Veradigm Update Conference Call Summary Company Overview - **Company**: Veradigm (OTCPK:MDRX) - **Date of Call**: February 18, 2026 Key Points Strategic Objectives - The CEO outlined three strategic objectives: reset business strategy, recover market leadership with independent physician practices, and reignite profitable growth [4][10] - The "Reset, Recover, Reignite" plan is fully launched, with a focus on aligning with independent physician practices to strengthen retention and drive growth [4][10] Financial Performance - Revenue for 2025 is estimated to be between $584 million and $589 million, essentially flat compared to 2024, with a slight decline of 1% at the midpoint [19] - The Provider segment, generating the majority of recurring revenue, is estimated to have revenue between $463 million and $467 million, down 2% at the midpoint compared to the prior year [20] - The Payer and Life Sciences segment revenue is estimated to be between $121 million and $122 million, flat at the midpoint compared to 2024 [20] Operational Changes - Six low-revenue products will be discontinued to focus on growth bets with near-term revenue potential [5][41] - The company plans to broaden revenue cycle services and enhance its global R&D function, leveraging AI as a key growth driver [6][51] - A new Chief Product and Technology Officer was appointed to accelerate AI adoption in product development [6] Workforce and Organizational Changes - The company eliminated 15% of its workforce in 2025 to flatten organizational design and increase decision velocity [7] - Internal engagement survey results showed an increase in confidence in strategic direction from 68% to 84% after the company kickoff in January [9] Market Opportunities - The company launched integrated billing for Practice Fusion clients, addressing a significant demand among small practice clients [10] - New deals in the payer space, including a partnership with Sentara Health Plans, highlight the market opportunity with large health systems [12] - The life sciences business closed two deals with a total contract value exceeding $1 million, indicating growth potential in this segment [13] Cash Flow and Financial Health - The company remains net cash positive, with cash at $120 million and debt at $75 million as of year-end 2025 [21] - Cash decreased by $174 million during 2025, primarily due to non-typical items such as debt financing activities and legal fees [21][22] SEC Filing Progress - The company is working to get current and stay current with SEC filings, with the next major milestone being the filing of the 2023/2024 Super K [15][25] - The launch of new IT systems under Project Atlas is critical for improving data integrity and contract standardization [14][25] Future Outlook - The CEO expressed optimism about the growth potential in 2026, emphasizing the importance of aligning with independent practices and enhancing revenue cycle management [34][36] - The company aims to leverage AI to improve operational performance and client engagement, particularly in revenue cycle areas [50][53] Conclusion - 2026 is viewed as a critical year for Veradigm, with a focus on resetting the business strategy, recovering financial performance, and reigniting growth [16][88]

Core Viewpoint - Health Catalyst (HCAT) is experiencing significant selling pressure, with a 20.4% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analyst expectations of better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - HCAT's current RSI reading is 28.93, suggesting that the heavy selling may be exhausting itself, indicating a potential bounce back towards equilibrium in supply and demand [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that HCAT's earnings estimates for the current year have increased by 128.1% over the last 30 days, which typically correlates with price appreciation in the near term [7]. - HCAT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8].

Core Insights - HEALWELL AI Inc. is making significant strides in integrating its AI capabilities and software platforms, focusing on preventative care and enhancing its SaaS offerings [1][2][8] Integration and Commercial Progress - The company has successfully unified its Khure and Pentavere AI capabilities into a single AI engine powered by DARWEN™, which has improved operational and commercial scale [2][12] - HEALWELL is leveraging Orion Health's global sales distribution network to create new upsell and cross-sell opportunities, enhancing its commercial pipeline as it enters 2026 [2][4] Market Acceptance and Product Development - HEALWELL's AI-enhanced software platforms, including the next-generation Amadeus AI, are gaining traction in markets across Canada, the United States, Europe, and the Middle East [3][12] - The DARWEN™ AI platform continues to expand its disease-state coverage and has received recognition, including the Prix Galien award [5][12] Scientific Validation and Strategic Focus - The company is strengthening its credibility in applied healthcare AI through scientific publications and clinical collaborations, with four publications accepted in the fourth quarter of 2025 [6][12] - HEALWELL is actively pursuing portfolio simplification and evaluating strategic investments, including a $2 million investment in xAI, now part of SpaceX [7][12] Long-term Strategy - The company aims to position itself as a global AI and data science partner for life sciences companies and health systems, capitalizing on structural healthcare tailwinds [8][9]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China's Healthcare AI Market - **Market Size**: The healthcare AI market in China was valued at Rmb227 billion in 2025 and is projected to grow at a 37% CAGR to Rmb1,114 billion by 2030E [30][4] - **Government Support**: The to-G healthcare AI segment is expected to show better profitability prospects than to-C businesses, with national healthcare AI application pilot base projects acting as key catalysts [5][44] Company Insights Ant Group and Ant Afu - **Ant Afu**: Positioned as an "Intelligent Health Manager," aiming to convert low-frequency medical needs into frequent health interactions, currently has 30 million MAUs with a target of over 100 million [19][18] - **Commercialization Strategy**: Focuses on pharmaceuticals, medical services, and insurance, with plans to partner with pharmacies and platforms like AliHealth [3][22] - **Integration with Alibaba Ecosystem**: Ant Afu benefits from a vast user base through AliPay, enhancing its potential for commercialization in pharma retail and medical services [4][42] Yidu Tech - **Market Position**: Expected to break even in FY26E, with revenue from its big data platform projected to grow 17% YoY in FY26E and accelerate to 30% YoY in FY27E [5][51] - **Target Price Increase**: Target price raised to HK$11 from HK$10 due to increasing hospital tenders for healthcare AI applications [51] AliHealth - **Valuation**: Currently trading at 30x FY26E P/E and 2.3x P/S, considered attractive compared to US healthcare AI peers [6][55] - **Market Position**: Seen as the best fit to partner with Ant Afu in pharma retail, making it a top pick in China's AI healthcare sector [1] Competitive Landscape - **Alibaba Ecosystem**: Considered the most competitive in China's healthcare AI market, leveraging integrated services from Ant Afu, AliHealth, and Taobao Shangou [4][38] - **Comparison with Competitors**: Ant Afu outperformed other healthcare AI chatbots in terms of accuracy, traceability, and user interaction [2][13] Future Opportunities - **Commercialization Path**: Ant Afu's future opportunities include AI-enabled services for chronic disease management, prenatal care, and integration with commercial health insurance products [22][21] - **AI Healthcare Infrastructure**: Significant opportunities in AI healthcare infrastructure, with hospitals budgeting an average of Rmb6 million for AI in 2025, expected to increase in 2026 [45][49] Risks and Considerations - **Valuation Risks**: While Chinese internet healthcare stocks are currently attractive, potential earnings revisions and government fiscal support could impact valuations [55] - **Integration Challenges**: The success of Ant Afu and AliHealth depends on their ability to integrate services seamlessly within the Alibaba ecosystem [39][40] Conclusion - The healthcare AI market in China is poised for significant growth, driven by government support and the integration of AI technologies within established ecosystems like Alibaba. Companies like Ant Afu and Yidu Tech are well-positioned to capitalize on these trends, with strong commercialization strategies and competitive advantages in user engagement and service integration.

Core Viewpoint - The development of internet hospital systems is a crucial aspect of modern healthcare information technology, aiming to achieve online, intelligent, and efficient medical services through the integration of various technologies [1][5]. Group 1: System Features - The system is designed to cover the entire patient care process, including online consultations, electronic prescriptions, remote consultations, health record management, drug delivery, and insurance settlement [1]. - The architecture follows principles of high availability, security, and scalability, allowing independent deployment of functional modules to enhance system stability and maintenance efficiency [3]. - Data security and privacy protection are core requirements, adhering to national health regulations and implementing multi-layer identity authentication, data encryption, and access control to prevent data breaches [3]. Group 2: Integration and Functionality - The system must integrate with traditional medical information systems like HIS, LIS, and PACS to ensure real-time synchronization and sharing of diagnostic data [3]. - It should support intelligent features such as smart triage, symptom self-check, and AI-assisted diagnosis to improve initial diagnosis accuracy and service response speed [3]. Group 3: Sustainable Development - Sustainable development of the internet hospital system requires policy support and inter-agency collaboration, including promoting interoperability with insurance systems and exploring reimbursement pathways for online consultations [4]. - Training and assessment of medical personnel for online practice are essential to standardize internet diagnosis and ensure quality and safety in medical services [4]. Group 4: Transformation of Healthcare Services - The development of internet hospital systems represents not only a technological innovation but also a profound transformation in healthcare service models, aiming to create an equitable, accessible, and high-quality smart healthcare service system [5].

Financial Data and Key Metrics Changes - The company reported Q3 revenue of $185 million, reflecting a 10% year-on-year growth and a 2% beat from the high end of guidance [6][14] - Adjusted EBITDA margin for Q3 was 60%, amounting to $111 million, which was 7% above the high end of guidance [7][14] - The net revenue retention rate was 112% on a trailing twelve-month basis, with the top 20 customers showing a higher retention rate of 117% [13][14] Business Line Data and Key Metrics Changes - The company surpassed 3 million registered members, with over 85% of US physicians and two-thirds of NPs and PAs on the platform [7] - Unique active users for workflow tools reached a record 720,000 in Q3, marking the largest sequential gain ever [7][8] - Over 300,000 unique prescribers utilized the company's AI products in Q3, with active prescribers querying the AI tool an average of 4 times a week [9][10] Market Data and Key Metrics Changes - The company expects the healthcare and pharma digital advertising market to grow roughly 5% in calendar 2026, down from previous growth rates [22][23] - The uncertainty surrounding recent policy changes, particularly the most favored nation (MFN) agreements, impacted client budget deployments and deal signings [17][25] Company Strategy and Development Direction - The company aims to strengthen its AI-powered digital platform for doctors, focusing on building trust and ensuring physician oversight in AI applications [12][19] - The strategy includes significant investments in AI infrastructure and development, with expectations to maintain adjusted EBITDA margins of 50% or greater [19][41] - The company plans to commercialize its AI tools later in the year, tapping into clients' innovation and upsell budgets [19][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about ending calendar year 2026 with significantly better growth than the start, driven by the release of previously unreleased client funds [46] - The company noted that digital marketing performs well in efficiency-driven environments, with a strong ROI for clients [68] - Management acknowledged the competitive landscape in AI and emphasized the importance of trust and relationships with healthcare providers [56][66] Other Important Information - The company generated free cash flow of $58.5 million in Q3 and ended the quarter with $735 million in cash and marketable securities [15] - A new $500 million open-ended share repurchase authorization was approved by the board [15] Q&A Session Summary Question: What is the growth rate expectation for the market in calendar year 2026? - The company expects the market to grow roughly 5% in calendar 2026, influenced by MFN agreements and client budget uncertainties [22][23] Question: How does the company view AI spending and innovation budgets? - The company anticipates that AI spending will ramp up as hospitals and health systems begin to adopt AI tools more broadly [26][27] Question: What is the company's strategy regarding AI monetization? - The company plans to introduce commercial AI products later this year, with expectations for revenue generation in the future [40][52] Question: How is the company addressing talent retention in a competitive environment? - The company is focusing on retaining its mission-driven team and offering stock grants to key personnel [71][72] Question: What are the expectations for the mid-year upsell season? - The company believes that as client funds are released, there will be opportunities for stronger upsell during the mid-year season [36][37]

Core Viewpoint - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on the author's personal disclosures and lack of financial positions in mentioned companies [1][2]. Group 1 - The author has no stock, option, or similar derivative positions in any of the companies mentioned [1] - There are no plans to initiate any such positions within the next 72 hours [1] - The article expresses the author's own opinions and is not receiving compensation for it, aside from Seeking Alpha [1] Group 2 - Seeking Alpha clarifies that past performance is not a guarantee of future results [2] - No recommendations or advice are provided regarding the suitability of investments for particular investors [2] - The views expressed may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [2]

Core Viewpoint - Healthcare Triangle, Inc. (HCTI) is acquiring Teyame AI LLC and its subsidiaries, enhancing its position in AI-powered customer and patient engagement solutions, with a total consideration of approximately $50 million [1][2]. Financial Impact - The acquired assets generated approximately $32 million in incremental annual revenue and about $3.6 million in incremental EBITDA for fiscal year 2025, indicating a significant potential for enhancing HCTI's financial performance and shareholder value [2]. Strategic Importance - This acquisition marks a pivotal moment in HCTI's transition from a healthcare IT provider to a comprehensive digital innovator, aiming to create an integrated ecosystem that personalizes patient interactions [5][4]. Technological Integration - The integration of AI-powered engagement platforms with HCTI's healthcare technologies is expected to deliver a next-generation intelligent ecosystem for patients and providers, expanding HCTI's SaaS footprint into Europe and Latin America [4][5]. Innovation and Capabilities - The assets include advanced technologies such as chatbot automation, multilingual patient engagement tools, and real-time analytics, which will enhance HCTI's clinical systems and overall service offerings [8][11].

Core Insights - NextGen Healthcare's Practice Management solutions have been ranked 1 by Black Book Market Research for the 9th consecutive year [1] - The rankings are based on a comprehensive 9-month survey of over 24,500 validated users across the U.S. [1] - Black Book's analysis highlights NextGen Healthcare as a leader in innovation within the practice management software sector [1]

Core Insights - Acentra Health has been recognized among Modern Healthcare's 2025 Best in Business in the Healthcare IT category, highlighting its role in driving innovation and excellence in the healthcare industry [1][3] Company Achievements - Acentra Health's Medicaid Enterprise System (MES) solution was the first to receive the Centers for Medicare & Medicaid's Streamlined Claims Module Certification and is highly ranked in NASPO ValuePoint™ categories [2] - The company has successfully reduced hospitalizations, emergency department visits, and assessment turnaround times through its care management programs [2] - Acentra Health has achieved a 12% reduction in Medicaid costs and a 20% increase in primary care use in Oregon, supporting nearly 3,000 individuals through its housing and rent assistance program [7] Industry Impact - Acentra Health serves beneficiaries in all 50 states, improving access to healthcare for over 170 million people [3] - The company is recognized for its innovative approaches that redefine care delivery and operations, contributing to the overall progress in the healthcare ecosystem [3]