EX-99.1 2 ex_939684.htm EXHIBIT 99.1 ex_939684.htm

Exhibit 99.1

 

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TRUBRIDGE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTS

 

MOBILE, ALA. (March 31, 2026) – TruBridge, Inc. (NASDAQ: TBRG) (“TruBridge”), a leading provider of healthcare technology solutions for rural and community hospitals, today announced financial results for the fourth quarter and year ended December 31, 2025.

 

Fourth Quarter Financial 2025 Highlights

All comparisons are to the quarter ended December 31, 2024, unless otherwise noted.

 

 

Total bookings of $19.8 million compared to $14.3 million

 

Total revenue of $87.2 million compared to $88.1 million

 

o

Recurring revenue represented 94% of total revenue

 

Financial Health revenue of $56.2 million compared to $55.0 million

 

o

Financial Health revenue represented 65% of total revenue

 

GAAP net loss of $5.5 million compared to net loss of $5.1 million

 

Non-GAAP net income of $11.4 million compared to $1.1 million

 

Adjusted EBITDA of $19.2 million compared to $17.9 million

 

Full Year 2025 Financial Highlights

All comparisons are to the year ended December 31, 2024, unless otherwise noted.

 

 

Total bookings of $82.9 million compared to $82.1 million

 

Total revenue of $346.8 million compared to $342.2 million

 

o

Recurring revenue represented 94% of total revenue

 

Financial Health revenue of $221.7 million compared to $217.4 million

 

o

Financial Health revenue represented 64% of total revenue

 

GAAP net income of $4.4 million compared to net loss of $20.9 million

 

Non-GAAP net income of $38.5 compared to $4.6 million

 

Adjusted EBITDA of $68.7 million compared to $55.9 million

 

 

Commenting on the results, Chris Fowler, chief executive officer of TruBridge, stated, “Throughout 2025, we continued to improve the quality of our earnings and strengthen our operational foundation through cost management and execution of our offshoring strategy, resulting in ongoing margin enhancement. The organizational changes we have undertaken have positioned us to drive improved customer satisfaction and results for shareholders.

 

“As we look to 2026, we remain focused on the fundamentals while strategically pursuing a targeted AI initiative across the organization to enhance our offerings, modernize our technology infrastructure, and deliver an improved customer experience. We're making steady progress on our operational priorities and remain committed to continuous improvement,” concluded Fowler.

 

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We have been engaged in a strategic review process over the past several months with the assistance of outside financial and legal advisors, and we have considered a wide range of alternatives to maximize shareholder value, including, but not limited to, the sale of all or part of the Company or its assets, a joint venture or other business combination, share repurchases and organic growth investments. There can be no assurance that any transaction will be entered into or consummated in connection with these discussions or the strategic review process. We do not intend to make further announcements or provide more detailed commentary regarding the review process unless and until our Board of Directors approves a specific transaction, investment or strategy or otherwise determines that further disclosure is legally required or appropriate.

 

Revision of Previously Issued Financial Statements

During the preparation of the financial statements for the fiscal year ended December 31, 2025, the Company’s management identified immaterial misstatements affecting its previously issued consolidated financial statements as of and for the years ended December 31, 2024 and December 31, 2023, and the condensed consolidated financial statements for the quarters ended March 31, June 30, and September 30, 2025. These misstatements were related primarily to the timing of revenue recognition and associated contract costs, and the recognition of capitalized software development costs, as well as other unrelated immaterial misstatements. As a result, the Company made revisions to its previously issued consolidated financial statements for the years ended December 31, 2024 and December 31, 2023, filed within the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, in order to recognize such revenues and costs in the appropriate fiscal year.

 

The Company assessed the materiality of these errors on the prior period consolidated financial statements in accordance with SEC Staff Accounting Bulletin (“SAB”) No. 99 (Topic 1M), “Materiality” and SAB No. 108 (Topic 1N), “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements.” In its assessment, the Company concluded based on quantitative and qualitative analysis that these errors were not material to the Company’s consolidated financial statements for the 2025, 2024, and 2023 fiscal years or any interim periods therein.

 

 

Conference Call

TruBridge will hold a conference call and live webcast to discuss fourth quarter and full year 2025 results on Tuesday, March 31, 2026, at 3:30 p.m. Central time/4:30 p.m. Eastern time. To access this interactive teleconference, dial (877) 407-0890 and request connection to the TruBridge earnings conference call. A 30-day online replay will be available approximately one hour following the conclusion of the live webcast. To listen to the live webcast or access the replay, visit the Company’s investor relations website, investors.trubridge.com.

 

About TruBridge

TruBridge proudly supports rural and community hospitals and providers in their efforts to stay strong, independent, and deeply rooted in the communities they serve. Backed by more than 45 years of healthcare experience and trusted by over 1,500 clients nationwide, TruBridge offers a mix of technology, services, and strategic expertise — including revenue cycle management (RCM), electronic health records (EHR) and analytics — all designed singularly for the realities of rural and community healthcare. With a steadfast commitment to keeping care local, TruBridge helps hospitals flourish as the economic heart of their communities, delivering high-quality, personal care close to home. For more information, visit www.trubridge.com.

 

Investor Relations Contact

Asher Dewhurst, ICR Healthcare

TBRGIR@icrhealthcare.com

 

Media Contact

Jamie Gier, TruBridge

media@trubridge.com

 

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Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified generally by the use of forward-looking terminology and words such as expects, anticipates, estimates, believes, predicts, intends, plans, potential, may, continue, should, will and words of comparable meaning. Without limiting the generality of the preceding statement, all statements in this press release relating to the Companys future financial and operational results, are forward-looking statements. We caution investors that any such forward-looking statements are only predictions and are not guarantees of future performance. Certain risks, uncertainties and other factors may cause actual results to differ materially from those projected in the forward-looking statements. Such factors may include: saturation of our target market and hospital consolidations; unfavorable economic or market conditions that may cause a decline in spending for information technology and services; significant legislative and regulatory uncertainty in the healthcare industry; exposure to liability for failure to comply with regulatory requirements; transition to a subscription based recurring revenue model and modernization of our technology; competition with companies that have greater financial, technical and marketing resources than we have; potential future acquisitions that may be expensive, time consuming, and subject to other inherent risks; our ability to attract and retain qualified personnel in a global workforce; disruption from periodic restructuring of our sales force; slower than anticipated development of the market for Financial Health services; potential inability to properly manage growth in new markets we may enter; potential failure to effectively implement a new enterprise resource planning software solution; exposure to numerous and often conflicting laws, regulations, policies, standards or other requirements through our domestic and international business activities; potential litigation against us and investigations; our use of offshore third-party resources; competitive and litigation risk related to the use of artificial intelligence; potential inability to identify and implement any strategic alternatives in a timely manner or at all; potential failure to develop new products or enhance current products that keep pace with market demands; failure of our products to provide accurate and timely information for clinical decision-making; breaches of security and viruses in our systems resulting in customer claims against us and harm to our reputation; failure to maintain customer satisfaction through new product releases free of undetected errors or problems; failure to convince customers to migrate to current or future releases of our products; failure to maintain our margins and service rates; increase in the percentage of total revenues represented by service revenues, which have lower gross margins; exposure to liability in the event we provide inaccurate claims data to payors; exposure to liability claims arising out of the licensing of our software and provision of services; dependence on licenses of rights, products and services from third parties; failure to protect our intellectual property rights; exposure to significant license fees or damages for intellectual property infringement; interruptions in our power supply and/or telecommunications capabilities; potential inability to secure additional financing on favorable terms to meet our future capital needs; our substantial indebtedness, and our ability to incur additional indebtedness in the future; pressures on cash flow to service our outstanding debt; restrictive terms of our credit agreement on our current and future operations; changes in and interpretations of financial accounting matters that govern the measurement of our performance; significant charges to earnings if our goodwill or intangible assets become impaired; fluctuations in quarterly financial performance due to various factors; volatility in our stock price; failure to maintain effective internal control over financial reporting; inherent limitations in our internal control over financial reporting; vulnerability to significant damage from natural disasters; market risks related to interest rate changes; potential material adverse effects due to macroeconomic conditions; we do not anticipate paying dividends on our common stock; actions of activist stockholders against us; and other risk factors described from time to time in our public releases and reports filed with the Securities and Exchange Commission. We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release.

 

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TruBridge Announces Fourth Quarter and Full Year 2025 Results

Page 4

March 31, 2026

 

TruBridge, Inc.

Condensed Consolidated Statements of Operations

(In '000s, except per share data)

 

   

(Unaudited)

                 
   

Three Months Ended December 31,

   

Twelve Months Ended December 31,

 
   

2025

   

2024*

   

2025

   

2024*

 

Revenues

                               

Financial Health

  $ 56,239     $ 54,976     $ 221,657     $ 217,366  

Patient Care

    30,953       33,143       125,179       124,839  

Total revenues

    87,192       88,119       346,836       342,205  
                                 

Expenses

                               

Costs of revenue (exclusive of amortization and depreciation)

                               

Financial Health

    28,069       27,802       113,891       116,738  

Patient Care

    12,706       13,355       49,083       52,182  

Total costs of revenue (exclusive of amortization and depreciation)

    40,775       41,157       162,974       168,920  

Product development

    8,027       8,075       32,557       35,449  

Sales and marketing

    4,386       6,420       23,509       25,907  

General and administrative

    23,719       19,341       80,687       76,992  

Amortization

    6,284       6,368       25,185       27,220  

Depreciation

    246       266       1,092       1,346  

Total expenses

    83,437       81,627       326,004       335,834  
                                 

Operating income

    3,755       6,492       20,832       6,371  
                                 

Other (expense) income :

                               

Interest expense

    (2,866 )     (3,820 )     (12,316 )     (16,169 )

Other income (expense)

    (5,213 )     (1,809 )     (4,647 )     (670 )

Total other expense

    (8,079 )     (5,629 )     (16,963 )     (16,839 )
                                 

Income (loss) before taxes

    (4,324 )     863       3,869       (10,468 )
                                 

(Benefit from) provision for income taxes

    1,185       5,952       (485 )     10,477  
                                 

Net income (loss)

  $ (5,509 )   $ (5,089 )   $ 4,354     $ (20,945 )
                                 

Net income (loss) per common sharebasic

  $ (0.37 )   $ (0.34 )   $ 0.29     $ (1.41 )

Net income (loss) per common sharediluted

  $ (0.37 )   $ (0.34 )   $ 0.29     $ (1.41 )
                                 

Weighted average shares outstanding used in per common share computations:

                               

Basic

    14,531       14,330       14,488       14,300  

Diluted

    14,531       14,330       14,488       14,300  

 

*As described above, certain line items have been revised to correct errors related primarily to the timing of revenue recognition and associated contract costs, and the recognition of capitalized software development costs, as well as other unrelated immaterial misstatements. As a result, the Company made revisions to its previously issued consolidated financial statements for the three months and twelve months ended December 31, 2024, in order to recognize such revenues and costs in the appropriate fiscal period.

 

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TruBridge Announces Fourth Quarter and Full Year 2025 Results

Page 5

March 31, 2026

 

TruBridge, Inc.

Condensed Consolidated Balance Sheets

(In '000s, except per share data)

 

   

December 31,

2025

   

December 31,

2024*

 

Assets

               

Current assets

               

Cash and cash equivalents

  $ 24,850     $ 12,324  

Accounts receivable, net of allowance for expected credit losses of $6,003 and $5,861

    54,970       52,952  

Current portion of financing receivables, net of allowance for expected credit losses of $606 and $417

    2,437       4,663  

Inventories

    623       767  

Prepaid income taxes

    7,240       2,991  

Prepaid expenses and other current assets

    14,078       19,386  

Assets held for sale

    445       606  

Total current assets

    104,643       93,689  
                 

Property & equipment, net

    2,476       2,294  

Software development costs, net

    42,262       39,451  

Operating lease right-of-use assets

    2,010       3,092  

Financing receivables, less current portion, less allowance for expected credit losses of $256 and $21

    494       232  

Other assets, less current portion

    13,553       7,786  

Intangible assets, net

    64,517       76,707  

Goodwill

    172,573       172,573  

Total assets

  $ 402,528     $ 395,824  
                 

Liabilities & Stockholders' Equity

               

Current liabilities

               

Accounts payable

  $ 19,554     $ 15,040  

Current portion of long-term debt

    3,384       2,980  

Current portion of deferred revenue

    9,210       13,678  

Accrued vacation

    4,882       4,770  

Income taxes payable

    235       3,538  

Other accrued liabilities

    20,694       15,994  

Total current liabilities

    57,959       56,000  
                 

Long-term debt, less current portion

    161,241       168,598  

Operating lease liabilities, less current portion

    1,346       2,293  

Other long-term liabilities

    1,438       -  

Deferred tax liabilities, net

    2,583       1,863  

Total liabilities

    224,567       228,754  
                 

Stockholders' Equity

               

Common stock, $0.001 par value; 30,000 shares authorized; 15,677 and 15,522 shares issued

    15       15  

Additional paid-in capital

    209,727       201,066  

Accumulated deficit

    (12,223 )     (16,577 )

Accumulated other comprehensive (loss) income

    (133 )     45  

Treasury stock, 689 and 619 shares

    (19,425 )     (17,479 )

Total stockholders' equity

    177,961       167,070  
                 

Total liabilities and stockholders' equity

  $ 402,528     $ 395,824  

 

*As described above, certain line items have been revised to correct errors related primarily to the timing of revenue recognition and associated contract costs, and the recognition of capitalized software development costs, as well as other unrelated immaterial misstatements. As a result, the Company made revisions to its previously issued consolidated financial statements for the three months and twelve months ended December 31, 2024, in order to recognize such revenues and costs in the appropriate fiscal period.

 

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TruBridge, Inc.

Condensed Consolidated Statements of Cash Flows

(In '000s)

 

   

Twelve Months Ended December 31,

 
   

2025

   

2024*

 

Operating activities:

               

Net income (loss)

  $ 4,354     $ (20,945 )

Adjustments to net income (loss):

               

Provision for credit losses

    3,002       3,669  

Deferred taxes

    716       2,205  

Stock-based compensation

    8,661       5,520  

Depreciation

    1,092       1,346  

Gain on sale of business

    (53 )     (1,529 )

Amortization of acquisition-related intangibles

    12,190       12,505  

Amortization of software development costs

    12,995       14,715  

Amortization of deferred finance costs

    512       504  

Change in fair value of contingent consideration

    5,000       (1,044 )

Loss on extinguishment of debt

    304       -  

Non-cash operating lease costs

    1,106       2,273  

(Gain) loss on disposal of property and equipment

    (120 )     3,895  

Changes in operating assets and liabilities:

               

Accounts receivable

    (4,758 )     895  

Financing receivables

    1,701       (68 )

Inventories

    144       (292 )

Prepaid expenses and other assets

    (2,956 )     2,475  

Accounts payable

    4,965       3,734  

Deferred revenue

    (3,490 )     2,557  

Operating lease liabilities

    (1,143 )     (1,842 )

Other liabilities

    (167 )     (2,411 )

Income taxes, net

    (7,089 )     2,979  

Net cash provided by operating activities

    36,966       31,141  
                 

Investing activities:

               

Purchase of business, net of cash acquired

    -       (664 )

Sale of business, net of cash and cash equivalent sold

    2,102       21,410  

Proceeds from sale of property and equipment

    300       2,475  

Investment in software development

    (15,806 )     (16,463 )

Purchases of property and equipment

    (1,321 )     (1,643 )

Net cash (used in) provided by investing activities

    (14,725 )     5,115  
                 

Financing activities:

               

Proceeds from long-term debt

    70,000       -  

Payments of long-term debt principal

    (57,250 )     (7,500 )

Proceeds from revolving line of credit

    112,868       29,497  

Payments of revolving line of credit

    (131,784 )     (48,803 )

Debt issuance cost

    (1,603 )     (529 )

Treasury stock purchases

    (1,946 )     (404 )

Net cash used in financing activities

    (9,715 )     (27,739 )
                 

Increase in cash and cash equivalents

    12,526       8,517  
                 

Change in cash and cash equivalents included in assets sold

    -       (41 )

Cash and cash equivalents, beginning of period

    12,324       3,848  

Cash and cash equivalents, end of period

  $ 24,850     $ 12,324  

 

*As described above, certain line items have been revised to correct errors related primarily to the timing of revenue recognition and associated contract costs, and the recognition of capitalized software development costs, as well as other unrelated immaterial misstatements. As a result, the Company made revisions to its previously issued consolidated financial statements for the three months and twelve months ended December 31, 2024, in order to recognize such revenues and costs in the appropriate fiscal period.

 

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TruBridge, Inc.

Consolidated Bookings

(In '000s)

(Unaudited)

 

   

Three Months Ended December 31,

   

Twelve Months Ended December 31,

 

In '000s

 

2025

   

2024

   

2025

   

2024

 

Financial Health(1)

  $ 11,735     $ 8,515     $ 47,727     $ 48,860  

Patient Care(2)

    8,096       5,750       35,201       33,214  
                                 

Total Bookings

  $ 19,831     $ 14,265     $ 82,928     $ 82,074  

 

(1)

Generally calculated as the annual contract value

(2)

Generally calculated as the total contract value for system sales and SaaS, and annual contract value for maintenance and support

 

Annual Contract Value

Effective January 2025, the Company began providing bookings on an Annual Contract Value (“ACV”) basis in addition to the reported bookings amounts, which has historically represented a mix of ACV and Total Contract Value (“TCV”) for Patient Care. This new methodology of reporting total bookings at ACV represents the newly contracted revenue that is expected to be recognized over a twelve-month period. Over the course of 2025, the Company has provided total bookings under both methodologies for year over year comparability before fully transitioning to ACV in 2026.

The below table represents bookings at the ACV methodology for the three and twelve months ended December 31, 2025:

 

   

Three Months Ended

December 31,

   

Twelve Months Ended

December 31,

 

In '000s

 

2025

   

2025

 

Financial Health

  $ 11,735     $ 47,727  

Patient Care

    7,136       23,162  
                 

Total Bookings (ACV)

  $ 18,871     $ 70,889  

 

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TruBridge, Inc.

Bookings Composition

(In '000s, except per share data)

(Unaudited)

 

   

Three Months Ended December 31,

   

Twelve Months Ended December 31,

 

In '000s

 

2025

   

2024

   

2025

   

2024

 

Financial Health

                               

Net new(1)

  $ 2,844     $ 2,477     $ 16,008     $ 24,035  

Cross-sell(1)

    8,891       6,038       31,719       24,825  

Patient Care

                               

Non-subscription sales(2)

    4,199       3,461       13,472       16,001  

Subscription revenue(3)

    3,897       2,289       21,729       17,213  
                                 

Total Bookings

  $ 19,831     $ 14,265     $ 82,928     $ 82,074  

 

(1)

“Net new” represents bookings from outside the Company’s core client base, and “Cross-sell” represents bookings from existing customers. In each case, such bookings are generally comprised of recurring revenues to be recognized ratably over a one-year period and an average timeframe for bookings-to-revenue conversion of four to six months following contract execution.

   

(2)

Represents nonrecurring revenues that generally exhibit a timeframe for bookings-to-revenue conversion of five to six months following contract execution.

   

(3)

Represents recurring revenues to be recognized on a monthly basis over a weighted-average contract period of five years, with a start date in the next 12 months and an average timeframe for commencement of bookings-to-revenue conversion of five to six months following contract execution.

 

 

 

Annual Contract Value

Effective January 2025, the Company began providing bookings on an Annual Contract Value (“ACV”) basis in addition to the reported bookings amounts, which has historically represented a mix of ACV and Total Contract Value (“TCV”) for Patient Care. This new methodology of reporting total bookings at ACV represents the newly contracted revenue that is expected to be recognized over a twelve-month period. Over the course of 2025, the Company has provided total bookings under both methodologies for year over year comparability before fully transitioning to ACV in 2026.

The below table represents bookings at the ACV methodology for the three and twelve months ended December 31, 2025:

 

   

Three Months

Ended December 31,

   

Twelve Months

Ended December 31,

 

In '000s

 

2025

   

2025

 

Financial Health

               

Net new(1)

  $ 2,844     $ 16,008  

Cross-sell(1)

    8,891       31,719  

Patient Care

               

Non-subscription sales(2)

    4,199       13,473  

Subscription revenue(3)

    2,937       9,689  
                 

Total Bookings (ACV)

  $ 18,871     $ 70,889  

 

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TruBridge, Inc.

Adjusted EBITDA - by Segment

(In '000s)

(Non-GAAP)

 

   

(Unaudited)

                 
   

Three Months Ended December 31,

   

Twelve Months Ended December 31,

 

In '000s

 

2025

   

2024*

   

2025

   

2024*

 

Financial Health

  $ 12,233       11,365     $ 39,978     $ 36,845  

Patient Care

    6,969       6,578       28,691       19,054  
                                 

Total Adjusted EBITDA

  $ 19,202       17,943     $ 68,669     $ 55,899  

 

*As described above, certain line items have been revised to correct errors related primarily to the timing of revenue recognition and associated contract costs, and the recognition of capitalized software development costs, as well as other unrelated immaterial misstatements. As a result, the Company made revisions to its previously issued consolidated financial statements for the three months and twelve months ended December 31, 2024, in order to recognize such revenues and costs in the appropriate fiscal period.

 

TruBridge, Inc.

Reconciliation of Non-GAAP Financial Measures

(In '000s)

 

   

(Unaudited)

                 
   

Three Months Ended December 31,

   

Twelve Months Ended December 31,

 

Adjusted EBITDA:

 

2025

   

2024*

   

2025

   

2024*

 

Net income (loss), as reported

  $ (5,509 )   $ (5,089 )   $ 4,354     $ (20,945 )

Net Income (Loss) Margin

    (6.3% )     (5.8% )     1.3 %     (6.1% )
                                 

(Benefit from) provision for income taxes

    1,185       5,952       (485 )     10,477  

Income (loss) before taxes, as reported

    (4,324 )     863       3,869       (10,468 )
                                 

Depreciation expense

    246       266       1,092       1,346  

Amortization of software development costs

    3,238       3,242       12,995       14,715  

Amortization of acquisition-related intangibles

    3,046       3,126       12,190       12,505  

Stock-based compensation

    3,562       1,823       8,661       5,520  

Severance and other nonrecurring charges

    5,355       2,993       12,899       15,442  

Interest expense and other, net

    3,079       3,691       12,136       15,517  

Change in fair value of contingent consideration

    5,000       -       5,000       (1,044 )

(Gain) loss on disposal of property and equipment

    -       2,247       (120 )     3,895  

Gain on sale of AHT

    -       (308 )     (53 )     (1,529 )
                                 

Total Adjusted EBITDA

  $ 19,202     $ 17,943     $ 68,669     $ 55,899  

Adjusted EBITDA Margin

    22.0 %     20.4 %     19.8 %     16.3 %

 

*As described above, certain line items have been revised to correct errors related primarily to the timing of revenue recognition and associated contract costs, and the recognition of capitalized software development costs, as well as other unrelated immaterial misstatements. As a result, the Company made revisions to its previously issued consolidated financial statements for the three months and twelve months ended December 31, 2024, in order to recognize such revenues and costs in the appropriate fiscal period.

 

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TruBridge, Inc.

Reconciliation of Non-GAAP Financial Measures

(In '000s, except per share data)

 

   

(Unaudited)

                 
   

Three Months Ended December 31,

   

Twelve Months Ended December 31,

 

Non-GAAP Net Income (Loss) and Non-GAAP EPS:

 

2025

   

2024*

   

2025

   

2024*

 

Net income (loss), as reported

  $ (5,509 )   $ (5,089 )   $ 4,354     $ (20,945 )
                                 

Pre-tax adjustments for Non-GAAP EPS:

                               

Amortization of acquisition-related intangible assets

    3,046       3,126       12,190       12,505  

Stock-based compensation

    3,562       1,823       8,661       5,520  

Severance and other nonrecurring charges

    5,355       2,993       12,899       15,442  

Non-cash interest expense

    3,501       184       3,111       504  

Gain on sale of AHT

    -       (308 )     (53 )     (1,529 )

Change in fair value of contingent consideration

    5,000       -       5,000       (1,044 )

After-tax adjustments for Non-GAAP EPS:

                               

Tax-effect of pre-tax adjustments, at 21%

    (3,549 )     (1,642 )     (6,961 )     (6,594 )

Tax (windfall) shortfall from stock-based compensation

    10       5       (660 )     772  
                                 

Non-GAAP net income

  $ 11,416     $ 1,092     $ 38,541     $ 4,631  
                                 

Weighted average shares outstanding, diluted

    14,531       14,330       14,488       14,300  
                                 

Non-GAAP EPS

  $ 0.79     $ 0.08     $ 2.66     $ 0.32  

 

*As described above, certain line items have been revised to correct errors related primarily to the timing of revenue recognition and associated contract costs, and the recognition of capitalized software development costs, as well as other unrelated immaterial misstatements. As a result, the Company made revisions to its previously issued consolidated financial statements for the three months and twelve months ended December 31, 2024, in order to recognize such revenues and costs in the appropriate fiscal period.

 

TruBridge, Inc.

Revenue Composition

(In '000s)

 

   

(Unaudited)

                 
   

Three Months Ended December 31,

   

Twelve Months Ended December 31,

 
   

2025

   

2024*

   

2025

   

2024*

 

Recurring revenues

                               

Financial Health

  $ 55,193     $ 53,871     $ 217,783     $ 212,054  

Patient Care

    26,337       28,645       109,370       111,325  

Total recurring revenues

    81,530       82,516       327,153       323,379  
                                 

Non-recurring revenues

                               

Financial Health

    1,046       1,105       3,874       5,312  

Patient Care

    4,616       4,498       15,809       13,514  

Total non-recurring revenues

    5,662       5,603       19,683       18,826  
                                 

Total revenues

  $ 87,192     $ 88,119     $ 346,836     $ 342,205  

 

*As described above, certain line items have been revised to correct errors related primarily to the timing of revenue recognition and associated contract costs, and the recognition of capitalized software development costs, as well as other unrelated immaterial misstatements. As a result, the Company made revisions to its previously issued consolidated financial statements for the three months and twelve months ended December 31, 2024, in order to recognize such revenues and costs in the appropriate fiscal period.

 

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Revision of Previously Issued Financial Statements

As described above, the Company made revisions to its previously issued consolidated financial statements for the years ended December 31, 2024 and December 31, 2023, filed with its Annual Reports on Form 10-K for the years then ended, in order to recognize certain of revenues and costs in the appropriate fiscal year. These revisions were made to correct errors related primarily to the timing of revenue recognition and associated contract costs, and the recognition of capitalized software development costs, as well as other unrelated immaterial misstatements. The revisions to the consolidated financial statements for the three months and twelve months ended December 31, 2024, are disclosed in the tables below.

 

TruBridge, Inc.

Impact of Revision

(Unaudited)

 

   

Three Months Ended December 31,

 
   

2024

 

(In thousands, except per share data)

 

As previously reported

   

Impact of revision

   

As adjusted

 

Condensed Consolidated Statement of Operations

                       

Revenue:

                       

Financial Health

  $ 55,053     $ (77 )   $ 54,976  

Patient Care

    33,177       (34 )     33,143  

Total revenue

  $ 88,230     $ (111 )   $ 88,119  

Expenses

                       

Costs of revenue (exclusive of amortization and depreciation)

                       

Financial Health

    27,840       (38 )     27,802  

Patient Care

    13,220       135       13,355  

Total costs of revenue (exclusive of amortization and depreciation)

    41,060       97       41,157  

Product development

    7,827       248       8,075  

Sales and marketing

    6,708       (288 )     6,420  

Amortization

    6,470       (102 )     6,368  

Operating income (loss)

    6,558       (65 )     6,493  

Income before taxes

    929       (66 )     863  

Provision for (benefit from) for income taxes

    5,978       (26 )     5,952  

Net loss

    (5,049 )     (40 )     (5,089 )

Net loss per share - basic

  $ (0.34 )   $ -     $ (0.34 )

Net loss per share - diluted

  $ (0.34 )   $ -     $ (0.34 )

 

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TruBridge Announces Fourth Quarter and Full Year 2025 Results

Page 12

March 31, 2026

 

TruBridge, Inc.

Impact of Revision

 

   

Twelve Months Ended December 31,

 
   

2024

 

(In thousands, except per share data)

 

As previously reported

   

Impact of revision

   

As adjusted

 

Condensed Consolidated Statement of Operations

                       

Revenue:

                       

Financial Health

  $ 217,672     $ (306 )   $ 217,366  

Patient Care

    124,974       (135 )     124,839  

Total revenue

  $ 342,646     $ (441 )   $ 342,205  

Expenses

                       

Costs of revenue (exclusive of amortization and depreciation)

                       

Financial Health

    116,891       (153 )     116,738  

Patient Care

    51,640       542       52,182  

Total costs of revenue (exclusive of amortization and depreciation)

    168,531       389       168,920  

Product development

    34,456       993       35,449  

Sales and marketing

    27,059       (1,152 )     25,907  

Amortization

    27,627       (407 )     27,220  

Operating income (loss)

    6,635       (264 )     6,371  

Loss before taxes

    (10,204 )     (264 )     (10,468 )

Provision for (benefit from) for income taxes

    10,235       242       10,477  

Net loss

    (20,439 )     (506 )     (20,945 )

Net loss per share - basic

  $ (1.38 )   $ (0.03 )   $ (1.41 )

Net loss per share - diluted

  $ (1.38 )   $ (0.03 )   $ (1.41 )
                         
                         

Consolidated Balance Sheet

                       

Accounts receivables

  $ 53,753     $ (801 )   $ 52,952  

Prepaid income taxes

    2,886       105       2,991  

Prepaid expenses and other current assets

    15,275       4,111       19,386  

Software development costs, net

    41,474       (2,023 )     39,451  

Deferred revenue

    10,653       3,025       13,678  

Deferred tax liabilities

    1,871       (8 )     1,863  

Retained Earnings

    (14,952 )     (1,625 )     (16,577 )
                         

Consolidated Statement of Equity

                       

Net loss

  $ (20,439 )   $ (506 )   $ (20,945 )

Retained Earnings

    (14,952 )     (1,625 )     (16,577 )
                         

Consolidated Statement of Cash Flows

                       

Net loss

  $ (20,439 )   $ (506 )   $ (20,945 )

Deferred taxes

    1,859       346       2,205  

Amortization of software development costs

    15,122       (407 )     14,715  

Accounts receivable

    94       801       895  

Prepaid expenses and other assets

    3,576       (1,101 )     2,475  

Deferred revenue

    2,580       (23 )     2,557  

Income taxes, net

    3,083       (104 )     2,979  

Investment in software development

    (17,457 )     994       (16,463 )
                         

Non-GAAP Measures

                       

Net loss

  $ (20,439 )   $ (506 )   $ (20,945 )

Provision for (benefit from) for income taxes

    10,235       242       10,477  

Amortization of software development costs

    15,122       (407 )     14,715  

Total Adjusted EBITDA

    56,570       (671 )     55,899  

 

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Explanation of Non-GAAP Financial Measures

 

We report our financial results in accordance with accounting principles generally accepted in the United States of America, or “GAAP.” However, management believes that, in order to properly understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures that are prepared in accordance with GAAP. These items result from facts and circumstances that vary in frequency and impact on continuing operations. Management uses these non-GAAP financial measures in order to evaluate the operating performance of the Company and compare it against past periods, make operating decisions, and serve as a basis for strategic planning. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts. In addition, management understands that some investors and financial analysts find these non-GAAP financial measures helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors.

 

We do not provide a reconciliation of the non-GAAP guidance measure Adjusted EBITDA for the first quarter of 2026 or the fiscal year 2026 to net income for such periods, the most comparable GAAP financial measure, due to the inherent difficulty of forecasting certain types of expenses and gains, which affect net income but not Adjusted EBITDA, without unreasonable effort.

 

As such, to supplement the GAAP information provided, we present in this press release and during the live webcast discussing our financial results the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA Margin, Non-GAAP net income, and Non-GAAP earnings per share (“EPS”).

We calculate each of these non-GAAP financial measures as follows:

 

Adjusted EBITDA – Adjusted EBITDA consists of GAAP net income as reported and adjusts for (i) the (benefit from) provision for income taxes; (ii) depreciation expense; (iii) amortization of software development costs; (iv) amortization of acquisition-related intangibles; (v) stock-based compensation; (vi) severance and other nonrecurring charges; (vii) interest expense and other income; (viii) change in fair value of contingent consideration; (ix) (gain) loss on disposal of property and equipment; and (x) gain on sale of AHT.

 

Adjusted EBITDA Margin – Adjusted EBITDA Margin is calculated as Adjusted EBITDA, as defined above, divided by total revenue.

 

Non-GAAP net income – Non-GAAP net income consists of GAAP net income (loss) as reported and adjusts for (i) amortization of acquisition-related intangible assets; (ii) stock-based compensation; (iii) severance and other nonrecurring charges; (iv) non-cash interest expense; (v) gain on sale of AHT; (vi) change in fair value of contingent consideration, and (vii) the total tax effect of items (i) through (vi).

 

Non-GAAP EPS – Non-GAAP EPS consists of Non-GAAP net income, as defined above, divided by weighted average shares outstanding (diluted) in the applicable period.

 

Certain of the items excluded or adjusted to arrive at these non-GAAP financial measures are described below:

 

Amortization of acquisition-related intangibles – Acquisition-related amortization expense is a non-cash expense arising primarily from the acquisition of intangible assets in connection with acquisitions or investments. We exclude acquisition-related amortization expense from non-GAAP financial measures because we believe (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of new acquisitions and full amortization of previously acquired intangible assets. Investors should note that the use of these intangible assets contributed to revenue in the periods presented and will contribute to future revenue generation, and the related amortization expense will recur in future periods.

 

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Stock-based compensation – Stock-based compensation expense is a non-cash expense arising from the grant of stock-based awards. We exclude stock-based compensation expense from non-GAAP financial measures because we believe (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of the timing and valuation of grants of new stock-based awards, including grants in connection with acquisitions. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods, and such expense will recur in future periods.

 

Severance and other nonrecurring charges – Non-recurring charges relate to certain severance and other charges incurred in connection with activities that are considered non-recurring. We exclude non-recurring expenses (primarily related to costs associated with our recent business transformation initiative and transaction-related costs) from non-GAAP financial measures because we believe (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods.

 

Non-cash Interest expense – Non-cash interest expense includes amortization of deferred debt issuance costs. We exclude non-cash interest expense from non-GAAP financial measures because we believe these non-cash amounts relate to specific transactions and, as such, may not directly correlate to the underlying performance of our business operations.

 

Interest expense and other, net – Interest expense and other income represents (i) interest incurred on our term loan and revolving credit facility and (ii) non-cash interest expense. We exclude interest expense from non-GAAP financial measures because we believe these amounts relate to specific transactions and, as such, may not directly correlate to the underlying performance of our business operations.

 

(Gain) loss on disposal of property and equipment – Gain on disposal of property and equipment represents the excess of proceeds received over the book value of assets disposed of during the period. We exclude gain on disposal of property and equipment from non-GAAP financial measures because we believe (i) the amount of such gain or loss in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such gain or loss can vary significantly between periods.

 

Gain on sale of AHT – Gain on sale of AHT represents the excess of proceeds received over the net assets sold from our sale of AHT, our previously wholly-owned post-acute business, in January 2024. We excluded gain on sale of AHT from non-GAAP financial measures because we believe the amount relates to a specific transaction and, as such, may not directly correlate to the underlying performance of our business operations.

 

Change in fair value of contingent consideration: The purchase agreement for our acquisition of Viewgol in 2023 contained contingent consideration, or “earnout,” provisions whereby the previous shareholders of Viewgol would receive additional consideration depending on the achievement of certain performance metrics. After the initial measurement period, U.S. GAAP requires that any adjustments to the estimated fair value of this contingent liability, including upon final determination of amounts due, should be recorded in the relevant period’s earnings. We exclude changes in fair value of contingent consideration from non-GAAP financial measures because we believe (i) the amount of such gains in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such gains can vary significantly between periods.

 

Tax (windfall) shortfall from stock-based compensation – ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, became effective for the Company during the third quarter of 2017 and changes the treatment of tax shortfall and excess tax benefits arising from stock based compensation arrangements. Prior to ASU 2016-09, these amounts were recorded as an increase (for excess benefits) or decrease (for shortfalls) to additional paid-in capital. With the adoption of ASU 2016-09, these amounts are now captured in the period’s income tax expense. We exclude this component of income tax expense from non-GAAP financial measures because we believe (i) the amount of such expenses or benefits in any specific period may not directly correlate to the underlying performance of our business operations; and (ii) such expenses or benefits can vary significantly between periods as a result of the valuation of grants of new stock-based awards, the timing of vesting of awards, and periodic movements in the fair value of our common stock.

 

Management considers these non-GAAP financial measures to be important indicators of our operational strength and performance of our business and a good measure of our historical operating trends, in particular the extent to which ongoing operations impact our overall financial performance. In addition, management may use Adjusted EBITDA, Non-GAAP net income and/or Non-GAAP EPS to measure the achievement of performance objectives under the Company’s stock and cash incentive programs. Note, however, that these non-GAAP financial measures are performance measures only, and they do not provide any measure of cash flow or liquidity. Non-GAAP financial measures are not alternatives for measures of financial performance prepared in accordance with GAAP and may be different from similarly titled non-GAAP measures presented by other companies, limiting their usefulness as comparative measures. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Additionally, there is no certainty that we will not incur expenses in the future that are similar to those excluded in the calculations of the non-GAAP financial measures presented in this press release. Investors and potential investors are encouraged to review the “Unaudited Reconciliation of Non-GAAP Financial Measures” above.

 

 

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