Financial Performance - Total revenues for the first nine months of 2025 reached $259.0 million, a 2% increase from $254.4 million in the same period of 2024[159]. - Net income for the first nine months of 2025 was $8.6 million, a significant improvement from a net loss of $15.4 million in the first nine months of 2024, driven by revenue growth and cost reductions[159]. - Financial Health segment revenues for the first nine months of 2025 were $164.9 million, up 1% from $162.6 million in the prior year, with recurring revenues making up 98% of total Financial Health revenues[175]. - Patient Care revenues for the first nine months of 2025 increased by $2.3 million, or 3%, to $91.3 million, excluding Centriq and AHT, which was a 7% increase from $85.1 million in the same period of 2024[176]. - Net income for the first nine months of 2025 increased by $24.0 million to $8.6 million, or $0.58 per share, compared to a net loss of $15.4 million, or $(1.04) per share, for the first nine months of 2024[186]. - Adjusted EBITDA for Patient Care increased by $7.5 million, or 56%, compared to the first nine months of 2024, primarily due to increased installation and SaaS revenues[194]. Cost Management - Total costs of revenues (exclusive of amortization and depreciation) decreased to 48.8% of total revenues in the third quarter of 2025, down from 50.0% in the same quarter of 2024[164]. - Total costs of revenues decreased by $4.6 million, resulting in costs representing 47% of total revenues in the first nine months of 2025, down from 50% in the same period of 2024[177]. - Product development costs decreased by $2.1 million, or 8%, compared to the first nine months of 2024, primarily due to labor savings[179]. - Sales and marketing costs decreased by $1.2 million, or 6%, compared to the first nine months of 2024, mainly due to lower commissions[180]. - Total other expenses decreased by $1.7 million in the third quarter of 2025, primarily due to reduced interest expenses[170]. Revenue Growth Strategies - The company aims to achieve long-term revenue growth by cross-selling Financial Health services into the existing Patient Care customer base[139]. - The company plans to release its first denials prediction model to the public in Q1 2026[144]. - SaaS license models accounted for 100% of annual new Patient Care installations in 2022 and through the first nine months of 2025, up from 12% in 2018[151]. Bookings and Backlog - As of September 30, 2025, the company had a twelve-month backlog of approximately $4.0 million for non-recurring system purchases and approximately $321.0 million for recurring payments under support and maintenance and RCM services[205]. - Total bookings for the three months ended September 30, 2025 were $15.5 million, a decrease of 26% from $20.95 million in the same period of 2024[206]. - The company reported a total of $52.0 million in bookings for the nine months ended September 30, 2025, down from $67.81 million in the same period of 2024[213]. - Financial Health bookings decreased by $3.0 million, or 24%, in Q3 2025 compared to Q3 2024, with net-new bookings down by $4.5 million, or 79%[207]. - Patient Care bookings decreased by $2.5 million, or 29%, in Q3 2025 compared to Q3 2024, primarily due to a 95% decrease in net-new bookings[209]. - Financial Health bookings for the first nine months of 2025 decreased by $4.4 million, or 11%, from the same period in 2024[208]. - Patient Care bookings for the first nine months of 2025 decreased by $0.4 million, or 1%, compared to the first nine months of 2024[210]. - Effective January 2025, the company will report bookings on an Annual Contract Value (ACV) basis in addition to the reported bookings amounts[212]. Operational Efficiency - Operating income for the third quarter of 2025 was $4.1 million, compared to $2.8 million in the third quarter of 2024, reflecting improved operational efficiency[160]. - The company has implemented margin optimization efforts, including organizational realignment and expanded use of automation since 2021[155]. Tax and Financing - The effective tax rate for the third quarter of 2025 was (314.3)%, reflecting a tax benefit of $4.3 million due to recent tax reforms[172]. - The effective tax rate for the nine months ended September 30, 2025, was (24.0)%, compared to 38.2% for the same period in 2024, resulting in a tax benefit of $1.7 million[185]. - As of September 30, 2025, the company had $165.2 million in principal amount of indebtedness outstanding under credit facilities, with a cash balance of $19.9 million[195]. - A one hundred basis point change in interest rate on borrowings outstanding as of September 30, 2025 would result in a change in interest expense of approximately $1.7 million annually[216].

Exhibit 99.1 TRUBRIDGE ANNOUNCES THIRD QUARTER 2025 RESULTS MOBILE, ALA. (November 6, 2025) – TruBridge, Inc. (NASDAQ: TBRG), a leading provider of revenue cycle management and healthcare technology solutions for rural and community healthcare organizations, today announced financial results for the third quarter and nine months ended September 30, 2025. Third Quarter 2025 Highlights All comparisons are to the quarter ended September 30, 2024, unless otherwise noted Commenting on the results, Chris Fowler, ...

PART I. FINANCIAL INFORMATION This part details the company's financial performance and condition, including statements, notes, management's analysis, market risks, and internal controls [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of TruBridge, Inc. for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of operations, comprehensive income (loss), stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, segment reporting changes, revenue recognition, and other financial details [Condensed Consolidated Balance Sheets (Unaudited) – June 30, 2025 and December 31, 2024](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)%20%E2%80%93%20June%2030%2C%202025%20and%20December%2031%2C%202024) This statement provides a snapshot of the company's assets, liabilities, and equity at specific points in time Property and Equipment, Net (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $390,151 | $394,432 | | Total Liabilities | $216,978 | $225,737 | | Total Stockholders' Equity | $173,173 | $168,695 | - Total assets decreased by **$4.281 million** from December 31, 2024, to June 30, 2025, while total liabilities decreased by **$8.759 million**, and total stockholders' equity increased by **$4.478 million**[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations (Unaudited) – Three and Six Months Ended June 30, 2025 and 2024](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This statement details the company's revenues, expenses, and net income or loss over specific periods Property and Equipment, Net (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Revenues | $85,729 | $85,600 | $172,937 | $169,717 | | Operating Income (Loss) | $3,627 | $(2,149) | $11,787 | $(2,737) | | Net Income (Loss) | $2,580 | $(4,388) | $3,039 | $(6,242) | | Basic EPS | $0.17 | $(0.29) | $0.20 | $(0.42) | - For the three months ended June 30, 2025, net income was **$2.580 million**, a significant improvement from a net loss of **$4.388 million** in the prior year period. For the six months ended June 30, 2025, net income was **$3.039 million**, compared to a net loss of **$6.242 million** in the prior year period[12](index=12&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - Three and Six Months Ended June 30, 2025 and 2024](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20(Unaudited)%20-%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This statement presents net income or loss and other comprehensive income or loss components for the reporting periods Property and Equipment, Net (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income (Loss) | $2,580 | $(4,388) | $3,039 | $(6,242) | | Foreign currency translation adjustment | $(12) | $(5) | $(18) | $108 | | Comprehensive Income (Loss) | $2,568 | $(4,393) | $3,021 | $(6,134) | - Comprehensive income for the three months ended June 30, 2025, was **$2.568 million**, a substantial increase from a comprehensive loss of **$4.393 million** in the same period last year. For the six months ended June 30, 2025, comprehensive income was **$3.021 million**, compared to a comprehensive loss of **$6.134 million** in the prior year period[13](index=13&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity (Unaudited) – Three and Six Months Ended June 30, 2025 and 2024](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This statement details changes in equity accounts, including net income, stock-based compensation, and treasury stock transactions Property and Equipment, Net (in thousands) | Metric (in thousands) | Balance at March 31, 2025 | Balance at June 30, 2025 | Balance at December 31, 2024 | Balance at June 30, 2025 | | :-------------------- | :------------------------ | :----------------------- | :--------------------------- | :----------------------- | | Total Stockholders' Equity | $168,508 | $173,173 | $168,695 | $173,173 | | Net Income (Loss) | N/A | $2,580 | N/A | $3,039 | | Stock-based compensation | N/A | $2,097 | N/A | $3,310 | | Treasury stock acquired | N/A | $0 | N/A | $(1,853) | - Total stockholders' equity increased from **$168.508 million** at March 31, 2025, to **$173.173 million** at June 30, 2025, driven by net income and stock-based compensation. For the six months ended June 30, 2025, treasury stock acquisitions amounted to **$1.853 million**[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited) – Six Months Ended June 30, 2025 and 2024](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)%20%E2%80%93%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This statement summarizes cash inflows and outflows from operating, investing, and financing activities over the period Property and Equipment, Net (in thousands) | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $14,517 | $11,730 | | Net cash (used in) provided by investing activities | $(6,959) | $11,116 | | Net cash used in financing activities | $(7,603) | $(18,944) | | Cash and cash equivalents at end of period | $12,279 | $7,709 | - Net cash provided by operating activities increased by **$2.787 million** YoY for the six months ended June 30, 2025. Investing activities shifted from providing **$11.116 million** in cash in 2024 to using **$6.959 million** in 2025, primarily due to the sale of AHT in 2024. Financing activities used less cash in 2025 (**$7.603 million**) compared to 2024 (**$18.944 million**)[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed explanations of the accounting policies, significant transactions, and other financial disclosures [1. BASIS OF PRESENTATION](index=11&type=section&id=1.%20BASIS%20OF%20PRESENTATION) This note outlines the accounting principles and reporting framework used for the financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with SEC rules and U.S. GAAP, including normal recurring adjustments. They should be read with the 2024 Annual Report on Form 10-K[19](index=19&type=chunk)[20](index=20&type=chunk) - The Company realigned its reporting structure in May 2024, changing from three segments (RCM, EHR, Patient Engagement) to two (Financial Health, Patient Care). Patient Engagement results were transitioned into the EHR segment, now called Patient Care. Prior segment information has been recast[22](index=22&type=chunk) - The Company corrected improperly recognized revenue from 2024, assessing it as immaterial to prior periods. Adjustments were made to the condensed consolidated financial statements for the three and six months ended June 30, 2024, impacting revenue, operating income, net income, and stockholders' equity[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) [2. RECENT ACCOUNTING PRONOUNCEMENTS](index=14&type=section&id=2.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) This note discusses new accounting standards and their potential impact on the company's financial reporting - ASU 2023-09 (Income Taxes) is effective for fiscal years beginning after December 15, 2024, requiring disaggregated tax rate reconciliation and income taxes paid by jurisdiction. The Company will adopt it for the annual period ending December 31, 2025[28](index=28&type=chunk) - ASU 2024-03 (Expense Disaggregation Disclosures) is effective for fiscal years beginning after December 15, 2026, requiring additional disclosure of certain costs and expenses. The Company is evaluating its impact[29](index=29&type=chunk) [3. REVENUE RECOGNITION](index=14&type=section&id=3.%20REVENUE%20RECOGNITION) This note details the company's policies and methods for recognizing revenue from various service and product offerings - Revenue is recognized using the 5-step ASC 606 model. Financial Health services (RCM, IT services, SaaS, time-based licenses) recognize revenue over the contract period or upon delivery. Patient Care services (perpetual/time-based licenses, SaaS, hardware, implementation) recognize revenue based on service provision, delivery, or module completion[30](index=30&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[37](index=37&type=chunk)[39](index=39&type=chunk) Revenues Disaggregated by Category (in thousands) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total recurring revenues | $81,437 | $79,933 | $164,148 | $160,592 | | Total non-recurring revenues | $4,292 | $5,667 | $8,789 | $9,125 | | Total revenues | $85,729 | $85,600 | $172,937 | $169,717 | - Deferred revenue represents invoiced amounts for uncompleted services. The ending balance of deferred revenue was **$9.368 million** at June 30, 2025, compared to **$9.842 million** at June 30, 2024[42](index=42&type=chunk)[43](index=43&type=chunk) Costs to Obtain and Fulfill Contracts (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Costs to obtain and fulfill contracts capitalized | $1,937 | $1,727 | $3,800 | $3,430 | | Less costs to obtain and fulfill contracts recognized as expense | $(1,566) | $(1,765) | $(3,429) | $(3,649) | | Ending balance | $12,958 | $12,896 | $12,958 | $12,896 | [4. BUSINESS COMBINATIONS AND DISPOSITIONS](index=18&type=section&id=4.%20BUSINESS%20COMBINATIONS%20AND%20DISPOSITIONS) This note describes the company's acquisition and divestiture activities, including the sale of American HealthTech, Inc - On January 16, 2024, TruBridge sold American HealthTech, Inc. (AHT) for an aggregate purchase price of **$25.0 million**, with a net payment of approximately **$21.4 million** at closing after adjustments and escrow holdbacks. A transition services agreement (TSA) was entered into, extended for an additional 120 days on July 17, 2025[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - The Company recorded a **$0.1 million** gain on sale for AHT for the six months ended June 30, 2025, compared to a **$1.3 million** gain in the prior year period. AHT's pretax loss included in consolidated statements was **$0** for 2025, down from **$0.241 million** in 2024[51](index=51&type=chunk)[52](index=52&type=chunk) [5. PROPERTY AND EQUIPMENT](index=19&type=section&id=5.%20PROPERTY%20AND%20EQUIPMENT) This note provides details on the company's tangible assets, including their net book value and changes over time Property and Equipment, Net (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Property and equipment, gross | $12,687 | $11,819 | | Less: accumulated depreciation | $(10,128) | $(9,525) | | Property and equipment, net | $2,559 | $2,294 | - Net property and equipment increased by **$0.265 million** from December 31, 2024, to June 30, 2025. Assets held for sale, primarily land and a building in Mobile, Alabama, were valued at **$0.4 million** at June 30, 2025, down from **$0.6 million** at December 31, 2024. A portion of these assets was sold for **$0.3 million** on April 9, 2025[53](index=53&type=chunk)[55](index=55&type=chunk) [6. SOFTWARE DEVELOPMENT](index=19&type=section&id=6.%20SOFTWARE%20DEVELOPMENT) This note outlines the company's accounting policies for capitalizing and amortizing software development costs - Software development costs are capitalized from the completion of the preliminary project phase until general release and amortized on a straight-line basis over an estimated useful life of five years. R&D and maintenance costs are expensed as incurred[56](index=56&type=chunk) Software Development Costs, Net (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Software development costs | $72,885 | $68,805 | | Less: accumulated amortization | $(29,568) | $(27,331) | | Software development costs, net | $43,317 | $41,474 | [7. OTHER ACCRUED LIABILITIES](index=20&type=section&id=7.%20OTHER%20ACCRUED%20LIABILITIES) This note details various accrued liabilities, including salaries, benefits, severance, and interest Other Accrued Liabilities (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Salaries and benefits | $6,260 | $9,050 | | Severance | $930 | $1,702 | | Commissions | $1,138 | $1,191 | | Accrued interest | $1,913 | $2,314 | | Operating lease liabilities, current portion | $924 | $944 | | Other | $1,137 | $793 | | Total Other accrued liabilities | $12,302 | $15,994 | - Total other accrued liabilities decreased by **$3.692 million** from December 31, 2024, to June 30, 2025, primarily due to decreases in salaries and benefits, severance, and accrued interest[58](index=58&type=chunk) [8. NET INCOME (LOSS) PER SHARE](index=20&type=section&id=8.%20NET%20INCOME%20(LOSS)%20PER%20SHARE) This note explains the calculation of basic and diluted earnings per share, considering common stock and equity awards - Basic and diluted EPS are calculated using the two-class method due to unvested restricted stock awards. Diluted EPS uses the more dilutive of the two-class or treasury stock method[59](index=59&type=chunk)[60](index=60&type=chunk) Basic and Diluted EPS (in thousands, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income (loss) attributable to common stockholders | $2,495 | $(4,200) | $2,933 | $(6,025) | | Basic EPS | $0.17 | $(0.29) | $0.20 | $(0.42) | | Diluted EPS | $0.17 | $(0.29) | $0.20 | $(0.42) | - Performance share awards totaling 491,342 shares were not included in diluted EPS calculations for the three and six months ended June 30, 2025, as threshold performance levels were not met[61](index=61&type=chunk) [9. INCOME TAXES](index=21&type=section&id=9.%20INCOME%20TAXES) This note provides information on the company's effective tax rate, tax benefits, and deferred tax assets - The estimated annual effective tax rate (ETR) for the three months ended June 30, 2025, was (269.6)%, compared to 30.3% for the prior year, primarily due to changes in forecasted pre-tax income and valuation allowance. For the six months, ETR was 45.9% in 2025 vs. 34.6% in 2024, driven by increased federal and state valuation allowance and decreased windfall tax benefit[63](index=63&type=chunk)[65](index=65&type=chunk) - The Company recognized an income tax benefit of **$(1.9) million** for the three months ended June 30, 2025, and an expense of **$2.6 million** for the six months ended June 30, 2025[64](index=64&type=chunk) - Management assesses deferred tax assets based on future taxable income, with cumulative losses being a significant negative objective evidence. The 'One Big Beautiful Bill Act' signed on July 4, 2025, is being evaluated for its impact on the ETR and cash tax position[66](index=66&type=chunk)[68](index=68&type=chunk) [10. STOCK-BASED COMPENSATION AND EQUITY](index=22&type=section&id=10.%20STOCK-BASED%20COMPENSATION%20AND%20EQUITY) This note details stock-based compensation expenses, unrecognized compensation, and share repurchase activities Stock-Based Compensation Expense (in thousands) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Pre-tax stock-based compensation expense | $2,097 | $1,501 | $3,310 | $2,300 | | Net stock-based compensation expense | $1,657 | $1,186 | $2,615 | $1,817 | - As of June 30, 2025, **$12.4 million** of unrecognized compensation expense related to unvested and unearned stock-based awards is expected to be recognized over a weighted-average period of 2.1 years[69](index=69&type=chunk) - The Company repurchased 65,787 shares during the six months ended June 30, 2025, to fund tax withholdings related to restricted stock vesting, compared to 42,979 shares in the prior year period[79](index=79&type=chunk) - The Common Stock Rights Agreement, which classified Rights as a liability, was terminated on February 11, 2025, with all Rights expiring on February 12, 2025, as the exercise conditions were not met[80](index=80&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) [11. FINANCING RECEIVABLES](index=25&type=section&id=11.%20FINANCING%20RECEIVABLES) This note provides details on short-term payment plans and long-term financing arrangements, including credit loss allowances Short-Term Payment Plans, Net (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Short-term payment plans, gross | $2,150 | $1,521 | | Less: allowance for credit losses | $(108) | $(76) | | Short-term payment plans, net | $2,042 | $1,445 | Long-Term Financing Arrangements, Net (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Long-term financing arrangements, gross | $1,559 | $4,100 | | Less: allowance for credit losses | $(710) | $(362) | | Less: unearned income | $(142) | $(288) | | Long-term financing arrangements, net | $707 | $3,450 | - The allowance for credit losses for financing receivables increased from **$0.438 million** at December 31, 2024, to **$0.818 million** at June 30, 2025. All past due financing receivables are reclassified to trade accounts receivable and placed on non-accrual status[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [12. INTANGIBLE ASSETS AND GOODWILL](index=28&type=section&id=12.%20INTANGIBLE%20ASSETS%20AND%20GOODWILL) This note details the company's intangible assets and goodwill, including their carrying values and impairment assessment policies Net Intangible Assets (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Customer Relationships | $61,391 | $66,210 | | Trademark | $0 | $0 | | Developed Technology | $8,606 | $9,723 | | Non Compete Agreements | $611 | $774 | | Total Net Intangible Assets | $70,608 | $76,707 | - Total net intangible assets decreased by **$6.099 million** from December 31, 2024, to June 30, 2025. The weighted average remaining useful life for total intangible assets is 7.6 years as of June 30, 2025[92](index=92&type=chunk)[93](index=93&type=chunk) Goodwill Carrying Value by Segment (in thousands) | Segment | December 31, 2024 | June 30, 2025 | | :-------------------- | :---------------- | :------------ | | Financial Health | $79,748 | $79,748 | | Patient Care | $92,825 | $92,825 | | Total Carrying Value | $172,573 | $172,573 | - Goodwill carrying value remained constant at **$172.573 million** for both June 30, 2025, and December 31, 2024. Goodwill is evaluated for impairment annually on October 1 or more frequently if indicators are present[93](index=93&type=chunk) [13. LONG-TERM DEBT](index=30&type=section&id=13.%20LONG-TERM%20DEBT) This note provides information on the company's long-term debt, including credit facilities, interest rates, and covenant compliance Long-Term Debt (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Term loan facility | $54,625 | $56,375 | | Revolving credit facility | $112,416 | $116,415 | | Debt obligation, net | $166,088 | $171,578 | | Long-term debt | $163,108 | $168,598 | - Total long-term debt decreased by **$5.490 million** from December 31, 2024, to June 30, 2025. The credit facilities (term loan and revolving credit) mature on May 2, 2027, and bear interest at a rate based on Adjusted SOFR or an alternate base rate, plus an applicable margin[94](index=94&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - The Company was in compliance with financial covenants, including a maximum consolidated net leverage ratio of 3.50:1.00, as of June 30, 2025. The required fixed charge coverage ratio reverted to 1.25:1.00 for fiscal quarters March 31, 2025, and thereafter[100](index=100&type=chunk)[101](index=101&type=chunk) [14. OPERATING LEASES](index=34&type=section&id=14.%20OPERATING%20LEASES) This note details the company's operating lease assets and liabilities, including lease terms and discount rates Operating Lease Information (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Operating lease right-of-use assets | $2,617 | $3,092 | | Total operating lease liabilities | $2,751 | $3,237 | | Weighted average remaining lease term (years) | 3.2 | 3.6 | | Weighted average discount rate | 4.1% | 4.1% | - Total lease expense for the six months ended June 30, 2025, was **$0.5 million**, down from **$0.6 million** in the prior year. Cash paid for operating leases was **$0.5 million** for the six months ended June 30, 2025, also down from **$0.6 million** in the prior year[107](index=107&type=chunk)[108](index=108&type=chunk) [15. COMMITMENTS AND CONTINGENCIES](index=36&type=section&id=15.%20COMMITMENTS%20AND%20CONTINGENCIES) This note describes the company's legal proceedings and other commitments, assessing their potential financial impact - The Company is involved in legal proceedings in the normal course of business but does not expect them to have a material adverse effect on its business, financial condition, results of operations, or liquidity[109](index=109&type=chunk) [16. FAIR VALUE](index=36&type=section&id=16.%20FAIR%20VALUE) This note explains the framework for measuring the fair value of assets and liabilities - Fair value measurement framework classifies assets and liabilities into Level 1 (quoted market prices), Level 2 (observable market-based inputs), and Level 3 (unobservable inputs)[110](index=110&type=chunk)[111](index=111&type=chunk) [17. SEGMENT REPORTING](index=37&type=section&id=17.%20SEGMENT%20REPORTING) This note outlines the company's operating segments, their realignment, and how performance is measured - In May 2024, the Company realigned its reporting structure to two segments: Financial Health (formerly RCM) and Patient Care (formerly EHR, now including Patient Engagement). The CEO uses revenues and Adjusted EBITDA to assess segment performance[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - Adjusted EBITDA is a non-GAAP measure that adjusts net income (loss) for depreciation, amortization, stock-based compensation, severance, interest, gains on sales, and income taxes[116](index=116&type=chunk) Segment Revenues and Adjusted EBITDA (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Financial Health Revenues | $54,284 | $54,509 | $110,417 | $107,948 | | Patient Care Revenues | $31,445 | $31,091 | $62,520 | $61,769 | | Total Revenues | $85,729 | $85,600 | $172,937 | $169,717 | | Financial Health Adjusted EBITDA | $7,092 | $8,209 | $18,373 | $15,006 | | Patient Care Adjusted EBITDA | $6,651 | $5,235 | $13,601 | $8,762 | | Total Adjusted EBITDA | $13,743 | $13,444 | $31,974 | $23,768 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance, condition, and future outlook. It covers strategic shifts towards Financial Health services, the impact of industry dynamics, changes in license model preferences, margin optimization efforts, and a detailed comparison of financial results for the three and six months ended June 30, 2025, versus 2024 [Background](index=42&type=section&id=Background) This section provides an overview of TruBridge, Inc.'s strategic shift and its healthcare technology solutions - TruBridge, Inc. (formerly Computer Programs and Systems, Inc.) has shifted its strategic focus from EHR to Revenue Cycle Management (RCM), with Financial Health revenues comprising 64% of consolidated revenue in 2024. The Company provides healthcare technology solutions and services for rural and community hospitals[129](index=129&type=chunk)[130](index=130&type=chunk) - The Financial Health segment offers business management, consulting, and managed IT services, including RCM solutions. The Patient Care segment provides acute care EHR solutions and patient engagement technology[132](index=132&type=chunk)[133](index=133&type=chunk) [Management Overview](index=43&type=section&id=Management%20Overview) This section outlines the company's strategic direction, including AI integration, industry dynamics, and margin optimization efforts [Strategy](index=43&type=section&id=Strategy) This section details the company's core strategy for revenue growth, customer retention, and market expansion - The core strategy is to achieve long-term revenue growth by cross-selling Financial Health services to existing Patient Care customers, expanding Financial Health market share, and pursuing competitive Patient Care opportunities. Acquisitions are also considered for strategic goals[136](index=136&type=chunk) - Patient Care customer retention is crucial for long-term growth, with a retention rate of **94.5%** in the last twelve months (**97.7%** for the flagship TruBridge EHR product). Efforts include enhanced support, proactive monitoring, and in-application experience software[137](index=137&type=chunk)[138](index=138&type=chunk) - The Company aims to maintain and grow its recurring revenue base by driving demand for existing technology subscriptions and expanding Financial Health services beyond the Patient Care customer base[139](index=139&type=chunk) [Artificial Intelligence](index=43&type=section&id=Artificial%20Intelligence) This section highlights the company's commitment to leveraging generative AI in healthcare delivery and its participation in TRAIN - TruBridge is committed to leveraging generative AI in healthcare delivery, participating in TRAIN (Trustworthy and Responsible AI Network) to shape governance and controls for safe AI implementation. Innovation teams are conducting pilots and discussing integrations with strategic partners[141](index=141&type=chunk) [Industry Dynamics](index=43&type=section&id=Industry%20Dynamics) This section discusses the impact of U.S. regulatory changes and national health initiatives on the healthcare industry - The healthcare industry is significantly affected by U.S. regulatory and national health initiatives, including changes to provider reimbursement and a shift towards value-based care. This pressure encourages adoption of healthcare IT to reduce costs and improve quality[142](index=142&type=chunk)[143](index=143&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA), enacted in July 2025, is expected to impact healthcare providers through changes to Medicaid and the Affordable Care Act, potentially leading to reduced funding and increased regulatory burdens. The full effects are still being evaluated[144](index=144&type=chunk) [Patient Care License Model Preferences](index=45&type=section&id=Patient%20Care%20License%20Model%20Preferences) This section explains the shift in customer demand from perpetual licenses to SaaS models for Patient Care technology solutions - Customer demand for Patient Care technology solutions has shifted dramatically from perpetual licenses to Software as a Service (SaaS) models. SaaS made up **100%** of new Patient Care installations during 2022 and the first six months of 2025, up from **12%** in 2018[146](index=146&type=chunk)[147](index=147&type=chunk) - This shift to SaaS reduces short-term revenue growth and profitability but benefits long-term recurring revenue and profitability. The reduced frequency of new financing arrangements for perpetual licenses has substantially decreased financing receivables in 2024 and H1 2025[147](index=147&type=chunk)[148](index=148&type=chunk) [Margin Optimization Efforts](index=45&type=section&id=Margin%20Optimization%20Efforts) This section describes the company's initiatives to improve cost structure and operating efficiencies through realignment and automation - Margin optimization efforts include organizational realignment, expanded use of offshore resources, and automation to improve cost structure and operating efficiencies. A reduction in force and the Scaled Agile Framework® have been implemented in EHR product development[149](index=149&type=chunk)[150](index=150&type=chunk) - Expanded utilization of offshore resources, particularly through the Viewgol acquisition, aims to provide meaningful efficiencies and per-unit cost savings, addressing wage inflation pressures in the Financial Health business[151](index=151&type=chunk)[152](index=152&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) This section provides a detailed comparison of the company's financial performance for the three and six months ended June 30, 2025, versus 2024 [Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024](index=48&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20with%20Three%20Months%20Ended%20June%2030%2C%202024) This section analyzes the financial performance for the second quarter of 2025 compared to the same period in 2024 [Revenues](index=48&type=section&id=Revenues_3M) This section details the revenue performance across Financial Health and Patient Care segments for the three-month period | Segment | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Financial Health | $54,284 | $54,509 | $(225) | -0.4% | | Patient Care | $31,445 | $31,091 | $354 | 1.1% | | Total Revenues | $85,729 | $85,600 | $129 | 0.2% | - Total revenues increased slightly by **$0.1 million**. Financial Health revenues decreased due to customer attrition, partially offset by new bookings. Patient Care revenues increased by **1%** due to SaaS growth, despite the sunset of the Centriq product[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk) [Costs of Revenues (exclusive of amortization and depreciation)](index=49&type=section&id=Costs%20of%20Revenues%20(exclusive%20of%20amortization%20and%20depreciation)_3M) This section analyzes the changes in direct costs associated with generating revenue for the three-month period | Segment | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Financial Health | $29,308 | $30,269 | $(961) | -3.2% | | Patient Care | $11,962 | $13,073 | $(1,111) | -8.5% | | Total Costs of Revenues | $41,270 | $43,342 | $(2,072) | -4.8% | - Total costs of revenues decreased by **$2.1 million**, falling to **48%** of total revenues from **51%** in the prior year. This was driven by reductions in domestic labor costs in Financial Health and decreased hardware/software expenses in Patient Care[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk) [Product Development](index=49&type=section&id=Product%20Development_3M) This section reviews the expenses incurred for product development activities during the three-month period | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Product development expenses | $8,113 | $8,207 | $(94) | -1.1% | - Product development expenses remained flat, decreasing by **$0.094 million** compared to the second quarter of 2024[163](index=163&type=chunk) [Sales and Marketing](index=49&type=section&id=Sales%20and%20Marketing_3M) This section examines the sales and marketing expenditures for the three-month period | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Sales and marketing costs | $8,041 | $7,815 | $226 | 2.9% | - Sales and marketing costs increased by **$0.2 million**, or **3%**, due to increased marketing program costs and a delayed annual sales summit[164](index=164&type=chunk) [General and Administrative](index=49&type=section&id=General%20and%20Administrative_3M) This section analyzes general and administrative expenses, including payroll and nonrecurring costs, for the three-month period | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | General and administrative expenses | $18,076 | $18,878 | $(802) | -4.3% | - General and administrative expenses decreased by **$0.8 million**, or **4%**, primarily due to lower severance and nonrecurring costs, partially offset by increased payroll and administrative expenses[165](index=165&type=chunk) [Amortization & Depreciation](index=50&type=section&id=Amortization%20%26%20Depreciation_3M) This section details the amortization and depreciation expenses for the three-month period, including impacts from product sunsets | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Amortization | $6,290 | $9,107 | $(2,817) | -30.9% | | Depreciation | $312 | $400 | $(88) | -22.0% | | Total Amortization & Depreciation | $6,602 | $9,507 | $(2,905) | -30.6% | - Combined amortization and depreciation expense decreased by **$2.9 million**, or **31%**, primarily due to **$2.9 million** of accelerated amortization of software development costs related to a product sunset in Q2 2024[166](index=166&type=chunk) [Total Other Expense](index=50&type=section&id=Total%20Other%20Expense_3M) This section reviews the total other expenses, primarily focusing on changes in interest expense, for the three-month period | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Total other expense | $(2,929) | $(4,151) | $1,222 | -29.4% | - Total other expense decreased by **$1.2 million**, driven by a reduction in interest expense due to a lower outstanding balance on the revolving credit facility and a reduced interest rate[167](index=167&type=chunk) [Income (Loss) Before Taxes](index=50&type=section&id=Income%20(Loss)%20Before%20Taxes_3M) This section analyzes the company's pre-tax income or loss for the three-month period | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Income (loss) before taxes | $698 | $(6,300) | $6,998 | -111.1% | - Income before taxes increased by **$7.0 million**, moving from a loss of **$6.3 million** in Q2 2024 to an income of **$0.7 million** in Q2 2025[168](index=168&type=chunk) [Provision for (Benefit from) Income Taxes](index=50&type=section&id=Provision%20for%20(Benefit%20from)%20Income%20Taxes_3M) This section details the income tax provision or benefit recognized for the three-month period | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Provision for (benefit from) income taxes | $(1,882) | $(1,912) | $30 | -1.6% | - The Company recognized a **$1.9 million** tax benefit in Q2 2025, primarily due to changes in the estimated annual effective tax rate from revised forecasted pre-tax income and valuation allowance[169](index=169&type=chunk) [Net Income (Loss)](index=50&type=section&id=Net%20Income%20(Loss)_3M) This section presents the company's net income or loss and earnings per share for the three-month period | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Net income (loss) | $2,580 | $(4,388) | $6,968 | -158.8% | | Basic and Diluted EPS | $0.17 | $(0.29) | $0.46 | -158.6% | - Net income increased by **$7.0 million** to **$2.6 million**, or **$0.17** per share, in Q2 2025, compared to a net loss of **$4.4 million**, or **$0.29** per share, in Q2 2024[171](index=171&type=chunk) [Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024](index=50&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20with%20Six%20Months%20Ended%20June%2030%2C%202024) This section analyzes the financial performance for the first half of 2025 compared to the same period in 2024 [Revenues](index=50&type=section&id=Revenues_6M) This section details the revenue performance across Financial Health and Patient Care segments for the six-month period | Segment | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Financial Health | $108,586 | $104,914 | $3,672 | 3.5% | | Patient Care | $55,562 | $55,678 | $(116) | -0.2% | | Total Revenues | $172,937 | $169,717 | $3,220 | 1.9% | - Total revenues increased by **$3.2 million**, or **2%**. Financial Health revenues grew by **2%** due to new bookings, while Patient Care revenues increased by **1%** despite the AHT divestiture and Centriq product sunset[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk) [Costs of Revenues (exclusive of amortization and depreciation)](index=51&type=section&id=Costs%20of%20Revenues%20(exclusive%20of%20amortization%20and%20depreciation)_6M) This section analyzes the changes in direct costs associated with generating revenue for the six-month period | Segment | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Financial Health | $56,499 | $59,866 | $(3,367) | -5.6% | | Patient Care | $24,284 | $25,237 | $(953) | -3.8% | | Total Costs of Revenues | $80,783 | $85,103 | $(4,320) | -5.1% | - Total costs of revenues decreased by **$4.3 million**, or **5%**, falling to **47%** of total revenues from **50%** in the prior year. This was driven by reductions in domestic labor costs in Financial Health and decreased software/payroll expenses in Patient Care due to cost optimization[175](index=175&type=chunk)[176](index=176&type=chunk) [Product Development](index=51&type=section&id=Product%20Development_6M) This section reviews the expenses incurred for product development activities during the six-month period | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Product development expenses | $16,360 | $18,894 | $(2,534) | -13.4% | - Product development costs decreased by **$2.5 million**, or **13%**, primarily due to labor savings from the 2024 cost optimization initiative[177](index=177&type=chunk) [Sales and Marketing](index=51&type=section&id=Sales%20and%20Marketing_6M) This section examines the sales and marketing expenditures for the six-month period | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Sales and marketing costs | $13,450 | $14,408 | $(958) | -6.6% | - Sales and marketing costs decreased by **$1.0 million**, or **7%**, driven by lower commissions, partially offset by higher marketing program costs[178](index=178&type=chunk) [General and Administrative](index=51&type=section&id=General%20and%20Administrative_6M) This section analyzes general and administrative expenses, including payroll and professional fees, for the six-month period | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | General and administrative expenses | $37,540 | $38,274 | $(734) | -1.9% | - General and administrative expenses decreased by **$0.7 million**, or **2%**, primarily due to lower severance and nonrecurring costs, partially offset by increased payroll and professional service fees[179](index=179&type=chunk) [Amortization & Depreciation](index=51&type=section&id=Amortization%20%26%20Depreciation_6M) This section details the amortization and depreciation expenses for the six-month period, including impacts from product sunsets | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Amortization | $12,414 | $14,975 | $(2,561) | -17.1% | | Depreciation | $603 | $800 | $(197) | -24.6% | | Total Amortization & Depreciation | $13,017 | $15,775 | $(2,758) | -17.5% | - Combined amortization and depreciation expense decreased by **$2.8 million**, or **17%**, primarily due to **$2.9 million** of accelerated amortization of software development costs related to a product sunset in Q2 2024[180](index=180&type=chunk) [Total Other Expense](index=51&type=section&id=Total%20Other%20Expense_6M) This section reviews the total other expenses, including interest expense and gains on sales, for the six-month period | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Total other expense | $(6,167) | $(6,801) | $634 | -9.3% | - Total other expense decreased by **$0.6 million**, driven by reduced interest expense, partially offset by a **$1.2 million** gain on the sale of AHT in Q1 2024[181](index=181&type=chunk) [Income (Loss) Before Taxes](index=51&type=section&id=Income%20(Loss)%20Before%20Taxes_6M) This section analyzes the company's pre-tax income or loss for the six-month period | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Income (loss) before taxes | $5,620 | $(9,538) | $15,158 | -158.9% | - Income before taxes increased by **$15.2 million**, moving from a loss of **$9.5 million** in H1 2024 to an income of **$5.6 million** in H1 2025[182](index=182&type=chunk) [Provision for (Benefit from) Income Taxes](index=52&type=section&id=Provision%20for%20(Benefit%20from)%20Income%20Taxes_6M) This section details the income tax provision or benefit recognized for the six-month period | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Provision for (benefit from) income taxes | $2,581 | $(3,296) | $5,877 | -178.3% | - The effective tax rate for H1 2025 was **45.9%**, up from **34.6%** in H1 2024, primarily due to an increase in the federal and state valuation allowance on deferred tax assets[183](index=183&type=chunk) [Net Income (Loss)](index=52&type=section&id=Net%20Income%20(Loss)_6M) This section presents the company's net income or loss and earnings per share for the six-month period | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Net income (loss) | $3,039 | $(6,242) | $9,281 | -148.7% | | Basic and Diluted EPS | $0.20 | $(0.42) | $0.62 | -147.6% | - Net income for H1 2025 increased by **$9.3 million** to **$3.0 million**, or **$0.20** per share, compared to a net loss of **$6.2 million**, or **$0.42** per share, in H1 2024[185](index=185&type=chunk) [Supplemental Segment Information](index=52&type=section&id=Supplemental%20Segment%20Information) This section provides additional details on the financial performance of the company's operating segments [Segment Revenues](index=52&type=section&id=Segment%20Revenues) This section details the revenue contributions from the Financial Health and Patient Care segments | Segment | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Financial Health | $54,284 | $54,509 | $(225) | 0% | | Patient Care | $31,445 | $31,091 | $354 | 1% | | Total revenues | $85,729 | $85,600 | $129 | 0% | | Segment | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Financial Health | $110,417 | $107,948 | $2,469 | 2% | | Patient Care | $62,520 | $61,769 | $751 | 1% | | Total revenues | $172,937 | $169,717 | $3,220 | 1% | - Financial Health revenues remained flat for the three months ended June 30, 2025, but increased by **2%** for the six-month period. Patient Care revenues increased by **1%** for both periods[188](index=188&type=chunk) [Segment Adjusted EBITDA - Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024](index=52&type=section&id=Segment%20Adjusted%20EBITDA%20-%20Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20with%20Three%20Months%20Ended%20June%2030%2C%202024) This section analyzes the Adjusted EBITDA performance of each segment for the three-month period | Segment | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Financial Health | $7,092 | $8,209 | $(1,117) | -14% | | Patient Care | $6,651 | $5,235 | $1,416 | 27% | | Total Adjusted EBITDA | $13,743 | $13,444 | $299 | 2% | - Financial Health Adjusted EBITDA decreased by **14%** due to customer attrition and increased costs, partially offset by reduced domestic labor. Patient Care Adjusted EBITDA increased by **27%** due to SaaS revenue growth and decreased hardware/software expenses[191](index=191&type=chunk)[192](index=192&type=chunk) [Segment Adjusted EBITDA - Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024](index=53&type=section&id=Segment%20Adjusted%20EBITDA%20-%20Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20with%20Six%20Months%20Ended%20June%2030%2C%202024) This section analyzes the Adjusted EBITDA performance of each segment for the six-month period | Segment | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Financial Health | $18,373 | $15,006 | $3,367 | 22% | | Patient Care | $13,601 | $8,762 | $4,839 | 55% | | Total Adjusted EBITDA | $31,974 | $23,768 | $8,206 | 1% | - Financial Health Adjusted EBITDA increased by **22%** due to new bookings growth and reduced domestic labor costs. Patient Care Adjusted EBITDA increased by **55%** due to higher installation/SaaS revenues and decreased software/payroll costs[193](index=193&type=chunk)[194](index=194&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet its short-term and long-term financial obligations [Sources of Liquidity](index=53&type=section&id=Sources%20of%20Liquidity) This section identifies the primary sources of funds available to the company, including credit facilities and cash - As of June 30, 2025, the Company had **$167.0 million** in outstanding indebtedness under credit facilities, **$12.3 million** in cash and cash equivalents, and **$47.6 million** in remaining borrowing capacity under its revolving credit facility[195](index=195&type=chunk)[196](index=196&type=chunk) - The Company believes these sources, combined with future operating cash flows, are adequate for the next twelve months. Incremental payments of **$14.0 million** were made on credit facilities since Q1 2024, including **$4.0 million** on the revolving credit facility in H1 2025[196](index=196&type=chunk)[197](index=197&type=chunk) [Operating Cash Flow Activities](index=53&type=section&id=Operating%20Cash%20Flow%20Activities) This section details the cash generated or used by the company's core business operations | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Net cash provided by operating activities | $14,517 | $11,730 | $2,787 | 23.8% | - Net cash provided by operating activities increased by **$2.8 million**, primarily due to increased net income and a decrease in deferred taxes[198](index=198&type=chunk) [Investing Cash Flow Activities](index=54&type=section&id=Investing%20Cash%20Flow%20Activities) This section describes cash flows related to the acquisition and disposal of long-term assets and investments | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Net cash (used in) provided by investing activities | $(6,959) | $11,116 | $(18,075) | -162.6% | - Net cash used in investing activities was **$7.0 million**, a decrease of **$18.1 million** from the prior year, primarily due to the **$21.4 million** cash inflow from the AHT sale in H1 2024 and increased property and equipment purchases in H1 2025[199](index=199&type=chunk) [Financing Cash Flow Activities](index=54&type=section&id=Financing%20Cash%20Flow%20Activities) This section outlines cash flows from debt, equity, and dividend transactions | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :--------- | | Net cash used in financing activities | $(7,603) | $(18,944) | $11,341 | -59.9% | - Net cash used in financing activities decreased by **$11.3 million**. In H1 2025, **$21.1 million** was used for debt principal payments and **$1.9 million** for treasury stock purchases, partially offset by **$15.4 million** in revolving credit borrowings[200](index=200&type=chunk) [Credit Agreement](index=54&type=section&id=Credit%20Agreement) This section provides details on the company's credit facilities, outstanding balances, and repayment terms - As of June 30, 2025, **$54.6 million** was outstanding under the term loan facility and **$112.4 million** under the revolving credit facility. The revolving credit facility had an average interest rate of **7.06%**[201](index=201&type=chunk) - Term loan principal payments of approximately **$0.9 million** are due quarterly through March 31, 2027, with maturity on May 2, 2027. The credit facilities are secured by substantially all of the Company's and its guarantors' assets[202](index=202&type=chunk)[203](index=203&type=chunk) [Backlog](index=54&type=section&id=Backlog) This section presents the company's backlog of non-recurring system purchases and recurring payments | Category | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------- | :----------------------------- | :----------------------------- | | Non-recurring system purchases | $2,600 | $10,000 | | Recurring payments (support, maintenance, RCM) | $322,800 | $318,000 | - Twelve-month backlog for non-recurring system purchases decreased significantly from **$10.0 million** in 2024 to **$2.6 million** in 2025. Recurring payments backlog increased from **$318.0 million** to **$322.8 million**[204](index=204&type=chunk) [Bookings](index=55&type=section&id=Bookings) This section details the total bookings for Financial Health and Patient Care segments over the reporting periods | Segment | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Financial Health | $13,705 | $13,458 | $26,485 | $27,849 | | Patient Care | $11,908 | $9,832 | $21,109 | $19,010 | | Total bookings | $25,613 | $23,290 | $47,594 | $46,859 | - Total bookings increased by **$2.3 million** (**10%**) for the three months and **$0.7 million** (**1.6%**) for the six months ended June 30, 2025. Patient Care bookings saw a **21%** increase in Q2 2025, driven by a **96%** increase in net-new bookings[205](index=205&type=chunk)[208](index=208&type=chunk) [Annual Contract Value](index=55&type=section&id=Annual%20Contract%20Value) This section introduces the new Annual Contract Value (ACV) methodology for reporting bookings - Effective January 2025, bookings will also be reported on an Annual Contract Value (ACV) basis, representing newly contracted revenue expected over a twelve-month period. The Company will transition fully to ACV in 2026[211](index=211&type=chunk) Bookings using ACV Methodology (in thousands) | Segment | 3 Months Ended June 30, 2025 | 6 Months Ended June 30, 2025 | | :-------------------- | :--------------------------- | :--------------------------- | | Financial Health | $13,705 | $26,485 | | Patient Care | $5,921 | $10,480 | | Total bookings | $19,626 | $36,965 | [Critical Accounting Policies and Estimates](index=56&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights the key accounting policies and estimates that require significant management judgment - Key accounting policies and estimates include revenue recognition, allowance for credit losses, business combinations (including purchased intangible assets), and software development costs. No significant changes occurred during the six months ended June 30, 2025[214](index=214&type=chunk)[215](index=215&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The Company's primary market risk exposure is to fluctuations in the Secured Overnight Financing Rate (SOFR) on its variable-interest credit facilities. A 100 basis point change in interest rates would impact annual interest expense by approximately $1.7 million - The Company's market risk is primarily related to SOFR fluctuations on its **$167.0 million** outstanding borrowings under credit facilities. A **100** basis point change in interest rates would result in an approximate **$1.7 million** change in annual interest expense[216](index=216&type=chunk) - The Company does not hold investments or use derivative financial instruments to manage interest rate risks[217](index=217&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Company's disclosure controls and procedures were not effective as of June 30, 2025, due to a material weakness in internal control over financial reporting related to revenue transaction recording. Remediation efforts are underway, including implementing contract lifecycle management tools and strengthening the finance team [Evaluation of Disclosure Controls and Procedures](index=56&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section presents management's conclusion on the effectiveness of the company's disclosure controls and procedures - As of June 30, 2025, the CEO and CFO concluded that the Company's disclosure controls and procedures were not effective at the reasonable assurance level[219](index=219&type=chunk) [Material Weakness in Internal Control over Financial Reporting](index=58&type=section&id=Material%20Weakness%20in%20Internal%20Control%20over%20Financial%20Reporting) This section identifies a material weakness in internal control over financial reporting related to revenue transaction recording - A material weakness existed as of December 31, 2024, and continued through June 30, 2025, due to ineffective process-level control over revenue transaction recording. This weakness did not result in material misstatements but could create a reasonable possibility of undetected material misstatements[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk) [Management's Remediation Efforts](index=58&type=section&id=Management's%20Remediation%20Efforts) This section outlines the steps being taken by management to address the identified material weakness - The Company is redesigning and implementing additional controls, including customer contract lifecycle management tools and strengthening the finance team, to address the material weakness. The effectiveness of these efforts will be assessed over time[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk) [Changes in Internal Control over Financial Reporting](index=58&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports on any changes in internal control over financial reporting during the quarter - Except for the ongoing remediation activities, there were no other changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect the Company's internal control over financial reporting[227](index=227&type=chunk) PART II. OTHER INFORMATION This part includes legal proceedings, risk factors, equity security sales, and other required disclosures [Item 1. Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in routine legal proceedings but does not anticipate any material adverse effects on its business, financial condition, results of operations, or liquidity from current or threatened litigation - The Company is not currently a party to any material litigation or legal proceedings and is unaware of any pending or threatened litigation that could have a material adverse effect on its business, operating results, financial condition, or cash flows[229](index=229&type=chunk) [Item 1A. Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) The healthcare industry faces significant uncertainty due to changing legislation and government regulation, which could materially impact the Company's hospital clients and its own business. The recently enacted 'One Big Beautiful Bill Act' (OBBBA) is expected to reduce Medicaid spending and modify eligibility rules, potentially decreasing insured patients and reimbursement levels, thereby affecting demand for the Company's products and services - Significant legislative and regulatory uncertainty in the healthcare industry, including changes to reimbursement rates and payment programs, may adversely affect the Company's hospital clients and its business[231](index=231&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA), signed into law on July 4, 2025, is expected to reduce federal Medicaid spending by an estimated **$1 trillion** from 2025-2034, impose work requirements, and increase

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Q2 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) TruBridge announced its Q2 2025 financial results, noting a reclassification of its business segments into Financial Health (formerly Revenue Cycle Management) and Patient Care (formerly Electronic Health Record, including patient engagement) - TruBridge reclassified its financial reporting into two segments: Financial Health (formerly RCM) and Patient Care (formerly EHR, including patient engagement)[2](index=2&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Chris Fowler highlighted improvements in Q2, including strong bookings, improved profitability, and cash flow, expressing confidence in client value and market position. The company is implementing a strategic plan to enhance client satisfaction, while revising full-year revenue outlook downwards due to client attrition and complex deals, but raising Adjusted EBITDA guidance due to efficiency gains from offshoring and cost optimization - CEO noted **strong bookings**, **improved profitability**, and **cash flow** in Q2 2025, expressing confidence in the company's value and market position[3](index=3&type=chunk) - Full-year revenue outlook was revised downwards due to client attrition and larger, more complex deals[4](index=4&type=chunk) - Adjusted EBITDA range was raised due to efficiencies from offshoring, resource management refinement, and cost optimization[4](index=4&type=chunk) [Financial Guidance](index=1&type=section&id=Financial%20Guidance) TruBridge provided financial guidance for Q3 2025 and the full year 2025, projecting increased bookings and net income for Q3, and revised full-year revenue and Adjusted EBITDA ranges Q3 2025 Financial Expectations | Metric | Q3 2025 Expectation (in thousands of dollars) | Q3 2024 Comparison (in thousands of dollars) | | :-------------------------------- | :--------------------------------- | :--------------------------------- | | Total bookings | $25,600 | $23,300 | | Total revenue | $85,700 | $85,600 | | Financial Health revenue | $54,300 | $54,500 | | GAAP net income | $2,600 | Net loss of $4,400 | | Non-GAAP net income | $7,900 | $3,000 | | Adjusted EBITDA | $13,700 | $13,400 | Full Year 2025 Financial Guidance | Metric | Revised Full Year 2025 Expectation (in millions of dollars) | Previous Full Year 2025 Expectation (in millions of dollars) | | :---------------- | :----------------------------------------- | :----------------------------------------- | | Total revenue | $345 to $350 | $345 to $360 | | Adjusted EBITDA | $62 to $67 | $60 to $66 | [Company Overview](index=2&type=section&id=Company%20Overview) [About TruBridge](index=2&type=section&id=About%20TruBridge) TruBridge is a healthcare solutions company supporting rural and community hospitals and providers with over 45 years of experience, offering technology, services, and strategic expertise in revenue cycle management, EHR, and analytics - TruBridge supports rural and community hospitals and providers, serving over **1,500 clients nationwide**[8](index=8&type=chunk) - The company offers technology, services, and strategic expertise including revenue cycle management, electronic health records (EHR), and analytics[8](index=8&type=chunk) [Forward-Looking Statements & Risks](index=2&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from projections. These risks include market saturation, economic conditions, regulatory changes, competition, acquisitions, personnel retention, and technological challenges - Forward-looking statements are subject to risks such as market saturation, unfavorable economic conditions, legislative and regulatory uncertainty in healthcare, and competition[9](index=9&type=chunk) - Other factors include challenges in attracting and retaining qualified personnel, potential future acquisitions, and risks related to the use of artificial intelligence[9](index=9&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) TruBridge reported a significant improvement in net income for Q2 2025 and the six months ended June 30, 2025, moving from a net loss in the prior year periods to positive net income, driven by increased total revenues and reduced total expenses Condensed Consolidated Statements of Operations (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 (in thousands of dollars) | Three Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :------------------------------------------------ | :----------------------------------------- | :----------------------------------------- | :------------------- | | Financial Health Revenues | $54,284 | $54,509 | (0.4%) | | Patient Care Revenues | $31,445 | $31,091 | 1.1% | | **Total Revenues** | **$85,729** | **$85,600** | **0.2%** | | Total Costs of Revenue (exclusive of amortization and depreciation) | $41,270 | $43,342 | (4.9%) | | Total Expenses | $82,102 | $87,749 | (6.5%) | | Operating Income (Loss) | $3,627 | $(2,149) | N/A (swing to profit) | | Net Income (Loss) | $2,580 | $(4,388) | N/A (swing to profit) | | Net Income (Loss) per common share—basic | $0.17 | $(0.29) | N/A (swing to profit) | Condensed Consolidated Statements of Operations (Six Months Ended June 30, 2025 vs 2024) | Metric | Six Months Ended June 30, 2025 (in thousands of dollars) | Six Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :------------------------------------------------ | :----------------------------------------- | :----------------------------------------- | :------------------- | | Financial Health Revenues | $110,417 | $107,948 | 2.3% | | Patient Care Revenues | $62,520 | $61,769 | 1.2% | | **Total Revenues** | **$172,937** | **$169,717** | **1.9%** | | Total Costs of Revenue (exclusive of amortization and depreciation) | $80,783 | $85,103 | (5.1%) | | Total Expenses | $161,150 | $172,454 | (6.6%) | | Operating Income (Loss) | $11,787 | $(2,737) | N/A (swing to profit) | | Net Income (Loss) | $3,039 | $(6,242) | N/A (swing to profit) | | Net Income (Loss) per common share—basic | $0.20 | $0.42 | (52.4%) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, TruBridge's total assets slightly decreased compared to December 31, 2024, primarily due to a reduction in total liabilities, while stockholders' equity increased Condensed Consolidated Balance Sheets (June 30, 2025 vs December 31, 2024) | Metric | June 30, 2025 (in thousands of dollars) | December 31, 2024 (in thousands of dollars) | Change (in thousands of dollars) | | :-------------------------------- | :-------------------------------- | :---------------------------------- | :------------------------------- | | Cash and cash equivalents | $12,279 | $12,324 | $(45) | | Total current assets | $90,259 | $90,274 | $(15) | | Total assets | $390,151 | $394,432 | $(4,281) | | Total current liabilities | $50,180 | $52,975 | $(2,795) | | Long-term debt, less current portion | $163,108 | $168,598 | $(5,490) | | Total liabilities | $216,978 | $225,737 | $(8,759) | | Total stockholders' equity | $173,173 | $168,695 | $4,478 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities increased, while investing activities shifted from providing cash to using cash, and financing activities continued to use cash, resulting in a slight decrease in cash and cash equivalents Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30, 2025 vs 2024) | Metric | Six Months Ended June 30, 2025 (in thousands of dollars) | Six Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :-------------------------------- | :----------------------------------------- | :----------------------------------------- | :------------------- | | Net income (loss) | $3,039 | $(6,242) | N/A (swing to profit) | | Net cash provided by operating activities | $14,517 | $11,730 | 23.8% | | Net cash (used in) provided by investing activities | $(6,959) | $11,116 | N/A (swing to use) | | Net cash used in financing activities | $(7,603) | $(18,944) | (59.8%) | | (Decrease) Increase in cash and cash equivalents | $(45) | $3,902 | N/A (swing to decrease) | | Cash and cash equivalents, end of period | $12,279 | $7,709 | 59.3% | [Operational Metrics](index=8&type=section&id=Operational%20Metrics) [Consolidated Bookings](index=8&type=section&id=Consolidated%20Bookings) TruBridge reported an increase in total bookings for both Q2 2025 and the six months ended June 30, 2025, with Patient Care showing strong growth. The company also introduced a new Annual Contract Value (ACV) reporting methodology for bookings, which will fully transition in 2026 [Bookings by Segment](index=8&type=section&id=Consolidated%20Bookings%20by%20Segment) Consolidated Bookings by Segment (Historical Methodology - Q2 2025 vs Q2 2024) | Segment | Three Months Ended June 30, 2025 (in thousands of dollars) | Three Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :-------------- | :----------------------------------------- | :----------------------------------------- | :----------- | | Financial Health | $13,705 | $13,458 | 1.8% | | Patient Care | $11,908 | $9,832 | 21.1% | | **Total Bookings** | **$25,613** | **$23,290** | **9.9%** | Consolidated Bookings by Segment (Historical Methodology - Six Months Ended June 30, 2025 vs 2024) | Segment | Six Months Ended June 30, 2025 (in thousands of dollars) | Six Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :-------------- | :----------------------------------------- | :----------------------------------------- | :----------- | | Financial Health | $26,485 | $27,849 | (4.9%) | | Patient Care | $21,109 | $19,010 | 11.0% | | **Total Bookings** | **$47,594** | **$46,859** | **1.6%** | Total Bookings by Segment (ACV Methodology - Q2 2025 & Six Months 2025) | Segment | Three Months Ended June 30, 2025 (in thousands of dollars) | Six Months Ended June 30, 2025 (in thousands of dollars) | | :-------------- | :----------------------------------------- | :----------------------------------------- | | Financial Health | $13,705 | $26,485 | | Patient Care | $5,921 | $10,480 | | **Total Bookings (ACV)** | **$19,626** | **$36,965** | [Introduction of ACV Bookings Methodology](index=8&type=section&id=Annual%20Contract%20Value%20(ACV)%20Methodology) - Effective January 2025, TruBridge began reporting bookings on an **Annual Contract Value (ACV) basis**, representing newly contracted revenue expected over a twelve-month period[20](index=20&type=chunk)[25](index=25&type=chunk) - The company plans to provide total bookings under both historical and ACV methodologies throughout 2025 for year-over-year comparability, before fully transitioning to ACV in 2026[20](index=20&type=chunk)[25](index=25&type=chunk) [Bookings Composition by Type](index=9&type=section&id=Bookings%20Composition%20by%20Type) Bookings Composition (Historical Methodology - Q2 2025 vs Q2 2024) | Category | Three Months Ended June 30, 2025 (in thousands of dollars) | Three Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :---------------------- | :----------------------------------------- | :----------------------------------------- | :----------- | | Financial Health Net new | $5,067 | $6,453 | (21.5%) | | Financial Health Cross-sell | $8,638 | $7,004 | 23.3% | | Patient Care Non-subscription sales | $2,730 | $4,084 | (33.2%) | | Patient Care Subscription revenue | $9,178 | $5,749 | 59.6% | | **Total Bookings** | **$25,613** | **$23,290** | **9.9%** | Bookings Composition (Historical Methodology - Six Months Ended June 30, 2025 vs 2024) | Category | Six Months Ended June 30, 2025 (in thousands of dollars) | Six Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :---------------------- | :----------------------------------------- | :----------------------------------------- | :----------- | | Financial Health Net new | $11,529 | $15,446 | (25.3%) | | Financial Health Cross-sell | $14,956 | $12,402 | 20.6% | | Patient Care Non-subscription sales | $5,332 | $7,534 | (29.3%) | | Patient Care Subscription revenue | $15,777 | $11,477 | 37.5% | | **Total Bookings** | **$47,594** | **$46,859** | **1.6%** | Bookings Composition (ACV Methodology - Q2 2025 & Six Months 2025) | Category | Three Months Ended June 30, 2025 (in thousands of dollars) | Six Months Ended June 30, 2025 (in thousands of dollars) | | :---------------------- | :----------------------------------------- | :----------------------------------------- | | Financial Health Net new | $5,067 | $11,529 | | Financial Health Cross-sell | $8,638 | $14,956 | | Patient Care Non-subscription sales | $2,730 | $5,332 | | Patient Care Subscription revenue | $3,191 | $5,148 | | **Total Bookings (ACV)** | **$19,626** | **$36,965** | [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) [Adjusted EBITDA by Segment](index=10&type=section&id=Adjusted%20EBITDA%20-%20by%20Segment) TruBridge reported an increase in total Adjusted EBITDA for both Q2 2025 and the six months ended June 30, 2025, with Patient Care showing substantial growth in Adjusted EBITDA Adjusted EBITDA by Segment (Q2 2025 vs Q2 2024) | Segment | Three Months Ended June 30, 2025 (in thousands of dollars) | Three Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :-------------- | :----------------------------------------- | :----------------------------------------- | :----------- | | Financial Health | $7,092 | $8,209 | (13.6%) | | Patient Care | $6,651 | $5,235 | 27.0% | | **Total Adjusted EBITDA** | **$13,743** | **$13,444** | **2.2%** | Adjusted EBITDA by Segment (Six Months Ended June 30, 2025 vs 2024) | Segment | Six Months Ended June 30, 2025 (in thousands of dollars) | Six Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :-------------- | :----------------------------------------- | :----------------------------------------- | :----------- | | Financial Health | $18,373 | $15,006 | 22.4% | | Patient Care | $13,601 | $8,762 | 55.2% | | **Total Adjusted EBITDA** | **$31,974** | **$23,768** | **34.5%** | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) TruBridge provided reconciliations for its non-GAAP financial measures, including Adjusted EBITDA, Non-GAAP net income, and Non-GAAP EPS, to their most comparable GAAP measures, highlighting adjustments for non-cash and non-recurring items [Adjusted EBITDA Reconciliation](index=10&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA Reconciliation (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 (in thousands of dollars) | Three Months Ended June 30, 2024 (in thousands of dollars) | | :------------------------------------ | :----------------------------------------- | :----------------------------------------- | | Total Adjusted EBITDA | $13,743 | $13,444 | | Adjusted EBITDA Margin | 16.0% | 15.7% | | Net income (loss), as reported | $2,580 | $(4,388) | | Net income (loss) margin | 3.0% | (5.1%) | Adjusted EBITDA Reconciliation (Six Months Ended June 30, 2025 vs 2024) | Metric | Six Months Ended June 30, 2025 (in thousands of dollars) | Six Months Ended June 30, 2024 (in thousands of dollars) | | :------------------------------------ | :----------------------------------------- | :----------------------------------------- | | Total Adjusted EBITDA | $31,974 | $23,768 | | Adjusted EBITDA Margin | 18.5% | 14.0% | | Net income (loss), as reported | $3,039 | $(6,242) | | Net income (loss) margin | 1.8% | (3.7%) | [Non-GAAP Net Income and EPS Reconciliation](index=11&type=section&id=Non-GAAP%20Net%20Income%20and%20Non-GAAP%20EPS) Non-GAAP Net Income and EPS (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 (in thousands of dollars) | Three Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :------------------------------------ | :----------------------------------------- | :----------------------------------------- | :----------- | | Net income (loss), as reported | $2,580 | $(4,388) | N/A (swing to profit) | | Non-GAAP net income | $7,864 | $2,979 | 164.0% | | Non-GAAP EPS | $0.54 | $0.21 | 157.1% | Non-GAAP Net Income and EPS (Six Months Ended June 30, 2025 vs 2024) | Metric | Six Months Ended June 30, 2025 (in thousands of dollars) | Six Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :------------------------------------ | :----------------------------------------- | :----------------------------------------- | :----------- | | Net income (loss), as reported | $3,039 | $(6,242) | N/A (swing to profit) | | Non-GAAP net income | $13,014 | $6,468 | 101.2% | | Non-GAAP EPS | $0.90 | $0.45 | 100.0% | [Revenue Composition](index=11&type=section&id=Revenue%20Composition) TruBridge's total revenues for Q2 2025 and the six months ended June 30, 2025, were primarily driven by recurring revenues, which showed growth, while non-recurring revenues decreased in Q2 but increased over the six-month period for Patient Care Revenue Composition (Q2 2025 vs Q2 2024) | Category | Three Months Ended June 30, 2025 (in thousands of dollars) | Three Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :---------------------- | :----------------------------------------- | :----------------------------------------- | :----------- | | Financial Health Recurring revenues | $53,322 | $52,798 | 1.0% | | Patient Care Recurring revenues | $28,115 | $27,135 | 3.6% | | **Total recurring revenues** | **$81,437** | **$79,933** | **1.9%** | | Financial Health Non-recurring revenues | $962 | $1,711 | (43.8%) | | Patient Care Non-recurring revenues | $3,330 | $3,956 | (15.8%) | | **Total non-recurring revenues** | **$4,292** | **$5,667** | **(24.3%)** | | **Total revenues** | **$85,729** | **$85,600** | **0.2%** | Revenue Composition (Six Months Ended June 30, 2025 vs 2024) | Category | Six Months Ended June 30, 2025 (in thousands of dollars) | Six Months Ended June 30, 2024 (in thousands of dollars) | Change (YoY) | | :---------------------- | :----------------------------------------- | :----------------------------------------- | :----------- | | Financial Health Recurring revenues | $108,586 | $104,914 | 3.5% | | Patient Care Recurring revenues | $55,562 | $55,678 | (0.2%) | | **Total recurring revenues** | **$164,148** | **$160,592** | **2.2%** | | Financial Health Non-recurring revenues | $1,831 | $3,034 | (39.6%) | | Patient Care Non-recurring revenues | $6,958 | $6,091 | 14.2% | | **Total non-recurring revenues** | **$8,789** | **$9,125** | **(3.6%)** | | **Total revenues** | **$172,937** | **$169,717** | **1.9%** | [Explanation of Non-GAAP Measures](index=12&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) TruBridge uses non-GAAP financial measures like Adjusted EBITDA, Non-GAAP net income, and Non-GAAP EPS to provide a clearer understanding of its operational trends by excluding certain non-cash or non-recurring items. These measures are used for evaluating performance, making operating decisions, and strategic planning, but are not substitutes for GAAP measures - Management uses non-GAAP measures to evaluate operating performance, compare against past periods, make operating decisions, and for strategic planning, believing they help understand ongoing business trends[36](index=36&type=chunk) - Non-GAAP measures exclude items like amortization of acquisition-related intangibles, stock-based compensation, severance and other nonrecurring charges, non-cash interest expense, and gains on disposal/sale of assets[38](index=38&type=chunk)[39](index=39&type=chunk)[41](index=41&type=chunk) - These non-GAAP measures are performance indicators but do not provide cash flow or liquidity measures and are not alternatives to GAAP financial performance[40](index=40&type=chunk)

PART I. FINANCIAL INFORMATION This part presents TruBridge's unaudited condensed consolidated financial statements and notes for Q1 2025 and comparative periods [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section details TruBridge's unaudited condensed consolidated financial statements for Q1 2025, including balance sheets, income, equity, and cash flows [Condensed Consolidated Balance Sheets (Unaudited) – March 31, 2025 and December 31, 2024](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (Unaudited) (in thousands) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total assets | $388,842 | $394,432 | | Total liabilities | $220,334 | $225,737 | | Total stockholders' equity | $168,508 | $168,695 | [Condensed Consolidated Statements of Operations (Unaudited) – Three Months Ended March 31, 2025 and 2024](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (Unaudited) (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Total revenues | $87,208 | $84,117 | | Operating income (loss) | $8,160 | $(588) | | Income (loss) before taxes | $4,922 | $(3,238) | | Net income (loss) | $459 | $(1,854) | | Net income (loss) per common share—basic | $0.03 | $(0.13) | | Net income (loss) per common share—diluted | $0.03 | $(0.13) | - Total revenues increased by **$3.1 million (4%) YoY**, primarily driven by the Financial Health segment. Net income improved significantly from a **loss of $1.9 million** in Q1 2024 to a **profit of $0.5 million** in Q1 2025[12](index=12&type=chunk)[157](index=157&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - Three Months Ended March 31, 2025 and 2024](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $459 | $(1,854) | | Foreign currency translation adjustment | $(6) | $113 | | Comprehensive income (loss) | $453 | $(1,741) | [Condensed Consolidated Statements of Stockholders' Equity (Unaudited) – Three Months Ended March 31, 2025 and 2024](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (in thousands) | Metric (in thousands) | Balance at Dec 31, 2024 | Balance at Mar 31, 2025 | | :-------------------- | :---------------------- | :---------------------- | | Common Stock | $15 | $15 | | Additional Paid-in Capital | $201,066 | $202,279 | | Accumulated Deficit | $(14,952) | $(14,493) | | Accumulated Other Comprehensive Income | $45 | $39 | | Treasury Stock | $(17,479) | $(19,332) | | Total Stockholders' Equity | $168,695 | $168,508 | - Stockholders' equity slightly decreased from **$168.695 million** to **$168.508 million**, primarily due to treasury stock acquisitions (**$1.853 million**) partially offset by net income (**$0.459 million**) and stock-based compensation (**$1.213 million**)[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited) – Three Months Ended March 31, 2025 and 2024](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) | Activity (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :---------------------- | :-------------------------------- | :-------------------------------- | | Operating Activities | $5,760 | $(2,034) | | Investing Activities | $(2,232) | $16,394 | | Financing Activities | $(5,728) | $(14,052) | | Cash and cash equivalents at end of period | $10,124 | $4,115 | - Net cash provided by operating activities significantly improved to **$5.8 million** in Q1 2025 from a **use of $2.0 million** in Q1 2024. Investing activities shifted from a **net inflow of $16.4 million** in Q1 2024 (due to AHT sale) to a **net outflow of $2.2 million** in Q1 2025. Financing activities continued to be a net use of cash, decreasing from **$14.1 million** in Q1 2024 to **$5.7 million** in Q1 2025[17](index=17&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. BASIS OF PRESENTATION](index=10&type=section&id=1.%20BASIS%20OF%20PRESENTATION) - The Company realigned its reporting structure in May 2024, changing from three segments (RCM, EHR, Patient Engagement) to two (Financial Health, Patient Care). Patient Engagement results were transitioned into the EHR segment, now named Patient Care. Prior segment information has been recast[21](index=21&type=chunk) Revision of Previously Issued Financial Statements (Three Months Ended March 31, 2024) (in thousands, except per share data) | Metric (in thousands, except per share data) | As previously reported | Impact of revision | As adjusted | | :------------------------------------------- | :--------------------- | :----------------- | :---------- | | Total revenue | $83,247 | $870 | $84,117 | | Operating loss | $(1,458) | $870 | $(588) | | Net loss | $(2,516) | $662 | $(1,854) | | Net loss per share - basic | $(0.17) | $0.04 | $(0.13) | - The Company corrected improperly recognized revenue from the prior year, which was deemed immaterial to prior period financial statements. This resulted in an **$870 thousand** increase in total revenue and a **$662 thousand** reduction in net loss for the three months ended March 31, 2024[22](index=22&type=chunk)[23](index=23&type=chunk) [2. RECENT ACCOUNTING PRONOUNCEMENTS](index=12&type=section&id=2.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) - The FASB issued ASU 2023-09 (Income Taxes) effective for fiscal years beginning after December 15, 2024, requiring disaggregated tax rate reconciliation and income taxes paid by jurisdiction. The Company is evaluating its impact[26](index=26&type=chunk) - The FASB issued ASU 2024-03 (Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures) effective for fiscal years beginning after December 15, 2026, requiring additional disclosure of certain costs and expenses. The Company is evaluating its impact[27](index=27&type=chunk) [3. REVENUE RECOGNITION](index=12&type=section&id=3.%20REVENUE%20RECOGNITION) - Revenue is recognized using the 5-step model under ASC 606. Financial Health services (RCM, IT services, SaaS, time-based licenses) recognize revenue over the contract period or upon delivery. Patient Care services (perpetual/SaaS licenses, installation, support, hardware) recognize revenue over time or at a point in time depending on the service[28](index=28&type=chunk)[30](index=30&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[37](index=37&type=chunk) Revenues Disaggregated by Category (in thousands) | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------- | :-------------------------------- | :-------------------------------- | | **Recurring revenues** | | | | Financial Health | $55,263 | $52,116 | | Patient Care | $26,707 | $28,544 | | Total recurring revenues | $

[First Quarter 2025 Results Overview](index=1&type=section&id=First%20Quarter%202025%20Results%20Overview) [Highlights and CEO Commentary](index=1&type=section&id=Highlights%20and%20CEO%20Commentary) TruBridge exceeded Q1 expectations with strong bookings, significant scope expansion in Financial Health, and reduced its leverage ratio to 2.4x - TruBridge exceeded Q1 2025 expectations, showing positive booking trends with significant wins in both Financial Health and Patient Care segments[3](index=3&type=chunk) - The company introduced a new bookings reporting method focusing on **Annual Contract Value (ACV)** for increased transparency[3](index=3&type=chunk) - TruBridge paid down additional debt, reducing its leverage ratio to **2.4x**[3](index=3&type=chunk) - Merideth Wilson was welcomed as the new General Manager of the Financial Health business unit, with a plan to ensure the smooth progression of the global workforce transition[4](index=4&type=chunk) [Segment Reporting Update](index=1&type=section&id=Segment%20Reporting%20Update) TruBridge updated its financial reporting to two segments: Financial Health (formerly RCM) and Patient Care (formerly EHR, including patient engagement) - TruBridge now reports two segments: Financial Health (previous RCM) and Patient Care (previous EHR, including patient engagement business)[2](index=2&type=chunk) [Financial Guidance](index=1&type=section&id=Financial%20Guidance) [Second Quarter 2025 Outlook](index=1&type=section&id=Second%20Quarter%202025%20Outlook) For Q2 2025, TruBridge anticipates total bookings of $22.0 million, total revenue of $87.2 million, and Adjusted EBITDA of $18.2 million Q2 2025 Financial Expectations | Metric | Q2 2025 Expectation | Q2 2024 Comparison | | :-------------------------- | :------------------- | :------------------- | | Total bookings | $22.0 million | $23.6 million | | Total revenue | $87.2 million | $84.1 million | | Recurring revenue % | 94% of total revenue | | | Financial Health revenue | $56.1 million | $53.4 million | | Financial Health revenue % | 64% of total revenue | | | GAAP net income | $0.5 million | Net loss of $1.9 million | | Non-GAAP net income | $5.2 million | $3.4 million | | Adjusted EBITDA | $18.2 million | $10.3 million | [Full Year 2025 Outlook](index=1&type=section&id=Full%20Year%202025%20Outlook) TruBridge maintains its full-year 2025 total revenue guidance at $345 million to $360 million and revised its Adjusted EBITDA guidance to $60 million-$66 million Full Year 2025 Financial Expectations | Metric | Full Year 2025 Expectation | Change from Previous | | :---------------- | :------------------------- | :------------------- | | Total revenue | $345 million to $360 million | Unchanged | | Adjusted EBITDA | $60 million to $66 million | Revised from $59 million to $66 million | [Company Information](index=2&type=section&id=Company%20Information) [About TruBridge](index=2&type=section&id=About%20TruBridge) TruBridge is a healthcare solutions company with over four decades of experience, partnering with over 1,500 healthcare organizations - TruBridge is a healthcare solutions company serving over **1,500 healthcare organizations** with technology-first solutions[8](index=8&type=chunk) - The company has over four decades of experience, providing innovative data-driven solutions for both financial (RCM) and clinical (EHR) healthcare delivery[8](index=8&type=chunk) - TruBridge focuses on promoting equitable access to quality care and fostering positive outcomes, especially in rural and community markets[8](index=8&type=chunk) [Investor Relations and Media](index=2&type=section&id=Investor%20Relations%20and%20Media) Contact information for investor relations (Asher Dewhurst, ICR Healthcare) and media inquiries (Tracey Schroeder, Chief Marketing Officer) is provided - Investor relations contact is Asher Dewhurst at ICR Healthcare (TBRGIR@westwicke.com)[9](index=9&type=chunk) - Media contact is Tracey Schroeder, Chief Marketing Officer (Tracey.schroeder@trubridge.com)[9](index=9&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements subject to various risks and uncertainties, including market saturation, economic conditions, and regulatory changes - The press release includes forward-looking statements, which are predictions and not guarantees of future performance[9](index=9&type=chunk) - Factors that could cause actual results to differ materially include market saturation, unfavorable economic conditions, legislative and regulatory uncertainty in healthcare, competition, and risks associated with acquisitions and technology[9](index=9&type=chunk) - The company does not anticipate paying dividends on common stock and will not update forward-looking statements to reflect future events[10](index=10&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Statements of Operations](index=4&type=section&id=Statements%20of%20Operations) For Q1 2025, TruBridge reported total revenues of $87.2 million, an operating income of $8.16 million, and net income of $0.459 million, resulting in basic and diluted EPS of $0.03 Condensed Consolidated Statements of Operations (in '000s) | Metric (in '000s) | 2025 | 2024 | YoY Change | | :-------------------------------------------------- | :----- | :----- | :--------- | | **Revenues** | | | | | Financial Health | $56,133 | $53,439 | +5.0% | | Patient Care | $31,075 | $30,678 | +1.3% | | **Total revenues** | **$87,208** | **$84,117** | **+3.7%** | | **Expenses** | | | | | Total costs of revenue (exclusive of amortization and depreciation) | $39,513 | $41,759 | -5.4% | | Product development | $8,247 | $10,689 | -22.8% | | Sales and marketing | $5,409 | $6,592 | -18.0% | | General and administrative | $19,464 | $19,396 | +0.3% | | Amortization | $6,124 | $5,869 | +4.3% | | Depreciation | $291 | $400 | -27.3% | | **Total expenses** | **$79,048** | **$84,705** | **-6.7%** | | **Operating income (loss)** | **$8,160** | **$(588)** | **N/A (swing to profit)** | | Interest expense | $(3,382) | $(4,072) | -16.9% | | Other income | $144 | $1,422 | -89.9% | | Total other expense | $(3,238) | $(2,650) | +22.2% | | Income (loss) before taxes | $4,922 | $(3,238) | N/A (swing to profit) | | Income tax expense (benefit) | $4,463 | $(1,384) | N/A (swing to expense) | | **Net income (loss)** | **$459** | **$(1,854)** | **N/A (swing to profit)** | | Net income (loss) per common share—basic | $0.03 | $(0.13) | N/A (swing to profit) | | Net income (loss) per common share—diluted | $0.03 | $(0.13) | N/A (swing to profit) | [Balance Sheets](index=5&type=section&id=Balance%20Sheets) As of March 31, 2025, TruBridge reported total assets of $388.8 million, total liabilities of $220.3 million, and stockholders' equity of $168.5 million Condensed Consolidated Balance Sheets (in '000s) | Metric | March 31, 2025 | December 31, 2024 | Change | | :-------------------------------------------------- | :--------------- | :---------------- | :----- | | **Assets** | | | | | Cash and cash equivalents | $10,124 | $12,324 | $(2,200) | | Accounts receivable, net | $56,575 | $53,753 | $2,822 | | Total current assets | $87,334 | $90,274 | $(2,940) | | Property & equipment, net | $2,361 | $2,294 | $67 | | Software development costs, net | $42,379 | $41,474 | $905 | | Intangible assets, net | $73,654 | $76,707 | $(3,053) | | Goodwill | $172,573 | $172,573 | $0 | | **Total assets** | **$388,842** | **$394,432** | **$(5,590)** | | **Liabilities & Stockholders' Equity** | | | | | Accounts payable | $14,870 | $15,040 | $(170) | | Current portion of long-term debt | $2,980 | $2,980 | $0 | | Deferred revenue | $9,456 | $10,653 | $(1,197) | | Total current liabilities | $51,683 | $52,975 | $(1,292) | | Long-term debt, less current portion | $164,853 | $168,598 | $(3,745) | | **Total liabilities** | **$220,334** | **$225,737** | **$(5,403)** | | Total stockholders' equity | $168,508 | $168,695 | $(187) | | **Total liabilities and stockholders' equity** | **$388,842** | **$394,432** | **$(5,590)** | [Statements of Cash Flows](index=6&type=section&id=Statements%20of%20Cash%20Flows) For Q1 2025, operating activities provided $5.76 million, investing activities used $(2.232) million, and financing activities used $(5.728) million, resulting in a $2.2 million decrease in cash Condensed Consolidated Statements of Cash Flows (in '000s) | Metric | 2025 | 2024 | Change | | :------------------------------------------ | :----- | :----- | :----- | | Net cash provided by (used in) operating activities | $5,760 | $(2,034) | $7,794 | | Net cash provided by (used in) investing activities | $(2,232) | $16,394 | $(18,626) | | Net cash used in financing activities | $(5,728) | $(14,052) | $8,324 | | Increase (decrease) in cash and cash equivalents | $(2,200) | $308 | $(2,508) | | Cash and cash equivalents, end of period | $10,124 | $4,115 | $6,009 | [Supplemental Financial Data (Non-GAAP & Bookings)](index=8&type=section&id=Supplemental%20Financial%20Data%20(Non-GAAP%20%26%20Bookings)) [Consolidated Bookings](index=8&type=section&id=Consolidated%20Bookings) TruBridge reported Q1 2025 total bookings of $21.981 million (historical) and $17.340 million (ACV), transitioning to ACV for future reporting - TruBridge is transitioning its bookings reporting to an **Annual Contract Value (ACV)** basis, which represents newly contracted revenue expected over a twelve-month period[19](index=19&type=chunk)[24](index=24&type=chunk) - The company will provide bookings under both methodologies throughout 2025 for year-over-year comparability before fully transitioning to ACV in 2026[19](index=19&type=chunk)[24](index=24&type=chunk) [Bookings by Segment (Historical Methodology)](index=8&type=section&id=Bookings%20by%20Segment%20(Historical%20Methodology)) Bookings by Segment (Historical Methodology, in '000s) | Segment | 2025 | 2024 | YoY Change | | :-------------- | :----- | :----- | :--------- | | Financial Health | $12,780 | $14,391 | -11.2% | | Patient Care | $9,201 | $9,178 | +0.25% | | **Total Bookings** | **$21,981** | **$23,569** | **-6.7%** | [Bookings by Segment (Annual Contract Value - ACV)](index=8&type=section&id=Bookings%20by%20Segment%20(Annual%20Contract%20Value%20-%20ACV)) Bookings by Segment (Annual Contract Value - ACV, in '000s) | Segment | 2025 (ACV) | | :-------------- | :--------- | | Financial Health | $12,780 | | Patient Care | $4,560 | | **Total Bookings (ACV)** | **$17,340** | [Bookings Composition](index=9&type=section&id=Bookings%20Composition) Bookings Composition (in '000s) | Category | 2025 | 2024 | | :-------------------- | :----- | :----- | | **Financial Health** | | | | Net new | $6,221 | $8,993 | | Cross-sell | $6,559 | $5,398 | | **Patient Care** | | | | Non-subscription sales | $2,602 | $3,450 | | Subscription revenue | $6,599 | $5,728 | | **Total Bookings** | **$21,981** | **$23,569** | - "Net new" bookings are from outside the core Patient Care client base, while "Cross-sell" bookings are from existing Patient Care customers, both generally recurring revenues recognized over one year[22](index=22&type=chunk) - Patient Care non-subscription sales are nonrecurring, while subscription revenue is recurring, recognized monthly over a weighted-average contract period of five years[23](index=23&type=chunk) [Adjusted EBITDA](index=10&type=section&id=Adjusted%20EBITDA) TruBridge's total Adjusted EBITDA significantly increased to $18.231 million in Q1 2025 from $10.324 million in Q1 2024, with the Adjusted EBITDA Margin improving to 20.9% - Adjusted EBITDA is a non-GAAP measure that adjusts GAAP net income for items like depreciation, amortization, stock-based compensation, severance, interest expense, and income taxes[38](index=38&type=chunk) [Adjusted EBITDA by Segment](index=10&type=section&id=Adjusted%20EBITDA%20by%20Segment) Adjusted EBITDA by Segment (in '000s) | Segment | 2025 | 2024 | YoY Change | | :-------------- | :----- | :----- | :--------- | | Financial Health | $11,281 | $6,797 | +66.0% | | Patient Care | $6,950 | $3,527 | +97.0% | | **Total Adjusted EBITDA** | **$18,231** | **$10,324** | **+76.6%** | [Reconciliation of Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Reconciliation of Adjusted EBITDA (in '000s) | Metric | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Net income (loss), as reported | $459 | $(1,854) | | Net Income (Loss) Margin | 0.5% | (2.2%) | | Depreciation expense | $291 | $400 | | Amortization of software development costs | $3,071 | $2,742 | | Amortization of acquisition-related intangibles | $3,053 | $3,127 | | Stock-based compensation | $1,213 | $800 | | Severance and other nonrecurring charges | $2,443 | $3,844 | | Interest expense and other, net | $3,291 | $3,899 | | Gain on sale of AHT | $(53) | $(1,250) | | Provision (benefit) for income taxes | $4,463 | $(1,384) | | **Total Adjusted EBITDA** | **$18,231** | **$10,324** | | Adjusted EBITDA Margin | 20.9% | 12.3% | [Non-GAAP Net Income and EPS](index=11&type=section&id=Non-GAAP%20Net%20Income%20and%20EPS) Non-GAAP net income for Q1 2025 was $5.192 million, a 54.1% increase from Q1 2024, resulting in Non-GAAP EPS of $0.36 - Non-GAAP net income adjusts GAAP net income for acquisition-related intangible assets amortization, stock-based compensation, severance and other nonrecurring charges, non-cash interest expense, gain on sale of AHT, and their tax effects[38](index=38&type=chunk) [Reconciliation of Non-GAAP Net Income and EPS](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Net%20Income%20and%20EPS) Reconciliation of Non-GAAP Net Income and EPS (in '000s) | Metric | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Net income (loss), as reported | $459 | $(1,854) | | Pre-tax adjustments for Non-GAAP EPS: | | | | Amortization of acquisition-related intangible assets | $3,053 | $3,127 | | Stock-based compensation | $1,213 | $800 | | Severance and other nonrecurring charges | $2,443 | $3,844 | | Non-cash interest expense | $130 | $90 | | Gain on sale of AHT | $0 | $(1,250) | | After-tax adjustments for Non-GAAP EPS: | | | | Tax-effect of pre-tax adjustments, at 21% | $(1,436) | $(1,388) | | Tax windfall from stock-based compensation | $(670) | $0 | | **Non-GAAP net income** | **$5,192** | **$3,369** | | Weighted average shares outstanding, diluted | 14,370 | 14,234 | | **Non-GAAP EPS** | **$0.36** | **$0.24** | [Revenue Composition](index=11&type=section&id=Revenue%20Composition) Total revenues for Q1 2025 were $87.208 million, with recurring revenues at 94.0% and non-recurring revenues at 6.0% Revenue Composition (in '000s) | Category | 2025 | 2024 | YoY Change | | :-------------------- | :----- | :----- | :--------- | | **Recurring revenues** | | | | | Financial Health | $55,263 | $52,116 | +6.0% | | Patient Care | $26,707 | $28,544 | -6.4% | | **Total recurring revenues** | **$81,970** | **$80,660** | **+1.6%** | | **Non-recurring revenues** | | | | | Financial Health | $870 | $1,323 | -34.3% | | Patient Care | $4,368 | $2,134 | +104.7% | | **Total non-recurring revenues** | **$5,238** | **$3,457** | **+51.5%** | | **Total revenues** | **$87,208** | **$84,117** | **+3.7%** | [Explanation of Non-GAAP Financial Measures](index=12&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) TruBridge uses non-GAAP financial measures like Adjusted EBITDA and Non-GAAP net income to supplement GAAP results, providing insights into operational performance - Non-GAAP financial measures are used by management to evaluate operating performance, compare against past periods, make operating decisions, and for strategic planning, by excluding certain non-cash or non-recurring items[35](index=35&type=chunk) - Key adjustments for non-GAAP measures include amortization of acquisition-related intangibles, stock-based compensation, severance and other nonrecurring charges, non-cash interest expense, and gain on sale of AHT[37](index=37&type=chunk)[38](index=38&type=chunk)[40](index=40&type=chunk) - Non-GAAP financial measures are performance measures only and do not provide a measure of cash flow or liquidity; they are not alternatives to GAAP measures and may differ from similarly titled measures presented by other companies[39](index=39&type=chunk)

Financial Performance - The company reported a significant increase in revenue, with a year-over-year growth of 15% to $1.2 billion[7] - The company anticipates a revenue growth of 10% for the next fiscal year, projecting revenues of approximately $1.32 billion[7] - Operating margins improved to 30%, up from 28% in the previous quarter[7] User Growth - User data showed a 20% increase in active users, reaching 5 million by the end of the quarter[7] Market Expansion - The company is expanding its market presence in Europe, targeting a 25% increase in market share by 2025[7] Product Development - New product launches are expected to contribute an additional $200 million in revenue over the next year[7] - The company is investing $30 million in research and development for new technologies in the upcoming year[7] Strategic Initiatives - A strategic acquisition of a smaller tech firm was completed for $50 million, aimed at enhancing product offerings[7] - The company plans to implement a subscription-based revenue model, expecting it to account for 40% of total revenue by 2025[7] Demand Indicators - The backlog of orders increased by 18%, indicating strong future demand for products[7]

Revenue Performance - Revenue for 2024 was $339.2 million, with Q4 revenue at $87.4 million, representing a slight decrease from $339.4 million in 2023[5]. - TruBridge expects total revenue for Q1 2025 to be between $85 million and $88 million, and for the full year 2025, total revenue is projected to be between $345 million and $360 million[11]. - Total Patient Care revenues for the twelve months ended December 31, 2024, were $123,098,000, down from $145,506,000 in 2023, indicating a decline of about 15.4%[32]. - Total recurring revenues from Patient Care for the three months ended December 31, 2024, were $28,193,000, compared to $32,122,000 in 2023, a decrease of approximately 12.1%[32]. Profitability and Loss - Net loss for 2024 was $23.1 million, with a Q4 net loss of $5.7 million, compared to a net loss of $45.8 million in 2023[11]. - TruBridge reported a net loss of $23,084,000 for the twelve months ended December 31, 2024, an improvement from a net loss of $45,789,000 in 2023, representing a 49.6% reduction in losses[19]. - For the three months ended December 31, 2024, the company reported a Non-GAAP net income of $715,000, compared to $5,129,000 in the same period of 2023, representing a decrease of approximately 86%[30]. - Non-GAAP EPS for the twelve months ended December 31, 2024, was $0.24, compared to $1.79 in 2023, reflecting a decrease of approximately 86.6%[30]. Adjusted EBITDA - Adjusted EBITDA for 2024 was $53.1 million, with Q4 adjusted EBITDA at $17.2 million, an increase from $47.6 million in 2023[11]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $53,090,000, compared to $47,576,000 in 2023, reflecting an increase of 11.8%[28]. - The company’s Adjusted EBITDA margin improved to 15.7% in 2024 from 14.0% in 2023[28]. - The Financial Health segment generated $10,792,000 in Adjusted EBITDA for Q4 2024, compared to $6,596,000 in Q4 2023, a 63.4% increase[26]. - The Patient Care segment's Adjusted EBITDA was $6,448,000 for Q4 2024, up from $5,388,000 in Q4 2023, representing a 19.7% increase[26]. Financial Health and Assets - Financial Health revenue for 2024 was $216.1 million, representing 63.7% of total revenue, up from $193.9 million in 2023[11]. - Total current assets decreased to $90,274,000 in 2024 from $111,455,000 in 2023, a decline of 19%[17]. - Cash and cash equivalents increased significantly to $12,324,000 in 2024 from $3,848,000 in 2023, marking a 220% increase[19]. - Total liabilities decreased to $225,737,000 in 2024 from $247,804,000 in 2023, a reduction of 8.9%[17]. Operational Efficiency - The company successfully transitioned approximately 30% of its Financial Health Complete Business Office client base offshore, enhancing operational efficiency[5]. - TruBridge achieved total annual bookings of $82.1 million, compared to $80.2 million in 2023[11]. - Total bookings for the twelve months ended December 31, 2024, reached $82,074,000, up from $80,239,000 in 2023, indicating a growth of 2.3%[21]. - The leverage ratio improved from 4x at the end of 2023 to approximately 3x at the end of 2024 due to significant debt repayment[5]. Strategic Initiatives - The company rebranded as TruBridge to pursue a more focused marketing strategy under one brand, aiming to enhance customer satisfaction and retention[5]. - The company plans to continue using non-GAAP financial measures to evaluate operating performance and make strategic decisions, emphasizing their importance in understanding financial trends[39]. Other Financial Metrics - The company reported a significant increase in accounts payable, which rose to $15,040,000 in 2024 from $10,133,000 in 2023, an increase of 48.5%[17]. - Amortization of acquisition-related intangible assets for the twelve months ended December 31, 2024, was $12,505,000, down from $16,426,000 in 2023, a reduction of about 23.5%[30]. - The company incurred a goodwill impairment charge of $35,913,000 in 2023, which was excluded from Non-GAAP financial measures[30]. - The weighted average shares outstanding, diluted, for the twelve months ended December 31, 2024, was 14,300,000, compared to 14,187,000 in 2023, an increase of about 0.8%[30].

Financial Performance - Total revenues for the first nine months of 2024 were $251.8 million, a decrease of 1% from $253.6 million in the same period of 2023[170]. - Financial Health segment revenues increased by $18.4 million, or 13%, compared to the first nine months of 2023, primarily due to the acquisition of Viewgol[192]. - Net loss for the first nine months of 2024 increased to $17.4 million from $3.3 million in the prior-year period[170]. - Recurring Financial Health revenues were $53.1 million, representing 98% of total Financial Health revenues[174]. - Patient Care segment revenues decreased by $20.2 million, or 19%, compared to the third quarter of 2023, primarily due to customer attrition and the sale of AHT[178]. - Total Patient Care revenue for the first nine months of 2024 was $90.4 million, down from $110.6 million in the same period of 2023, representing a decrease of $20.2 million, or 18%[212]. - Net loss for the third quarter of 2024 was $9.8 million, or $(0.66) per share, compared to a net loss of $3.6 million, or $(0.24) per share, for the third quarter of 2023[191]. - Net loss for the first nine months of 2024 increased by $14.1 million to $17.4 million, or $(1.17) per basic and diluted share, compared to a net loss of $3.3 million, or $(0.23) per share, for the same period in 2023[208]. Revenue Sources - Financial Health revenues comprised 57% of the consolidated revenue for 2023[149]. - SaaS license models accounted for 100% of annual new acute Patient Care installations in 2023, up from 12% in 2018[162]. - The company achieved a retention rate of 92.1% in 2023, with annualized retention at 96.0% for the first nine months of 2024[156]. - Recurring Patient Care revenues decreased by $18.3 million, or 18%, compared to the first nine months of 2023, primarily due to the sale of AHT in January 2024[196]. - Non-recurring Patient Care revenues decreased by $1.9 million, or 17%, compared to the first nine months of 2023, also driven by the sale of AHT[197]. Cost Management - Total costs of revenue (exclusive of amortization and depreciation) decreased to 51% of revenues during the third quarter of 2024, down from 53% in the third quarter of 2023[180]. - Product development expenses decreased by $2.0 million, or 21%, compared to the third quarter of 2023, primarily due to labor force optimization[183]. - General and administrative expenses decreased by $1.6 million, or 8%, compared to the third quarter of 2023[186]. - Total costs of revenue decreased by $4.7 million compared to the first nine months of 2023, with costs of revenue as a percentage of total revenues decreasing to 51% from 52%[198]. - General and administrative expenses increased by $3.2 million, or 6%, compared to the first nine months of 2023, mainly due to increased stock compensation and the acquisition of Viewgol[203]. Strategic Initiatives - The company aims to achieve long-term revenue growth by cross-selling Financial Health services into the existing Patient Care customer base[154]. - The company plans to grow through acquisitions of businesses, technologies, or products that align with strategic goals[154]. - Margin optimization efforts include organizational realignment and expanded use of offshore resources, with expectations of improved cost efficiencies[167]. - The company anticipates additional pressure on margins due to the integration and ramp-up of Viewgol, acquired in October 2023[167]. - Financial Health's gross margins are under pressure from wage inflation and inflation-indexed price adjustments in contracts with suppliers[169]. Cash Flow and Debt - As of September 30, 2024, the company had $177.7 million in principal amount of indebtedness outstanding under credit facilities, with cash and cash equivalents of $8.6 million[219]. - Total other expense increased to $11.2 million during the first nine months of 2024, compared to $7.8 million during the same period in 2023, primarily due to increased interest expense[205]. - The company drew $41.0 million from its revolving credit facility for the Viewgol acquisition, leaving $40.6 million available as of October 16, 2023[220]. - Net cash provided by operating activities increased by $8.5 million to $21.8 million for the nine months ended September 30, 2024, compared to $13.3 million for the same period in 2023[221]. - Net cash provided by investing activities increased by $24.1 million to $5.8 million during the nine months ended September 30, 2024, primarily due to the sale of AHT, which resulted in a net cash inflow of $21.4 million[222]. - Financing activities resulted in a net cash use of $22.9 million during the nine months ended September 30, 2024, compared to a net cash use of $0.5 million in the same period of 2023[223]. - As of September 30, 2024, the company had $57.3 million in principal amount outstanding under the term loan facility and $120.4 million under the revolving credit facility, with an average interest rate of 8.40%[225]. Bookings and Backlog - The company reported a twelve-month backlog of approximately $8 million for non-recurring system purchases and approximately $320 million for recurring payments as of September 30, 2024[232]. - Total bookings for the third quarter of 2024 increased by $5.973 million, or 40%, compared to the third quarter of 2023, reaching $20.95 million[234]. - Financial Health bookings increased by $3.4 million, or 38%, in the third quarter of 2024, driven by a 39% increase in net-new bookings[235]. - Patient Care bookings increased by $2.6 million, or 43%, in the third quarter of 2024, with acute Patient Care bookings rising by 59%[237]. Interest Rate Sensitivity - A one hundred basis point change in interest rates on borrowings outstanding as of September 30, 2024, would result in a change in interest expense of approximately $1.8 million annually[241].

Financial Performance - Total bookings for Q3 2024 reached $21.0 million, up from $15.0 million in Q3 2023, representing a 40% increase[1] - Total revenue for Q3 2024 was $83.8 million, slightly up from $82.7 million in Q3 2023, indicating a 1.3% growth[1] - Financial Health revenue accounted for $54.3 million, which is 64.7% of total revenue, compared to $46.6 million in Q3 2023[1] - GAAP net loss for Q3 2024 was $(9.8) million, compared to a net loss of $(3.6) million in Q3 2023[1] - Adjusted EBITDA for Q3 2024 was $13.8 million, an increase from $9.7 million in Q3 2023, reflecting a 42% growth[1] - TruBridge, Inc. reported a net loss of $17,374,000 for the nine months ended September 30, 2024, compared to a net loss of $3,315,000 for the same period in 2023[12] - TruBridge, Inc. reported a net loss of $9,809,000 for the three months ended September 30, 2024, compared to a net loss of $3,562,000 for the same period in 2023, reflecting an increase in loss of 175.5%[16] - Non-GAAP net income for the three months ended September 30, 2024, was $(2,963,000), compared to $6,348,000 for the same period in 2023, indicating a significant decline[17] - The company reported a net income margin of (11.7%) for the three months ended September 30, 2024, compared to (4.3%) for the same period in 2023[16] Revenue Projections - For Q4 2024, TruBridge expects total revenue between $83.5 million and $85.5 million[5] - For the full year 2024, total revenue is projected to be between $335 million and $337 million, narrowed from previous guidance of $330 million to $340 million[5] Operational Changes - The recently launched analytics offering is gaining traction with initial customers, contributing to the growth strategy[3] - The company is focused on optimizing operations and realizing margin improvements over time following the Viewgol integration[2] - Executive leadership changes include the retirement of COO David Dye, effective December 31, 2024, with general managers now reporting directly to the CEO[4] Asset and Liability Management - Total current assets decreased to $91,621,000 as of December 31, 2023, down from $111,455,000 at the end of 2022, reflecting a decline of approximately 17.8%[11] - Total liabilities decreased to $228,886,000 as of December 31, 2023, compared to $247,804,000 at the end of 2022, representing a reduction of about 7.6%[11] - The company’s long-term debt decreased to $173,343,000 as of December 31, 2023, down from $195,270,000 at the end of 2022, a decline of about 11.2%[11] - The total stockholders' equity decreased to $172,647,000 as of December 31, 2023, down from $186,618,000 at the end of 2022, reflecting a decline of approximately 7.5%[11] Cash Flow and Investments - Cash and cash equivalents increased to $8,586,000 at the end of the period, up from $1,473,000 at the end of September 30, 2023[12] - The company invested $13,666,000 in software development during the nine months ended September 30, 2024, compared to $17,981,000 for the same period in 2023[12] Patient Care Revenue - The company reported a significant increase in patient care bookings, reaching $8,454,000 for the three months ended September 30, 2024, compared to $5,897,000 for the same period in 2023, a growth of approximately 43.5%[13] - Total recurring revenues from Patient Care for the three months ended September 30, 2024, were $26,584,000, down 18.3% from $32,662,000 in the same period of 2023[18] - Total Patient Care revenues for the nine months ended September 30, 2024, were $90,389,000, down 18.4% from $110,594,000 for the same period in 2023[18] Non-GAAP Financial Measures - The company plans to continue evaluating its operating performance using non-GAAP financial measures to provide a clearer understanding of its financial trends and operational performance[19] - Management emphasizes the importance of non-GAAP financial measures as indicators of operational strength and performance[23] - Adjusted EBITDA, Non-GAAP net income, and Non-GAAP EPS are used to measure performance objectives under the Company's incentive programs[23] - Non-GAAP financial measures do not provide a measure of cash flow or liquidity, and are not alternatives to GAAP measures[23] - Limitations of non-GAAP measures include not reflecting all amounts associated with results of operations as per GAAP[23] - There is uncertainty regarding future expenses that may be similar to those excluded in non-GAAP calculations[23] - Investors are encouraged to review the "Unaudited Reconciliation of Non-GAAP Financial Measures" for more clarity[23]