Performant Healthcare Reports 29% Revenue Growth and Net Income Turnaround in Q2 2025

Performant Healthcare, Inc. reported significant financial improvements in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved total revenues of $37.8 million for the three months ended June 30, 2025, marking a 29% increase from $29.4 million in the same period last year. For the first half of 2025, revenues reached $71.1 million, a 25% increase compared to $56.7 million in the first half of 2024. The company also reported a net income of $2.1 million for the second quarter, a substantial turnaround from a net loss of $3.0 million in the prior year, and a net income of $2.0 million for the first half of 2025, compared to a loss of $7.0 million in the same period last year.

The financial performance was bolstered by growth in both eligibility-based and claims-based services, which saw increases of 27% and 44%, respectively, in the second quarter. The company attributed this growth to the expansion of services for existing clients and the successful implementation of new contracts. However, revenues from customer care and outsourced services dropped to zero, down from $1.4 million in the previous year, due to the cessation of these services in early 2025 following contract expirations.

In terms of operational metrics, Performant Healthcare's total current assets increased to $47.5 million as of June 30, 2025, up from $38.4 million at the end of 2024. This growth was driven by higher trade accounts receivable and contract assets, which rose to $17.7 million and $17.1 million, respectively. The company’s total liabilities also increased to $28.7 million, up from $25.3 million, primarily due to higher accrued salaries and benefits. The company maintained a strong cash position with $9.1 million in cash and cash equivalents, slightly down from $9.3 million at the end of 2024.

Strategically, Performant Healthcare is preparing for a merger with Machinify, announced on July 31, 2025. Under the terms of the merger agreement, shareholders will receive $7.75 in cash for each share of common stock they hold. The merger is expected to close by the end of 2025, subject to customary closing conditions, including stockholder approval. This strategic move is anticipated to enhance the company's market position and operational capabilities.

Looking ahead, Performant Healthcare expressed optimism about its growth trajectory, driven by the expansion of its healthcare services and the successful execution of its strategic initiatives. The company remains focused on leveraging its technology-enabled services platform to enhance its offerings in the healthcare payment integrity market, while also navigating the challenges posed by regulatory changes and market dynamics.