Forian (FORA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $7.1M, a 45% year-over-year increase, driven by the Kyber acquisition, organic growth, and new contracts in pharma and health services.

• Net loss narrowed to $1.1M from $1.2M year-over-year, with EPS at $(0.04).

• Adjusted EBITDA was negative $51,000, down from $104,000 positive last year, reflecting higher costs and Kyber integration.

• Kyber Data Science contributed $1.7M in Q1 2025 revenue and expanded presence in financial services.

• No material subsequent events or unresolved litigation as of the report date.

Financial highlights

• Revenue increased by $2.2M year-over-year, with $1.7M from Kyber and $0.5M from organic growth.

• Gross margin declined to 55.6% from 65% year-over-year due to higher information licensing costs.

• Operating loss improved to $1.4M from $1.8M year-over-year.

• Cash and marketable securities totaled $35.7M as of March 31, 2025.

• Operating cash flow was $1.1M in Q1 2025, up from $(2.2)M in Q1 2024.

Outlook and guidance

• Full-year 2025 revenue expected to be $28M–$30M, representing 39%–49% growth over 2024.

• Adjusted EBITDA margin guidance for 2025 ranges from negative $1M to positive $1M.

• Management expects to fund operations and acquisitions through operating cash flow, liquidity, and potential financing.

• Approximately $34M in committed contracted backlog to be recognized as future revenue.