MOBILE, Ala.--(BUSINESS WIRE)--TruBridge, Inc. ("TruBridge†or the "Company†) (NASDAQ: TBRG), a healthcare solutions company, today announced that it has agreed to extend its cooperation agreement with Pinetree Capital Ltd. and L6 Holdings Inc. (together, "Pinetree†). Pinetree is the Company's largest shareholder. Pursuant to the cooperation agreement, TruBridge will appoint Damien Leonard to its Board of Directors (the "Board†), effective January 12, 2026 (subject to material completion of cus. ...

MOBILE, Ala. & ARLINGTON, Va.--(BUSINESS WIRE)--TruBridge, Inc. (NASDAQ: TBRG), a leading provider of healthcare technology solutions for rural and community hospitals, and The Health Management Academy (THMA), a leading executive membership and peer-learning organization, today announced the launch of the Rural Health Collaborative, a new initiative designed to support, modernize, and strengthen rural and community hospitals during a critical period for healthcare delivery. Through this collab. ...

Core Insights - TruBridge, Inc. has announced an expanded exclusive partnership with RevSpring to enhance its healthcare technology solutions for rural and community hospitals [1][2] Partnership Details - The collaboration integrates RevSpring's patient engagement and payment optimization solutions into the TruBridge connected platform, aiming to improve financial performance and access to care in rural America [2][4] - This partnership is designed to empower rural healthcare organizations with sophisticated tools similar to those used by larger health systems, enhancing patient relationships and financial performance [4] New Capabilities - The expanded partnership introduces an intelligence suite that addresses individual affordability, helping rural providers increase collections, reduce bad debt, and elevate patient satisfaction [3] - TruBridge clients have already seen up to a 37% increase in cash receipts and patient satisfaction scores exceeding 95% [3] Technology and Solutions - RevSpring's Engage IQ™ solution is highlighted as the only connected patient engagement suite that coordinates patient interactions from pre-care to post-care to payment [6] - The intelligent payment suite utilizes predictive analytics to tailor communication channels and payment options to individual patient preferences, enhancing engagement and operational efficiency [7][8]

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 nine months ended September 30, 2025, were $162.1 million, up 1% from $158.4 million in the prior year, with recurring revenues making up 98% of total Financial Health revenues[175]. - Patient Care revenues increased by $1.6 million, or 5%, in the third quarter of 2025 compared to the same quarter in 2024, primarily due to new SaaS contracts and EHR installations[163]. - Net income for the third quarter of 2025 was $5.6 million, a $14.8 million increase from a net loss of $9.1 million in the third quarter of 2024[173]. - 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]. 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]. - Total other expenses decreased by $1.7 million in the third quarter of 2025, primarily due to reduced interest expenses[170]. - 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]. 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]. 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]. - Margin optimization initiatives have been implemented, including the acquisition of Viewgol, which is expected to enhance control over resource availability and achieve cost efficiencies[156]. - The company has implemented margin optimization efforts, including organizational realignment and expanded use of automation since 2021[155]. Market Trends and Challenges - The company recognizes the need to adapt to regulatory changes impacting healthcare reimbursement, particularly with the recent OBBBA legislation[148]. - The company is actively involved in shaping AI governance and controls to ensure safe implementation in healthcare delivery[144]. 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%, compared to 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 same period in 2024[210]. - The company will transition to reporting total bookings on an Annual Contract Value (ACV) basis starting January 2025, providing year-over-year comparability[212]. Cash Flow and Debt - Net cash provided by operating activities increased by $6.3 million to $28.1 million for the nine months ended September 30, 2025, compared to $21.8 million for the same period in 2024[199]. - 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 outstanding borrowings of $165.2 million would result in a change in interest expense of approximately $1.7 million annually[216]. - As of September 30, 2025, the company had no investments and does not utilize derivative financial instruments to manage interest rate risks[217].

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $86.1 million, a 2% increase year-over-year, with a normalized growth of 2.8% after accounting for the impact of the Centric product sunset [15][16] - Adjusted EBITDA margins are expected to expand approximately 600 basis points from 2023 to year-end, with a projected margin of 19% for 2025 [11][12] - Free cash flow improved by $20 million year-to-date, with net leverage reduced from 4.4x in Q4 2023 to approximately 2.2x by Q3 2025 [11][14] Business Line Data and Key Metrics Changes - Financial health revenue was $54.5 million, representing 63% of total revenue, remaining flat year-over-year [15] - Patient care revenue grew by 5.3% year-over-year to $31.6 million, with gross margin expanding to approximately 60% [16] - The Encoder business saw a significant increase in bookings, with margins reported at 70%-80% [22][23] Market Data and Key Metrics Changes - The percentage of Financial Health bookings in the 100-400 bed space increased from less than 20% in 2024 to more than 30% in 2025 [5] - Recurring revenue remained high at around 94% of total revenue, with financial health recurring revenue at approximately 95%-96% [15][36] Company Strategy and Development Direction - The company is focused on improving the quality of earnings and financial performance through operational streamlining and margin expansion [4][10] - Strategic transitions are being operationalized to enhance performance, with a focus on client retention and satisfaction [9][10] - The leadership team is being strengthened to support sales and marketing efforts, with a new Chief Business Officer appointed [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while Q3 bookings were below expectations, early signs in Q4 indicate a positive trend [6][22] - The regulatory landscape is expected to stabilize, which may lead to increased bookings in the future [25] - The company anticipates further adjusted EBITDA expansion and margin improvement in 2026, driven by cost optimization and global workforce transitions [19][20] Other Important Information - The company has made significant improvements in cash balance, increasing from $3.8 million at the end of 2023 to approximately $20 million [14] - Operating expenses were flat year-over-year at $40 million, representing 46% of revenue [16] Q&A Session Summary Question: Can you discuss the bookings performance and expectations? - Management indicated that Q3 bookings of $15.5 million were about 20% below expectations, primarily due to delayed decisions rather than negative influences [22] Question: Are there common reasons for hospitals delaying implementation? - Management noted that budget cycles and regulatory uncertainties are causing delays, but they expect decisions to accelerate as hospitals finalize their spending needs for 2026 [25] Question: What is the outlook for the pipeline and bookings growth? - Management expressed optimism about the pipeline, indicating that while Q3 was underwhelming, there is sufficient coverage for Q4 [31] Question: How will new sales leadership impact bookings? - Management stated that new leadership will focus on leveraging existing talent while also bringing in new resources to enhance sales efforts [34] Question: What is the status of recurring revenue and backlog? - Management confirmed that recurring revenue remains strong at around 94%, with the backlog being monitored closely [36]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $86.1 million, a 2% increase year-over-year, with a normalized growth of 2.8% after accounting for the impact of the Centric product sunset [16] - Adjusted EBITDA margins are expected to expand approximately 600 basis points from 2023 to year-end, with a projected margin of 19% for 2025, up from 16.5% in 2024 [12][19] - Free cash flow improved by $20 million year-to-date, with net leverage reduced from 4.4 times in Q4 2023 to approximately 2.2 times by Q3 2025 [12][15] Business Line Data and Key Metrics Changes - Financial health revenue was $54.5 million, representing 63% of total revenue, remaining flat year-over-year, while patient care revenue grew by 5.3% to $31.6 million [16][17] - Encoder business bookings have increased significantly, with margins of 70%-80%, indicating a positive trend in high-margin deals [22][24] Market Data and Key Metrics Changes - The percentage of Financial Health bookings in the 100-400 bed space increased from less than 20% in 2024 to more than 30% in 2025, reflecting a strategic focus on this market segment [5] - The company noted that the majority of hospitals operate on a calendar year budget cycle, which has influenced decision-making and timing for bookings [25] Company Strategy and Development Direction - The company is focused on improving the quality of earnings, enhancing client retention, and executing a strategic transition process to drive margin expansion [10][20] - The appointment of a new Chief Business Officer aims to elevate sales efforts and improve visibility into bookings and revenue growth [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while Q3 bookings were below expectations, early indicators in Q4 show a strong start, suggesting a potential recovery in pipeline conversion [6][30] - The company remains optimistic about future growth opportunities, particularly in the regulatory landscape and the focus on revenue cycle management (RCM) improvements [23] Other Important Information - The company has made significant progress in cost optimization, with capitalized software spending decreasing by 30% year-over-year [14] - Cash balance increased from $3.8 million at the end of 2023 to approximately $20 million, driven by improved profitability and disciplined working capital management [15] Q&A Session Summary Question: Can you discuss the bookings performance and expectations? - Management indicated that Q3 bookings of $15.5 million were about 20% below expectations, primarily due to delayed decisions rather than negative influences [22] Question: Are there common reasons for hospitals delaying implementation? - Delays are attributed to budget cycles and uncertainty regarding Medicaid funding, but management expects these decisions to accelerate as hospitals finalize their spending needs for 2026 [25] Question: What is the state of the pipeline and bookings growth expectations? - Management expressed caution, stating that while there is optimism in the pipeline, it is uncertain if Q4 will fully compensate for Q3 shortfalls [30] Question: How will new sales leadership impact bookings? - The new Chief Business Officer is expected to enhance sales efforts and improve accountability across sales, marketing, and client success functions [35] Question: What is the outlook for EBITDA margin expansion next year? - Management expects 200 basis points of margin expansion primarily from cost optimization efforts, with some implicit scenarios for revenue growth [44][46]

Core Insights - TruBridge (TBRG) reported quarterly earnings of $0.88 per share, exceeding the Zacks Consensus Estimate of $0.4 per share, and showing a significant improvement from a loss of $0.21 per share a year ago, resulting in an earnings surprise of +120.00% [1] - The company achieved revenues of $86.11 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.32% and reflecting a year-over-year increase from $83.83 million [2] - TruBridge has outperformed consensus revenue estimates three times over the last four quarters [2] Earnings Outlook - The sustainability of TruBridge's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $88.61 million, and for the current fiscal year, it is $1.76 on revenues of $346.54 million [7] Industry Context - The Medical Info Systems industry, to which TruBridge belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - TruBridge reported total revenue of $86.1 million for Q3 2025, a 1.7% increase from $84.7 million in Q3 2024[3] - Adjusted EBITDA margin for Q3 2025 was 19%, reflecting a sustainable profitability expansion[2] - For the full year 2025, TruBridge expects total revenue between $345 million and $348 million, revised from $345 million to $350 million[4] - GAAP net income for Q3 2025 was $5.6 million, compared to a net loss of $9.1 million in Q3 2024[3] - Non-GAAP net income for Q3 2025 was $12.8 million, compared to a net loss of $3.1 million in Q3 2024[3] - Financial Health revenue for Q3 2025 was $54.5 million, representing 63% of total revenue[3] - Total revenues for the three months ended September 30, 2025, were $86,106,000, an increase from $84,700,000 in the same period of 2024, representing a growth of 1.7%[32] - Adjusted EBITDA for the three months ended September 30, 2025, was $16,272,000, up from $14,692,000 in the same period of 2024, reflecting a margin of 18.9%[28] - Non-GAAP net income for the three months ended September 30, 2025, was $12,812,000, compared to a loss of $3,105,000 in the same period of 2024[30] - Non-GAAP EPS for the three months ended September 30, 2025, was $0.88, compared to a loss of $0.22 in the same period of 2024[30] - The company’s total adjusted EBITDA for the nine months ended September 30, 2025, was $48,245,000, compared to $38,460,000 for the same period in 2024, indicating a significant year-over-year increase[28] Revenue Composition - Recurring revenue accounted for 94% of total revenue in Q3 2025[3] - Total recurring revenues for the three months ended September 30, 2025, were $80,939,000, slightly increasing from $80,565,000 in the same period of 2024[32] - The company reported total non-recurring revenues of $5,167,000 for the three months ended September 30, 2025, compared to $4,135,000 in the same period of 2024, marking an increase of 25%[32] Bookings and Future Expectations - Total bookings for Q4 2025 are expected to be $15.5 million, down from $21.0 million[3] - Total bookings for the three months ended September 30, 2025, were $15,503,000, down 26% from $20,950,000 in the same period of 2024[17] - The company reported a total of $63,097,000 in bookings for the nine months ended September 30, 2025, a decrease of 7% from $67,810,000 in 2024[17] - Financial Health segment bookings for the three months ended September 30, 2025, were $9,507,000, down from $12,496,000 in 2024, representing a decline of 23.9%[17] - Patient Care segment bookings for the nine months ended September 30, 2025, were $27,105,000, slightly down from $27,464,000 in 2024, indicating a decrease of 1.3%[17] - The company plans to transition to reporting total bookings on an Annual Contract Value (ACV) basis starting January 2025, enhancing revenue recognition clarity[18] Financial Health and Assets - Total assets increased to $399,412,000 as of September 30, 2025, compared to $394,432,000 on December 31, 2024, reflecting a growth of 0.25%[13] - Cash and cash equivalents increased to $19,920,000 at the end of the period, compared to $12,324,000 at the beginning, marking a growth of 61.5%[15] - Total current liabilities increased to $53,749,000 as of September 30, 2025, compared to $52,975,000 on December 31, 2024, reflecting a rise of 1.5%[13] - Net income for the nine months ended September 30, 2025, was $8,641,000, a significant improvement from a net loss of $15,390,000 in the same period of 2024[15] Leadership and Strategic Initiatives - The company has made leadership enhancements, including hiring a Chief Business Officer to drive growth[2] - TruBridge aims to achieve greater EBITDA margins and free cash flow in the coming years through strategic improvements[2] Non-GAAP Financial Measures - Stock-based compensation is a non-cash expense that is excluded from non-GAAP financial measures due to its variability and lack of direct correlation to business performance[38] - Non-recurring charges related to severance and business transformation initiatives are excluded from non-GAAP financial measures as they may not reflect underlying business performance[38] - Non-cash interest expense, including amortization of deferred debt issuance costs, is excluded from non-GAAP financial measures for similar reasons[38] - Interest expense and other income, which includes interest incurred on loans, is excluded from non-GAAP financial measures due to its transactional nature[38] - Gains or losses on the disposal of property and equipment are excluded from non-GAAP financial measures as they may not correlate with business performance[38] - The gain on the sale of AHT, a previously wholly-owned business, is excluded from non-GAAP financial measures due to its specific transaction nature[38] - Changes in fair value of contingent consideration from the acquisition of Viewgol are excluded from non-GAAP financial measures as they may not reflect ongoing business performance[38] - Tax shortfalls or windfalls from stock-based compensation are excluded from non-GAAP financial measures due to their variability and lack of correlation to business performance[38]

Core Points - TruBridge, Inc. will release its financial results for Q3 2025 on November 6, 2025, after market close, followed by a conference call on November 7, 2025 [1] - The conference call will be accessible via phone and will also be broadcasted live on the company's investor relations website [2] - TruBridge specializes in revenue cycle management and healthcare technology solutions for rural and community healthcare organizations, with over 1,500 clients nationwide [3] Company Developments - Michael Daughton has been appointed as Chief Business Officer effective October 6, 2025, to enhance client-centered excellence and growth [5] - TruBridge has expanded its partnership with Java Medical Group to standardize technology and services across its managed hospitals, utilizing the TruBridge nTrust offering [6] Financial Performance - In Q2 2025, TruBridge reported total bookings of $25.6 million, up from $23.3 million, and total revenue of $85.7 million, slightly up from $85.6 million, with recurring revenue making up 95% of total revenue [7]

Core Insights - TruBridge has appointed Michael Daughton as Chief Business Officer effective October 6, 2025, to enhance client-centered excellence and growth [1] Company Overview - TruBridge is a leading provider of revenue cycle management and healthcare technology solutions specifically for rural and community healthcare organizations [1]