Performant Financial Corporation (PFMT)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Performant Financial Corporation (PFMT) trades at $3.56. Performant Financial Corporation provides technology-enabled audit, recovery, and customer service solutions in the United States. Market cap: $278.72M, Sector: Industrials.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for PFMT: PFMT does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates PFMT against Industrials peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
PFMT: 1/1 perspectives are bearish.
How is this calculated? →Performant Financial Corporation (PFMT) Industrial Operations Profile
Performant Financial Corporation delivers technology-driven audit, recovery, and customer service solutions, primarily targeting government and healthcare sectors in the U.S. Their expertise lies in identifying and recovering improper payments and delinquent debts, positioning them as a key player in revenue cycle management and debt recovery.
What Is the Investment Thesis for PFMT?
Performant Financial Corporation's investment thesis hinges on its established position in the audit and recovery services sector, particularly within government and healthcare. The company's focus on identifying and recovering improper payments presents a significant market opportunity. With a market capitalization of $278.72M and a negative P/E ratio of -688.16, the company's future profitability is a key factor. Growth catalysts include expansion of Performant Insight services and increased demand for debt recovery services. Key risks involve potential regulatory changes and competition within the specialty business services industry. Investors should monitor the company's ability to improve its profit margin, which currently stands at -0.6%.
Based on FMP financials and quantitative analysis
PFMT Key Highlights
- Market capitalization of $278.72M indicates the company's current valuation in the market.
- Negative P/E ratio of -688.16 reflects current losses, suggesting potential for future earnings growth.
- Gross margin of 49.7% demonstrates the company's ability to generate revenue after accounting for the cost of goods sold.
- Beta of 0.14 indicates lower volatility compared to the overall market.
- The company's focus on technology-enabled solutions positions it favorably in the evolving audit and recovery services landscape.
Who Are PFMT's Competitors?
PFMT is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| AAN The Aaron's Company, Inc. | $10.09 | +1.00% | $318.35M | 44 |
| ARC ARC Document Solutions, Inc. | $3.39 | +0.00% | $146.66M | 39 |
| BGRY Berkshire Grey, Inc. | $1.40 | -0.71% | $340.69M | 54 |
| FIP FTAI Infrastructure Inc. | $4.43 | -0.23% | $523.46M | — |
| FREY FREYR Battery | $1.53 | -2.55% | $241.82M | 48 |
| FTBGF Bidstack Group Plc | $0.03 | +20.00% | $29.04M | 63 |
| BUUU BUUU Group Limited provides meeting, incentive, conference, and exhibition solutions, including event management and stage production services. The company | $21.35 | -2.06% | $249.69M | 63 |
| ZGM Zenta Group Company Limited | $1.99 | +11.80% | $23.50M | 60 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are PFMT's Key Strengths?
- Technology-enabled audit and recovery services.
- Established relationships with government agencies.
- Expertise in identifying improper payments.
- Comprehensive suite of services including audit, recovery, and customer service.
What Are PFMT's Weaknesses?
- Negative profit margin.
- High P/E ratio indicating potential overvaluation or lack of profitability.
- Dependence on government contracts which can be subject to change.
- Competition in the specialty business services industry.
What Could Drive PFMT Stock Higher?
- Expansion of Performant Insight services to new clients and markets.
- Increased demand for debt recovery services due to rising student loan and government debt.
- Potential for new government contracts in the audit and recovery space.
- Technological advancements improving efficiency and effectiveness of services.
What Are the Key Risks for PFMT?
- Regulatory changes impacting debt recovery and healthcare payments.
- Competition from other business service providers.
- Economic downturn affecting government budgets and spending.
- Data breaches and cybersecurity risks.
- Negative profit margin impacting financial stability.
What Are the Growth Opportunities for PFMT?
- Expansion of Performant Insight: Performant Insight offers services such as post- and pre-payment audit of healthcare claims, fraud detection, and coordination of benefits. Expanding these services can drive growth by tapping into the increasing demand for healthcare fraud detection and prevention. The market for healthcare fraud detection is expected to grow, presenting a significant opportunity for Performant to increase its revenue and market share. Timeline: Ongoing.
- Increased Demand for Debt Recovery Services: With rising student loan debt and government debt, the demand for debt recovery services is expected to increase. Performant's expertise in recovering past due student loans and government debt positions it to capitalize on this trend. The market for debt recovery services is substantial, offering a significant growth opportunity for the company. Timeline: Ongoing.
- Government Contracts: Performant's ability to secure and expand government contracts represents a significant growth opportunity. By providing tax recovery services to federal, state, and municipal agencies, and recovering government debt for various federal agencies, the company can generate stable revenue streams. Government contracts often provide long-term revenue visibility, making them a valuable asset. Timeline: Ongoing.
- Healthcare Audit and Recovery Services: The market for healthcare audit and recovery services is growing due to increasing complexity in healthcare billing and coding. Performant's expertise in identifying improper healthcare payments positions it to capitalize on this trend. By helping healthcare clients identify and recover improper payments, the company can drive revenue growth. Timeline: Ongoing.
- Technological Innovation: Investing in and implementing new technologies to enhance its audit, recovery, and customer service solutions can drive growth. By leveraging data analytics, artificial intelligence, and machine learning, Performant can improve its efficiency and effectiveness. Technological innovation can also help the company differentiate itself from competitors and attract new clients. Timeline: Ongoing.
What Opportunities Does PFMT Have?
- Expansion of Performant Insight services.
- Increased demand for debt recovery services.
- Growth in the healthcare audit and recovery market.
- Technological innovation to improve efficiency and effectiveness.
What Threats Does PFMT Face?
- Regulatory changes affecting debt recovery and healthcare payments.
- Increased competition from other business service providers.
- Economic downturn impacting government budgets and spending.
- Potential for data breaches and cybersecurity risks.
What Are PFMT's Competitive Advantages?
- Established relationships with government agencies.
- Proprietary technology-enabled audit and recovery platforms.
- Expertise in identifying and recovering improper payments.
- Long-standing experience in the debt recovery industry.
What Does PFMT Do?
Founded in 1976 and headquartered in Livermore, California, Performant Financial Corporation has evolved into a leading provider of technology-enabled audit, recovery, and customer service solutions. Originally known as DCS Holdings, Inc., the company rebranded to Performant Financial Corporation in 2005. The company's core business revolves around assisting clients in the Federal guaranteed student loan program and private institutions by identifying and tracking defaulted borrowers, rehabilitating and recovering past due student loans. Performant also provides tax recovery services to federal, state, and municipal agencies, recovers government debt for various federal agencies, and offers audit and recovery services to identify improper healthcare payments for public and private healthcare clients. Their services extend to identifying improper payments resulting from incorrect coding, medically unnecessary procedures, incomplete documentation, and outdated fee schedules. Additionally, Performant offers first-party call center and other outsourced services, along with Performant Insight, a service providing post- and pre-payment audit of healthcare claims, fraud detection, and coordination of benefits.
What Products and Services Does PFMT Offer?
- Provides technology-enabled audit services.
- Offers recovery services for defaulted student loans.
- Provides tax recovery services to government agencies.
- Recovers government debt for federal agencies.
- Offers audit and recovery services for healthcare payments.
- Identifies improper payments resulting from incorrect coding.
- Provides first party call center and outsourced services.
- Offers Performant Insight for healthcare claims analysis.
How Does PFMT Make Money?
- Generates revenue by providing audit and recovery services to government and private clients.
- Charges fees for identifying and recovering improper payments and delinquent debts.
- Offers outsourced customer service solutions on a contract basis.
- Provides technology-enabled platforms for data analysis and fraud detection.
What Industry Does PFMT Operate In?
Performant Financial Corporation operates within the Specialty Business Services industry, which is part of the broader Industrials sector. This industry is characterized by companies providing specialized services to improve efficiency and compliance for their clients. Market trends include increasing demand for technology-enabled solutions and growing focus on data analytics for fraud detection and revenue recovery. The competitive landscape includes companies like AAN (Aaron's Holdings Company, Inc.) and ARC (ARC Document Solutions, Inc.), each with its own niche within the broader business services market.
Who Are PFMT's Key Customers?
- Federal government agencies.
- State and municipal agencies.
- Private healthcare clients.
- Institutions in the Federal guaranteed student loan program.
Net buyingInsider Activity
The most recent 12 insider filings for Performant Financial Corporation break down as 7 sales and 5 purchases. On net that is roughly 32K shares acquired (about $94K) — insiders putting money in tends to read as conviction.
PFMT Valuation & Market Position
With a $278.72M market cap, Performant Financial Corporation sits in the micro-cap segment of the market.
ROE 2%Key Financial Metrics
Return on equity for Performant Financial Corporation stands at 1.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.4%, showing how much profit it generates from its asset base. PFMT trades at a trailing price-to-earnings ratio of 406.29, above the Industrials sector average of ~30x. Its free cash flow yield is 0.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.64 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 0.2%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 4/9Financial Health
Performant Financial Corporation's Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 6.73 places it in the safe zone, indicating low near-term bankruptcy risk.
Company Profile
Performant Financial Corporation operates in the Specialty Business Services industry within the Industrials sector. It is headquartered in Livermore, US. The company is led by CEO Simeon M. Kohl. PFMT has traded publicly since 2012.
PFMT Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2024
Bull Case vs Bear Case
Bull Case
- Recent insider buying could signal confidence in Performant's future prospects, suggesting those with inside knowledge see value.
- The community seems to be focusing on potential government contracts, viewing them as a strong revenue driver for Performant.
- There's a sense that the market is undervaluing Performant's long-term potential in the recovery audit space, similar to how some viewed Palantir early on.
- Positive sentiment is building around Performant's ability to navigate regulatory changes, seeing it as a competitive advantage.
Bear Case
- Some in the community are concerned about increased competition in the healthcare recovery audit market, potentially squeezing margins.
- There's a lingering negative perception stemming from past performance issues, making it harder to attract new investors.
- Skeptics point to the company's reliance on a few key clients, creating vulnerability if those relationships weaken.
- The overall market sentiment seems cautious due to uncertainty in government spending, which could impact Performant's contract renewals.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
PFMT Latest News
No recent news available for PFMT.
PFMT Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PFMT.
Price Targets
Wall Street price target analysis for PFMT.
PFMT MoonshotScore
What does this score mean?
The MoonshotScore rates PFMT's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry Specialty Business ServicesLeadership: Simeon M. Kohl
CEO
Simeon M. Kohl serves as the CEO of Performant Financial Corporation, leading a team of 958 employees. His background includes extensive experience in the financial services and technology sectors. He has held various leadership positions, focusing on strategic growth, operational efficiency, and client relationship management. Kohl's expertise spans across areas such as revenue cycle management, debt recovery, and healthcare payment integrity. He is known for his data-driven approach and commitment to innovation.
Track Record: Under Simeon M. Kohl's leadership, Performant Financial Corporation has focused on expanding its technology-enabled solutions and strengthening its relationships with government and healthcare clients. Key milestones include the development and launch of Performant Insight, a service providing advanced data analytics for healthcare claims. Kohl has also overseen efforts to improve operational efficiency and drive revenue growth through strategic partnerships and acquisitions.
What Investors Ask About Performant Financial Corporation (PFMT) — Industrials
What does Performant Financial Corporation do?
Performant Financial Corporation specializes in technology-enabled audit, recovery, and customer service solutions, primarily serving government and healthcare sectors. The company focuses on identifying and recovering improper payments, delinquent debts, and providing outsourced customer service. Performant's services include tax recovery for government agencies, debt recovery for student loans, and healthcare payment integrity solutions. Their Performant Insight platform offers advanced data analytics for healthcare claims, fraud detection, and coordination of benefits, positioning them as a key player in revenue cycle management.
What are the main risks for PFMT?
Performant Financial Corporation faces several key risks. Regulatory changes impacting debt recovery and healthcare payments pose a significant threat. Increased competition from other business service providers could erode market share. An economic downturn could affect government budgets and spending, impacting demand for Performant's services. Data breaches and cybersecurity risks are also a concern, given the sensitive data the company handles. The company's negative profit margin is an ongoing risk impacting financial stability.
What are the key factors to evaluate for PFMT?
Evaluate PFMT on fundamentals, analyst consensus, and risk factors. Not financial advice.
How frequently does PFMT data refresh on this page?
PFMT prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven PFMT's recent stock price performance?
Performant Financial Corporation (PFMT) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Technology-enabled audit and recovery services. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider PFMT overvalued or undervalued right now?
Valuing Performant Financial Corporation (PFMT) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying PFMT?
Before investing in Performant Financial Corporation (PFMT), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding PFMT to a portfolio?
Key strength of Performant Financial Corporation (PFMT): Technology-enabled audit and recovery services. Weigh rewards against risks and diversify. Not financial advice.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Analyst consensus is pending AI analysis.
- Competitive landscape is based on publicly available information.