Contradictions Unveiled: TruBridge's Q2 2025 Earnings Call Highlights Offshore Staffing, OB3 Impact, and Revenue Growth Challenges

Offshore staffing target and strategy, One Big Beautiful Bill (OB3) impact on client budgeting and contract expansion, financial health segment retention performance, sales and marketing initiatives impact on revenue growth, Medicare Advantage impact on business are the key contradictions discussed in TruBridge's latest 2025Q2 earnings call.



Revenue and Bookings Dynamics:
- TruBridge reported revenue of $85.7 million for Q2, towards the lower end of expectations, and adjusted EBITDA of $13.7 million, slightly ahead of the midpoint.
- The adjustment in guidance is due to lower-than-expected CBO client retention and delayed revenue recognition from larger deals.

Profitability and Efficiency Improvements:
- The company raised its adjusted EBITDA guidance range, with the midpoint of the range reflecting an EBITDA margin of 18.5%, up from 17% in the previous guidance.
- This improvement is driven by further efficiencies in offshoring initiatives, resource management, and a favorable revenue mix with the encoder solution performing exceptionally.

Client Retention and Operational Enhancements:
- TruBridge identified 60 CBO clients up for renewal and signed 12 of 15 in the quarter, aiming to improve retention and performance in 2026.
- Operational enhancements include establishing a physical presence in India, focusing on resource management, and implementing leadership changes to drive service quality and client satisfaction.

Innovation and Technology Integration:
- TruBridge is leveraging AI to improve internal efficiency and client experience, having released an AI solution for their patient care client support team.
- The company is partnering with Microsoft to integrate AI capabilities into its EHR solution, aiming to enhance care delivery and operational efficiency.