Education
About Us
Working with TipRanks
Follow Us
Performant Healthcare (PHLT)
NASDAQ:PHLT
Top Page
Performant Healthcare
(NASDAQ:PHLT)
48Neutral
Positive Factors
Business Strategy
Performant's decision to wind down the customer care business is a positive overall as it simplifies the Company's story and should increase margins in the long run.
Contract Growth
Several contracts are ramping and new RAC region RFPs are coming to market, supporting confidence in the company’s ability to achieve 15% revenue growth in 2025.
Government Alignment
Performant Healthcare is well-positioned to benefit from changing tides in payment integrity, supported by a close alignment with the current administration's focus on Medicare waste, fraud, and abuse.
Revenue Performance
The company's Q4 revenue exceeded expectations, indicating strong performance across all segments and end markets.
Negative Factors
Claims Volume
Performant reported a solid Q3, with in line revenue and adj. EBITDA ahead of expectations while maintaining its 2024 guidance despite lower claims volumes in a pre-election environment.
Performant Healthcare (PHLT) vs. S&P 500 (SPY)
Market Cap
$176.98M
Dividend YieldN/A
Average Volume (3M)142.99K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth8.12%
EPS Growth-28.71%
CountryUS
Employees964
SectorIndustrials
Sector Strength81
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.02
Shares Outstanding78,308,640
10 Day Avg. Volume105,941
30 Day Avg. Volume142,994
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.33
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.92
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.00Price Target Upside209.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 makes money by offering recovery and analytics services that help clients identify and recover improper payments, primarily within the healthcare sector. The company's revenue model is based on contingency fees, where it earns a percentage of the funds it successfully recovers for its clients. This performance-based model aligns Performant Healthcare's incentives with those of its clients, as both parties benefit from maximizing recoveries. Additionally, the company may engage in significant partnerships with government agencies and commercial clients, further contributing to its revenue streams.
Performant Healthcare Financial Statement Overview
Summary
Performant Healthcare shows inconsistent revenue and profitability with manageable but concerning leverage levels and erratic cash flow performance. Strategic improvements are needed to stabilize and enhance financial health.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.40
Negative
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.55
Neutral
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.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 122.98M | 113.74M | 109.18M | 124.39M | 155.94M | Gross Profit |
| 122.98M | -6.13M | -6.90M | -1.32M | 55.28M | EBIT |
| -9.50M | -6.13M | -6.90M | -1.32M | 13.06M | EBITDA |
| -2.21M | 828.00K | 304.00K | 5.68M | -6.97M | Net Income Common Stockholders |
| -9.89M | -7.52M | -6.54M | -10.29M | -13.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.29M | 7.25M | 23.38M | 17.35M | 16.04M | Total Assets |
| 101.77M | 99.03M | 118.83M | 121.98M | 126.23M | Total Debt |
| 8.85M | 5.54M | 21.47M | 23.24M | 65.73M | Net Debt |
| -447.00K | -1.71M | -1.91M | 5.89M | 49.68M | Total Liabilities |
| 25.27M | 18.32M | 34.35M | 39.56M | 84.25M | Stockholders Equity |
| 76.50M | 80.71M | 84.48M | 82.42M | 41.98M |
| Cash Flow | Free Cash Flow | |||
| -832.00K | -283.00K | -6.46M | -2.50M | 17.02M | Operating Cash Flow |
| 6.18M | 3.86M | -2.88M | 916.00K | 20.81M | Investing Cash Flow |
| -7.01M | -4.14M | 1.73M | -270.00K | -3.79M | Financing Cash Flow |
| 2.79M | -15.85M | 5.06M | 608.00K | -3.72M |
Performant Healthcare Technical Analysis
Negative
2.26
Price Trends
2.64
Negative
2.66
Negative
3.10
Negative
Market Momentum
-0.08
Positive
37.55
Neutral
36.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHLT, the sentiment is Negative. The current price of 2.26 is below the 20-day moving average (MA) of 2.43, below the 50-day MA of 2.64, and below the 200-day MA of 3.10, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of 36.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHLT.
Performant Healthcare Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $295.59M | 5.33 | 8.98% | ― | -2.24% | 42.13% | |
64 Neutral | $4.25B | 11.72 | 5.24% | 249.79% | 4.07% | -9.45% | |
50 Neutral | $181.46M | ― | -2.45% | ― | -10.05% | -288.36% | |
49 Neutral | $192.46M | ― | -31.18% | 9.84% | -16.27% | -589.83% | |
48 Neutral | $176.98M | ― | -12.59% | ― | 8.12% | -28.71% | |
46 Neutral | $238.81M | ― | 17.49% | ― | -2.65% | -250.90% | |
44 Neutral | $132.38M | ― | -36.98% | ― | -16.76% | -1127.93% |
* Industrials Sector Average
Performance Comparison
PHLT
Performant Healthcare
2.26
-0.83
-26.86%
FORR
Forrester Research
9.72
-9.13
-48.44%
MTW
Manitowoc Company
8.34
-4.08
-32.85%
RGP
Resources Connection
5.52
-5.14
-48.22%
TBI
Trueblue
3.84
-6.70
-63.57%
AZUL
Azul SA
0.71
-5.73
-88.98%
Performant Healthcare Earnings Call Summary
Earnings Call Date:Mar 12, 2025
(Q4-2024)
| % Change Since: -10.32%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with strong commercial growth, significant program implementation, and optimistic guidance for 2025. However, some challenges remain with slower government revenue growth and the need to ramp subscale contracts.Q4-2024 Updates
Positive Updates
Strong Commercial Growth
Healthcare revenue ended the year at $118.3 million with commercial client growth of 18%. Commercial clients now account for almost 60% of healthcare revenue, up from 28% in 2021.
Record Year for Program Growth
Implemented 42 commercial programs in 2024, expected to generate over $18 million in annual revenue at steady state. Over 100 programs implemented since 2022 with an expected cumulative ACV of $46 million.
Significant Internal Achievements
Improved key talent metrics, launched an employee stock purchase plan, and received a Comparably Award for Best Company Outlook in 2024.
Positive Financial Performance
Fourth quarter healthcare revenue grew 10% year-over-year. Full-year revenue was $123 million, with healthcare revenue growing 11% to over $118 million.
Optimistic 2025 Guidance
Forecasting revenues of $131 million to $135 million for 2025 and adjusted EBITDA of $8 million to $9 million, nearly double the 2024 adjusted EBITDA at the midpoint.
Negative Updates
Government Revenue Growth Challenges
Government growth was slower than anticipated at 3%, due to election-related sensitivities and natural maturation of CMS-MSP engagement.
Subscale Contract Challenges
New York State RAC and CMS RAC Region 2 contracts currently operating at negative margins require critical ramping.
Implementation Costs Impacting Margins
Substantial volume of implemented programs has created a front log, temporarily compressing margins as operations scale.
Company Guidance
During the Performant Healthcare Fourth Quarter 2024 Earnings Conference Call, the company provided guidance indicating strong financial health and future growth prospects. Performant finished 2024 with healthcare revenue at $118.3 million, representing double-digit revenue growth, with commercial client revenue increasing by 18% and government revenue by 3%. The company anticipates 2025 revenues between $131 million and $135 million, with adjusted EBITDA expected to nearly double to a range of $8 million to $9 million. Performant highlighted its efforts to integrate AI and natural language processing technologies to enhance workflow efficiency, aiming for a 20% adjusted EBITDA margin. The company has implemented over 100 commercial programs since 2022, with an expected cumulative annual contract value of $46 million. Despite challenges, such as election-related sensitivities, Performant remains optimistic about its federal and commercial market opportunities, underpinned by a robust sales pipeline and strategic investments in technology and workforce.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.