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1. Company Snapshot

1.a. Company Description

TruBridge, 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.

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1.b. Last Insights on TBRG

TruBridge, Inc.'s recent performance was positively driven by its Q3 earnings beat, with quarterly earnings of $0.88 per share exceeding the Zacks Consensus Estimate of $0.4 per share. The company's growing partnerships, such as the expanded agreement with Java Medical Group for EHR and financial health technology, also contributed to its growth. Furthermore, the appointment of Michael Daughton as Chief Business Officer is expected to drive client-centered excellence and growth. Additionally, Acadian Asset Management LLC increased its holdings in TruBridge by 89.9%, indicating growing investor confidence.

1.c. Company Highlights

2. TruBridge's Q3 2025 Earnings: A Mixed Bag with Margin Expansion

TruBridge reported total revenue of $86.1 million for Q3 2025, a 2% year-over-year increase, with recurring revenue accounting for approximately 94% of total revenue. The company's adjusted EBITDA was $16.3 million, representing an 18.9% margin, a 155 basis point improvement. Earnings per share (EPS) came in at $0.88, significantly beating estimates of $0.4. The company's financial performance was marked by a significant improvement in adjusted EBITDA margins, free cash flow, and leverage. Adjusted EBITDA margins are expected to expand by approximately 600 basis points from 2023 to year-end.

Publication Date: Nov -29

📋 Highlights
  • EBITDA Margin Expansion: Adjusted EBITDA margin up 155 bps to 18.9% in Q3, with 600 bps expansion expected by year-end from 2023 levels.
  • Debt Reduction: $35 million in debt paid down, reducing net leverage by over 2x (from prior periods).
  • Bookings Quality: Q3 TCV bookings of $15.5 million (20% below internal targets) showed Encoder margins of 70–80%, signaling improved quality.
  • Revenue Growth: Total Q3 revenue of $86.1 million (+2% YoY), with Patient Care revenue up 5.3% to $54.5 million.
  • Recurring Revenue: 94% of total revenue is recurring, underscoring contract stability and long-term visibility.

Segment Performance

The company's Financial Health revenue was $54.5 million, essentially flat year-over-year, while Patient Care revenue grew 5.3% year-over-year. Patient Care revenue saw its best growth in some time, driven by a combination of SaaS build and non-recurring revenue. The company is experiencing a delay in the budget process, which is impacting their bookings. However, they are starting to see decisions accelerate as they shore up their spending needs for 2026.

Bookings and Pipeline

Bookings for the quarter were $15.5 million on a Total Contract Value (TCV) basis, lower than expected, but with a focus on improving the quality of bookings. The company has seen positive traction in the Encoder business and an increase in financial health bookings in the 100- to 400-bed space. Fourth-quarter sales efforts are off to a strong start, with October bookings exceeding typical expectations. The pipeline is building, with coverage on multiple fronts, including Encoder, Patient Care, and Financial Health.

Valuation and Outlook

Given the company's current valuation metrics, including a P/S Ratio of 0.94 and EV/EBITDA of 12.02, the market appears to be pricing in moderate growth expectations. Analysts estimate next year's revenue growth at 3.6%. The company's guidance for the fourth quarter is $86 million to $89 million in revenue, with adjusted EBITDA of $16.5 million to $19.5 million. For the full year, revenue is expected to be $345 million to $348 million, with adjusted EBITDA of $65 million to $68 million.

Margin Expansion and Cost Optimization

The company expects 200 basis points of EBITDA margin expansion next year, primarily driven by cost optimization efforts. The company has built momentum in cost optimization and is targeting complex solutions like Patient Care support and tech support. As Chris Fowler stated, the company is being intentional about the bookings it pursues, focusing on higher-quality bookings with better margins. The guidance is achievable based on various scenario analyses, and the company is laser-focused on delivering financial excellence.

3. NewsRoom

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Acadian Asset Management LLC Boosts Stock Holdings in TruBridge, Inc. $TBRG

Nov -14

Source: defenseworld.net

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TruBridge, Inc. (TBRG) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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TruBridge (TBRG) Q3 Earnings and Revenues Surpass Estimates

Nov -07

Source: zacks.com

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TruBridge Announces Third Quarter 2025 Conference Call to Be Held Friday, November 7, 2025

Oct -31

Source: businesswire.com

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TruBridge Names Michael Daughton as Chief Business Officer to Advance Mission of Strengthening Rural and Community Healthcare

Oct -03

Source: businesswire.com

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Java Medical Group Expands Partnership With TruBridge for EHR, Financial Health Technology, and Services

Sep -23

Source: businesswire.com

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TruBridge, Inc. (TBRG) Q2 2025 Earnings Call Transcript

Aug -08

Source: seekingalpha.com

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TruBridge Announces Second Quarter 2025 Results

Aug -08

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.69%)

6. Segments

Revenue Cycle Management

Expected Growth: 5.8%

TruBridge's Revenue Cycle Management (RCM) growth of 5.8% is driven by increasing adoption of cloud-based RCM solutions, rising demand for outsourcing RCM services, and growing need for healthcare providers to optimize revenue cycles amidst regulatory changes and declining reimbursement rates.

Electronic Healthcare Record

Expected Growth: 5.5%

TruBridge's Electronic Healthcare Record (EHR) growth is driven by increasing adoption of digital healthcare solutions, government incentives for EHR adoption, and rising demand for efficient healthcare management. Additionally, the need for interoperability, improved patient outcomes, and cost savings also contribute to the 5.5% growth rate.

Patient Engagement

Expected Growth: 6.2%

TruBridge's 6.2% growth in Patient Engagement is driven by increasing adoption of digital health platforms, rising demand for personalized care, and growing need for healthcare providers to improve patient outcomes and reduce costs. Additionally, government initiatives promoting patient-centered care and value-based reimbursement models also contribute to this growth.

7. Detailed Products

Revenue Cycle Management (RCM) Services

Comprehensive RCM services to optimize revenue cycle operations, including claims submission, payment posting, and denial management.

Patient Access Services

Comprehensive patient access services, including registration, scheduling, and financial counseling.

Health Information Management (HIM) Services

Comprehensive HIM services, including medical record scanning, coding, and data analytics.

Consulting Services

Expert consulting services to optimize revenue cycle operations, including process improvement, workflow redesign, and technology optimization.

Revenue Integrity Services

Comprehensive revenue integrity services, including chargemaster management, pricing, and revenue recovery.

Coding and Compliance Services

Comprehensive coding and compliance services, including ICD-10 coding, coding audits, and compliance consulting.

8. TruBridge, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

TruBridge, Inc. has a moderate threat of substitutes due to the presence of alternative healthcare revenue cycle management solutions.

Bargaining Power Of Customers

TruBridge, Inc. has a low bargaining power of customers due to the fragmented nature of the healthcare industry and the lack of concentration among buyers.

Bargaining Power Of Suppliers

TruBridge, Inc. has a moderate bargaining power of suppliers due to the presence of multiple suppliers of healthcare revenue cycle management solutions.

Threat Of New Entrants

TruBridge, Inc. has a high threat of new entrants due to the relatively low barriers to entry in the healthcare revenue cycle management market.

Intensity Of Rivalry

TruBridge, Inc. operates in a highly competitive market with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.14%
Debt Cost 7.22%
Equity Weight 47.86%
Equity Cost 7.22%
WACC 7.22%
Leverage 108.93%

11. Quality Control: TruBridge, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TruBridge

A-Score: 5.1/10

Value: 7.5

Growth: 3.0

Quality: 5.1

Yield: 0.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Definitive Healthcare

A-Score: 3.8/10

Value: 8.7

Growth: 5.3

Quality: 4.1

Yield: 0.0

Momentum: 2.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Cue Health

A-Score: 3.6/10

Value: 10.0

Growth: 3.2

Quality: 3.6

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Sharecare

A-Score: 3.6/10

Value: 8.0

Growth: 3.6

Quality: 4.3

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Amwell

A-Score: 3.5/10

Value: 9.6

Growth: 3.9

Quality: 4.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Ontrak

A-Score: 2.9/10

Value: 10.0

Growth: 4.1

Quality: 3.4

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.02$

Current Price

23.02$

Potential

-0.00%

Expected Cash-Flows