CPSI(CPSI) - 2025 Q3 - Quarterly Results

Financial Performance - TruBridge reported total revenue of $86.1 million for Q3 2025, a 1.7% increase from $84.7 million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $16.3 million, compared to $14.7 million in Q3 2024, reflecting a 10.9% year-over-year growth[3] - The company achieved a 19% Adjusted EBITDA margin in Q3 2025, indicating improved profitability[2] - Recurring revenue accounted for 94% of total revenue in Q3 2025, highlighting the stability of the revenue stream[3] - TruBridge expects total revenue for Q4 2025 to be between $86 million and $89 million, with adjusted EBITDA projected between $16.5 million and $19.5 million[4] - For the full year 2025, total revenue is expected to be between $345 million and $348 million, revised from a previous estimate of $345 million to $350 million[4] - The company reported a GAAP net income of $5.6 million in Q3 2025, a significant turnaround from a net loss of $9.1 million in Q3 2024[3] - Net income for the nine months ended September 30, 2025, was $8,641,000, a significant improvement from a net loss of $15,390,000 in the same period of 2024[15] - Non-GAAP net income for Q3 2025 was $12,812,000, compared to a loss of $3,105,000 in Q3 2024, indicating a strong recovery[30] - Non-GAAP EPS for Q3 2025 was $0.88, compared to a loss of $0.22 in Q3 2024, showcasing improved profitability[30] Revenue Segmentation - Financial Health revenue for Q3 2025 was $54.5 million, representing 63% of TruBridge's total revenue[3] - Financial Health recurring revenues for Q3 2025 were $53,514,000, slightly up from $53,513,000 in Q3 2024[32] - Patient Care recurring revenues increased to $27,425,000 in Q3 2025 from $27,052,000 in Q3 2024, indicating growth in this segment[32] - Total non-recurring revenues for Q3 2025 were $5,167,000, compared to $4,135,000 in Q3 2024, reflecting an increase in non-recurring activities[32] - Patient Care segment bookings for the nine months ended September 30, 2025, were $27,105,000, slightly down from $27,464,000 in the same period of 2024[17] Operational Metrics - Total assets increased to $399,412,000 as of September 30, 2025, compared to $394,432,000 on December 31, 2024, reflecting a growth of 0.25%[13] - Total current liabilities increased to $53,749,000 as of September 30, 2025, from $52,975,000 on December 31, 2024, indicating a rise of 1.5%[13] - Cash and cash equivalents increased to $19,920,000 at the end of the period, compared to $12,324,000 at the beginning of the period, marking a growth of 61.5%[15] - The company experienced a net cash provided by operating activities of $28,107,000 for the nine months ended September 30, 2025, compared to $21,839,000 in 2024, representing a 28.5% increase[15] - Total bookings for the three months ended September 30, 2025, were $15,503,000, down 26% from $20,950,000 in the same period of 2024[17] Leadership and Strategy - TruBridge has made leadership enhancements, including hiring a Chief Business Officer to drive growth and client-centered excellence[2] - The company is focused on optimizing performance and achieving greater EBITDA margins and free cash flow in the coming years[2] Non-GAAP Financial Measures - Stock-based compensation is a non-cash expense that is excluded from non-GAAP financial measures due to its variability and lack of direct correlation to business performance[38] - Non-recurring charges related to severance and business transformation initiatives are excluded from non-GAAP financial measures as they may not reflect underlying business performance[38] - Non-cash interest expense, including amortization of deferred debt issuance costs, is excluded from non-GAAP financial measures for similar reasons[38] - Interest expense and other income, which includes interest on term loans and revolving credit facilities, is excluded from non-GAAP financial measures due to its transactional nature[38] - Gains or losses on the disposal of property and equipment are excluded from non-GAAP financial measures as they may not correlate with business performance[38] - The gain on the sale of AHT, a previously wholly-owned business, is excluded from non-GAAP financial measures due to its specific transactional nature[38] - Changes in the fair value of contingent consideration from the acquisition of Viewgol are excluded from non-GAAP financial measures as they may not reflect ongoing business performance[38] - Tax shortfalls or windfalls from stock-based compensation are excluded from non-GAAP financial measures due to their variability and lack of correlation to business performance[38] Adjusted EBITDA - Adjusted EBITDA for the nine months ended September 30, 2025, reached $48,245,000, up 25.5% from $38,460,000 in the same period of 2024[26] - Adjusted EBITDA for Q3 2025 reached $16,272,000, up from $14,692,000 in Q3 2024, resulting in an Adjusted EBITDA margin of 18.9% compared to 17.3%[28] - Financial Health segment adjusted EBITDA was $8,872,000 for the three months ended September 30, 2025, compared to $9,964,000 in the same period of 2024[26]