In a recent filing with the U.S. Securities and Exchange Commission, Performant Healthcare Inc., formerly known as Performant Financial Corporation, announced a corporate name change effective Monday.
The company, which trades on the Nasdaq Stock Market with a market capitalization of approximately $256 million, also revealed plans to transition its common stock to a new ticker symbol, "PHLT," replacing the previous "PFMT." According to InvestingPro data, the company maintains a "GOOD" financial health score despite current profitability challenges.
The change in corporate identity was approved by the company's Board of Directors on Monday and did not require a stockholder vote, in accordance with Delaware law. Alongside the name change, Performant Healthcare's Board also approved an amendment and restatement of the company's bylaws to reflect the new name and other technical adjustments. The company has demonstrated resilience with 9.4% revenue growth over the last twelve months, as reported by InvestingPro.
The company's decision to rebrand will not alter the rights of its security holders, and there will be no change to the company's CUSIP number as a result of the name change. The renamed entity's business operations remain headquartered in Pleasanton, California, and the company continues to be registered in Delaware. Financial data shows the company maintains a strong liquidity position with a current ratio of 2.67, indicating robust ability to meet short-term obligations.
Performant Healthcare's strategic rebranding initiative underscores its focus on the healthcare sector, as indicated by the new corporate title. The transition to the "PHLT" ticker symbol is anticipated to enhance the company's branding and market recognition within the healthcare services industry. For deeper insights into Performant Healthcare's financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro's detailed research reports.
In other recent news, Performance Financial Corp. reported a 6% growth in healthcare revenues during its third-quarter earnings call, with a total healthcare revenue of $30.3 million and a positive adjusted EBITDA of $2 million.
Despite a decline in customer care services leading to strategic reductions, the company successfully implemented twelve new contracts, contributing to 32 programs year-to-date, expected to generate $13-$14 million in annualized revenue. The firm's expenses rose to $33.7 million due to investments in scaling implementations and IT initiatives.
Furthermore, Performance Financial Corp. anticipates a significant contract in New York to start in the second quarter of 2025, which is expected to generate double-digit millions at steady state. The company's management remains confident in their growth strategy and client retention, with over 100 active programs in play. The integration of Records One is anticipated to positively impact EBITDA margins, with significant effects projected for 2026 and 2027.
On the downside, eligibility revenues were down 12% year-over-year at $8.1 million due to delays and heightened security reviews impacting decision-making following the Change Healthcare (NASDAQ:CHNG) breach. However, the company's claims-based business led growth with a 30% increase year-over-year, generating $14.2 million in the quarter.
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