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1. Company Snapshot

1.a. Company Description

Forian Inc.provides software solutions, proprietary data driven insights, and predictive analytics to optimize the operational, clinical, and financial performance of its healthcare, cannabis, and government customers.It operates through three segments: Information & Software, Services, and Other.


The company's products include BioTrack, a vertically integrated point of sale, manufacturing, delivery, and cultivator software solution for dispensaries, cultivators, manufacturers, and distributors; and Cannalytics, a Software as a Service based analytics solution that provides clients with a presentation of business performance.Its products also comprise BioTrack seed-to-sale compliance traceability platform, which is used to manage the tracking and tracing of various cannabis products from cultivation to sale; BioTrack State Traceability & Enforcement Monitoring System to ensure transparency and accountability throughout cannabis supply chain; and STEMS, a seed-to-sale tracking module, to provide cannabis program management solution to cannabis regulatory agencies.In addition, the company offers security monitoring and web marketing services.


The company is headquartered in Newtown, Pennsylvania.

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1.b. Last Insights on FORA

The recent performance of Forian Inc. was negatively impacted by the announcement of VerticalScope's strong Q3 2024 financial results, which included double-digit revenue growth and strong cash flow. This news may have overshadowed Forian's own Q3 2024 earnings release, which beat earnings estimates but failed to impress investors. Additionally, the company's participation in the 13th Annual ROTH MKM Technology Event may have raised concerns about its future growth prospects.

1.c. Company Highlights

2. Forian's Q2 2025 Earnings: Strong Revenue Growth Amidst Acquisition Integrations

Forian Inc. delivered strong second-quarter 2025 financial results, with 56% year-over-year revenue growth, achieving $7.5 million in revenue, net income of $224,000, and adjusted EBITDA of $591,000. The growth was driven by new pharma projects, analytical renewals, and the full quarter impact of the Kyber Data Science acquisition. As Max Wygod, Executive Chairman and CEO, highlighted, "We believe we can contract, ingest, and produce differentiated information products quicker, more accurately, and cost-effectively than our competition."

Publication Date: Aug -18

📋 Highlights
  • Revenue Growth: Forian reported $7.5M revenue, up 56% YoY, driven by new pharma projects and the Kyber acquisition.
  • Kyber Acquisition Impact: The acquisition contributed $1.9M (39% of growth) to Q2 revenue.
  • Full-Year Guidance: Revenue outlook remains $28M–$30M (39%–49% YoY growth) with adjusted EBITDA expected between -$1M and +$1M.
  • Liquidity Position: Ended with $35.6M in cash but faces $6.8M in convertible notes maturing in September 2025.
  • Organic Growth Drivers: Health economics outcomes research and Kyber's expansion into financial services underpin sustainable growth.

Revenue and Margin Performance

The company's consolidated revenues of $7.5 million were up 56% compared to the same quarter last year, with the Kyber acquisition contributing approximately $1.9 million or 39% to the growth. Although the adjusted EBITDA margin is expected to be in the negative $1 million to positive $1 million range, the company reconfirmed its full-year 2025 revenue outlook of $28 million to $30 million, representing 39% to 49% growth year-over-year.

Acquisition Environment and Organic Growth

Max Wygod mentioned that the company is seeing valuations come down from the highs and is looking at opportunities to make accretive deals. Organic growth was driven by health economics outcomes research studies, which have been a strong point, and the Kyber Data Science acquisition, which has been growing as expected into the financial service markets.

Valuation Metrics

With a P/S Ratio of 2.74 and an EV/EBITDA of -19.77, the market seems to be pricing in the company's growth prospects. However, the ROIC (%) of -18.66 and ROE (%) of -13.08 indicate that the company still has work to do in terms of generating returns on its investments. Furthermore, the Free Cash Flow Yield (%) of 4.81 suggests that the company is generating sufficient cash flows to support its growth initiatives.

Outlook and Guidance

The company's guidance range is driven by renewals that come in the back half of the year, as well as discretionary spend on strategic initiatives. Analysts estimate next year's revenue growth at 10.1%, which seems achievable given the company's strong performance in the quarter.

3. NewsRoom

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VerticalScope Holdings Inc. (TSE:FORA) Receives C$9.33 Average Target Price from Analysts

Nov -18

Source: defenseworld.net

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Forian Inc. (FORA) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -14

Source: seekingalpha.com

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VerticalScope Holdings Inc. (FORA:CA) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Analysts Set VerticalScope Holdings Inc. (TSE:FORA) Target Price at C$10.15

Oct -24

Source: defenseworld.net

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VerticalScope to Announce Third Quarter 2025 Results

Oct -21

Source: businesswire.com

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Forian Inc. (FORA) Q2 2025 Earnings Call Transcript

Aug -13

Source: seekingalpha.com

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VerticalScope Announces CEO Transition and Executive Appointment to Drive Next Phase of Growth

Jun -04

Source: businesswire.com

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Forian Inc. (FORA) Q1 2025 Earnings Call Transcript

May -14

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.00%)

6. Segments

Analytic and Information Services

Expected Growth: 15%

Forian Inc.'s Analytic and Information Services segment growth of 15% is driven by increasing demand for data-driven insights in the healthcare industry, expansion into new markets, and strategic partnerships. Additionally, the company's investments in AI-powered analytics and cloud-based infrastructure have improved scalability and efficiency, enabling it to capitalize on emerging trends in precision medicine and value-based care.

7. Detailed Products

Cannabis Compliance

A comprehensive platform for cannabis businesses to manage compliance, track inventory, and monitor sales.

Business Intelligence

A data analytics platform providing insights into sales, customer behavior, and market trends.

Seed-to-Sale Tracking

A platform for tracking cannabis products from cultivation to sale, ensuring compliance and transparency.

Retail Point of Sale

A point-of-sale system designed specifically for cannabis retailers, streamlining transactions and inventory management.

Patient and Customer Management

A platform for managing patient and customer relationships, loyalty programs, and marketing campaigns.

8. Forian Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Forian Inc. is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high for Forian Inc. due to the presence of a large number of customers with significant purchasing power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Forian Inc. due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Forian Inc. is moderate due to the presence of barriers to entry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry for Forian Inc. is high due to the presence of several competitors in the market and the company's need to differentiate itself to gain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.77%
Debt Cost 3.95%
Equity Weight 53.23%
Equity Cost 9.51%
WACC 6.91%
Leverage 87.86%

11. Quality Control: Forian Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Premier

A-Score: 5.6/10

Value: 4.0

Growth: 2.1

Quality: 5.2

Yield: 5.0

Momentum: 9.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
HealthStream

A-Score: 4.8/10

Value: 3.7

Growth: 5.2

Quality: 6.9

Yield: 0.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Forian

A-Score: 4.3/10

Value: 6.0

Growth: 6.4

Quality: 5.5

Yield: 0.0

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
National Research

A-Score: 4.0/10

Value: 3.4

Growth: 3.6

Quality: 6.0

Yield: 6.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
GeneDx

A-Score: 3.4/10

Value: 0.2

Growth: 4.3

Quality: 5.3

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Simulations Plus

A-Score: 3.0/10

Value: 5.6

Growth: 5.7

Quality: 4.2

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.14$

Current Price

2.14$

Potential

-0.00%

Expected Cash-Flows