Forian Q2 2025 slides: First profitable quarter with 56% revenue growth

Introduction & Market Context

Forian Inc. (NASDAQ:FORA) presented its Q2 2025 financial results on August 13, 2025, marking a significant milestone as the company reported its first profitable quarter. The data-focused company, which has been expanding through both organic growth and strategic acquisitions, demonstrated substantial improvement across key financial metrics despite trading near its 52-week low of $1.85, with shares closing at $1.90 prior to the results announcement.

Quarterly Performance Highlights

Forian reported impressive financial results for the second quarter of 2025, highlighted by its first quarter of positive net income. Revenue reached $7.48 million, representing a 56% increase compared to $4.78 million in Q2 2024. The company achieved a net income of $225,000 ($0.01 per share), a remarkable turnaround from the $2.55 million loss (-$0.08 per share) reported in the same period last year.

As shown in the following comprehensive financial overview:

Adjusted EBITDA, a key metric for operational performance, surged to $591,000, representing a 656% increase from $78,000 in Q2 2024. This dramatic improvement reflects the company’s enhanced operational efficiency and successful integration of recent acquisitions.

Revenue Growth Analysis

Forian’s revenue has shown consistent growth over multiple years, with Q2 2025 representing the highest quarterly revenue in the company’s history. The Kyber acquisition contributed significantly to this growth, accounting for $1.9 million of the quarterly revenue increase, while approximately 17% came from organic growth initiatives.

The following chart illustrates Forian’s revenue trajectory over the past five years:

For the first six months of 2025, Forian generated $14.53 million in revenue, a 51% increase compared to $9.65 million in the first half of 2024. The Kyber acquisition contributed $3.6 million to this growth, with the remaining 13% coming from internal growth initiatives.

Profitability Improvements

Forian’s profitability metrics showed substantial improvement in Q2 2025. The company’s Adjusted EBITDA margin expanded to 7.9% in Q2 2025, up from just 1.6% in the same period last year, demonstrating enhanced operational efficiency.

The following chart highlights this significant margin improvement:

Despite increasing costs associated with the Kyber acquisition and higher data licensing expenses, Forian maintained positive EBITDA contribution while continuing to invest in information assets. Total costs and expenses increased by $2.2 million for the quarter and $4.5 million year-to-date, primarily due to the acquisition impact and increased data licensing costs.

The breakdown of Adjusted EBITDA reconciliation provides further insight into the company’s improved profitability:

Balance Sheet Strength

Forian maintained a strong financial position as of June 30, 2025, with cash and equivalents of $35.65 million, slightly up from $35.08 million at the end of 2024. Net working capital increased to $29.02 million from $27.86 million over the same period, providing the company with ample liquidity to fund ongoing operations and strategic initiatives.

The company reported 31.2 million shares outstanding as of June 30, 2025, and has a convertible note with accrued interest of $6.8 million due in September 2025. Given the company’s strong cash position, this upcoming debt maturity appears manageable.

Forward-Looking Statements

Looking ahead, Forian provided an optimistic outlook for the full year 2025, projecting revenue between $28-30 million, which would represent a 39-49% increase over 2024 revenue of $20.2 million. The company expects Adjusted EBITDA to range between -$1.0 million and $1.0 million for the full year.

As illustrated in the following revenue outlook chart:

This guidance suggests continued strong performance in the second half of 2025, building on the momentum established in the first half of the year. The company appears positioned to maintain its growth trajectory through both organic initiatives and the full integration of recent acquisitions.

Strategic Initiatives

Forian emphasized its commitment to continuing investments in information assets while successfully integrating the Kyber operations. The company’s ability to maintain positive EBITDA contribution while making these investments highlights its disciplined approach to growth and operational efficiency.

The significant improvement in profitability metrics, particularly the expansion of Adjusted EBITDA margins, suggests that Forian’s strategic initiatives are yielding positive results. As the company continues to scale, these margins may have further room for improvement, potentially driving additional shareholder value in the coming quarters.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.