Revenue: As of FY2026 Q1, the actual value is USD 6.851 M, missing the estimate of USD 7.621 M.EPS: As of FY2026 Q1, the actual value is USD -0.11.EBIT: As of FY2026 Q1, the actual value is USD -3.643 M.Forian Inc. manages its business activities as a single operating and reportable segment, providing analytic and information services to the healthcare, life science, and financial services industries.<h4>Segment Revenue</h4><ul><li>Health sciences revenues: $5,118,513 for the three months ended March 31, 2026, compared to $5,362,769 for the same period in 2025.</li><li>Financial services revenues: $1,732,582 for the three months ended March 31, 2026, compared to $1,693,347 for the same period in 2025.</li><li>Total Revenue: Total revenue was $6,851,095 for the three months ended March 31, 2026, a decrease of $205,021 from $7,056,116 for the three months ended March 31, 2025, primarily due to lower revenues from health science customers, partially offset by growth from new customers.</li></ul><h4>Operational Metrics</h4><ul><li>Net Loss: Net loss was - $3,362,110 for the three months ended March 31, 2026, compared to - $1,125,862 for the same period in 2025.</li><li>Cost of Revenues: Cost of revenues increased to $4,844,102 for the three months ended March 31, 2026, from $3,131,622 for the same period in 2025, primarily due to higher information licensing and processing expenses.</li><li>Gross Margin: Gross profit as a percentage of revenues decreased to 29% for the three months ended March 31, 2026, from 56% for the same period in 2025.</li><li>Research and Development Expenses: Research and development expenses increased to $961,458 for the three months ended March 31, 2026, from $606,237 for the same period in 2025, mainly due to higher employee-related expenses.</li><li>Sales and Marketing Expenses: Sales and marketing expenses were $1,482,486 for the three months ended March 31, 2026, an increase from $1,382,727 for the same period in 2025, due to higher employee-related expenses.</li><li>General and Administrative Expenses: General and administrative expenses decreased to $2,447,074 for the three months ended March 31, 2026, from $3,279,094 for the same period in 2025, primarily due to lower stock compensation expense.</li><li>Strategic Review and Transaction Related Expenses: Strategic review and transaction related expenses were $551,824 for the three months ended March 31, 2026, compared to $0 for the same period in 2025, primarily related to professional fees for an unsolicited offer to take the Company private.</li><li>Operating Loss: Operating loss was - $3,487,733 for the three months ended March 31, 2026, compared to - $1,394,665 for the same period in 2025.</li><li>Interest and Investment Income: Interest and investment income decreased to $155,543 for the three months ended March 31, 2026, from $328,848 for the same period in 2025, primarily due to lower interest rates.</li><li>Interest Expense: Interest expense was $0 for the three months ended March 31, 2026, a decrease from - $52,678 for the same period in 2025, due to the redemption of convertible notes.</li></ul><h4>Cash Flow</h4><ul><li>Net Cash Used in Operating Activities: Net cash used in operating activities was - $547,986 for the three months ended March 31, 2026, compared to cash provided of $448,180 for the same period in 2025, representing a decrease of $996,166.</li><li>Net Cash Provided by Investing Activities: Net cash provided by investing activities was $18,674,000 for the three months ended March 31, 2026, an increase of $17,835,875 from $838,125 for the same period in 2025, primarily due to sales of marketable securities.</li><li>Net Cash Used in Financing Activities: Net cash used in financing activities was - $78,587 for the three months ended March 31, 2026, a decrease of $93,708 from - $172,295 for the same period in 2025, primarily due to changes in cash used for tax payments related to the vesting of restricted stock units.</li></ul><h4>Unique Metrics</h4><ul><li>Adjusted EBITDA: Adjusted EBITDA was - $2,335,375 for the three months ended March 31, 2026, compared to - $50,778 for the same period in 2025, a decrease of $2,284,597, primarily due to lower revenues and increased cost of revenues and other operating expenses.</li></ul><h4>Future Outlook and Strategy</h4>Forian Inc. plans to enhance its product offerings through ongoing research and development and will continue investing in marketing and sales by expanding staff, building brand awareness, and attracting new clients. The company expects to fund operations and potential acquisitions using cash flow from operating activities, available cash, debt financing, and/or additional equity issuances. On April 2, 2026, Forian Inc. entered into a merger agreement for its acquisition by 2025 Acquisition Company, LLC, through a tender offer at $2.17 per share.

Forian | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 6.851 M