Forian (FORA) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $6.85M, down 2.9% year-over-year, primarily due to contract terminations in health sciences, partially offset by new customer growth.

• Net loss widened to $3.36M from $1.13M in Q1 2025, driven by higher costs and strategic review expenses.

• Gross margin declined to 29% from 56% year-over-year due to increased information licensing and processing costs.

• The company entered into a merger agreement in April 2026 to be acquired for $2.17 per share.

Financial highlights

• Cost of revenues increased by $1.71M to $4.84M, mainly from higher licensing and processing expenses.

• Research and development expenses rose by $0.36M to $0.96M due to increased headcount.

• General and administrative expenses decreased by $0.83M to $2.45M, mainly from lower stock compensation.

• Adjusted EBITDA was $(2.34)M, down from $(0.05)M in Q1 2025.

• Cash and cash equivalents at quarter-end were $31.0M, with no outstanding convertible notes.

Outlook and guidance

• The company expects to fund operations and potential acquisitions through operating cash flow, available cash, debt, and/or equity issuances.

• Management is monitoring the impact of vendor changes on data licensing and is seeking alternative sources.