Veradigm (MDRX) investor relations material

Filing and audit progress

• Achieved a major milestone by filing 2023 and 2024 10-Ks, accelerating the timeline compared to previous filings.

• Focus now shifts to completing 2025 and 2026 filings, with the 2025 10-K targeted for completion by late 2026.

• Parallel audit work for 2025 and 2026 is underway, leveraging improved collaboration and upgraded systems.

• Key investments in Salesforce and Workday aim to enhance both compliance and operational performance.

• The next major milestone is the timely filing of the 2025 10-K, critical for relisting efforts.

Financial performance and outlook

• Revenue has remained essentially flat from 2022 to 2025, with 2024 revenue at $594 million and 2025 estimated at $584–$589 million.

• Adjusted EBITDA declined from $132 million in 2023 to $94 million in 2024, with margins dropping from 22% to 16%.

• Margin decline reflects lower gross profit and increased OpEx from acquisitions and investments in finance and IT.

• 2025 is expected to be a baseline year for profitability, with margin expansion anticipated in 2026 due to cost actions and operational improvements.

• Significant one-time costs in 2023 and 2024 excluded from Adjusted EBITDA, including legal and audit expenses.

Strategic and operational initiatives

• Executing a "reset, recover, reignite" plan to reverse multi-year revenue decline and drive growth.

• Q1 2026 performance exceeded internal expectations, with strong results in provider, payer, and life sciences segments.

• AI adoption has reached nearly 50% of the workforce, supporting efficiency and product innovation.

• Launched a new health network architecture to connect workflows and rapidly deploy AI capabilities.

• Focused on expanding revenue cycle solutions and leveraging provider relationships for cross-segment growth.