TruBridge, Inc. Q4 FY2025 earnings call

• Filed 10-K with SEC, identified out-of-period adjustments related to revenue recognition, costs, etc., noncash and not material. - Engaged in strategic review process to maximize shareholder value, not issuing formal guidance today but expecting modest revenue growth in 2026 and ~200 basis points improvement in adjusted EBITDA margins. - Fourth quarter bookings $19.8 million on TCV basis, up from prior year and sequentially. Pipeline dollar value highest in 9 quarters, up 53% since Q3, diversified across business, recurring deals >70% of pipeline, encoder pipeline growth 74%. - Workforce transition in 2024 led to CBO customer retention issues, took actions in 2025 to strengthen process, opened Global Capacity Center in Chennai. - AI strategy with 4 pillars: financial health (predict claims denials), patient care (Ambient Technology pilot), customer service (AI-driven support bot), tech stack (leverage AI for development).

Fourth quarter total revenue was $87.2 million, in line with revised guidance midpoint. Full year total revenue was $346.8 million, a 1.4% increase over 2024. Adjusted EBITDA for Q4 was $19.2 million, high end of guidance range. Full year adjusted EBITDA was $68.7 million, up 23% year-over-year. Financial Health revenue for Q4 was $56.2 million, ~65% of total company revenue, up 2% year-over-year. Patient Care revenue for Q4 was $31 million, down 6.6% year-over-year due to Centriq sunset. Full year Financial Health revenue was $221.7 million, up 2% year-over-year. Full year Patient Care revenue was $125.2 million, roughly flat versus prior year.

• Not providing formal guidance due to strategic review process. - Expect to achieve modest revenue growth in 2026 and anticipate approximately 200 basis points of improvement in adjusted EBITDA margins.

Q: Sean Dodge asked about using ACV bookings to understand visibility, Vinay Bassi responded on right track of recurring revenues and bookings conversion.

Q: Sean Dodge asked about customer retention in Q4 and 2026 renewals, Christopher Fowler said continuation of 2025 attrition in 2026 with modest improvement.

Q: Sean Dodge asked about strategic review time lines, Christopher Fowler said no timeline yet.

Q: Maxi Ma asked about conversion timing of pipeline to revenue and capacity constraints, Christopher Fowler said no capacity constraints, at mercy of customer contracts and facility politics.

Q: Maxi Ma asked about remaining margin expansion opportunity, Christopher Fowler said continuing to look for opportunities via AI.

Q: Jeffrey Garro asked about pipeline to bookings conversion and new commercial leader, Christopher Fowler said new team built pipeline, now pushing it through.

Q: Sarah James asked about financial health product predicting claims denials, Christopher Fowler said in pilot phase, homegrown, early innings.

Q: Sarah James asked about demand change due to regulatory environment, Christopher Fowler said customers looking for impact and ROI.

Q: Ryan Halsted asked about rural health fund visibility and partnership, Christopher Fowler said focused on helping hospitals access fund, selected by SAIC as preferred partner.

Q: Ryan Halsted asked about competitive landscape changes with AI, Christopher Fowler said not seeing dramatic changes yet, focusing on ROI.

Q: Ryan Halsted asked about 200 basis points margin expansion source, Vinay Bassi said combination of factors including offshore transition, cost optimization, revenue mix.

Q: Eugene Mannheimer asked about margin expansion source and RevSpring partnership, Vinay Bassi said combination of cost of sales, product development, RevSpring partnership impact in back half of year and 2027