Free cash flow remains highly erratic, swinging from a $3.2M inflow in 2025Q4 to a $548.0K outflow in 2026Q1, largely driven by volatile working capital movements.
| Cash from Operations | 1.89M | 2.89M | 282.83K | 728.82K | -8.58M | -17.25M | -4.25M | -1.03M |
| Operating CF Margin % | - | 9.54% | 1.4% | 3.56% | -52.27% | -102.19% | -780.14% | - |
| Operating CF Growth % | -1686.49% | 920.58% | -61.19% | 108.49% | 50.25% | -305.79% | -311.74% | - |
| Net Income | -5.11M | -2.87M | -3.77M | 1.73M | -19.19M | -26.55M | -4.98M | -1.29M |
| Depreciation & Amortization | 232.21K | 231.15K | 85.37K | 96.33K | 67.18K | 2.21M | 8.55K | 854 |
| Stock-Based Compensation | 1.81M | 3.28M | 6.53M | 6.57M | 11.92M | 9.3M | 28.33K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -17.3K | -824K | -2.98M | -7.41M | -2.29M | -9.88K | -3.57K | 7.81K |
| Working Capital Changes | 4.97M | 3.08M | 417.24K | -264.26K | 917.25K | -2.2M | 696.14K | 247.81K |
| Change in Receivables | 3.99M | -1.66M | -792.62K | 362.34K | -1.97M | -2.5M | -219.7K | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 1.52M | 2.85M | 821.08K | -154.52K | -131.37K | -204.41K | 641.2K | 6.4K |
| Cash from Investing | 30.78M | 12.94M | 17.29M | 7.12M | -6.46M | -1.03M | -11.4M | -151.43K |
| Capital Expenditures | 0 | 0 | 0 | -75.49K | -47.68K | -1.44M | -51.49K | -1.67K |
| CapEx % of Revenue | 0% | 0% | 0% | 0.37% | 0.29% | 8.55% | 9.45% | - |
| Acquisitions | 0 | 0 | 1.42M | 0 | -17.91K | 1.31M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 1.67M | 24.41M | -1.66M | 0 | 0 | 0 |
| Cash from Financing | -7.42M | -7.52M | -19.02M | -4.6M | -100.53K | 36.28M | 16.32M | 1.18M |
| Debt Issued (Net) | -6.84M | -6.84M | -18.6M | -960K | -13.12K | 23.97M | 0 | 184.3K |
| Equity Issued (Net) | -412.94K | -412.94K | -292.9K | -3.45M | 0 | 11.97M | 16.32M | 1M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -405.22K | -412.94K | -292.9K | -3.45M | 0 | 0 | 0 | 0 |
| Other Financing | -169.95K | -263.66K | -132.59K | -191.47K | -87.41K | 341.4K | 0 | 0 |
| Net Change in Cash | 25.25M | 8.31M | -1.45M | 3.25M | -15.14M | 18M | 664.97K | 494 |
| Free Cash Flow | 2.33M | 2.89M | 282.83K | 653.33K | -8.63M | -18.69M | -4.3M | -1.03M |
| FCF Margin % | 7.75% | 9.54% | 1.4% | 3.19% | -52.56% | -110.74% | -789.59% | - |
| FCF Growth % | -20.72% | 920.58% | -56.71% | 107.57% | 53.84% | -334.48% | -316.06% | - |
| FCF per Share | 0.07 | 0.09 | 0.01 | 0.02 | -0.27 | -0.59 | -0.14 | -0.03 |
| FCF Conversion (FCF/Net Income) | -0.46x | -1.00x | -0.07x | 0.07x | 0.33x | 0.65x | 0.85x | 0.80x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 724 | 0 | 0 |
| Taxes Paid | 67.85K | 0 | 0 | 4.07M | 18.44K | 0 | 0 | 0 |
High Revenue Volatility
As reported in recent financial statements, Forian's operating cash flow frequently diverges from net income, with the OCF/NI ratio reaching a volatile 0.16 in 2026Q1, suggesting that reported earnings are not currently supported by a consistent or reliable generation of actual cash from core operations.
The persistent gap between net income and operating cash flow indicates that non-cash items and working capital fluctuations are heavily influencing the bottom line. Investors should monitor whether this disconnect reflects genuine operational challenges or simply the timing of revenue recognition within their government-contract-heavy business model.
Based on Forian's reported figures, free cash flow trajectory is highly inconsistent, swinging from a positive $3.2M in 2025Q4 to a negative $548.0K in 2026Q1, which highlights the company's ongoing struggle to maintain a self-sustaining cash generation profile amidst fluctuating operational demands and revenue cycles.
The lack of a stable FCF trend suggests that the company's cash position is highly sensitive to short-term operational shifts rather than long-term structural profitability. This volatility warrants further investigation into whether the business can achieve positive cash flow without relying on periodic, non-recurring working capital inflows.
According to recent SEC filings, Forian's cash flow is significantly impacted by working capital swings, such as the $4.4M inflow in 2025Q4 followed by a $2.2M outflow in 2026Q1, indicating that the timing of collections and payables is a primary determinant of quarterly liquidity.
These large, erratic swings in working capital suggest that the company's cash management is heavily dependent on the timing of government contract payments and client receivables. Such dependency creates a high-risk environment where operational liquidity can tighten rapidly if payment cycles from key clients experience even minor delays.
Analysis of recent financial disclosures reveals that stock-based compensation, which totaled $548.6K in 2026Q1, consistently offsets operational losses, effectively masking the true cash burn required to maintain the company's data infrastructure and software development efforts during periods of negative operating cash flow.
By relying on equity-based incentives to manage compensation expenses, the company avoids immediate cash outflows but dilutes existing shareholders to sustain operations. This practice suggests that the underlying business model may not yet be generating sufficient cash to support its current human capital requirements on a purely organic basis.
Quick answers to the most common questions about buying FORA stock.
Forian Inc. (FORA) generated $2.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Forian Inc. (FORA) generated $2.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Forian Inc. (FORA) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Forian Inc. (FORA) spent $0.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.