Gross margins have experienced severe erosion, declining from 70.3% in 2023Q4 to 28.5% in 2026Q1, indicating that data acquisition costs are outpacing revenue generation.
| Sales/Revenue | 30.05M | 30.26M | 20.15M | 20.48M | 16.42M | 16.88M | 544.87K | 0 |
| Revenue Growth % | 34.57% | 50.13% | -1.6% | 24.75% | -2.73% | 2997.93% | - | - |
| Cost of Goods Sold | 15.97M | 14.36M | 7.33M | 5.48M | 5.05M | 4.72M | 38.29K | 854 |
| COGS % of Revenue | - | 47.48% | 36.39% | 26.74% | 30.76% | 27.95% | 7.03% | - |
| Gross Profit | 14.08M | 15.89M | 12.82M | 15M | 11.37M | 12.16M | 506.58K | -854 |
| Gross Margin % | 46.85% | 52.52% | 63.61% | 73.26% | 69.24% | 72.05% | 92.97% | - |
| Gross Profit Growth % | - | 23.97% | -14.56% | 31.98% | -6.53% | 2300.92% | 59418.27% | - |
| Operating Expenses | 18.09M | 18.36M | 19.81M | 20.6M | 30.32M | 39.78M | 5.49M | 1.29M |
| OpEx % of Revenue | - | 60.68% | 98.28% | 100.58% | 184.68% | 235.66% | 1007.64% | - |
| Selling, General & Admin | 14.71M | 15.44M | 16.87M | 18.52M | 20.83M | 27.61M | 2.11M | 463.84K |
| SG&A % of Revenue | - | 51.04% | 83.71% | 90.41% | 126.87% | 163.55% | 387.01% | - |
| Research & Development | 3.27M | 2.92M | 1.44M | 1.41M | 4.01M | 8.98M | 2.51M | 827.47K |
| R&D % of Revenue | - | 9.64% | 7.17% | 6.87% | 24.42% | 53.17% | 460.6% | - |
| Other Operating Expenses | 110.63K | 0 | 1.49M | 674.27K | 5.48M | 3.2M | 871.96K | 0 |
| Operating Income | -4.02M | -2.47M | -6.99M | -5.6M | -18.95M | -27.62M | -4.98M | -1.29M |
| Operating Margin % | -13.36% | -8.16% | -34.67% | -27.32% | -115.44% | -163.61% | -914.67% | - |
| Operating Income Growth % | - | 64.67% | -24.88% | 70.48% | 31.37% | -454.14% | -285.69% | - |
| EBITDA | -3.78M | -2.24M | -6.9M | -5.5M | -18.89M | -25.41M | -4.98M | -1.29M |
| EBITDA Margin % | -12.59% | -7.4% | -34.25% | -26.85% | -115.03% | -150.52% | -913.1% | - |
| EBITDA Growth % | 41.62% | 67.58% | -25.51% | 70.88% | 25.67% | -410.67% | -285.28% | - |
| D&A (Non-Cash Add-back) | 232.21K | 231.15K | 85.37K | 96.33K | 67.18K | 2.21M | 8.55K | 854 |
| EBIT | -4.37M | -2.47M | -3M | 2.65M | -18.32M | -26.21M | -4.98M | -1.29M |
| Net Interest Income | 997.55K | 1.12M | 1.71M | 1.49M | -579.89K | -315.57K | 3.57K | 5K |
| Interest Income | 1.09M | 1.26M | 2.42M | 2.33M | 266.21K | 6.81K | 3.57K | 5K |
| Interest Expense | 89.67K | 142.35K | 708.93K | 834.78K | 846.1K | 322.38K | 0 | 0 |
| Other Income/Expense | -843.68K | -177.38K | 3.28M | 7.41M | -215.2K | 1.09M | 3.57K | 3.33K |
| Pretax Income | -4.86M | -2.65M | -3.7M | 1.82M | -19.17M | -26.53M | -4.98M | -1.29M |
| Pretax Margin % | -16.17% | -8.75% | -18.38% | 8.88% | -116.75% | -157.16% | -914.01% | - |
| Income Tax | 250.53K | 227.97K | 66.58K | 85.74K | 23.98K | 22.51K | 0 | 0 |
| Effective Tax Rate % | -5.16% | -8.62% | -1.8% | 4.71% | -0.13% | -0.08% | 0% | 0% |
| Net Income | -5.11M | -2.87M | -3.77M | 11.11M | -25.97M | -26.55M | -4.98M | -1.29M |
| Net Margin % | -17% | -9.5% | -18.71% | 54.23% | -158.19% | -157.3% | -914.01% | - |
| Net Income Growth % | -38.7% | 23.79% | -133.95% | 142.76% | 2.18% | -433.14% | -286.41% | - |
| Net Income (Continuing) | -5.11M | -2.87M | -3.77M | 1.73M | -19.19M | -26.55M | -4.98M | -1.29M |
| Discontinued Operations | 0 | 0 | 0 | 9.37M | -6.78M | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.16 | -0.09 | -0.12 | 0.36 | -0.81 | -0.84 | -0.17 | -0.04 |
| EPS Growth % | -40.25% | 23% | -133.33% | 144.44% | 3.57% | -394.12% | -293.52% | - |
| EPS (Basic) | - | -0.09 | -0.12 | 0.36 | -0.81 | -0.84 | -0.17 | -0.04 |
| Diluted Shares Outstanding | 31.15M | 31.11M | 31.07M | 32.23M | 32.03M | 31.77M | 29.82M | 29.82M |
| Basic Shares Outstanding | 31.15M | 31.11M | 31.07M | 32.03M | 32.03M | 31.77M | 29.82M | 29.82M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
High Revenue Volatility
According to recent financial disclosures, Forian's revenue trajectory has shifted from a peak growth rate of 65.6% in 2025Q3 to a contraction of 2.9% by 2026Q1, highlighting the inherent instability in their government-contract and cannabis-retail-dependent revenue model as market conditions fluctuate across their primary operating segments.
The sharp deceleration in top-line performance suggests that the company's reliance on lumpy government contracts and a volatile cannabis retail base creates significant revenue durability risks. Investors should monitor whether this contraction represents a temporary pause in project-based billing or a more structural decline in their core software adoption rates.
As reported in quarterly filings, Forian's gross margin has experienced significant erosion, falling from a high of 70.3% in 2023Q4 to 28.5% in 2026Q1, which suggests that the costs associated with data acquisition and platform maintenance are outpacing the company's ability to generate high-margin software revenue.
This margin compression indicates that the company's business model may be more service-intensive than initially anticipated, potentially limiting the operating leverage typically expected from a SaaS-based data provider. The inability to maintain margins above 50% in recent periods warrants further investigation into whether rising third-party data licensing fees are permanently impairing the unit economics.
Based on the provided income statement data, Forian's operating income has remained consistently negative, reaching a deficit of $2.9M in 2026Q1, which indicates that the company has yet to achieve the necessary scale to cover its fixed SG&A and R&D overheads despite previous periods of rapid revenue expansion.
The lack of positive operating leverage suggests that management's current cost structure is misaligned with the company's revenue generation capacity. Without a clear path to scaling operating income faster than gross profit, the company may continue to face significant pressure on its bottom line, necessitating a potential reassessment of its long-term expense discipline.
Analysis of recent SEC filings reveals that Forian's net income is frequently distorted by significant stock-based compensation, which reached $548.6K in 2026Q1, masking the underlying operational losses and complicating the assessment of the company's true economic profitability and long-term sustainability for potential equity investors.
The reliance on non-cash compensation to manage cash burn appears to be a recurring theme that may dilute shareholder value without necessarily driving proportional improvements in operational efficiency. Investors should be cautious of headline net income figures that do not account for the ongoing impact of these equity-based incentives on the company's capital structure.
Quick answers to the most common questions about buying FORA stock.
For fiscal year 2025, Forian Inc. (FORA) reported total revenue of $30.3M.
Forian Inc. (FORA) reported a net loss of $2.9M for the fiscal year ending 2025.
Forian Inc. (FORA) reported an operating income of $-2.5M, resulting in an operating profit margin of -8.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Forian Inc. (FORA) generated $15.9M in gross profit for the year, representing a gross profit margin of 52.5%. This demonstrates the company's core pricing power and production efficiency.