Revenue Performance - Total revenues for the three months ended September 30, 2024, were $31,519,000, an increase of 5.2% compared to $29,962,000 for the same period in 2023[73]. - Total revenues for the three months ended September 30, 2024, were $31.5 million, an increase of approximately $1.6 million, or 5%, compared to $30.0 million for the same period in 2023[99]. - Total revenues for the nine months ended September 30, 2024, were $88.2 million, an increase of approximately $7.0 million, or 9%, compared to $81.2 million for the same period in 2023[110]. Healthcare Revenue - Healthcare revenues, which include eligibility-based and claims-based services, totaled $30,287,000 for the three months ended September 30, 2024, up from $28,490,000 in the same period of 2023, reflecting a growth of 6.3%[73]. - Healthcare revenues reached $30.3 million for the three months ended September 30, 2024, representing an increase of $1.8 million, or 6%, compared to the same period in 2023[100]. - Healthcare revenues for the nine months ended September 30, 2024, were $84.0 million, an increase of $8.7 million, or 12%, compared to the same period in 2023[111]. Claims-Based Services - Claims-based services revenue increased to $14,217,000 for the three months ended September 30, 2024, compared to $10,325,000 for the same period in 2023, representing a significant growth of 37.5%[73]. - Revenues from eligibility-based services decreased by $2.1 million, or 12%, to $16.1 million for the three months ended September 30, 2024, while claims-based services increased by 38% to $14.2 million[100]. Operating Expenses and Losses - Net loss for the three months ended September 30, 2024, was $2.4 million, an increase of approximately $1.8 million, or 311%, compared to a net loss of $0.6 million for the same period in 2023[107]. - Net loss for the nine months ended September 30, 2024, was $9.4 million, representing an increase in net loss of approximately $0.6 million, or 7%, compared to $8.8 million for the same period in 2023[119]. - Salaries and benefits expense increased by $6.6 million, or 10%, to $73.7 million for the nine months ended September 30, 2024, in support of healthcare services growth[113]. - Net loss for the nine months ended September 30, 2024, was $(9,397) thousand, compared to $(8,774) thousand for the same period in 2023, indicating a deterioration of 7.1%[126]. Cash Flow and Investments - Cash provided by operating activities was $3.4 million for the nine months ended September 30, 2024, down from $5.7 million in the same period of 2023[133]. - Cash used in investing activities increased to $5.7 million for the nine months ended September 30, 2024, compared to $3.0 million in the same period of 2023, primarily due to capital expenditures for software and technology assets[134]. - As of September 30, 2024, the company had $7.8 million in cash and cash equivalents, an increase from $7.3 million as of December 31, 2023[129]. Credit and Financing - The company entered into a new credit agreement on October 27, 2023, with a $25 million revolving loan commitment, of which $8.0 million was outstanding as of September 30, 2024[130]. - The annual interest rate under the credit agreement was 8.0% as of September 30, 2024[137]. - As of September 30, 2024, the company was in compliance with all covenants under the credit agreement[143]. Strategic Outlook - The company anticipates that healthcare revenues will drive the majority of overall revenue growth moving forward[82]. - The company’s growth strategy includes expanding in existing markets and considering strategic alliances or acquisitions to enhance service offerings[76]. - The company’s revenue model is primarily success-based, earning fees based on the amount of funds recovered for clients, aligning business objectives with client interests[70]. - The company has a high level of revenue concentration among its largest clients, which poses risks if any significant contracts are canceled or not renewed[93]. - The company’s revenues are significantly influenced by the volume of claims permitted for audit by healthcare clients, which can fluctuate based on various factors[88].

Financial Data and Key Metrics Changes - In Q3 2024, total company revenues were $31.5 million, with healthcare revenues at $30.3 million, reflecting year-over-year growth of 5% and 6% respectively [28] - Adjusted EBITDA for Q3 was positive at $2 million, approximately flat compared to the prior year [38] - Year-to-date adjusted EBITDA comparison showed an increase of roughly $2.5 million ahead of the prior year [38] Business Line Data and Key Metrics Changes - Healthcare revenue grew 6% year-over-year, with claims-based business revenues of $14.2 million, marking over 30% growth in both Q3 and year-to-date [31][32] - Eligibility revenues for Q3 were $16.1 million, a decrease of roughly 12% year-over-year, attributed to a difficult comparison year [33] - Customer care/outsourced services revenue accounted for $1.2 million, a decline from the previous year, as the company adapts to reduced services in this market [29] Market Data and Key Metrics Changes - The company has implemented 32 programs year-to-date, expected to deliver $13 million to $14 million in annualized revenue at steady state [9][35] - The State Medicaid market presents a $300 million to $500 million annual revenue opportunity, with a significant contract win in New York [15][18] Company Strategy and Development Direction - The company aims to focus solely on the healthcare payment integrity market, believing it offers the most effective path to long-term profitability and sustained growth [25] - The next phase of organizational transformation is centered around scaling operations, supported by technology and a data-driven approach [21][22] - The company is strategically reducing services within the customer care line of business to concentrate on healthcare payment integrity [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating industry challenges, including security breaches and election-related conservatism, while maintaining guidance for 2024 healthcare revenues [27][43] - The company anticipates that the end of the election cycle will alleviate some conservatism seen in client decision-making [66] Other Important Information - The company has successfully integrated assets from a recent acquisition into its technology stack, enhancing its capabilities [22] - The New York State RAC contract win is expected to generate double-digit millions in annual revenues at steady state, with a contract start anticipated in early Q2 2025 [39] Q&A Session Summary Question: Expectations on operationalizing the New York Medicaid contract - Management anticipates a typical ramp cycle of two to three years to reach steady state, with potential for compression depending on client motivation [46] Question: Margin expectations for the new state business - Margins are expected to be similar to existing federal and commercial business, with government contracts typically yielding better fee rates [50] Question: Sales cycle delays and their impact - Delays were noted following a data breach, leading to more cautious decision-making among payers, but management views this as temporary [56][57] Question: Size differential between RAC Regions 3 and 4 - RAC Region 4 is a 16-state region including California, while Region 3 encompasses eight states, with Region 4 historically being one of the largest [60] Question: Market share opportunities with large commercial payers - The company has a small market share with large payers but has demonstrated the ability to win additional business through existing relationships [63][65] Question: Impact of integrated technology on EBITDA - Margin expansion from the integration of RecordsOne is expected to be seen in 2025, with more significant impacts anticipated in 2026 and 2027 [70]

Company Performance - Performant Financial reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.02, representing an earnings surprise of 50% [1] - The company posted revenues of $31.52 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.57%, compared to year-ago revenues of $29.96 million [2] - Over the last four quarters, Performant Financial has surpassed consensus EPS estimates just once [2] Stock Movement and Outlook - Performant Financial shares have increased by approximately 28% since the beginning of the year, outperforming the S&P 500's gain of 21.2% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the coming quarter is $0.02 on revenues of $37.6 million, and for the current fiscal year, it is -$0.06 on revenues of $125.9 million [7] Industry Context - The Business - Services industry, to which Performant Financial belongs, is currently ranked in the top 23% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Revenue Performance - Healthcare revenues for Q3 2024 were $30.3 million, a 6% increase from $28.5 million in the prior year period[1]. - Total revenues for Q3 2024 reached $31.5 million, up 5% from $30.0 million in the prior year period[2]. - Revenue from claims-based services in Q3 2024 was $14.2 million, while eligibility-based services revenue was $16.1 million[2]. - Total revenue for the nine months ended September 30, 2024, was $88,215,000, compared to $106,444,000 for the same period in 2023, representing a decline of approximately 17%[19]. - Total healthcare revenue for the nine months ended September 30, 2024, was $84,012,000, down from $106,444,000 in the same period of 2023[19]. Profitability and Loss - Net loss for Q3 2024 was $2.4 million, or $(0.03) per diluted share, compared to a net loss of $0.6 million, or $(0.01) per diluted share, in the prior year[3]. - Net loss for the nine months ended September 30, 2024, was $9,397,000, compared to a net loss of $8,774,000 for the same period in 2023[13]. - Adjusted EBITDA for Q3 2024 was $1.9 million, slightly up from $1.8 million in the prior year[3]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $(1,255,000), a decrease from $(1,137,000) in the same period of 2023[14]. - Adjusted net income (loss) for the nine months ended September 30, 2024, was $(5,775,000), compared to $(6,344,000) for the same period in 2023[15]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2024, was $3,395,000, down from $5,747,000 in the same period of 2023[13]. - Cash and cash equivalents at the end of the period were $7,775,000, compared to $17,389,000 at the end of September 30, 2023[13]. - Total cash used in investing activities for the nine months ended September 30, 2024, was $5,744,000, compared to $2,953,000 in the same period of 2023[13]. Company Programs and Future Outlook - The company expects 2024 healthcare revenues to be in the range of $117 million to $122 million[4]. - The company implemented 32 programs during 2024, estimated to contribute between $13 million and $14 million in annualized revenue[3]. Assets and Liabilities - Total assets as of September 30, 2024, were $101.8 million, compared to $99.0 million in the prior year[11]. - Total liabilities increased to $26.6 million from $18.3 million in the prior year[11]. Stock and Shares - Stock-based compensation for the nine months ended September 30, 2024, was $4,122,000, an increase from $2,815,000 in the same period of 2023[14]. - The diluted average shares outstanding for the nine months ended September 30, 2024, were 77,232, compared to 75,907 for the same period in 2023[16].

Revenue Performance - Healthcare revenues for Q2 2024 were $27.9 million, a 17% increase from $23.9 million in the prior year period[1] - Total revenues for Q2 2024 reached $29.4 million, up 15% from $25.5 million in the prior year period[2] - Claims-based services revenue in Q2 2024 was $13.7 million, while eligibility-based services revenue was $14.3 million[2] - Revenues for the three months ended June 30, 2024, were $29,362,000, a 15% increase from $25,485,000 in the same period of 2023[10] - Total healthcare revenue for the year ended December 31, 2023, reached $106,444,000, representing a significant increase from $94,666,000 in the previous year[17] - Total revenue for the three months ended September 30, 2023, was $29,962,000, an increase from $27,178,000 in the same period last year[17] - Total revenue for the three months ended June 30, 2023, was $25,485,000, slightly down from $25,681,000 in the same period last year[18] Financial Loss and Adjustments - Net loss for Q2 2024 was $3.0 million, or $(0.04) per diluted share, compared to a net loss of $4.0 million, or $(0.05) per diluted share, in the prior year[4] - Adjusted net loss for Q2 2024 was $2.0 million, or $(0.03) per diluted share, compared to an adjusted net loss of $3.2 million, or $(0.04) per diluted share, in the prior year[4] - Net loss for the six months ended June 30, 2024, was $7,013,000, compared to a net loss of $8,194,000 for the same period in 2023, indicating a 14% improvement[10] - Adjusted EBITDA for Q2 2024 was $0.5 million, an improvement from $(1.3) million in the prior year period[4] - Adjusted EBITDA for the six months ended June 30, 2024, was $(682,000), an improvement from $(2,978,000) in the same period of 2023[12] Cash and Assets - Cash and cash equivalents increased to $10.4 million from $7.3 million in the prior year[9] - Total assets as of June 30, 2024, were $102.4 million, compared to $99.0 million at the end of the prior year[9] - Total cash, cash equivalents, and restricted cash at the end of the period was $10,424,000, down from $15,063,000 at the end of June 30, 2023[11] - The company experienced a net cash increase of $3,091,000 for the six months ended June 30, 2024, compared to a decrease of $8,402,000 in 2023[11] Operational Highlights - The company implemented 10 commercial programs in Q2 2024, contributing an estimated $9 million in annualized revenue[3] - Operating expenses for the six months ended June 30, 2024, totaled $63,358,000, up from $58,604,000 in 2023, reflecting an 8% increase[10] - Cash flows from operating activities provided $4,706,000 for the six months ended June 30, 2024, compared to $2,265,000 in 2023, representing a 108% increase[11] - Stock-based compensation for the six months ended June 30, 2024, was $2,262,000, up from $1,686,000 in the same period of 2023, indicating a 34% increase[12] Future Outlook - The company expects 2024 healthcare revenues to be in the range of $117 million to $122 million and total revenues to be between $124 million and $129 million[5] - The company aims to expand its market presence and enhance its service offerings in the upcoming quarters[17]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35628 PERFORMANT FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 20-0484934 (State or ot ...

Performant Financial Corporation (NASDAQ:PFMT) Q1 2024 Earnings Conference Call May 7, 2024 5:00 PM ET Company Participants Jon Bozzuto - Head, Investor Relations Simeon Kohl - Chief Executive Officer Rohit Ramchandani - Chief Financial Officer Conference Call Participants George Sutton - Craig-Hallum Capital Group Jacob Stephan - Lake Street Capital Markets Operator Greetings ladies and gentlemen and welcome to Performant Financial Corporation's First Quarter 2024 Earnings Call. At this time, all lines are ...

Exhibit 99.1 Performant Financial Corporation Announces Financial Results for First Quarter 2024 Plantation, FL., May 7, 2024 - Performant Financial Corporation (Nasdaq: PFMT), a leading provider of healthcare payment integrity services, today reported the following financial results for its first quarter ended March 31, 2024: First Quarter Financial Highlights First Quarter 2024 Results Healthcare revenues in the first quarter of 2024 were $25.8 million, an increase of approximately 13% from $22.9 million ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No ☒ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No ☒ Indicate by check mark whether the registrant (1) has filed all repor ...

Performant Financial Corporation (NASDAQ:PFMT) Q4 2023 Earnings Conference Call March 12, 2024 5:00 PM ET Company Participants Jon Bozzuto – Head-Investor Relations Simeon Kohl – Chief Executive Officer Rohit Ramchandani – Chief Financial Officer Conference Call Participants George Sutton – Craig-Hallum Jacob Stephan – Lake Street Capital Markets Operator Greetings, and welcome to Performant Financial Corp. Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A questi ...