TruBridge, Inc. Earnings Call: Mixed Sentiments and Optimistic Outlook

Trubridge, Inc. ((TBRG)) has held its Q3 earnings call. Read on for the main highlights of the call.

TruBridge, Inc.’s recent earnings call revealed a mixed sentiment, highlighting both achievements and challenges. The company showcased significant improvements in financial metrics, cost optimization, and cash flow, yet faced hurdles with underwhelming bookings and stagnant Financial Health revenue. Despite these challenges, TruBridge remains optimistic about future growth and margin expansion.

Improved Financial Metrics

TruBridge reported an expected expansion of adjusted EBITDA margins by approximately 600 basis points from 2023 to year-end. The year-to-date free cash flow improved by $20 million, and the company successfully reduced its debt by $35 million, lowering net leverage by more than 2 turns.

Successful Cost Optimization

The company’s cost optimization initiatives have been fruitful, resulting in an adjusted EBITDA margin of 18.9% for Q3 2025, marking a 155 basis point improvement compared to the previous year.

Cash Flow and Leverage Improvements

TruBridge’s cash balance saw a significant increase from $3.8 million at the end of 2023 to approximately $20 million. The year-to-date free cash flow reached $15 million in 2025, a notable improvement from a cash outflow of $5 million in 2023.

Revenue Growth in Patient Care

Patient Care revenue experienced a 5.3% year-over-year growth, driven by SaaS growth and nonrecurring revenues. Excluding Centriq, the growth in Patient Care revenue would have been 8.9%.

Positive Outlook for Future

The company anticipates a 200 basis point expansion of EBITDA margin in 2026 due to ongoing cost optimizations and global workforce transitions.

Underwhelming Bookings

Bookings were disappointing, coming in at $15.5 million, down from $25.6 million sequentially and $21 million year-over-year, falling 20% short of internal expectations.

Challenges in Financial Health Revenue

Financial Health revenue remained flat year-over-year, hindered by slower performance in some products, despite growth in CBO and Encoder revenue.

Delayed Decision-Making in Sales

Hospital decision-making delays, attributed to budget cycles and regulatory uncertainties, led to underperformance in Q3 bookings.

Guidance and Future Expectations

TruBridge provided guidance for the fourth quarter of 2025, expecting revenue between $86 million to $89 million and adjusted EBITDA ranging from $16.5 million to $19.5 million. For the full year 2025, revenue is projected between $345 million and $348 million, with adjusted EBITDA expected to range from $65 million to $68 million. The company anticipates an adjusted EBITDA margin expansion of approximately 260 basis points compared to the previous year, driven by cost management and ROI-driven cost rationalization. Looking ahead to 2026, TruBridge foresees further adjusted EBITDA margin expansion of around 200 basis points, aiming for a margin of 20% by the end of 2025.

In summary, TruBridge, Inc.’s earnings call highlighted a mixed sentiment with notable achievements in financial metrics and cost optimization, countered by challenges in bookings and Financial Health revenue. The company remains optimistic about future growth, with a clear focus on margin expansion and strategic cost management.