Trubridge, Inc. ((TBRG)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Trubridge, Inc. painted a picture of cautious optimism. While the company celebrated several positive developments such as improved booking performance, enhanced cash flow, and strategic partnerships, it also acknowledged challenges with revenue guidance, client retention, and operational delays. This balanced view suggests that while there are hurdles to overcome, strategic improvements are underway.
Improved Booking Performance
Trubridge, Inc. reported a notable increase in bookings, reaching $25.6 million on a Total Contract Value (TCV) basis. This is a significant rise from $22 million sequentially and $23 million year-over-year, indicating a positive trend in client acquisition and a robust demand for the company’s offerings.
Adjusted EBITDA Margin Improvement
The company achieved an adjusted EBITDA of $13.7 million, slightly surpassing the midpoint of expectations. The revised guidance now reflects an EBITDA margin increase to 18.5% at the midpoint, up from the previous 17%, showcasing effective cost management and operational efficiency.
Cash Flow and Leverage Improvements
Trubridge generated $14.5 million in cash flow from operations for the first half of 2025, marking an increase of $2.8 million compared to the previous year. Free cash flow also saw a significant rise to $5.5 million, up $3.4 million from the first six months of 2024. The company’s leverage improved to 2.4x from 3.9x a year ago, reflecting a stronger financial position.
Partnership with Microsoft
A strategic partnership with Microsoft was announced, aiming to integrate Microsoft’s Dragon Copilot into Trubridge’s EHR solution. This collaboration is expected to enhance care delivery and operational efficiency for clients, positioning Trubridge as a leader in innovative healthcare solutions.
Gross Margin Growth
The company reported a 250 basis point increase in gross margins in Q2 over the previous year. Financial Health gross margins rose by 150 basis points, while Patient Care gross margins reached a recent high of 62%, indicating strong operational performance and cost control.
Revenue Guidance Adjustment
Trubridge lowered the top end of its revenue guidance from $360 million to $350 million, citing challenges with CBO client retention and delayed revenue recognition from bookings. This adjustment reflects a more conservative outlook in light of current market conditions.
Client Retention Challenges
The company faced challenges in client retention within the CBO side of the financial health business, securing only 21 of 26 client renewals year-to-date. This shortfall highlights the need for improved client engagement strategies.
Delayed Revenue from Large Deals
Some significant deals signed in Q1 and Q2 are not expected to contribute revenue until 2026 due to longer implementation times for deals over $1 million in recurring revenue. This delay underscores the complexity of large-scale implementations.
Operational Adjustments and Delays
Trubridge’s plans to operationalize strategic initiatives and establish a physical presence in India have been delayed, with a target opening in 2026. These adjustments aim to enhance productivity and client satisfaction in the long term.
Forward-Looking Guidance
During the earnings call, Trubridge updated its guidance, lowering the top end of its revenue range to $345 million to $350 million from the previous $345 million to $360 million. However, the adjusted EBITDA range was raised to $62 million to $67 million, reflecting a focus on prudent expense management and resource optimization. Despite challenges in client retention and delayed revenue recognition, the company remains confident in achieving its long-term objectives.
In summary, Trubridge, Inc.’s earnings call reflected a balanced sentiment, highlighting both achievements and challenges. While the company is making strides in booking performance, cash flow, and strategic partnerships, it faces hurdles in revenue guidance and client retention. Overall, the call suggests a cautiously optimistic outlook with a focus on strategic improvements and long-term growth.