TruBridge 2025 Q3 Earnings Remarkable Turnaround with 161.2% Net Income Surge

TruBridge (TBRG) reported Q3 2025 earnings on Nov 8, 2025, delivering a strong performance that exceeded expectations. The company returned to profitability with EPS of $0.37, reversing a $0.61 loss in the prior year, while net income surged 161.2% to $5.60 million. Guidance for Q4 revenue was raised to $86M–$89M, with full-year revenue projected at $345M–$348M, reflecting operational improvements and margin expansion.

Revenue

Financial Health led with $54.50 million in revenue, while Patient Care contributed $31.61 million, bringing the total to $86.11 million. This represents a 1.7% year-over-year increase, driven by stable performance in core segments and operational efficiencies.

Earnings/Net Income

The company achieved a remarkable turnaround, with net income of $5.60 million in Q3 2025, a 161.2% positive swing from a $9.15 million loss in Q3 2024. EPS improved to $0.37 from a loss of $0.61, underscoring the effectiveness of margin expansion and cost optimization. The significant improvement in EPS and net income reflects TruBridge's successful operational streamlining and strategic initiatives.

Post-Earnings Price Action Review

Following the earnings release, TruBridge’s stock experienced mixed short-term price movements. The stock price dropped 4.43% during the latest trading day but edged up 1.04% during the most recent full trading week. Month-to-date, it declined 2.41%, indicating cautious investor sentiment despite the earnings beat. The post-earnings price action suggests that while the results were positive, market participants remain cautious about near-term execution risks and macroeconomic uncertainties. The company’s strategic focus on offshore transitions and cost optimization may influence future stock performance, but immediate price volatility appears tied to broader market dynamics.

CEO Commentary

Christopher Fowler highlighted progress in operational streamlining, noting expanded margins, accelerated free cash flow, and deleveraging over seven quarters. While Q3 bookings of $15.5M TCV were described as “underwhelming,” the CEO emphasized higher-quality deals in Encoder and increased financial health bookings in the 100–400-bed hospital segment. Fowler expressed cautious optimism about Q4 sales momentum and outlined strategic priorities, including offshore transitions led by new CBO Mike Daughton.

Guidance

TruBridge guided to Q4 2025 revenue of $86M–$89M and full-year 2025 revenue of $345M–$348M, with adjusted EBITDA of $16.5M–$19.5M for Q4 and $65M–$68M for the full year. CFO Vinay Bassi reiterated expectations of 260 bps adjusted EBITDA margin expansion for 2025 and 200 bps further expansion in 2026 via cost optimization and offshore transitions.

Additional News

TruBridge announced key leadership changes, including the appointment of Mike Daughton as Chief Business Officer to lead sales, marketing, and client success teams. The company also outlined plans to restart offshore transitions in early 2026, aiming to enhance sales efficiency and client retention. Additionally, TruBridge projected a 200 bps EBITDA margin expansion for 2026, driven by cost optimization and operational discipline. These strategic moves align with the company’s focus on long-term margin growth and operational resilience.