RESTON, Va., Feb. 19, 2026 (GLOBE NEWSWIRE) -- Leading Fortune 500 mission integrator, Science Applications International Corp. (NASDAQ: SAIC), has launched the Alliance for Advancing Rural Healthcare (AARH) to bring together best-in-class healthcare organizations to help state governments rapidly and successfully execute the Rural Health Transformation (RHT) Program – a federal initiative designed to strengthen healthcare systems across rural and local communities. The alliance of SAIC, Arcadia, Castlight ...

Core Insights - TruBridge (TBRG) shares increased by 5.6% to close at $20.43, supported by higher trading volume compared to normal sessions, despite a 7.4% decline over the past four weeks [1][2] Company Performance - TruBridge has been recognized as one of Modern Healthcare's 2025 Best in Business, highlighting its commitment to rural and community healthcare, which includes helping providers recoup revenue and strengthen fiscal sustainability [2] - The company is projected to report quarterly earnings of $0.41 per share, reflecting a significant year-over-year increase of 720%, with expected revenues of $87.63 million, a slight increase of 0.3% from the previous year [3] Earnings Estimates and Stock Movement - The consensus EPS estimate for TruBridge has remained stable over the last 30 days, indicating that stock price movements may not sustain without changes in earnings estimate revisions [4] - TruBridge currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook in the market [4]

Core Insights - TruBridge, Inc. has been recognized as one of Modern Healthcare's 2025 Best in Business, highlighting its dedication to rural and community healthcare [1] - The award signifies TruBridge's mission to assist healthcare providers in recouping revenue, reducing denials, and enhancing fiscal sustainability [1] - With a legacy of 45 years, TruBridge serves over 1,500 clients across the United States [1]

Core Viewpoint - TruBridge, Inc. has extended its cooperation agreement with its largest shareholder, Pinetree Capital Ltd. and L6 Holdings Inc., which includes the appointment of Damien Leonard to the Board of Directors effective January 12, 2026 [1] Group 1 - TruBridge is a healthcare solutions company listed on NASDAQ under the ticker TBRG [1] - The cooperation agreement aims to strengthen the relationship between TruBridge and its largest shareholder, Pinetree [1] - The appointment of Damien Leonard to the Board is subject to the material completion of certain conditions [1]

Core Insights - TruBridge, Inc. and The Health Management Academy have launched the Rural Health Collaborative to support rural and community hospitals [1] Group 1: Initiative Overview - The Rural Health Collaborative aims to modernize and strengthen rural and community hospitals during a critical period for healthcare delivery [1]

Core Insights - TruBridge, Inc. has announced an expanded exclusive partnership with RevSpring to enhance its healthcare technology solutions for rural and community hospitals [1][2] Partnership Details - The collaboration integrates RevSpring's patient engagement and payment optimization solutions into the TruBridge connected platform, aiming to improve financial performance and access to care in rural America [2][4] - This partnership is designed to empower rural healthcare organizations with sophisticated tools similar to those used by larger health systems, enhancing patient relationships and financial performance [4] New Capabilities - The expanded partnership introduces an intelligence suite that addresses individual affordability, helping rural providers increase collections, reduce bad debt, and elevate patient satisfaction [3] - TruBridge clients have already seen up to a 37% increase in cash receipts and patient satisfaction scores exceeding 95% [3] Technology and Solutions - RevSpring's Engage IQ™ solution is highlighted as the only connected patient engagement suite that coordinates patient interactions from pre-care to post-care to payment [6] - The intelligent payment suite utilizes predictive analytics to tailor communication channels and payment options to individual patient preferences, enhancing engagement and operational efficiency [7][8]

Financial 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].

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $86.1 million, a 2% increase year-over-year, with a normalized growth of 2.8% after accounting for the impact of the Centric product sunset [15][16] - Adjusted EBITDA margins are expected to expand approximately 600 basis points from 2023 to year-end, with a projected margin of 19% for 2025 [11][12] - Free cash flow improved by $20 million year-to-date, with net leverage reduced from 4.4x in Q4 2023 to approximately 2.2x by Q3 2025 [11][14] Business Line Data and Key Metrics Changes - Financial health revenue was $54.5 million, representing 63% of total revenue, remaining flat year-over-year [15] - Patient care revenue grew by 5.3% year-over-year to $31.6 million, with gross margin expanding to approximately 60% [16] - The Encoder business saw a significant increase in bookings, with margins reported at 70%-80% [22][23] Market Data and Key Metrics Changes - The percentage of Financial Health bookings in the 100-400 bed space increased from less than 20% in 2024 to more than 30% in 2025 [5] - Recurring revenue remained high at around 94% of total revenue, with financial health recurring revenue at approximately 95%-96% [15][36] Company Strategy and Development Direction - The company is focused on improving the quality of earnings and financial performance through operational streamlining and margin expansion [4][10] - Strategic transitions are being operationalized to enhance performance, with a focus on client retention and satisfaction [9][10] - The leadership team is being strengthened to support sales and marketing efforts, with a new Chief Business Officer appointed [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while Q3 bookings were below expectations, early signs in Q4 indicate a positive trend [6][22] - The regulatory landscape is expected to stabilize, which may lead to increased bookings in the future [25] - The company anticipates further adjusted EBITDA expansion and margin improvement in 2026, driven by cost optimization and global workforce transitions [19][20] Other Important Information - The company has made significant improvements in cash balance, increasing from $3.8 million at the end of 2023 to approximately $20 million [14] - Operating expenses were flat year-over-year at $40 million, representing 46% of revenue [16] Q&A Session Summary Question: Can you discuss the bookings performance and expectations? - Management indicated that Q3 bookings of $15.5 million were about 20% below expectations, primarily due to delayed decisions rather than negative influences [22] Question: Are there common reasons for hospitals delaying implementation? - Management noted that budget cycles and regulatory uncertainties are causing delays, but they expect decisions to accelerate as hospitals finalize their spending needs for 2026 [25] Question: What is the outlook for the pipeline and bookings growth? - Management expressed optimism about the pipeline, indicating that while Q3 was underwhelming, there is sufficient coverage for Q4 [31] Question: How will new sales leadership impact bookings? - Management stated that new leadership will focus on leveraging existing talent while also bringing in new resources to enhance sales efforts [34] Question: What is the status of recurring revenue and backlog? - Management confirmed that recurring revenue remains strong at around 94%, with the backlog being monitored closely [36]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $86.1 million, a 2% increase year-over-year, with a normalized growth of 2.8% after accounting for the impact of the Centric product sunset [16] - Adjusted EBITDA margins are expected to expand approximately 600 basis points from 2023 to year-end, with a projected margin of 19% for 2025, up from 16.5% in 2024 [12][19] - Free cash flow improved by $20 million year-to-date, with net leverage reduced from 4.4 times in Q4 2023 to approximately 2.2 times by Q3 2025 [12][15] Business Line Data and Key Metrics Changes - Financial health revenue was $54.5 million, representing 63% of total revenue, remaining flat year-over-year, while patient care revenue grew by 5.3% to $31.6 million [16][17] - Encoder business bookings have increased significantly, with margins of 70%-80%, indicating a positive trend in high-margin deals [22][24] Market Data and Key Metrics Changes - The percentage of Financial Health bookings in the 100-400 bed space increased from less than 20% in 2024 to more than 30% in 2025, reflecting a strategic focus on this market segment [5] - The company noted that the majority of hospitals operate on a calendar year budget cycle, which has influenced decision-making and timing for bookings [25] Company Strategy and Development Direction - The company is focused on improving the quality of earnings, enhancing client retention, and executing a strategic transition process to drive margin expansion [10][20] - The appointment of a new Chief Business Officer aims to elevate sales efforts and improve visibility into bookings and revenue growth [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while Q3 bookings were below expectations, early indicators in Q4 show a strong start, suggesting a potential recovery in pipeline conversion [6][30] - The company remains optimistic about future growth opportunities, particularly in the regulatory landscape and the focus on revenue cycle management (RCM) improvements [23] Other Important Information - The company has made significant progress in cost optimization, with capitalized software spending decreasing by 30% year-over-year [14] - Cash balance increased from $3.8 million at the end of 2023 to approximately $20 million, driven by improved profitability and disciplined working capital management [15] Q&A Session Summary Question: Can you discuss the bookings performance and expectations? - Management indicated that Q3 bookings of $15.5 million were about 20% below expectations, primarily due to delayed decisions rather than negative influences [22] Question: Are there common reasons for hospitals delaying implementation? - Delays are attributed to budget cycles and uncertainty regarding Medicaid funding, but management expects these decisions to accelerate as hospitals finalize their spending needs for 2026 [25] Question: What is the state of the pipeline and bookings growth expectations? - Management expressed caution, stating that while there is optimism in the pipeline, it is uncertain if Q4 will fully compensate for Q3 shortfalls [30] Question: How will new sales leadership impact bookings? - The new Chief Business Officer is expected to enhance sales efforts and improve accountability across sales, marketing, and client success functions [35] Question: What is the outlook for EBITDA margin expansion next year? - Management expects 200 basis points of margin expansion primarily from cost optimization efforts, with some implicit scenarios for revenue growth [44][46]

Core Insights - TruBridge (TBRG) reported quarterly earnings of $0.88 per share, exceeding the Zacks Consensus Estimate of $0.4 per share, and showing a significant improvement from a loss of $0.21 per share a year ago, resulting in an earnings surprise of +120.00% [1] - The company achieved revenues of $86.11 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.32% and reflecting a year-over-year increase from $83.83 million [2] - TruBridge has outperformed consensus revenue estimates three times over the last four quarters [2] Earnings Outlook - The sustainability of TruBridge's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $88.61 million, and for the current fiscal year, it is $1.76 on revenues of $346.54 million [7] Industry Context - The Medical Info Systems industry, to which TruBridge belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]