TruBridge (TBRG) investor relations material

Executive summary

• Achieved steady progress on long-term goals with strong bookings, improved profitability, and positive net income in Q2, despite revenue being flat year-over-year.

• Recurring revenue comprised 95% of total revenue, with Financial Health contributing 63%.

• Strategic initiatives included operational improvement, offshoring, cost optimization, and cross-selling Financial Health services.

• Shift to SaaS models in Patient Care, with recurring revenues now the majority of new installations.

• The One Big Beautiful Bill Act introduces significant healthcare and tax reforms, with impacts still being evaluated.

Financial highlights

• Q2 revenue was $85.7M, nearly flat year-over-year; six-month revenue rose to $172.9M, up 2%.

• Q2 bookings reached $25.6M TCV, up from $23M year-over-year; Adjusted EBITDA for Q2 was $13.7M, and $32.0M for the first half, up 35%.

• Net income for Q2 was $2.6M, reversing a $4.4M loss year-over-year; net income for six months was $3.0M, up from a $6.2M loss.

• Cash flow from operations for the first half was $14.5M, up from $11.7M; free cash flow YTD was $5.5M, up $3.4M.

• Gross margin in Q2 was 52%, up 250 bps year-over-year; patient care gross margin reached 62%, up 400 bps.

Outlook and guidance

• Full-year 2025 revenue guidance revised to $345M–$350M (from $345M–$360M); Adjusted EBITDA raised to $62M–$67M (from $60M–$66M).

• Q3 revenue expected between $85M–$87M; Adjusted EBITDA between $14M–$16M.

• Margin optimization remains a focus, with ongoing cost containment, offshore resource utilization, and automation.

• Management expects continued growth in recurring revenues, especially from SaaS and Financial Health services.

• Revised full-year EBITDA margin guidance to 18.5% at midpoint, up from 17%.