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TruBridge (TBRG)
NASDAQ:TBRG

TruBridge (TBRG) AI Stock Analysis

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TruBridge

(NASDAQ:TBRG)

Rating:64Neutral
Price Target:
$25.00
▲(8.37%Upside)
TruBridge is bolstered by strong financial stability and impressive earnings call results, particularly with improved EBITDA and cash flow. However, significant profitability challenges, as indicated by a negative P/E ratio and technical indicators showing a downward trend, limit the stock's current attractiveness. External uncertainties in healthcare funding and tariffs also pose potential risks.

TruBridge (TBRG) vs. SPDR S&P 500 ETF (SPY)

TruBridge Business Overview & Revenue Model

Company DescriptionTruBridge, Inc. provides healthcare solutions and services for community hospitals, clinics, and other healthcare systems in the United States and internationally. The company operates in three segments: Revenue Cycle Management (RCM), Electronic Health Record (HER), and Patient Engagement. It focuses on providing RCM solutions for care settings, regardless of primary healthcare information solutions provider along with business management, consulting, managed IT services, and analytics and business intelligence. The company provides acute care solutions and related services for community hospitals, and physician clinics; and patient engagement and empowerment technology solutions to improve patient outcomes and engagement strategies with care providers. In addition, it offers patient liability estimates eligibility verification, claim scrubbing and submission, remittance management, denial/audit management, and contract management; and offers RCM services, such as accounts receivable management, private pay service, medical coding, revenue cycle consulting, and other additional insurance and patient billing services. Further, it offers consulting and business management services; managed IT services; encoder solutions; patient management; financial accounting; clinical; patient care; and enterprise applications. Additionally, it offers TruBridge HER platform, including total system support, national client conference, continuing education, software releases, hardware replacement, cloud electronic health record, forms and supplies, and public cloud infrastructure services; post-acute care software systems, and support and maintenance services; and InstantPHR, an interactive portal and CHBase which funnels data from multiple sources into one platform. The company was formerly known as Computer Programs and Systems, Inc. and changed its name to TruBridge, Inc. in March 2024. TruBridge, Inc. was founded in 1979 and is headquartered in Mobile, Alabama.
How the Company Makes MoneyTruBridge makes money through a diverse revenue model centered on providing essential services to healthcare organizations. Key revenue streams include subscription fees for its software solutions, service fees for revenue cycle management, and consulting fees for strategic advisory services. Additionally, TruBridge generates income from managed IT services, which help healthcare providers optimize their technology infrastructure. Significant partnerships with healthcare providers and technology partners enable TruBridge to expand its service offerings and maintain a steady flow of clients, contributing to its overall earnings.

TruBridge Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -9.53%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in financial performance, including doubled EBITDA, increased cash flow, and reduced leverage. Revenue and bookings showed robust growth, with successful offshore transitions contributing to higher margins. Despite these positives, challenges remain due to external uncertainties in health care funding and tariffs, which could affect customer decision-making. Overall, the sentiment leans positive due to strong financial results and operational progress, with caution advised regarding external factors.
Q1-2025 Updates
Positive Updates
Significant Improvement in Financial Metrics
Adjusted EBITDA nearly doubled to $18.2 million from $10 million last year. Cash flow from operations increased by over $7 million, and the net leverage ratio decreased from 4.4x to 2.4x.
Revenue and Bookings Growth
Revenue reached $87 million, marking a 3.7% year-over-year increase. Q1 bookings totaled $22 million, with a 50% sequential increase in Financial Health bookings and a 60% increase in Patient Care bookings.
Successful Transition to Offshore Operations
Approximately 30% of CBO clients are now supported offshore, contributing to improved gross margins and supporting a target of 60% by the end of 2025.
High Customer Retention Rates
Patient Care customer retention was 98%, excluding Centriq, compared to mid-90s in the previous year. Financial Health renewed 9 out of 11 clients up for renewal.
Improved Gross Margins
Gross margins increased by 430 basis points to 54.7% year-over-year, with Financial Health gross margins rising by 700 basis points.
Negative Updates
Challenges in Health Care Funding and Tariff Uncertainty
Ongoing uncertainty related to future health care funding and potential tariff impacts could cause customers to slow down decision-making processes.
Bookings with Limited Revenue Impact
Approximately 25% of Q1 bookings are expected to have little to no revenue impact in 2025 due to elongated go-live timing driven by specific customer situations.
Sales Cycle Caution Due to External Factors
Customers are cautious due to potential changes to Medicare expansion and reimbursement, which could impact decision-making and timing of purchases.
Company Guidance
During the TruBridge first quarter 2025 earnings call, the company reported significant improvements across various financial metrics. Adjusted EBITDA nearly doubled to $18.2 million, compared to $10 million in the same quarter last year, while cash flow from operations increased by over $7 million, improving from negative $2 million previously. The net leverage ratio decreased by two turns to 2.4x. Revenue reached $87 million, hitting the high end of guidance, with adjusted EBITDA exceeding expectations. Bookings totaled $22 million, with $13 million attributed to Financial Health and $9 million to Patient Care, marking a sequential increase of 50% and 60%, respectively. The company plans to transition to reporting bookings on an annual contract value (ACV) basis, with Q1 2025 ACV bookings reported at $17.3 million. Despite potential uncertainties related to healthcare funding and tariffs, TruBridge remains confident in the demand for its solutions, focusing on improving collections and operational efficiencies. The company also highlighted ongoing efforts to increase automation, with a target of having 60% of its CBO clients supported offshore by the end of 2025.

TruBridge Financial Statement Overview

Summary
TruBridge exhibits strong revenue growth and a robust balance sheet with low leverage, indicating financial stability. However, persistent net losses highlight profitability challenges. Cash flow remains robust, supporting operational needs, but improving profitability is crucial for financial health.
Income Statement
65
Positive
TruBridge's TTM (Trailing-Twelve-Months) revenue shows modest growth, but net income remains negative, impacting net profit margins adversely. Gross profit margin is healthy at approximately 49.3%, indicating efficient cost management. However, negative net profit margins and fluctuating EBIT margins suggest challenges in profitability and operational efficiency.
Balance Sheet
75
Positive
The company's balance sheet reflects a strong equity position with an equity ratio of 43.3%. The debt-to-equity ratio is low at approximately 0.03, indicating low leverage and reduced financial risk. Despite this, a decline in total assets over time suggests potential concerns in asset management or reinvestment strategies.
Cash Flow
70
Positive
TruBridge's TTM (Trailing-Twelve-Months) operating cash flow is robust, leading to a favorable operating cash flow to net income ratio. Free cash flow has shown growth, but the free cash flow to net income ratio highlights issues due to negative net income figures. Overall, cash flow management appears strong despite profitability challenges.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
346.61M342.65M339.44M326.65M280.63M264.49M
Gross Profit
170.82M174.12M163.57M160.11M144.85M136.25M
EBIT
20.84M6.63M-42.60M22.78M24.71M21.05M
EBITDA
33.38M34.94M-15.39M47.73M43.11M35.56M
Net Income Common Stockholders
-17.25M-20.44M-45.79M15.87M18.43M14.25M
Balance SheetCash, Cash Equivalents and Short-Term Investments
10.12M12.32M3.85M6.95M11.43M12.67M
Total Assets
388.84M394.43M434.42M430.96M383.35M326.27M
Total Debt
5.04M174.81M203.29M147.24M106.46M83.43M
Net Debt
-5.08M162.49M199.44M140.29M95.03M70.76M
Total Liabilities
220.33M225.74M247.80M199.25M160.78M126.27M
Stockholders Equity
168.51M168.69M186.62M231.71M222.57M200.00M
Cash FlowFree Cash Flow
25.49M13.04M-22.35M13.01M37.46M42.48M
Operating Cash Flow
39.93M32.13M1.06M32.38M47.74M49.14M
Investing Cash Flow
-14.51M4.12M-60.11M-62.73M-69.92M-6.66M
Financing Cash Flow
-19.41M-27.74M55.95M25.88M20.93M-37.16M

TruBridge Technical Analysis

Technical Analysis Sentiment
Negative
Last Price23.07
Price Trends
50DMA
24.72
Negative
100DMA
25.94
Negative
200DMA
20.66
Positive
Market Momentum
MACD
-0.33
Negative
RSI
37.11
Neutral
STOCH
30.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBRG, the sentiment is Negative. The current price of 23.07 is below the 20-day moving average (MA) of 24.05, below the 50-day MA of 24.72, and above the 200-day MA of 20.66, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 37.11 is Neutral, neither overbought nor oversold. The STOCH value of 30.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBRG.

TruBridge Risk Analysis

TruBridge disclosed 44 risk factors in its most recent earnings report. TruBridge reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

TruBridge Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
VMVMD
75
Outperform
$267.97M22.299.79%19.97%17.21%
70
Outperform
$532.41M30.59-1.20%38.43%86.19%
64
Neutral
$357.11M-10.98%3.15%61.71%
60
Neutral
$231.32M14.868.12%5.96%-43.83%
DHDH
57
Neutral
$531.21M-86.36%-3.04%-152.59%
54
Neutral
$5.41B3.27-45.10%3.29%16.81%0.02%
47
Neutral
$265.77M-938.38%38.82%-645.78%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TBRG
TruBridge
23.07
12.95
127.96%
RNAC
Cartesian Therapeutics
10.42
-12.90
-55.32%
TCMD
Tactile Systems Technology
9.84
-1.90
-16.18%
VMD
Viemed Healthcare
6.65
-0.21
-3.06%
CSTL
Castle Biosciences
18.75
-4.07
-17.84%
DH
Definitive Healthcare Corp
3.65
-1.92
-34.47%

TruBridge Corporate Events

Executive/Board ChangesShareholder Meetings
TruBridge Announces Governance Changes at Annual Meeting
Neutral
May 8, 2025

At the 2025 Annual Meeting held on May 8, 2025, TruBridge, Inc. announced significant corporate governance changes and approvals. The company’s stockholders approved the declassification of the Board of Directors, which will take effect starting with the 2026 Annual Meeting. Additionally, the Second Amended and Restated 2019 Incentive Plan was approved to increase the number of shares available for issuance. Other key decisions included the re-election of Class II directors, an advisory vote on executive compensation, and the ratification of Grant Thornton LLP as the independent registered public accountants for 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.