.79M-15.85M5.06M608.00K-3.72M

Performant Healthcare Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.63
Price Trends
50DMA
5.46
Positive
100DMA
4.08
Positive
200DMA
3.44
Positive
Market Momentum
MACD
0.65
Positive
RSI
83.85
Negative
STOCH
49.78
Neutral
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 7.61, above the 50-day MA of 5.46, and above the 200-day MA of 3.44, indicating a bullish trend. The MACD of 0.65 indicates Positive momentum. The RSI at 83.85 is Negative, neither overbought nor oversold. The STOCH value of 49.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHLT.

Performant Healthcare Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$602.75M-1.12%15.21%85.92%
60
Neutral
$351.05M7.877.05%-1.96%423.46%
51
Neutral
$7.84B-0.18-41.53%2.28%22.72%-1.87%
50
Neutral
$170.37M-61.29%8.22%-12.87%-1025.47%
49
Neutral
$178.51M-10.53%-13.01%68.18%
48
Neutral
$185.87M-44.74%-9.11%-6082.17%
45
Neutral
$115.68M
-1.94%68.93%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PHLT
Performant Healthcare
7.63
4.23
124.41%
FORR
Forrester Research
9.74
-8.65
-47.04%
MTW
Manitowoc Company
9.90
0.14
1.43%
RGP
Resources Connection
5.11
-4.39
-46.21%
TBI
Trueblue
5.97
-1.83
-23.46%
AZULQ
Azul SA
0.52
-2.02
-79.53%

Performant Healthcare Corporate Events

Delistings and Listing ChangesM&A Transactions
Performant Healthcare Announces Merger with Machinify
Positive
Aug 1, 2025

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.

Shareholder Meetings
Performant Healthcare Holds Annual Stockholders Meeting
Neutral
Jun 23, 2025

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.

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: Aug 02, 2025