MOBILE, Ala.--(BUSINESS WIRE)--TruBridge (NASDAQ: TBRG), a leading provider of revenue cycle management and healthcare technology solutions for rural and community healthcare organizations, today announced the appointment of Michael (Mike) Daughton as Chief Business Officer, effective October 6, 2025. In this new role Daughton will oversee client-centered excellence and growth, reporting directly to Chris Fowler, president and chief executive officer. Daughton is a strategic healthcare leader w. ...

Company Overview - TruBridge, Inc. (TBRG) focuses on providing technology solutions for the U.S. healthcare sector, particularly for small rural and community hospitals [2] - The company operates in two main segments: Financial Health, which includes revenue cycle management services, and Patient Care, which encompasses electronic health records and patient engagement platforms [2] Financial Performance - Financial Health now accounts for 64% of TruBridge's revenue and is identified as the company's growth engine [3] - The company has experienced significant impairments due to costly acquisitions, impacting performance and leading to all-time low share prices in 2023 [3] - Cash flow has improved through tighter working capital management and debt reduction, with leverage decreasing from 4.4x in 2024 to a manageable range of 2.5x–3x [4] Governance and Investment - New investors, including Pinetree Capital and Ocho Investments, now hold a combined 25% stake in TruBridge, prompting governance reforms such as annual board elections and the removal of the poison pill [3] - Improved governance and stronger financial discipline are seen as catalysts for a turnaround story for TruBridge [5] Strategic Focus - TruBridge is concentrating on expanding its Financial Health services while leveraging strong retention rates in Patient Care for cross-selling opportunities [4] - The company is also pursuing offshore operations to reduce costs and improve margins, targeting a 20% adjusted EBITDA [4] Market Outlook - Regulatory risks persist, particularly regarding potential funding changes related to Medicare and Medicaid, but stricter compliance requirements may increase demand for TruBridge's solutions [5] - The combination of governance reforms, financial discipline, and a clear margin expansion strategy positions TruBridge for potential upside [5]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and detailed accounting notes [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents TruBridge, Inc.'s unaudited condensed consolidated financial statements and detailed accounting notes for the periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets (Unaudited) – June 30, 2025 and December 31, 2024](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) **Condensed Consolidated Balance Sheets (In thousands):** | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | 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) **Condensed Consolidated Statements of Operations (In thousands, except per share data):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six 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) | | Net income (loss) per common share—basic | $0.17 | $(0.29) | $0.20 | $(0.42) | | Net income (loss) per common share—diluted | $0.17 | $(0.29) | $0.20 | $(0.42) | - For the three months ended June 30, 2025, total revenues slightly increased by **$0.129 million**, operating income improved significantly from a loss of **$2.149 million** to an income of **$3.627 million**, and net income turned positive at **$2.580 million** compared to a net loss of **$4.388 million** in the prior year[12](index=12&type=chunk) - For the six months ended June 30, 2025, total revenues increased by **$3.220 million (2%)**, operating income improved from a loss of **$2.737 million** to an income of **$11.787 million**, and net income was **$3.039 million** compared to a net loss of **$6.242 million** in the prior year[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)) **Condensed Consolidated Statements of Comprehensive Income (Loss) (In thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six 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 significant improvement from a loss of **$4.393 million** in the prior year, primarily driven by the increase in net income[13](index=13&type=chunk) - For the six months ended June 30, 2025, comprehensive income was **$3.021 million**, compared to a loss of **$6.134 million** in the prior year, also reflecting the positive shift in net income[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) **Condensed Consolidated Statements of Stockholders' Equity (In thousands):** | Item | Balance at June 30, 2025 | Balance at June 30, 2024 | | :-------------------------------- | :----------------------- | :----------------------- | | Common Stock | $15 | $15 | | Additional Paid-in Capital | $204,376 | $197,846 | | Accumulated Earnings (Deficit) | $(11,913) | $(755) | | Accumulated Other Comprehensive Income | $27 | $108 | | Treasury Stock | $(19,332) | $(17,434) | | Total Stockholders' Equity | $173,173 | $179,780 | - Total stockholders' equity decreased from **$179.780 million** at June 30, 2024, to **$173.173 million** at June 30, 2025, primarily due to an increase in treasury stock and a larger accumulated deficit, despite an increase in additional paid-in capital[15](index=15&type=chunk) - For the six months ended June 30, 2025, net income of **$3.039 million** and stock-based compensation of **$3.310 million** increased equity, while treasury stock acquisitions of **$1.853 million** reduced it[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) **Condensed Consolidated Statements of Cash Flows (In thousands):** | Activity | Six Months Ended June 30, 2025 | Six 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) | | (Decrease) increase in cash and cash equivalents | $(45) | $3,902 | | Cash and cash equivalents at end of period | $12,279 | $7,709 | - Net cash provided by operating activities increased by **$2.787 million** to **$14.517 million** for the six months ended June 30, 2025, driven by increased net income and decreased deferred taxes[17](index=17&type=chunk)[198](index=198&type=chunk) - Net cash used in investing activities was **$6.959 million** for the six months ended June 30, 2025, a decrease of **$18.075 million** from the prior year's cash provided by investing activities, primarily due to the sale of AHT in 2024[17](index=17&type=chunk)[199](index=199&type=chunk) - Net cash used in financing activities decreased to **$7.603 million** for the six months ended June 30, 2025, from **$18.944 million** in the prior year, mainly due to lower long-term debt principal payments[17](index=17&type=chunk)[200](index=200&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. BASIS OF PRESENTATION](index=11&type=section&id=1.%20BASIS%20OF%20PRESENTATION) This note outlines the basis for preparing the unaudited condensed consolidated financial statements, including adherence to SEC rules and U.S. GAAP, and details segment realignment and a revision of prior financial statements - The Company realigned its reporting structure in May 2024, changing from three segments (Revenue Cycle Management, Electronic Health Records, Patient Engagement) to two segments: Financial Health (formerly RCM) and Patient Care (formerly EHR, now including Patient Engagement)[22](index=22&type=chunk) **Revision of Previously Issued Financial Statements (Three Months Ended June 30, 2024, In thousands, except per share data):** | Item | As previously reported | Impact of revision | As adjusted | | :----------------------------------- | :--------------------- | :----------------- | :---------- | | Total revenue | $84,730 | $8

Financial Data and Key Metrics Changes - Bookings for the quarter were $25.6 million on a TCV basis, up from $22 million sequentially and $23 million year-over-year, representing a 10% increase year-over-year [6][23] - Revenue for the quarter was $85.7 million, which was at the lower end of expectations, and adjusted EBITDA was $13.7 million, slightly ahead of the midpoint [6][24] - The adjusted EBITDA margin for Q2 was 16%, compared to 15.7% in the previous year, with a revised EBITDA outlook reflecting a margin of 18.5% at the midpoint, up from 17% in previous guidance [22][15] Business Line Data and Key Metrics Changes - Financial health revenue was $54.3 million, relatively flat and representing 63% of total revenue, with a year-to-date growth of 2.3% [24][25] - Patient care revenue increased to $31.4 million, up approximately 1.1%, and would have grown almost 4% excluding the Centric product's contribution from the previous year [25] - Gross margins for financial health were 46%, up 150 basis points year-over-year, while patient care gross margins reached 62%, increasing 400 basis points year-over-year [25][26] Market Data and Key Metrics Changes - Accounts receivable improved by 5% in Q2, and Days Sales Outstanding (DSO) improved by four days compared to the prior year [21] - The company ended the quarter with a net leverage of 2.4 times, an improvement from 3.9 times a year ago [21] Company Strategy and Development Direction - The company is focusing on enhancing operations, driving efficiencies, and unlocking the value of its existing customer base, with plans to operationalize these strategies in the second half of the year [5][10] - A physical presence in India is being established to standardize workflow and improve productivity, with an opening targeted for 2026 [11] - The company is leveraging AI to enhance both internal efficiency and client experience, collaborating with Microsoft to integrate advanced AI capabilities into its EHR solution [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term objectives despite challenges, emphasizing the importance of client retention and operational improvements [4][13] - The company anticipates potential headwinds in the second half of the year due to external policy uncertainties but sees long-term opportunities in helping clients navigate the new landscape [36][36] - The revised guidance reflects a lower top end of revenue range but an increase in adjusted EBITDA range, indicating prudent expense management and resource optimization [27] Other Important Information - The company signed a significant deal in Q2 that will not start contributing revenue until 2026, highlighting the longer implementation times for larger contracts [14] - The company is actively working on strengthening its accounting processes and internal controls, with KPMG selected as the new independent registered public accountant [22] Q&A Session Summary Question: Can you provide more details on the savings and efficiency initiatives? - Management indicated that they are working on modernizing client support and expect to realize savings starting in Q4, with a run rate in the low single-digit millions [30][32] Question: How has the recent legislation impacted client budgeting and contract signing? - Management noted that there was initial uncertainty, but now that the legislation has passed, hospitals are starting to plan, which may lead to potential headwinds in sales for the second half of the year [34][36] Question: What are the leading indicators for maintaining consistent bookings above $20 million? - Management expressed confidence in bookings performance, noting a balance between patient care and financial health, but acknowledged challenges in the patient care net new market [42][45] Question: Can you elaborate on retention trends by segment? - Management reported strong retention rates in patient care, while financial health is seeing improvements month over month, with a focus on enhancing operational efficiency [48][51] Question: What is the assessment of the Vugal acquisition? - Management remains pleased with the acquisition but acknowledged challenges in scaling operations and the need for standardization to improve performance [56][58]

[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)

TruBridge (TBRG) 2025 Conference Summary Company Overview - TruBridge has been in operation since 1979, focusing on serving the rural and community healthcare market through two main business units: Electronic Health Records (EHR) and Revenue Cycle Management (RCM) [4][5] - The EHR business targets hospitals with 100 beds and under, while the RCM business serves hospitals with 400 beds and under [4] Core Business Strategy - The company emphasizes its commitment to the rural community market, believing it is underserved and presents economic opportunities [5] - TruBridge aims to keep its technology updated and expand services to enhance patient care delivery for its customers [6] Recent Developments - The annual client conference focused on EHR customers, showcasing technological innovations and gathering feedback on challenges faced by clients [7] - A partnership with Microsoft to leverage Azure for cloud technology has been established, enhancing service delivery [8] Market Conditions - Concerns about the rural hospital market include reports that 40% are on the verge of closure; however, the company argues that similar issues exist in larger hospitals [12] - The company plays a role in improving efficiency in patient care delivery and backend processes to ensure steady cash flow for rural hospitals [14] Competitive Landscape - TruBridge differentiates itself by focusing solely on the rural community market, unlike larger competitors such as Cerner and Epic, which target larger hospitals [15][16] - The company believes it can create value through its combined EHR and RCM services, which are tailored for rural hospitals [18] Automation and AI Initiatives - Investments in automation and standardization are aimed at improving efficiency in RCM and EHR processes, including the use of robotic process automation [19][20] - The goal is to reduce provider burnout by streamlining documentation processes, allowing healthcare providers to spend more time with patients [21] Financial Performance - TruBridge has shown strong financial results, exceeding consensus estimates in five consecutive quarters [25] - The company reported an EBITDA margin of approximately 11-12% in Q1 2024, with a focus on cash management leading to a reduction in debt by $26 million [26] Future Guidance - The company aims for a long-term EBITDA margin target of 20% by the end of 2024, with aspirations to reach 25% and then 30% in subsequent years [33][34] - Economic uncertainties may impact guidance, but the company remains optimistic about its financial health and growth potential [28] SaaS Model Transition - TruBridge is transitioning its EHR business from a licensed model to a Software as a Service (SaaS) model, which is more appealing to customers due to predictable costs [39][40] - The company has seen nearly 100% of new EHR customers adopt the SaaS model, indicating a shift in customer preferences [41] Reimbursement Environment - The reimbursement landscape for rural hospitals remains uncertain, with potential impacts from Medicaid and Medicare changes [35][36] - TruBridge aims to help hospitals navigate these challenges by providing RCM solutions to stabilize their financial health [37] Underappreciated Aspects - The company is shifting from a lifestyle company to a performance-driven organization, focusing on seizing market opportunities and enhancing financial performance [49] Conclusion - TruBridge is strategically positioned to serve the rural healthcare market with a focus on technology and service delivery, while navigating financial and operational challenges in a changing healthcare landscape.

Financial Performance - Total revenues for Q1 2025 increased by $3.1 million, or 4%, to $87.2 million compared to $84.1 million in Q1 2024[157][160]. - Net income for Q1 2025 was $0.5 million, or $0.03 per share, compared to a net loss of $1.9 million, or $0.13 per share, in Q1 2024, representing an improvement of $2.3 million[157][174]. - Financial Health segment revenues increased by $2.7 million, or 5%, to $56.1 million, driven by growth in core RCM services[162][177]. - Patient Care segment revenues increased by $0.4 million, or 1%, to $31.1 million, with recurring revenues decreasing by $1.8 million, or 6%[163][177]. - Adjusted EBITDA for Q1 2025 increased by $7.9 million, or 77%, to $18.2 million compared to $10.3 million in Q1 2024[177]. Cost Management - Total costs of revenue decreased by $2.2 million, or 5%, to $39.5 million, representing 45.3% of total revenues in Q1 2025, down from 49.6% in Q1 2024[159][164]. - Product development expenses decreased by $2.4 million, or 23%, compared to Q1 2024, primarily due to cost optimization initiatives[167]. - Sales and marketing costs decreased by $1.2 million, or 18%, compared to Q1 2024, driven by reduced employee travel and commissions[168]. Cash Flow and Financing - Cash and cash equivalents as of March 31, 2025, were $10.1 million, with remaining borrowing capacity under the revolving credit facility of $46.6 million[182]. - Net cash provided by operating activities increased by $7.8 million to $5.8 million in Q1 2025, compared to a net cash used of $2.0 million in Q1 2024[184]. - Net cash used in investing activities decreased by $18.6 million to $2.2 million for the three months ended March 31, 2025, compared to cash provided of $16.4 million for the same period in 2024[185]. - Financing activities resulted in a net cash use of $5.7 million for the three months ended March 31, 2025, compared to a net cash use of $14.1 million for the same period in 2024[186]. - As of March 31, 2025, the company had $55.5 million in principal amount outstanding under the term loan facility and $113.4 million under the revolving credit facility, with an average interest rate of 7.32%[187]. - The company had $168.9 million of outstanding borrowings under credit facilities as of March 31, 2025, with exposure to fluctuations in interest rates[198]. - A 100 basis point change in interest rates on borrowings would result in a change in interest expense of approximately $1.7 million annually[198]. Customer Retention and Growth - The retention rate for Patient Care customers was 94.9%, with the flagship TruBridge EHR product achieving a retention rate of 98.2%[141]. - SaaS license models constituted 100% of annual new Patient Care installations in 2022, a significant increase from 12% in 2018[149]. - The company aims to achieve long-term revenue growth by cross-selling Financial Health services into its existing Patient Care customer base[139]. Strategic Initiatives - The transition to a subscription-based recurring revenue model is a key focus, with an emphasis on maintaining and growing recurring revenues[142]. - Margin optimization efforts include the expanded use of offshore resources and automation, which have provided meaningful efficiencies[154]. - The company has implemented a reduction in force to align resources with business priorities and enhance customer satisfaction[152]. - The company is actively involved in shaping AI governance and controls to ensure safe implementation in healthcare delivery[144]. Backlog and Bookings - The twelve-month backlog as of March 31, 2025, included approximately $3.3 million in non-recurring system purchases and approximately $327.8 million in recurring payments, compared to $10.7 million and $320.7 million, respectively, as of March 31, 2024[190]. - Total bookings for the three months ended March 31, 2025, were $21.981 million, a decrease of 7% from $23.569 million in the same period of 2024[191]. - Financial Health bookings decreased by $1.6 million, or 11%, in Q1 2025 compared to Q1 2024, while Patient Care bookings remained relatively flat[192][193]. - Total bookings at the ACV methodology for Q1 2025 were $17.340 million, with Financial Health at $12.780 million and Patient Care at $4.560 million[195]. - The company will report bookings on an Annual Contract Value (ACV) basis starting January 2025, transitioning fully to ACV reporting in 2026[194].

Group 1 - TruBridge reported quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.37 per share, but showing an increase from $0.19 per share a year ago, resulting in an earnings surprise of -2.70% [1] - The company posted revenues of $87.21 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.51%, and compared to year-ago revenues of $83.25 million [2] - TruBridge has topped consensus revenue estimates four times over the last four quarters, indicating a consistent performance in revenue generation [2] Group 2 - The stock has increased approximately 29.1% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.28 on revenues of $87.33 million, and for the current fiscal year, it is $1.79 on revenues of $349.64 million [7] Group 3 - The Medical Info Systems industry, to which TruBridge belongs, is currently in the top 27% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - The Zacks Rank for TruBridge is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Adjusted EBITDA nearly doubled to $18,200,000 from $10,000,000 year-over-year, with cash flow from operations increasing over $7,000,000, and net leverage ratio improved to 2.4 times from 4.4 times [4][5][20] - Revenue for the quarter was $87,200,000, reflecting a year-over-year increase of 3.7%, with adjusted EBITDA margin at 20.9%, up 860 basis points from the prior year [24][27] Business Line Data and Key Metrics Changes - Bookings totaled $22,000,000, down from $24,000,000 year-over-year, but up from $14,000,000 in Q4 2024, with financial health bookings at $13,000,000, a 50% sequential increase [6][8] - Patient care bookings were $9,000,000, a 60% sequential increase, with customer retention at 98% excluding Sentric [8][15] Market Data and Key Metrics Changes - Financial health represented 64% of total revenue at $56,100,000, a 5% increase year-over-year, while patient care revenue was $31,100,000, up 1.3% year-over-year [25][26] - Gross margins improved to 54.7%, with financial health gross margins at 51.6%, up 700 basis points, while patient care gross margins remained flat at 60.4% [26][27] Company Strategy and Development Direction - The company is focusing on enhancing customer service and operational efficiency, with plans to standardize global hiring processes and increase offshore support to 60% by the end of 2025 [12][14] - There is a clear demand for automation in revenue cycle management, with plans to leverage AI to drive improvements [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious sentiment among customers due to policy uncertainties and potential changes in Medicare expansion and reimbursement [36][38] - The company remains committed to improving profitability and cash flow management, with expectations for continued revenue growth despite external challenges [19][29] Other Important Information - The company will transition to reporting bookings solely on an annual contract value (ACV) basis by 2026, which is expected to clarify revenue potential [9][24] - Cash from operations was $5,400,000, with accounts receivable down 12% and days sales outstanding (DSO) improving by twelve days year-over-year [20][28] Q&A Session Summary Question: How are policy changes affecting customer purchasing decisions? - Management indicated that while there is caution among customers due to policy uncertainties, they have not seen immediate impacts on sales cycles [34][36] Question: What are the expected net savings from reducing staffing duplicity? - Expected savings from offshore staffing are projected in the mid-single-digit millions for the full year, with ongoing evaluations of staffing efficiency [40][42] Question: Can you elaborate on Meredith's plan for client retention? - The focus is on enhancing client satisfaction and retention through improved operational efficiency and quality output from the offshore team [47][49] Question: What is the strategy regarding automation and offshore labor? - The company aims for a 60% offshore staffing mix while continuing to invest in automation to improve efficiency and standardization of processes [51][53] Question: How should we view the decline in non-subscription patient care bookings? - The shift to a SaaS model has affected the revenue structure, with a focus on recurring revenue rather than one-time fees [68][70] Question: Were the recent financial health deals concentrated in the lower or upper end of the 100-400 bed range? - One deal was just over 100 beds, while the other was closer to the upper end, indicating a balanced approach in targeting this market segment [73][75]

Revenue Performance - TruBridge reported total revenues of $87.2 million for Q1 2025, an increase of 3.1% compared to $84.1 million in Q1 2024[5] - Financial Health revenue was $56.1 million, representing 64% of total revenue, up from $53.4 million in the previous year[5] - TruBridge's recurring revenue accounted for 94% of total revenue in Q1 2025[5] - Total revenues for the three months ended March 31, 2025, were $87,208,000, compared to $84,117,000 in 2024, reflecting a year-over-year growth of 3%[34] - Recurring revenues for the three months ended March 31, 2025, increased to $81,970,000 from $80,660,000 in 2024, indicating a stable revenue stream[34] Profitability - The company achieved a GAAP net income of $0.5 million, compared to a net loss of $1.9 million in Q1 2024[5] - Non-GAAP net income increased to $5.2 million, up from $3.4 million year-over-year[5] - Net income for the three months ended March 31, 2025, was $459,000, a significant improvement from a net loss of $1,854,000 in the same period of 2024[17] - The company reported a Non-GAAP net income of $5,192,000 for the three months ended March 31, 2025, compared to $3,369,000 in 2024, marking a 54% increase[32] Adjusted EBITDA - Adjusted EBITDA for Q1 2025 was $18.2 million, significantly higher than $10.3 million in Q1 2024[5] - Adjusted EBITDA for the three months ended March 31, 2025, was $18,231,000, representing a 76% increase from $10,324,000 in 2024[27] - The company’s Adjusted EBITDA margin improved to 20.9% in 2025 from 12.3% in 2024, reflecting enhanced operational efficiency[29] Future Guidance - TruBridge expects total bookings of $22.0 million for Q2 2025, down from $23.6 million in Q2 2024[5] - The company anticipates total revenue for the full year 2025 to be between $345 million and $360 million, unchanged from previous guidance[6] - The company plans to transition to reporting bookings on an Annual Contract Value (ACV) basis starting January 2025, enhancing revenue recognition clarity[24] Cash Flow and Financial Health - Cash and cash equivalents at the end of the period were $10,124,000, down from $12,324,000 at the beginning of the period[17] - The company experienced a net cash provided by operating activities of $5,760,000 for the three months ended March 31, 2025, a turnaround from a cash used of $2,034,000 in 2024[17] - The leverage ratio improved to 2.4x following additional debt repayment[3] Non-GAAP Financial Measures - Non-GAAP net income is derived from GAAP net income with adjustments for amortization, stock-based compensation, and nonrecurring charges, reflecting core profitability[39] - Non-GAAP EPS is calculated from Non-GAAP net income divided by diluted weighted average shares outstanding, offering a clearer view of earnings per share[39] - Stock-based compensation is excluded from non-GAAP measures as it may not correlate directly with business performance and varies significantly over periods[40] - Severance and other nonrecurring charges are excluded from non-GAAP measures due to their nonrecurring nature, which may not reflect ongoing operational performance[40] - Non-cash interest expense is excluded from non-GAAP measures as it relates to specific transactions and may not reflect underlying business performance[40] - The gain on the sale of AHT is excluded from non-GAAP measures as it pertains to a specific transaction and does not correlate with ongoing operations[40] - The company emphasizes that non-GAAP financial measures are not alternatives to GAAP measures and have limitations in reflecting overall financial performance[39] - Investors are encouraged to review the "Unaudited Reconciliation of Non-GAAP Financial Measures" for a comprehensive understanding of financial performance[39]