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TruBridge, Inc. (TBRG)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered modest top-line growth and strong profitability: revenue $86.1M (+1.7% YoY; +0.4% QoQ), Adjusted EBITDA $16.3M (18.9% margin, +155 bps YoY), and Non-GAAP EPS $0.88, while GAAP diluted EPS was $0.37 .
  • Versus S&P Global consensus, TruBridge posted a slight revenue beat and a significant EPS beat; Q3 consensus was $85.6M revenue and $0.47 EPS, compared to actual $86.1M and $0.88 Non-GAAP EPS; EBITDA also exceeded consensus, noting definitional differences between reported “Adjusted EBITDA” and consensus “EBITDA”* .
  • FY 2025 guidance narrowed: revenue to $345–$348M (lowered midpoint) and Adjusted EBITDA raised to $65–$68M; Q4 2025 guidance set at $86–$89M revenue and $16.5–$19.5M Adjusted EBITDA .
  • Management emphasized continued cost optimization, encoder traction, and a measured restart of offshore transitions to drive margin expansion (~200 bps more in 2026) and strengthen bookings quality, with October activity tracking ahead of typical cadence .
  • Near-term stock catalyst: magnitude of EPS beat, raised EBITDA guidance, improving cash/leverage (cash $19.9M; net leverage ~2.2x), and signs of pipeline conversion improvement in Q4, partially offset by Q3 bookings softness ($15.5M TCV) and ongoing client attrition dynamics .

What Went Well and What Went Wrong

  • What Went Well

    • Profitability expansion: Adjusted EBITDA margin reached 18.9% (Q3), up from 17.3% a year ago; CFO highlighted disciplined cost optimization and working capital improvements .
    • Encoder momentum and higher-quality bookings mix contributing to margins; encoder bookings mix nearly doubled YoY, with gross margin commentary supportive (Financial Health ~46.2%, Patient Care ~60%) .
    • Balance sheet strengthening: cash rose to $19.9M (+$7.6M QoQ), net leverage improved to ~2.2x, and cumulative debt paydown ≈$35M since Jan 2024 .

  • What Went Wrong

    • Bookings softness: Q3 total bookings $15.5M (TCV), down from $25.6M in Q2 and $21.0M YoY; management cited delayed, not lost, decisions and complexity in SaaS conversions .
    • Financial Health revenue essentially flat YoY ($54.5M vs $54.7M), with some products slower despite mid-single-digit growth in CBO and strong encoder performance .
    • Revenue outlook midpoint lowered for FY (to $345–$348M from prior $345–$350M), reflecting attrition and longer cycles for larger, complex deals .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$87.208 $85.729 $86.106
GAAP Diluted EPS ($)$0.03 $0.17 $0.37
Non-GAAP EPS ($)$0.36 $0.54 $0.88
Adjusted EBITDA ($USD Millions)$18.231 $13.743 $16.272
Adjusted EBITDA Margin (%)20.9% 16.0% 18.9%
Q3 YoY vs Q3 2024Q3 2024Q3 2025Change
Revenue ($USD Millions)$84.700 $86.106 +1.7%
GAAP Diluted EPS ($)($0.61) $0.37 +$0.98
Non-GAAP EPS ($)($0.22) $0.88 +$1.10
Adjusted EBITDA ($USD Millions)$14.692 $16.272 +10.8%
Adjusted EBITDA Margin (%)17.3% 18.9% +155 bps

Segment Revenues

Segment Revenue ($USD Millions)Q1 2025Q2 2025Q3 2025
Financial Health$56.133 $54.284 $54.501
Patient Care$31.075 $31.445 $31.605

Revenue Composition

Composition ($USD Millions)Q1 2025Q2 2025Q3 2025
Recurring – Financial Health$55.263 $53.322 $53.514
Recurring – Patient Care$26.707 $28.115 $27.425
Total Recurring$81.970 $81.437 $80.939
Non-Recurring – Financial Health$0.870 $0.962 $0.987
Non-Recurring – Patient Care$4.368 $3.330 $4.180
Total Non-Recurring$5.238 $4.292 $5.167
Total Revenues$87.208 $85.729 $86.106

KPIs and Balance Sheet

KPIQ1 2025Q2 2025Q3 2025
Bookings (TCV, $USD Millions)$21.981 $25.613 $15.503
Bookings (ACV, $USD Millions)$17.340 $19.626 $15.052
Recurring Revenue (%)94% 95% 94%
Cash And Equivalents ($USD Millions)$10.124 $12.279 $19.920
Total Debt ($USD Millions)~$167.833 (LT $164.853 + current $2.980) ~$166.088 (LT $163.108 + current $2.980) ~$164.343 (LT $161.363 + current $2.980)
Net Debt ($USD Millions)~$157.709 (Debt–Cash) ~$153.809 (Debt–Cash) ~$144 (company reported)
Net Leverage (x)~2.4x N/A~2.2x

Consensus vs Actual (Q3 2025)

MetricConsensusActualSurprise
Revenue ($USD Millions)$85.562*$86.106 +0.6%
Primary EPS ($)$0.47*$0.88 (Non-GAAP EPS) +87.5%
EBITDA ($USD Millions)$14.862*$16.272 (Adj. EBITDA) +9.5%

Values with asterisk (*) retrieved from S&P Global. Consensus “EBITDA” may not be directly comparable to company-reported “Adjusted EBITDA”; interpret with caution.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueFY 2025$345–$350M $345–$348M Lowered midpoint
Adjusted EBITDAFY 2025$62–$67M $65–$68M Raised
Total RevenueQ4 2025N/A$86–$89M New
Adjusted EBITDAQ4 2025N/A$16.5–$19.5M New

Earnings Call Themes & Trends

TopicQ1 2025 (Prior)Q2 2025 (Prior)Q3 2025 (Current)Trend
Margin expansion and cost optimizationStrong start; raised FY EBITDA range; leverage ~2.4x Raised FY EBITDA range; reiterated cost actions 18.9% margin; targeting ~20% in Q4 and ~200 bps expansion in 2026 Improving
Bookings quality/mix (ACV, Encoder)Introduced ACV reporting; competitive win; CBO scope expansions Solid TCV/ACV; subscription mix up Q3 TCV light ($15.5M) but October ahead; encoder mix improving margins Near-term mixed; medium-term improving
Offshore transitions (India)Plan progression under new FH GM Preparing transition framework Measured restart (2 transitions underway), focus on stability/retention Executing cautiously
Client retention/backlogEmphasis on client delight; leverage reduction supports confidence Attrition weighed on top-end revenue; raising EBITDA Net revenue retention improved couple points; backlog disclosure forthcoming Stabilizing
Regulatory/macroN/A in Q1 PRN/A in Q2 PRDecision delays tied to budget cycles; potential rural funding tailwinds Potential 2026 tailwind
Balance sheet/cashDebt paydown; leverage 2.4x Continued debt reduction Cash $19.9M; net leverage ~2.2x; cumulative paydown ≈$35M Strengthening

Management Commentary

  • CEO (Press Release): “We delivered solid revenue and achieved a 19% Adjusted EBITDA margin… expanding profitability in a sustainable way… enhancing the financial performance of our business, meaningfully expanding margins, generating free cash flow, and de-levering the balance sheet.”
  • CEO (Call): “Bookings came in at $15.5 million… while light… our focus is on improving the quality of bookings… encoder… allowed us to win higher margin deals… percentage of Financial Health bookings in the 100–400 bed space increased… from <20% in 2024 to >30% in 2025.”
  • CFO (Call): “Adjusted EBITDA margins are expected to expand ~600 bps from 2023 to year-end… free cash flow improved by $20M… paid down debt by ≈$35M, reducing net leverage by more than two turns.”
  • CFO (Call): “We expect adjusted EBITDA margin in Q4 2025 to be around 20%… and around 200 bps margin expansion in 2026 from the midpoint of 2025 guidance.”

Q&A Highlights

  • Bookings cadence and margin quality: Management acknowledged Q3 bookings below internal expectations (~20% short) due to delayed decisions; early Q4 (October) outperformed typical pace; encoder bookings at 70–80% margins and mix improving .
  • Sales leadership change: New Chief Business Officer (Mike Dalton) to integrate sales, marketing, client success, raise execution rigor, and pursue larger opportunities; plan includes balancing continuity with new talent .
  • Retention/backlog: Net revenue retention for core CBO improved a couple of points from 1H; backlog metrics monitored at client level; recurring contracted revenue high (FH ~95–96%) with ins/outs from attrition and bookings .
  • FY26 margin trajectory: CFO reiterated visibility to ~200 bps margin expansion in 2026 primarily from cost optimization and offshore transitions, with revenue scenarios embedded but not yet guided .

Estimates Context

  • Q3 2025: Revenue beat (~$86.1M vs $85.6M consensus), EPS beat (Non-GAAP $0.88 vs $0.47), EBITDA above consensus noting definitional differences* .
  • Quarterly trend: Company modestly exceeded revenue consensus in Q1 and missed slightly in Q2; EPS exceeded consensus each quarter as Non-GAAP profitability expanded* .
  • Implications: Magnitude of EPS beat and raised FY EBITDA range likely drive upward estimate revisions for profitability; revenue estimates may adjust modestly given narrowed FY range and Q4 topline guide* .
    Values retrieved from S&P Global.

Key Takeaways for Investors

  • EPS beat magnitude and raised FY Adjusted EBITDA guidance are positive for near-term sentiment; Q4 margin target (~20%) sets up year-end beat risk if bookings conversion improves .
  • Revenue growth remains modest; focus is on mix quality (encoder, SaaS bundles) and operational rigor to drive sustainable margin expansion into 2026 (~200 bps) .
  • Bookings softness in Q3 is a watch item; October strength and leadership changes suggest improving conversion, but hospital budget cycles and regulatory uncertainty can delay decisions .
  • Balance sheet flexibility is improving (cash up, net leverage ~2.2x); continued deleveraging and FCF momentum support optionality and resilience .
  • Segment dynamics: Patient Care grew 5.3% YoY with stronger gross margin, while Financial Health was flat; encoder traction is a lever for incremental margin and bookings quality .
  • Guidance posture is disciplined: FY revenue midpoint lowered while EBITDA raised, signaling management’s priority on profitable growth and cost control .
  • Trading lens: Favorable EPS surprise and EBITDA trajectory may outweigh bookings noise; monitor Q4 bookings cadence and any 10-Q backlog/retention disclosures for confirmation of improving pipeline conversion .

Other Relevant Q3 2025 Materials

  • 8-K 2.02 with full press release and exhibits for Q3 2025 –.
  • Q3 2025 earnings call transcript (full) –.
  • No additional non-earnings press releases identified in the period window. Prior quarters’ earnings releases reviewed for trend: Q2 2025 –; Q1 2025 –.