Performant Financial (PFMT) Q2 2025 earnings summary

Executive summary

• Achieved net income of $2.1 million for Q2 2025, reversing a $3.0 million loss in Q2 2024, driven by 29% revenue growth and improved operating margins.

• Entered into a definitive merger agreement to be acquired by Machinify for $7.75 per share in cash, expected to close by year-end 2025.

• Healthcare segment revenues grew 35% year-over-year, while customer care/outsourced services ceased in Q1 2025.

Financial highlights

• Q2 2025 revenues were $37.8 million, up 29% from $29.4 million in Q2 2024; six-month revenues rose 25% to $71.1 million.

• Operating income for Q2 2025 was $2.6 million, compared to a $2.7 million loss in Q2 2024; six-month operating income was $2.8 million versus a $6.7 million loss.

• Adjusted EBITDA for Q2 2025 was $6.2 million, up from $0.5 million in Q2 2024; adjusted net income per diluted share was $0.06.

• Cash and cash equivalents stood at $9.1 million as of June 30, 2025, with $8.0 million outstanding under the credit facility.

Outlook and guidance

• Merger with Machinify expected to close by end of 2025, subject to customary approvals.

• No meaningful revenues expected from customer care/outsourced services for the remainder of 2025.

• Management expects to maintain sufficient cash flows to fund ongoing operations and liquidity needs.