This report does not constitute a rating action. Bookings, which are a good indicator of future revenue growth, have trended downward, caused by a decrease in phase 2 and phase 3 clinical trial starts, which together represent about 75% of Signant?s business. Its high customer concentration exposes it to individual client delays and shifts in client strategy. With several of these pharmaceutical clients cutting costs and reprioritizing pipeline projects, the company's noncentral nervous system (CNS) electronic clinical outcome assessment (eCOA) business experienced lower-than-expected volumes. Signant also has exposure to biotech clients that depend on a healthy funding environment that has not recovered. We continue to view those pullbacks as temporary because bookings have slowly strengthened in fiscal 2025. Therefore, we
