Performant Healthcare (PHLT) AI Stock Analysis

• Market Cap: $611.45M
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.12
• Revenue Growth: 15.21%
• EPS Growth: 85.92%
• Country: US
• Employees: 964
• Sector: Healthcare
• Sector Strength: 45
• Industry: Information Technology Services
• EPS (TTM): 0.06
• Shares Outstanding: 80,440,414
• 10 Day Avg. Volume: 1,055,768
• 30 Day Avg. Volume: 1,339,525
• 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: 0.53
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: 46.66
• 1Y Price Target: $7.75
• Price Target Upside: 0.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $8.50 ▲(10.25% 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 Growth

Strong revenue growth indicates robust demand for Performant's services, enhancing its market position and providing a solid foundation for future expansion.

Strategic Merger

The merger with Machinify is expected to enhance Performant's capabilities in healthcare intelligence, potentially leading to improved service offerings and competitive advantages.

Positive EBITDA

Achieving positive EBITDA reflects improved operational efficiency and cost management, indicating a healthier financial trajectory for the company.

Negative Factors

Inconsistent Revenue Performance

Inconsistent revenue performance suggests volatility in business operations, which could hinder long-term planning and stability.

Cash Flow Issues

Erratic cash flow performance indicates potential liquidity challenges, which may affect the company's ability to invest in growth opportunities.

Loss of Key Contract

Losing the CMS RAC Region 5 contract could impact revenue streams and market presence, necessitating strategic adjustments to mitigate the loss.

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 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 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	137.36M	122.98M	113.74M	109.18M	124.39M	155.94M
Gross Profit	68.23M	122.98M	113.74M	109.18M	124.39M	55.28M
EBITDA	6.92M	-2.21M	828.00K	304.00K	8.08M	-6.94M
Net Income	-885.00K	-9.89M	-7.52M	-6.54M	-10.29M	-13.99M
Balance Sheet
Total Assets	110.95M	101.77M	99.03M	118.83M	121.98M	126.23M
Cash, Cash Equivalents and Short-Term Investments	9.08M	9.29M	7.25M	23.38M	17.35M	16.04M
Total Debt	9.08M	8.85M	5.54M	21.47M	23.24M	65.73M
Total Liabilities	28.72M	25.27M	18.32M	34.35M	39.56M	84.25M
Stockholders Equity	82.24M	76.50M	80.71M	84.48M	82.42M	41.98M
Cash Flow
Free Cash Flow	-441.00K	-832.00K	-283.00K	-6.46M	-2.50M	17.02M
Operating Cash Flow	4.81M	6.18M	3.86M	-2.88M	916.00K	20.81M
Investing Cash Flow	-5.25M	-7.01M	-4.14M	1.73M	-270.00K	-3.79M
Financing Cash Flow	-907.00K	2.79M	-15.85M	5.06M	608.00K	-3.72M

Performant Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 7.71 is above the 20-day moving average (MA) of 7.65, above the 50-day MA of 6.62, and above the 200-day MA of 3.80, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 79.88 is Negative, neither overbought nor oversold. The STOCH value of 69.64 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHLT	71 Outperform	$611.45M	―	-1.12%	―	15.21%	85.92%
MTW	63 Neutral	354.24M	7.94	6.59%	―	-1.96%	423.46%
RGP	55 Neutral	172.52M	-0.89	-92.61%	8.12%	-12.87%	-1025.47%
TBI	49 Neutral	190.47M	-5.58	-11.09%	―	-13.01%	68.18%
FORR	48 Neutral	199.04M	-2.22	-2.50%	―	-9.11%	-6082.17%
AZULQ	45 Neutral	202.81M	-0.15	30.07%	―	-1.94%	68.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.