Streamline Health(STRM) - 2026 Q1 - Quarterly Results

Executive Summary Streamline Health reported strong Q1 fiscal 2025 financial improvements and announced a definitive merger agreement with MDaudit Fiscal First Quarter 2025 Financial Highlights Streamline Health reported a 12% increase in total revenue to $4.8 million for Q1 fiscal 2025, driven by successful implementation of new SaaS contracts Fiscal First Quarter Financial Highlights: | Metric | Q1 Fiscal 2025 | Q1 Fiscal 2024 | Change (YoY) | | :------------------------- | :------------- | :------------- | :----------- | | Total Revenue | $4.8 million | $4.3 million | +12% | | SaaS Revenue | $3.4 million | $2.7 million | +23% | | SaaS % of Total Revenue | 70% | 63% | +7 ppts | | Net Loss | ($1.6 million) | ($2.7 million) | Improved | | Adjusted EBITDA | $0.2 million | ($0.7 million) | Improved | Cash and Cash Equivalents: | Metric | As of April 30, 2025 | As of January 31, 2025 | Change (QoQ) | | :------------------------- | :------------------- | :------------------- | :----------- | | Cash & Cash Equivalents | $1.4 million | $2.2 million | ($0.8 million) | Definitive Merger Agreement with MDaudit Streamline Health announced a definitive merger agreement where MDaudit will acquire the company in an all-cash transaction valued at approximately $37.4 million - MDaudit will acquire Streamline Health in an all-cash transaction valued at approximately $37.4 million, including debt[6] - Shareholders will receive $5.34 per share in cash, representing a 138% premium to Streamline's closing price on May 28, 2025, and a 117% premium to its 30-day volume-weighted average stock price[6] - The merger is expected to close during the third quarter of calendar year 2025[6] Company Overview Streamline Health Solutions, Inc. provides integrated solutions and analytics to healthcare organizations for revenue cycle management About Streamline Health Solutions, Inc. Streamline Health Solutions, Inc. (Nasdaq: STRM) is a provider of integrated solutions, technology-enabled services, and analytics that enable healthcare organizations to proactively address revenue leakage and improve financial performance through compliant revenue generation - Streamline Health Solutions, Inc. enables healthcare organizations to proactively address revenue leakage and improve financial performance[7] - The company delivers integrated solutions, technology-enabled services, and analytics to drive compliant revenue[7] Non-GAAP Financial Measures Explanation Adjusted EBITDA is a key non-GAAP financial measure used by management to evaluate operational performance and financial health Definition of Adjusted EBITDA Streamline Health utilizes Adjusted EBITDA as a non-GAAP financial measure to evaluate and make operating decisions, believing it provides useful supplemental information - Adjusted EBITDA is a non-GAAP financial measure used by management to evaluate and make operating decisions[8] - Adjusted EBITDA is defined as net earnings (loss) plus interest expense, tax expense, depreciation and amortization, share-based compensation, significant non-recurring operating expenses, restructuring expenses, impairment of goodwill and long-lived assets, and transactional related expenses[9] Legal and Regulatory Information This section details forward-looking statements, merger risks, proxy information, and participant disclosures for the proposed transaction Safe Harbor Statement This section contains forward-looking statements regarding future events, including the proposed merger, its timing, and expected benefits - The press release contains forward-looking statements regarding future events, including the proposed merger and its expected timing and value[10] - These statements are subject to various known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[10][11][12] - Readers are cautioned not to rely on these forward-looking statements, and the Company does not undertake any obligation to update them, except as required by law[12] Additional Information and Where to Find It This press release does not constitute an offer to sell or a solicitation of an offer to buy securities, with important merger-related information to be filed with the SEC - The Company intends to file a proxy statement on Schedule 14A with the SEC in connection with the proposed merger[13] - Stockholders are advised to read the proxy statement and other documents filed with the SEC for important information about the proposed merger[13] - All such documents will be available free of charge at the SEC's website (http://www.sec.gov) and the Company's website (www.streamlinehealth.net)[13](index=13&type=chunk) Participants in the Solicitation The Company's directors and executive officers may be deemed participants in the solicitation of proxies from stockholders regarding the proposed merger - The Company's directors and executive officers may be deemed participants in the solicitation of proxies for the proposed merger[14] - Information regarding their ownership of common stock and interests in the merger is available in the Company's Form 10-K/A and will be set forth in the proxy statement[14] Company Contact Investor inquiries are directed to Jacob Goldberger, Vice President of Finance, for corporate and financial information Investor Relations Contact For investor inquiries, Jacob Goldberger, Vice President of Finance, serves as the primary contact - Contact Person: Jacob Goldberger, Vice President, Finance[15] - Phone: 303-887-9625[15] - Email: jacob.goldberger@streamlinehealth.net[15] Unaudited Condensed Consolidated Financial Statements This section presents Q1 2025 unaudited statements of operations, balance sheets, cash flows, and Adjusted EBITDA reconciliation Statements of Operations For the three months ended April 30, 2025, Streamline Health reported total revenues of $4.81 million, an increase from $4.33 million in the prior year Unaudited Condensed Consolidated Statements of Operations (Three Months Ended April 30): | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Revenues: | | | | Software as a service | $3,359 | $2,723 | | Maintenance and support | $737 | $890 | | Professional fees and licenses | $714 | $717 | | Total revenues | $4,810 | $4,330 | | Operating expenses: | | | | Cost of software as a service | $1,380 | $1,348 | | Cost of maintenance and support | $32 | $42 | | Cost of professional fees and licenses | $808 | $887 | | Selling, general and administrative expense | $2,788 | $3,192 | | Research and development | $903 | $1,111 | | Total operating expenses | $5,911 | $6,580 | | Operating loss | ($1,101) | ($2,250) | | Interest expense | ($543) | ($465) | | Valuation adjustments | — | ($24) | | Other | ($1) | — | | Loss before income taxes | ($1,645) | ($2,739) | | Income tax benefit | — | — | | Net loss | ($1,645) | ($2,739) | | Net loss per common share – basic and diluted | ($0.40) | ($0.71) | | Weighted average number of common shares – basic and diluted | 4,128,029 | 3,881,606 | Balance Sheets As of April 30, 2025, total assets were $35.83 million, a slight increase from $35.58 million at January 31, 2025 Unaudited Condensed Consolidated Balance Sheets (as of): | Metric | April 30, 2025 (in thousands) | January 31, 2025 (in thousands) | | :-------------------------------- | :---------------------------- | :---------------------------- | | ASSETS | | | | Cash and cash equivalents | $1,449 | $2,183 | | Accounts receivable, net | $4,184 | $1,585 | | Contract receivables | $637 | $1,571 | | Prepaid and other current assets | $310 | $438 | | Total current assets | $6,580 | $5,777 | | Property and equipment, net | $45 | $49 | | Capitalized software development costs, net | $4,778 | $4,850 | | Intangible assets, net | $10,026 | $10,435 | | Goodwill | $13,276 | $13,276 | | Other non-current assets | $1,122 | $1,192 | | Total non-current assets | $29,247 | $29,802 | | Total assets | $35,827 | $35,579 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Accounts payable | $1,547 | $1,541 | | Accrued expenses | $1,626 | $1,921 | | Term loan, net | $7,277 | $7,709 | | Line of credit | $2,000 | $1,000 | | Notes payable, net | $4,703 | $4,415 | | Deferred revenues (current) | $7,126 | $6,099 | | Acquisition earnout liability | $377 | $377 | | Total current liabilities | $24,656 | $23,062 | | Deferred revenues (non-current) | $116 | $240 |\ | Total non-current liabilities | $116 | $240 | | Total liabilities | $24,772 | $23,302 | | Common stock | $43 | $43 | | Additional paid in capital | $138,515 | $138,092 | | Accumulated deficit | ($127,503) | ($125,858) | | Total stockholders' equity | $11,055 | $12,277 | | Total liabilities and stockholders' equity | $35,827 | $35,579 | Statements of Cash Flows For the three months ended April 30, 2025, net cash used in operating activities was ($0.97 million), an improvement from ($1.20 million) in the prior year Unaudited Condensed Consolidated Statements of Cash Flows (Three Months Ended April 30): | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Net loss | ($1,645) | ($2,739) | | Depreciation and amortization | $1,042 | $1,120 | | Accrued interest expense - notes payable | $189 | $152 | | Valuation adjustments | — | $24 | | Share-based compensation expense | $430 | $499 | | Changes in assets and liabilities: | | | | Accounts and contract receivables | ($1,665) | $17 | | Other assets | $66 | ($100) | | Accounts payable | $6 | ($161) | | Accrued expenses and other liabilities | ($295) | ($262) | | Deferred revenue | $903 | $251 | | Net cash used in operating activities | ($969) | ($1,199) | | Capitalization of software development costs | ($232) | ($232) | | Net cash used in investing activities | ($232) | ($232) | | Repayment of bank term loan | ($500) | ($250) | | Repayment of line of credit | — | ($1,500) | | Proceeds from issuance of common stock | — | $100 | | Proceeds from notes payable | — | $4,400 | | Proceeds from line of credit | $1,000 | — | | Payments of acquisition earnout liabilities | — | ($447) | | Payments for deferred financing costs | — | ($16) | | Repurchase of common shares to satisfy employee tax withholding | ($33) | ($67) | | Net cash provided by financing activities | $467 | $2,220 | | Net decrease in cash and cash equivalents | ($734) | $789 | | Cash and cash equivalents at beginning of period | $2,183 | $3,190 | | Cash and cash equivalents at end of period | $1,449 | $3,979 | Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA The reconciliation shows a significant improvement in Adjusted EBITDA, moving from a loss of ($0.70 million) in Q1 2024 to a positive $0.23 million in Q1 2025 Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA (Three Months Ended): | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------- | :---------------------------- | | Net Loss | ($1,645) | ($2,739) | | Interest expense | $543 | $465 | | Depreciation and amortization | $875 | $1,017 | | EBITDA | ($227) | ($1,257) | | Share-based compensation expense | $430 | $499 | | Non-cash valuation adjustments | — | $24 | | Acquisition-related costs, severance, and transaction-related bonuses | $23 | $31 | | Adjusted EBITDA | $226 | ($703) |