Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $87.2 million, aligning with the midpoint of revised guidance, while full-year revenue reached $346.8 million, a 1.4% increase over 2024 [3][4] - Adjusted EBITDA for Q4 was $19.2 million, representing a margin expansion to 22%, up from 20.4% in Q4 2024, while full-year Adjusted EBITDA was $68.7 million, a 23% year-over-year increase [4][18] - Free cash flow for the year was $20 million, an increase of $5 million over 2024, with cash flow from operations rising to $37 million, a 19% increase year-over-year [4][14] Business Line Data and Key Metrics Changes - Financial Health revenue totaled $56.2 million in Q4, a 2% year-over-year increase, while Patient Care revenue was $31 million, reflecting a 6.6% decline primarily due to the sunset of the Centriq product [17][18] - For the full year, Financial Health revenue was $221.7 million, up 2%, while Patient Care revenue was approximately flat at $125.2 million [20][21] - Bookings for Q4 were $19.8 million, up $6 million year-over-year, and total bookings for the year were $82.9 million, a 1% increase compared to the prior year [17][20] Market Data and Key Metrics Changes - The overall sales pipeline value is at its highest in 9 quarters, having increased by 53% since the beginning of Q3, with a notable shift towards larger opportunities [5] - The percentage of recurring deals in the pipeline has risen to over 70%, up from approximately 57% last summer, indicating improved quality of opportunities [5] Company Strategy and Development Direction - The company is engaged in a strategic review process to maximize shareholder value and is not issuing formal guidance, but expects modest revenue growth in 2026 and a 200 basis points improvement in Adjusted EBITDA margins [3][22] - The company is focusing on a comprehensive AI strategy across four pillars: Financial Health, Patient Care, Customer Service, and Internal Development, aiming to enhance operational efficiency and customer satisfaction [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in customer retention, particularly in the CBO segment, and highlighted ongoing efforts to improve processes and customer experience [6][29] - The company remains optimistic about its growth trajectory, citing a healthy demand environment and confidence in converting its growing pipeline [6][10] Other Important Information - The company has strengthened its financial position through disciplined debt reduction, lowering net debt by approximately $19.5 million year-to-date, and improving its net leverage ratio to 2x [14][15] - The company has opened a new Global Capacity Center in Chennai, which is expected to enhance its global delivery model [7] Q&A Session Summary Question: Can you explain the new bookings metric and how to use it for revenue visibility? - Management confirmed that recurring revenues and assumptions about bookings at conversion are key to understanding revenue visibility [25][26] Question: How did customer retention rates perform in Q4, and what are the expectations for 2026? - Management indicated that retention rates did not improve significantly in Q4, with expectations for modest improvement in 2026 [27][28] Question: What is the timeline for the strategic review process? - Management stated there is no specific timeline for the strategic review, emphasizing the focus on achieving the right outcome for shareholder value [30] Question: How do you see the conversion timing of larger deals in the pipeline? - Management noted that there are no capacity constraints, but the timing of bookings is often dependent on customer readiness [34][35] Question: What are the opportunities from the Rural Health Fund? - Management expressed commitment to helping hospitals access the $50 billion fund and emphasized the importance of being involved in shaping its use [72][74] Question: How is AI impacting the competitive landscape? - Management reported no significant changes in the competitive landscape yet, but acknowledged increased customer inquiries about AI initiatives [76][79] Question: What is the outlook for margin expansion? - Management indicated that the 200 basis points margin expansion will come from a combination of cost optimization and revenue mix improvements [80][81]

TruBridge (NasdaqGS:TBRG) Q4 2025 Earnings call March 31, 2026 04:30 PM ET Company ParticipantsChris Fowler - President and CEOMaxine Juvelier - Equity Research AssociateRyan Halsted - Managing DirectorVinay Bassi - CFO and TreasurerConference Call ParticipantsGene Mannheimer - Senior Research AnalystJeff Garro - Managing Director and Equity Research AnalystSarah James - Managing Director and Equity Analyst for Healthcare ServicesSean Dodge - Equity Research AnalystOperatorAt this time, I will turn the call ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $87.2 million, aligning with the midpoint of revised guidance, while full-year revenue reached $346.8 million, a 1.4% increase over 2024 [3][4] - Adjusted EBITDA for Q4 was $19.2 million, representing a margin expansion to 22%, up from 20.4% in Q4 2024, while full-year Adjusted EBITDA was $68.7 million, a 23% year-over-year increase [4][19] - Free cash flow for the year was $20 million, an increase of $5 million over 2024, with cash flow from operations rising to $37 million, a 19% increase year-over-year [4][15] Business Line Data and Key Metrics Changes - Financial Health revenue totaled $56.2 million in Q4, a 2% year-over-year increase, while Patient Care revenue was $31 million, reflecting a 6.6% decline primarily due to the sunset of the Centriq product [18][19] - Bookings for Q4 were $19.8 million, up $6 million year-over-year, supported by growing SaaS and strategic partnerships, with total bookings for the year at $82.9 million, a 1% increase [4][20] Market Data and Key Metrics Changes - The overall sales pipeline value is at its highest in nine quarters, increasing by 53% since the beginning of Q3, with a notable shift towards larger opportunities and recurring deals [5][6] - The percentage of recurring deals in the pipeline has improved to over 70%, up from approximately 57% last summer, indicating a healthier demand environment [5] Company Strategy and Development Direction - The company is engaged in a strategic review process to maximize shareholder value and is not issuing formal guidance, but expects modest revenue growth in 2026 and a 200 basis points improvement in Adjusted EBITDA margins [3][22] - A focus on AI strategy spans financial health, patient care, customer service, and internal development, with initiatives aimed at improving claims processing and customer interactions [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in customer retention, particularly in the CBO segment, and has implemented a structured transition model to improve retention rates [6][7] - The company is optimistic about the operational changes and believes it is on the right trajectory for future improvements, despite potential delays in consistent quarterly performance [6][11] Other Important Information - The company has strengthened its financial position through disciplined debt reduction, lowering net debt by approximately $19.5 million year-to-date, and improving its net leverage ratio to 2x [15][16] - The company opened a new Global Capacity Center in Chennai, marking a significant milestone in its global delivery model [8] Q&A Session Summary Question: Can you explain the visibility on revenue growth in relation to new bookings? - Management confirmed that recurring revenues and assumptions of bookings at conversion are key to understanding revenue visibility [25][26] Question: How is customer retention improving in the CBO segment? - Management indicated that retention rates are not yet at desired levels but are showing modest improvement, with a focus on ensuring smooth transitions for customers [27][28] Question: What is the timeline for the strategic review process? - Management stated there is no set timeline for the strategic review, emphasizing the importance of achieving the right outcome over meeting deadlines [30] Question: How should we think about the conversion timing of larger deals in the pipeline? - Management noted that there are no capacity constraints, but the timing of bookings is often dependent on customer readiness [34][35] Question: What synergies exist between Patient Care and Financial Health? - Management highlighted the interconnectivity between the two segments, particularly in serving rural community customers and expanding technology offerings [43][44] Question: What impact will the Rural Health Fund have on customer bases? - Management is actively engaging with hospitals to help them access the $50 billion fund, viewing it as a significant opportunity [70][72] Question: How is AI being leveraged in the business? - Management is cautious about AI implementation, focusing on projects that provide clear ROI and improve customer experience [76][77]