Veradigm (MDRX) - 2025 Q2 - Quarterly Results

Company Overview and Strategic Direction Introduction and Key Updates Veradigm released Q2 2025 estimates, reaffirmed FY2025 outlook, and appointed Donald Trigg as CEO - Veradigm provided Q2 2025 financial estimates, details on recent financing activities, and reaffirmed its FY2025 outlook[1] - Donald Trigg joined Veradigm as Chief Executive Officer and Board member on September 2, 2025[2] New Leadership and Strategic Vision New CEO Donald Trigg outlined plans to boost profitability, revive growth, and ensure timely SEC filings - CEO Don Trigg outlined Veradigm's immediate path: enhance profitability, revitalize growth, and timely complete SEC financial filings[3] - The company possesses a large national physician practice base and differentiated data assets offering a 'mainstream health' perspective[3] About Veradigm Veradigm is a healthcare technology company providing advanced insights and data-driven solutions - Veradigm is a healthcare technology company that creates value through its unique combination of platform, data, expertise, connectivity, and scale[9] - The Veradigm network provides advanced insights, technology, and data-driven solutions for healthcare providers, payers, and the biopharmaceutical market[9] Second Quarter 2025 Financial Performance Preliminary Unaudited Financial Overview Veradigm reported preliminary Q2 2025 GAAP revenue of $145-$148 million, with $350M cash and $283M debt Financial Metrics Overview | Metric | Q2 2025 Estimate | YoY Change (Midpoint) | | :----- | :--------------- | :--------------------- | | Revenue (GAAP) | $145 million - $148 million | -2% | | Cash & Equivalents (as of Jun 30, 2025) | $350 million | Increase of ~$78M from Mar 31, 2025 | | Debt (as of Jun 30, 2025) | $283 million | | Revenue Performance Q2 2025 GAAP revenue projected at $145-$148 million, with provider revenue at $115-$117 million Revenue Breakdown | Revenue Segment | Q2 2025 (Estimate) | Q2 2024 | H1 2025 (Estimate) | H1 2024 | | :-------------- | :----------------- | :-------- | :----------------- | :-------- | | Provider Revenue (GAAP) | $115 million - $117 million | $119 million - $120 million | $228 million - $232 million | $234 million - $236 million | | Payer & Life Sciences Revenue (GAAP) | $30 million - $31 million | $29 million - $30 million | $61 million - $63 million | $58 million - $60 million | | Total Veradigm Revenue (GAAP) | $145 million - $148 million | $148 million - $150 million | $289 million - $295 million | $292 million - $296 million | Cash and Debt Position As of June 30, 2025, cash and equivalents totaled $350 million, up $78M from March 31, with total debt at $283M Cash and Debt Summary | Metric | Jun 30, 2025 | Dec 31, 2024 | | :----- | :------------ | :---------------- | | Cash & Cash Equivalents | $350 million | $294 million | | Debt | $283 million | $208 million | - Cash and equivalents increased by approximately $78 million from March 31, 2025, reflecting $72 million in net debt financing inflows, $23 million in net portfolio activity inflows, $7 million in capital expenditure outflows, and $10 million in net operating activity outflows[5] Operational Highlights Q2 2025 commercial team secured over $30 million in ACV, consistent with Q1, with stable revenue - The commercial team completed over $30 million in annual contract value (ACV) transactions in Q2 2025, consistent with Q1[7] - The interim CFO stated that stable revenue performance and a robust capital base are foundational pillars for the company's future success[7] Financing Activities Convertible Notes Repurchases Veradigm completed two convertible note repurchases totaling $230 million, reducing outstanding notes - On July 1, 2025, the company repurchased approximately $180 million of convertible notes using cash on hand, including $164 million in principal and $16 million in contractual repurchase premium plus accrued interest[5] - On September 29, 2025, the company repurchased approximately $50 million of convertible notes using cash on hand, including $44 million in principal and $6 million in contractual repurchase premium plus accrued interest[5] Debt Structure Post-Repurchases Post-repurchases as of September 29, 2025, Veradigm's debt is primarily $75 million from a senior secured term loan - As of September 29, 2025, post-convertible note repurchases, the majority of the company's debt consists of $75 million outstanding under its senior secured term loan facility[6] - As of September 29, 2025, the company had 108.9 million common shares outstanding and 10.6 million unvested restricted stock units[6] Fiscal Year 2025 Outlook Reaffirmed Financial Expectations Veradigm reaffirmed FY2025 outlook, projecting GAAP revenue flat with FY2024 ($583-$588 million) and positive net cash FY 2025 Financial Outlook | Metric | FY 2025 Outlook | FY 2024 Estimate Range | | :----- | :------------------ | :---------------------- | | Revenue (GAAP) | Largely Flat | $583 million - $588 million | | Net Cash | Expected to Remain Positive | | Investor Relations Conference Call and Webcast Details Veradigm management will host an investor conference call and webcast on October 1, 2025, at 8:00 AM ET - Veradigm management plans to host an investor conference call and webcast on October 1, 2025, at 8:00 AM ET[7] - Participants can access the call via the Veradigm Investor Relations website or by dialing 877-405-1224 or 201-389-0848 (Access ID 13755960), with a replay available on the website for one year[8] Legal and Forward-Looking Statements Disclaimer on Preliminary Results Preliminary, unaudited financial estimates are subject to change upon completion of financial closing procedures - The financial performance estimates in this press release are preliminary, unaudited results, and final results may change upon completion of the company's financial closing procedures[12] Forward-Looking Statements and Risk Factors This release contains forward-looking statements based on management's beliefs, subject to risks like unlisted common stock, delayed reporting, internal control issues, SEC investigation, and litigation - This press release contains forward-looking statements based on management's current beliefs and expectations regarding future events, subject to significant risks and uncertainties[13] - Key factors that could cause actual results to differ materially from forward-looking statements include risks such as common stock not trading on a national securities exchange, delayed financial reporting, internal control deficiencies, SEC investigation, litigation, leadership recruitment, and additional indebtedness[14]