TruBridge Inc (TBRG) Stock Forecast & Price Target

TruBridge Inc. has demonstrated a robust financial performance, with Patient Care gross margins increasing to 59.6%, a notable rise of approximately 460 basis points year-over-year, attributed to effective cost rationalization and higher-than-expected non-recurring revenue. The company’s Financial Health segment, previously known as RCM, reported a 5% organic revenue increase year-over-year, bolstered by successful offshoring strategies that improved gross margins to 49.5%, reflecting a 250 basis point enhancement. Furthermore, the growth in client acquisitions, particularly in the 200-400 bed market, positions TruBridge for increased bookings and revenue, leading to an upward revision in the FY25 revenue estimate from $349 million to $353 million, which underscores the overall improved execution and operational efficiency within the business.

TruBridge Inc. is facing significant challenges as evidenced by a substantial decline in bookings across its business segments, with revenue cycle management bookings down 40% year-over-year and patient care bookings down over 50%. The company's first quarter 2025 revenue guidance is projected to be 1% below consensus expectations, indicating weaker financial performance than anticipated. Additionally, the reliance on delayed deals for future revenue generation raises concerns about the company's ability to stabilize its revenue streams, contributing to a negative outlook on the stock.