Performant Financial Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenues increased to $31.5 million, up 5% from $30.0 million in the same period of 2023. Healthcare revenues specifically rose by 6% to $30.3 million, driven by a significant 38% increase in claims-based services, which generated $14.2 million, compared to $10.3 million in the prior year. However, revenues from eligibility-based services decreased by 12% to $16.1 million. For the nine-month period, total revenues reached $88.2 million, a 9% increase from $81.2 million in 2023, with healthcare revenues growing by 12% to $84.0 million.

Despite the revenue growth, the company reported increased operating expenses, which totaled $33.7 million for the third quarter, up from $30.6 million a year earlier. This rise was attributed to higher salaries and benefits, which increased by 13% to $26.0 million. As a result, Performant experienced a loss from operations of $2.1 million for the third quarter, compared to a loss of $0.7 million in the same period of 2023. The net loss for the quarter was $2.4 million, a significant increase from $0.6 million in the prior year, reflecting a 311% rise in losses.

For the nine months ended September 30, 2024, the net loss was $9.4 million, up from $8.8 million in 2023. The loss from operations for this period also increased to $8.8 million from $8.0 million. The effective income tax rate for the nine months was -1%, compared to 4% in the previous year, primarily due to overall losses from operations.

On the balance sheet, total assets increased to $101.8 million as of September 30, 2024, from $99.0 million at the end of 2023. Current assets decreased slightly to $38.3 million, while cash and cash equivalents rose to $7.8 million. The company reported a long-term loan payable of $8.0 million, up from $5.0 million at the end of 2023, reflecting increased borrowings under a new credit agreement established in October 2023.

Performant continues to focus on its core services in the healthcare sector, leveraging technology and analytics to enhance its offerings. The company remains committed to managing its operational costs while navigating the challenges posed by market conditions and client contract dynamics.