TruBridge(TBRG) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Q2 2025 Performance Highlights 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] CEO Commentary 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] - Full-year revenue outlook was revised downwards due to client attrition and larger, more complex deals[4] - Adjusted EBITDA range was raised due to efficiencies from offshoring, resource management refinement, and cost optimization[4] Financial Guidance 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 About TruBridge 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] - The company offers technology, services, and strategic expertise including revenue cycle management, electronic health records (EHR), and analytics[8] Forward-Looking Statements & Risks 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] - Other factors include challenges in attracting and retaining qualified personnel, potential future acquisitions, and risks related to the use of artificial intelligence[9] Financial Statements Condensed Consolidated Statements of Operations 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 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 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 Consolidated Bookings 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 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 - 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][25] - 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][25] Bookings Composition by Type 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 Adjusted EBITDA by Segment 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 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 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 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 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 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] - 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][39][41] - 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]