[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]

Financial Performance - The company reported a significant increase in revenue, achieving $1.2 billion, representing a 15% year-over-year growth[7]. - Operating margins improved to 25%, up from 22% in the previous year, reflecting better cost management[7]. - The company anticipates a revenue growth of 10% to 12% for the next fiscal year, driven by new product launches and market expansion[7]. User Engagement - User data showed a 25% increase in active users, reaching 5 million, indicating strong market engagement[7]. - The backlog of orders increased by 18%, indicating strong demand for the company's services[7]. Market Expansion - The company plans to expand its market presence in Europe, targeting a 30% increase in market share over the next two years[7]. - A strategic acquisition was completed, valued at $200 million, aimed at enhancing product offerings and customer base[7]. Investment in Technology - Investment in new technology development increased by 20%, focusing on enhancing software capabilities and security features[7]. - The company is committed to maintaining its R&D spending at 15% of total revenue to drive innovation[7]. Revenue Model Transition - The company is transitioning to a subscription-based revenue model, which is expected to improve cash flow stability[7].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $87.4 million, an increase of 2% year-over-year, and adjusted EBITDA of $17.2 million, which was a 44% increase compared to the previous year [8][10]. - The full year revenue for 2024 was $339 million, with adjusted EBITDA of $53 million, exceeding the high end of guidance ranges [10][56]. - Cash flow from operations improved to $10.3 million in Q4, a $23 million increase compared to the previous year, and full year cash flow from operations reached $32 million, up from just over $1 million in 2023 [9][38]. Business Line Data and Key Metrics Changes - Financial Health revenue for Q4 was $54.7 million, up 7.3% year-over-year, representing approximately 63% of total revenue, driven by core CBO offerings and Viewgol [49]. - Patient Care revenue decreased by 6.3% year-over-year to $32.7 million, impacted by the divestiture of AHT and the sunsetting of Centriq, although excluding these, revenue was higher year-over-year [50]. - Total bookings for the year were $82 million, with Financial Health bookings flat year-over-year at $49 million and Patient Care bookings up 6% to $33 million [54][56]. Market Data and Key Metrics Changes - The company noted that 75% of the time, no decision remains the reason for not closing a deal, rather than losing to a competitor, indicating a potential market opportunity [17]. - The market for hospitals with 100 to 400 beds grew from 5% to over 20% of financial health opportunities in the pipeline from 2023 to 2024 [16]. Company Strategy and Development Direction - The company plans to continue focusing on improving customer satisfaction, retention, and profitability while expanding its presence in the 100 to 400 bed hospital market [18][34]. - A new leadership was brought in for the financial health business unit to enhance customer satisfaction and pipeline expansion [19][20]. - The company aims to double the percentage of CBO clients supported by the global workforce from 30% to 60% by the end of 2025 [24]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, despite some uncertainty regarding healthcare funding changes from the government, which could impact deal timing [13][106]. - The company expects to achieve mid-single digit revenue growth and EBITDA margins in the mid-20s over the next few years [32][60]. - Management highlighted the importance of improving forecasting and accounting processes to enhance predictability and control [46][47]. Other Important Information - The company reduced its leverage ratio from over 4 times to 3 times and plans to continue de-levering [11][40]. - Total gross margins improved to 53% in Q4, up 390 basis points year-over-year, with Financial Health gross margins at 49.1% and Patient Care gross margins at 59.6% [51][52]. Q&A Session Summary Question: Can you speak to the visibility on closing remaining deals expected to close in Q4? - Management indicated that some deals were delayed due to uncontrollable factors but remain optimistic about closing them in the first half of 2025 [64][66]. Question: What are the expectations for sales and marketing initiatives in 2025? - The company plans to increase investments in marketing to enhance brand exposure and drive cross-sell opportunities, particularly targeting hospitals that do not currently use their EHR [68][70]. Question: How does the company view the growth among its two segments for 2025? - Financial Health is expected to be the primary growth driver, while Patient Care is anticipated to see low single-digit growth [85][87]. Question: Can you provide insights on the demand environment and metrics like pipeline and win rate? - The company noted that about 40% of bookings come from opportunities opened and closed within the same quarter, and the win rate is above 50% when excluding no-decision outcomes [89][95]. Question: How does the company plan to handle the 60 renewals in 2025? - The renewals are spread throughout the year, and the company is focused on ensuring customer satisfaction to retain these clients [99][103].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $87.4 million, an increase of 2% year-over-year, and adjusted EBITDA of $17.2 million, which was an increase of 44% compared to the previous year [8][49]. - For the full year 2024, total revenue was $339 million, with adjusted EBITDA of $53 million, exceeding the high end of guidance [10][58]. - Cash flow from operations improved to $32 million from just over $1 million in the previous year, with Q4 cash flow from operations at $10.3 million, a $23 million improvement year-over-year [10][38]. Business Line Data and Key Metrics Changes - Financial Health revenue for Q4 was $54.7 million, up 7.3% year-over-year, representing approximately 63% of total revenue [49]. - Patient Care revenue decreased by 6.3% year-over-year to $32.7 million, primarily due to the impact of revenues from ESG and Centriq in Q4 2023 [50]. - Total bookings for the year were $82 million, reflecting a 2.3% increase compared to the prior year, with Financial Health bookings flat and Patient Care bookings up 6% [54][56]. Market Data and Key Metrics Changes - The company noted that the market for hospitals with 100 to 400 beds grew from 5% to over 20% of financial health opportunities in their pipeline from 2023 to 2024 [16]. - The company is focusing on expanding its presence in this market segment, which is expected to drive future growth [16]. Company Strategy and Development Direction - The company plans to continue improving customer satisfaction and retention, as well as increasing profitability and growth in 2025 [18][32]. - A new leadership appointment in the Financial Health business unit aims to enhance customer satisfaction and pipeline expansion [19][20]. - The company is also focusing on optimizing its operations and capital allocation, with a goal of reducing its net leverage ratio to 2.5 times [40]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, despite some uncertainty regarding healthcare funding from the government, which could impact deal timing [13][106]. - The company is committed to maintaining momentum from 2024 into 2025, with expectations of mid-single-digit revenue growth and EBITDA margins in the mid-20s [32][60]. Other Important Information - The company has made significant improvements in cash flow management and working capital, with a focus on accounts receivable and collections [38][47]. - The company has also rationalized its capital expenditures, reducing its capitalized software as a percentage of total revenue [43][44]. Q&A Session Summary Question: Can you speak to the visibility on closing the remaining deals expected to close in Q4 2024? - Management indicated that while some deals slipped, they expect to close them in the first half of 2025, citing external factors affecting customer decisions [64][66]. Question: What are the expectations for sales and marketing initiatives in 2025? - The company plans to increase investments in marketing to enhance brand exposure, particularly among hospitals that do not currently use their technology [68][70]. Question: How does the company view the growth among its two segments for 2025? - Financial Health is expected to be the primary growth driver, while Patient Care is anticipated to see low single-digit growth [85][87]. Question: Can you provide insights on the demand environment and secondary metrics like pipeline and win rate? - Management noted that about 40% of bookings in a quarter are opportunities that opened and closed within that quarter, and the win rate is above 50% when excluding no-decision outcomes [89][95]. Question: How does the company plan to handle the 60 key CBO client renewals in the next 24 months? - Management emphasized a focus on customer satisfaction to ensure high retention rates among these clients, with no outsized clients among them [99][102].

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]. - Financial Health revenue for 2024 was $216.1 million, accounting for 63.7% of total revenue, compared to $193.9 million in 2023[11]. - Total annual bookings reached $82.1 million, up from $80.2 million in 2023[11]. - TruBridge's total revenue from the Financial Health segment for the twelve months ended December 31, 2024, was $34,559,000, up from $24,800,000 in 2023, reflecting a growth of approximately 39%[26]. - Total bookings for the twelve months ended December 31, 2024, were $82,074,000, up from $80,239,000 in 2023, showing a growth of about 2%[21]. 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 $42.5 million in Q4 2023[6]. - 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, indicating a reduction of 49% year-over-year[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]. - The non-GAAP EPS for the twelve months ended December 31, 2024, was $0.24, down from $1.79 in 2023, indicating a decline of about 87%[30]. Adjusted EBITDA and Margins - Adjusted EBITDA for 2024 was $53.1 million, with Q4 adjusted EBITDA at $17.2 million, an increase from $12.0 million in Q4 2023[6]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $53,090,000, compared to $47,576,000 in 2023, marking an increase of approximately 11%[28]. - The company’s adjusted EBITDA margin improved to 15.7% in 2024 from 14.0% in 2023[28]. Operational Efficiency - The company transitioned approximately 30% of its Financial Health Complete Business Office client base offshore, improving operational efficiency[5]. - 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]. Assets and Liabilities - Total current assets decreased to $90,274,000 in 2024 from $111,455,000 in 2023, representing a decline of approximately 19%[17]. - Total liabilities decreased to $225,737,000 in 2024 from $247,804,000 in 2023, reflecting a reduction of about 9%[17]. - The company’s total stockholders' equity decreased to $168,695,000 in 2024 from $186,618,000 in 2023, a decline of approximately 10%[17]. - Cash and cash equivalents increased to $12,324,000 at the end of 2024 from $3,848,000 at the end of 2023, representing a significant increase of 221%[19]. Strategic Initiatives - The company divested American Health Tech, marking its first divestiture in history, as part of its strategic initiatives[5]. - The provision for expected credit losses increased to $3,669,000 in 2024 from $1,920,000 in 2023, indicating a rise of 91%[19]. - The company plans to focus on strategic planning and operational performance evaluation using non-GAAP financial measures to better understand ongoing business trends[33]. - Management emphasizes that non-GAAP financial measures are important indicators of operational strength and should be considered alongside GAAP measures for a comprehensive view of financial performance[39]. Revenue Breakdown - Total Patient Care revenues for the twelve months ended December 31, 2024, were $123,098,000, a decrease of 15.4% from $145,506,000 in 2023[32]. - Recurring revenues from Acute Care for the three months ended December 31, 2024, were $28,193,000, slightly down from $28,640,000 in the same period of 2023[32]. - Non-recurring revenues from Acute Care increased to $4,515,000 for the three months ended December 31, 2024, compared to $2,447,000 in 2023, marking an increase of approximately 84.5%[32]. Other Financial Adjustments - The company incurred a pre-tax adjustment of $2,993,000 for severance and other nonrecurring charges in the three months ended December 31, 2024[30]. - The 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, reflecting a decrease of about 23.5%[30]. - The weighted average shares outstanding, diluted, increased to 14,330,000 for the three months ended December 31, 2024, compared to 14,205,000 in the same period of 2023[30].