Performant Healthcare, Inc.

First-quarter 2025 total company revenue was $33.3 million, up 22% year over year. Claims-based business revenue was $17.1 million, up 38% year over year, and eligibility revenue was $16.1 million, up roughly 20% year over year. Adjusted EBITDA was $3.3 million, versus an adjusted EBITDA loss of $1.2 million in Q1 2024. Operating expenses were about $33 million, roughly $2 million above the year-ago period. Cash flow was positive $1.4 million versus negative $3.6 million in the comparable prior-year quarter. For full-year 2025, management raised revenue guidance to $133 million-$135 million and adjusted EBITDA guidance to $9 million-$10 million. The company said quarterly EBITDA should remain positive, but results will be more weighted to Q1 and Q4 due to the RAC Region 5 wind-down and New York State RAC ramp costs.

Simeon Kohl framed the quarter as evidence that the company’s strategy is resonating, citing strong growth across government and commercial clients, disciplined cost control, and a record 13 commercial implementations. He emphasized that healthcare payment integrity demand is being reinforced by broader policy focus on fraud, waste, and abuse, and said the company’s services produce immediate, measurable ROI for clients. His tone was confident and upbeat, with repeated references to momentum, client trust, and long-term profitable growth.

Rohit Ramchandani highlighted that the $33.3 million of revenue reflected the payoff from prior implementation wins, with claims auditing up 38% to $17.1 million and eligibility up roughly 20% to $16.1 million. He said operating expenses were about $33 million, up about $2 million year over year, mainly from scaling newer implementations and technology investment in Project Turing. He also noted positive cash flow of $1.4 million, said the company expects to be EBITDA positive each quarter going forward, and raised full-year guidance to $133 million-$135 million in revenue and $9 million-$10 million in adjusted EBITDA.

Analyst questions focused on why claims-based revenue outgrew eligibility, whether EBITDA would dip midyear despite a positive full-year outlook, and when Project Turing would begin to show ROI. Management said the claims mix was influenced by implementations signed one to two years ago, but they still expect balanced growth across both businesses. On EBITDA cadence, management said Q2 and midyear results may move closer to zero because of New York RAC ramp spending and the Region 5 wind-down, but they do not expect quarterly losses. On Turing, management said initial product integrations are already happening this quarter and should support higher efficiency through 2025 and into next year.