TruBridge(US:TBRG)2025-11-07 17:22Financial Performance - Total revenues for the first nine months of 2025 reached $259.0 million, a 2% increase from $254.4 million in the same period of 2024[159]. - Net income for the first nine months of 2025 was $8.6 million, a significant improvement from a net loss of $15.4 million in the first nine months of 2024, driven by revenue growth and cost reductions[159]. - Financial Health segment revenues for the nine months ended September 30, 2025, were $162.1 million, up 1% from $158.4 million in the prior year, with recurring revenues making up 98% of total Financial Health revenues[175]. - Patient Care revenues increased by $1.6 million, or 5%, in the third quarter of 2025 compared to the same quarter in 2024, primarily due to new SaaS contracts and EHR installations[163]. - Net income for the third quarter of 2025 was $5.6 million, a $14.8 million increase from a net loss of $9.1 million in the third quarter of 2024[173]. - Net income for the first nine months of 2025 increased by $24.0 million to $8.6 million, or $0.58 per share, compared to a net loss of $15.4 million, or $(1.04) per share, for the first nine months of 2024[186]. Cost Management - Total costs of revenues (exclusive of amortization and depreciation) decreased to 48.8% of total revenues in the third quarter of 2025, down from 50.0% in the same quarter of 2024[164]. - Total costs of revenues decreased by $4.6 million, resulting in costs representing 47% of total revenues in the first nine months of 2025, down from 50% in the same period of 2024[177]. - Total other expenses decreased by $1.7 million in the third quarter of 2025, primarily due to reduced interest expenses[170]. - Product development costs decreased by $2.1 million, or 8%, compared to the first nine months of 2024, primarily due to labor savings[179]. - Sales and marketing costs decreased by $1.2 million, or 6%, compared to the first nine months of 2024, mainly due to lower commissions[180]. Revenue Growth Strategies - The company aims to achieve long-term revenue growth by cross-selling Financial Health services into the existing Patient Care customer base[139]. - The company plans to release its first denials prediction model to the public in Q1 2026[144]. - SaaS license models accounted for 100% of annual new Patient Care installations in 2022 and through the first nine months of 2025, up from 12% in 2018[151]. Operational Efficiency - Operating income for the third quarter of 2025 was $4.1 million, compared to $2.8 million in the third quarter of 2024, reflecting improved operational efficiency[160]. - Margin optimization initiatives have been implemented, including the acquisition of Viewgol, which is expected to enhance control over resource availability and achieve cost efficiencies[156]. - The company has implemented margin optimization efforts, including organizational realignment and expanded use of automation since 2021[155]. Market Trends and Challenges - The company recognizes the need to adapt to regulatory changes impacting healthcare reimbursement, particularly with the recent OBBBA legislation[148]. - The company is actively involved in shaping AI governance and controls to ensure safe implementation in healthcare delivery[144]. Bookings and Backlog - As of September 30, 2025, the company had a twelve-month backlog of approximately $4.0 million for non-recurring system purchases and approximately $321.0 million for recurring payments under support and maintenance and RCM services[205]. - Total bookings for the three months ended September 30, 2025 were $15.5 million, a decrease of 26% from $20.95 million in the same period of 2024[206]. - The company reported a total of $52.0 million in bookings for the nine months ended September 30, 2025, down from $67.81 million in the same period of 2024[213]. - Financial Health bookings decreased by $3.0 million, or 24%, in Q3 2025 compared to Q3 2024, with net-new bookings down by $4.5 million, or 79%[207]. - Patient Care bookings decreased by $2.5 million, or 29%, in Q3 2025 compared to Q3 2024, primarily due to a 95% decrease in net-new bookings[209]. - Financial Health bookings for the first nine months of 2025 decreased by $4.4 million, or 11%, compared to the same period in 2024[208]. - Patient Care bookings for the first nine months of 2025 decreased by $0.4 million, or 1%, compared to the same period in 2024[210]. - The company will transition to reporting total bookings on an Annual Contract Value (ACV) basis starting January 2025, providing year-over-year comparability[212]. Cash Flow and Debt - Net cash provided by operating activities increased by $6.3 million to $28.1 million for the nine months ended September 30, 2025, compared to $21.8 million for the same period in 2024[199]. - As of September 30, 2025, the company had $165.2 million in principal amount of indebtedness outstanding under credit facilities, with a cash balance of $19.9 million[195]. - A one hundred basis point change in interest rate on outstanding borrowings of $165.2 million would result in a change in interest expense of approximately $1.7 million annually[216]. - As of September 30, 2025, the company had no investments and does not utilize derivative financial instruments to manage interest rate risks[217].