TruBridge Inc (TBRG) 2025 Q3 法說會逐字稿

Good morning, and welcome to the TruBridge third-quarter 2025 earnings conference call.

早上好，歡迎參加 TruBridge 2025 年第三季財報電話會議。

Leading today's call are Chris Fowler, President and Chief Executive Officer and Vinay Bassi, Chief Financial Officer.

主持今天電話會議的是總裁兼執行長克里斯·福勒和財務長維奈·巴斯。

This call may include statements regarding future operating plans, expectations and performance that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company cautions you that any such forward-looking statements only reflect management expectations and predictions based upon currently available information and are not guarantees of future results or performance.

本次電話會議可能包含有關未來營運計畫、預期和績效的聲明，這些聲明構成根據 1995 年《私人證券訴訟改革法案》的安全港條款作出的前瞻性聲明。本公司提醒您，任何此類前瞻性聲明僅反映管理層基於當前可用資訊的預期和預測，並不能保證未來的績效或表現。

Actual results might differ materially from those expressed or implied by such forward-looking statements as a result of known and unknown risks, uncertainties and other factors, including those described in public releases and reports filed with the Securities and Exchange Commission, including, but not limited to, the most recent annual report on Form 10-K. The company also cautions investors that the forward-looking information provided in this call represents their outlook only as of this date, and they undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this call.

由於已知和未知的風險、不確定性和其他因素，實際結果可能與此類前瞻性聲明所表達或暗示的結果存在重大差異，這些因素包括公開披露和提交給美國證券交易委員會的報告中所描述的風險、不確定性和其他因素，包括但不限於最新的 10-K 表格年度報告。該公司還提醒投資者，本次電話會議中提供的前瞻性資訊僅代表截至本次會議日期的觀點，且該公司不承擔任何義務更新或修改任何前瞻性聲明以反映本次電話會議日期之後的事件或發展。

At this time, I will turn the call over to Mr. Chris Fowler, President and Chief Executive Officer. Please go ahead, sir.

此時，我將把電話轉交給總裁兼執行長克里斯·福勒先生。請繼續，先生。

Thank you, [Drew], and thank you to everyone for joining us today to discuss our Q3 results. To start the discussion, I want to take a moment to reflect on the meaningful progress we've made to improve the quality of our earnings and our financial performance over the past 7 quarters through our continuous focus on streamlining and improving our operations. Specifically, we have expanded margins, accelerated free cash flow generation and delevered the balance sheet, all while continuing to support our customers with mission-critical solutions that improved financial and operational performance across rural and community hospitals. Vinay will provide a much deeper dive into the details of the success these initiatives have yielded, but I'm very proud of the work we've done and believe we can replicate these efforts in other areas of the business.

謝謝[Drew]，也謝謝各位今天蒞臨現場，與我們共同探討第三季業績。首先，我想花點時間回顧過去 7 個季度以來，我們透過不斷精簡和改進運營，在提高盈利品質和財務業績方面取得的顯著進展。具體而言，我們擴大了利潤率，加快了自由現金流的產生，並降低了資產負債率，同時繼續為客戶提供關鍵任務解決方案，從而改善了農村和社區醫院的財務和營運績效。Vinay 將更深入地探討這些舉措取得的成功細節，但我為我們所做的工作感到非常自豪，並相信我們可以在業務的其他領域複製這些努力。

Turning to the specifics of the quarter. Our bookings came in at $15.5 million on a TCV basis compared to $25.6 million sequentially and $21 million year over year. While light from an absolute dollar basis, our focus is on continually improving the quality of bookings, which is more evident when you look at the numbers on a year-to-date basis. As we've mentioned in the past, investments we've made to improve our products, specifically within our Encoder business, have allowed us to win higher-margin deals. Along with positive traction within Encoder, we've seen our percentage of financial health bookings in the 100- to 400-bed space increase from less than 20% in 2024 to more than 30% in 2025. As we continue to succeed in RCM tech and in the 100- to 400-bed space, we create more paths to improve bookings performance quarter-over-quarter and year-over-year.

接下來具體談談本季的情況。以總合約價值計算，我們的預訂金額為 1,550 萬美元，而上一季為 2,560 萬美元，去年同期為 2,100 萬美元。雖然從絕對美元金額來看並不高，但我們的重點是不斷提高預訂質量，這一點從年初至今的數據中可以更明顯地看出。正如我們過去所提到的，我們為改進產品所做的投資，尤其是在編碼器業務方面，使我們能夠贏得利潤更高的交易。隨著 Encoder 的積極發展，我們看到，在 100 至 400 床位的領域中，財務健康預訂的百分比從 2024 年的不到 20% 增加到 2025 年的超過 30%。隨著我們在RCM技術和100至400床位領域不斷取得成功，我們創造了更多途徑來提高季度和年度的預訂業績。

While the bookings performance of Q3 was underwhelming, our fourth quarter sales efforts are off to a strong start. Historically, bookings have been weighted towards the end of the quarter, but October meaningfully outpaced what we typically expect to book in the first month of a given quarter. Broadly speaking, our bookings still remain chunky, so we're not claiming victory just yet, but we are pleased with the signs that whatever was restricting pipeline conversion in Q3 seems to have alleviated.

雖然第三季的預訂業績不盡人意，但我們第四季的銷售工作開局強勁。從歷史上看，預訂量通常集中在季度末，但 10 月份的預訂量明顯超過了我們通常在每個季度第一個月的預期。總的來說，我們的預訂量仍然很大，所以我們還不能宣布勝利，但我們很高興地看到，第三季限制銷售轉換率的因素似乎已經有所緩解。

In today's operating environment, not all factors are within our control, so we continue to focus on addressing the challenges that are within our control, like ensuring that we have the highest quality talent on board. In early October, we officially welcomed Mike Daughton to the TruBridge team as our Chief Business Officer. In this role, Mike will be leading sales and marketing and our client success teams. He is focused on building high-performing teams, holding key team members accountable for exceptional client management and consistently delivering enterprise value and measurable impact. Our expectation of Mike is that he will raise our sales efforts to the next level in terms of order and efficiency, providing more visibility into tracking bookings and revenue growth and focusing on those high-quality opportunities I spoke about earlier. He brings a skill set that will empower our team to go after the larger market, which we know is obtainable with the right discipline and focus.

在當今的經營環境中，並非所有因素都在我們的掌控之中，因此我們將繼續專注於解決我們能夠掌控的挑戰，例如確保我們擁有最優秀的人才。10月初，我們正式歡迎Mike Daughton加入TruBridge團隊，擔任首席商務長。在這個職位上，Mike 將領導銷售和行銷團隊以及我們的客戶成功團隊。他專注於打造高效團隊，要求關鍵團隊成員對卓越的客戶管理負責，並持續交付企業價值和可衡量的影響力。我們對 Mike 的期望是，他能將我們的銷售工作提升到一個新的水平，提高訂單量和效率，更好地追蹤預訂和收入成長，並專注於我之前提到的那些高品質機會。他具備的技能將使我們的團隊能夠開拓更大的市場，我們知道，只要有正確的紀律和專注，這是可以實現的。

To further enhance our performance initiatives, I'm pleased to report that our offshore transition is progressing as we start to operationalize the strategic plan we spoke about last quarter. We continue to fill out our leadership team, including a Head of India to ensure we have the right leaders in place to execute on the plan. The team has made the foundational improvements necessary to ensure success and put in place a thorough metrics-driven approach we believe was imperative to allow us to turn the transition machine back on. As of October 1, we have begun at a measured pace. Currently, we have 2 transitions in the works with more coming in the fourth quarter. As we restart our transitions, we are working in close coordination with each customer to provide a clear understanding of the expectations of how the process will unfold. We have also put in place structural support to ensure continuity of staff from our domestic workforce on each transition to guarantee a stable handoff.

為了進一步提升我們的績效舉措，我很高興地報告，我們的離岸轉型正在取得進展，我們已開始實施上個季度討論過的戰略計劃。我們將繼續完善領導團隊，包括任命一位印度區負責人，以確保我們擁有合適的領導人來執行該計劃。團隊已經進行了必要的根本性改進，以確保成功，並製定了一套我們認為至關重要的、以指標為導向的全面方法，使我們能夠重新啟動轉型機器。自10月1日起，我們已按穩定前進。目前，我們有 2 個轉型專案正在進行中，第四季還將有更多專案啟動。隨著我們重新啟動轉型工作，我們正在與每位客戶密切協調，以便讓他們清楚地了解流程將如何展開。我們也制定了結構性支援措施，以確保每次過渡期間國內員工隊伍的連續性，從而確保平穩交接。

As we look ahead to 2026, we plan for transitions to accelerate gradually, but we'll only do so when we are confident it will not cause disruption. As we move carefully through the customers to be transitioned, we will track performance metrics with a hyper focus on stability, communication and each customer's comfort with the process. We stated all along that this process is key to continued margin expansion in 2026 and beyond, but we will not sacrifice the quality of our service to get there. Our commitment to the strategic transition process would not receive a great grade if improved client retention wasn't an intended outcome. While the absolute number of client losses increased a little in Q3, our net retention -- our net revenue retention for our core CBO business has shown a couple of points of improvement from the first half of the year. Renewals were stronger in Q3 than in Q2, and that trend continues into October.

展望 2026 年，我們計劃逐步加快轉型步伐，但只有在我們確信轉型不會造成混亂的情況下才會這樣做。在謹慎推進客戶過渡的過程中，我們將追蹤各項績效指標，重點關注穩定性、溝通以及每位客戶對過渡過程的滿意度。我們一直強調，這個過程是2026年及以後持續擴大利潤率的關鍵，但我們不會為了實現這一目標而犧牲服務品質。如果提高客戶留存率不是我們預期的結果，那麼我們對策略轉型過程的投入就不會得到很高的評價。雖然第三季客戶流失的絕對數量略有增加，但我們核心 CBO 業務的淨留存率（淨收入留存率）與上半年相比有所改善。第三季續約情況強於第二季度，這趨勢持續到10月份。

As we've shared previously, we initiated a multi-quarter process earlier this year to enhance client success quality, drive operational efficiency and strengthen the capabilities of our India team. I believe this, along with the careful and strategic approach we've taken to restart our transition process will give us the opportunity to improve our long-term client retention. Looking ahead to the end of 2025 and into 2026, the keys to sustainable and durable performance for TruBridge are clear. First, implementing the rigor that has led to success in improving our financial health into more areas of the business; two, deliver higher-quality bookings; and three, carefully and thoughtfully executing on our strategic transition process and in turn, improving customer satisfaction with the goal of increasing our retention.

正如我們之前分享的那樣，我們今年稍早啟動了一個為期幾季的流程，旨在提高客戶成功品質、提升營運效率並增強我們印度團隊的能力。我相信，這一點，再加上我們為重啟轉型過程所採取的謹慎而有策略的方法，將使我們有機會提高長期客戶留存率。展望 2025 年底和 2026 年，TruBridge 實現可持續和持久性能的關鍵顯而易見。首先，將改善財務狀況的嚴格方法推廣到業務的更多領域；其次，提供更高品質的預訂；第三，認真、周全地執行策略轉型流程，從而提高客戶滿意度，最終提高客戶留存率。

During the third quarter, we made strategic and effective changes to drive sustainable long-term performance. We know we have the right foundation in place to progress in these areas and look forward to providing updates in the coming quarters.

第三季度，我們進行了策略性和有效的變革，以推動可持續的長期業績成長。我們知道我們已經具備在這些領域取得進展的正確基礎，並期待在接下來的幾季中提供最新進展。

With that, I'll turn the call over to Vinay to review the financials. Vinay?

接下來，我將把電話交給維奈，讓他審核財務資料。維奈？

Thanks, Chris, and good morning, everyone. Let me take a few minutes to highlight some of our financial achievements over the past 2 years, review our third-quarter results and then provide additional color on our outlook for the remainder of the year.

謝謝克里斯，大家早安。請容許我花幾分鐘時間重點介紹我們過去兩年取得的一些財務成就，回顧一下我們第三季的業績，然後進一步闡述我們對今年剩餘時間的展望。

We have come a long way since I joined in January 2024 with significant improvement on adjusted EBITDA margins, free cash flow and leverage. Specifically, adjusted EBITDA margins are expected to expand approximately 600 basis points from 2023 to year-end. Year-to-date free cash flow has improved dramatically by $20 million, and we have paid down debt by approximately $35 million, reducing our net leverage position by more than 2 turns, all amidst a complex operational backdrop. As Chris mentioned, since the end of 2023, we have meaningfully improved the quality of our earnings, and we believe we are in significantly better positioned today than just two years ago.

自從我於 2024 年 1 月加入公司以來，我們取得了長足的進步，調整後的 EBITDA 利潤率、自由現金流和槓桿率都得到了顯著改善。具體而言，預計從 2023 年到年底，調整後的 EBITDA 利潤率將成長約 600 個基點。今年迄今為止，自由現金流大幅改善了 2000 萬美元，我們償還了約 3500 萬美元的債務，使我們的淨槓桿率降低了 2 倍以上，而這一切都是在複雜的營運環境下實現的。正如克里斯所提到的，自 2023 年底以來，我們的獲利品質有了顯著提高，我們相信，我們今天的處境比兩年前要好得多。

One of our top priorities was to drive efficiency and cost optimization across the organization. We put in place many process improvements, including an ROI-driven assessment of our spend, clear accountability to the business units and the monthly forecast reviews of the business. Throughout 2024, we implemented cost optimization decisions along with the change in mindset throughout the organization, resulting in an adjusted EBITDA margin of 16.5% for the year, a 340 basis point improvement compared to 13.1% in 2023.

我們的首要任務之一是提高整個組織的效率並優化成本。我們實施了許多流程改善措施，包括以投資回報率為導向的支出評估、明確的業務部門問責制以及每月業務預測審查。2024 年全年，我們實施了成本優化決策，並在整個組織內改變了思維方式，最終實現了 16.5% 的調整後 EBITDA 利潤率，比 2023 年的 13.1% 提高了 340 個基點。

In 2025, based on the midpoint of our guidance, we are on track to reach 19% margin for the full year, yielding another 260 basis points increase. Continuing with the same mindset, we have identified and are in process of actioning additional cost optimization opportunities in combination with incremental net savings expected from the global workforce transition. I'm confident that as these actions compound, we will be able to deliver continued improvement in our margin profile in 2026 and beyond.

根據我們預測的中點，到 2025 年，我們預計將實現全年 19% 的利潤率，這將帶來 260 個基點的成長。秉持著同樣的理念，我們已經確定並正在實施額外的成本優化機會，同時預計全球勞動轉型將帶來額外的淨節省。我相信，隨著這些措施的不斷實施，我們將能夠在 2026 年及以後持續改善我們的利潤率。

Further, disciplined ROI-driven cost management and investment decisions have significantly optimized our product development spend. As a result, capitalized software spend has decreased by 30% from approximately $18 million in the first 3 quarters of 2023 to approximately $12.5 million in the first 3 quarters of this year. Additionally, year-to-date capitalized software spending as a percent of revenue has come down to 4.8% from 7.2% in the corresponding period. These efforts, along with the working capital improvement have resulted in growth in our cash balance from $3.8 million at the end of 2023 to approximately $20 million today. In addition, free cash flow, which we define as operating cash flow less CapEx, was $15 million year-to-date in 2025 compared to a cash outflow of $5 million in the corresponding period in 2023.

此外，嚴格的以投資回報率為導向的成本管理和投資決策顯著優化了我們的產品開發支出。因此，資本化軟體支出從 2023 年前三個季度的約 1,800 萬美元下降了 30%，至今年前三個季度的約 1,250 萬美元。此外，今年迄今的資本化軟體支出佔收入的百分比已從去年同期的 7.2% 降至 4.8%。這些努力，加上營運資金的改善，使我們的現金餘額從 2023 年底的 380 萬美元成長到目前的約 2,000 萬美元。此外，自由現金流（我們定義為經營現金流量減去資本支出）在 2025 年迄今為 1,500 萬美元，而 2023 年同期則為 500 萬美元現金流出。

Further, we have also continued to strengthen our balance sheet through disciplined debt reduction, paying down debt by approximately $35 million since January 2024 and improving our net leverage ratio from 4.4x in Q4 2023 to approximately 2.2x by Q3 2025. This also marks the third consecutive quarter with net leverage below 2.5x, highlighting our consistent focus on balance sheet improvement and capital efficiency. As cash generation continues to accelerate, we are well positioned to conclude the year with a meaningfully stronger financial foundation.

此外，我們還透過有紀律地減少債務來持續加強資產負債表，自 2024 年 1 月以來已償還約 3,500 萬美元債務，並將淨槓桿比率從 2023 年第四季的 4.4 倍提高到 2025 年第三季的約 2.2 倍。這也標誌著淨槓桿率連續第三個季度低於 2.5 倍，凸顯了我們對改善資產負債表和提高資本效率的一貫重視。隨著現金流持續加速成長，我們完全有能力在年底前建立更穩健的財務基礎。

Turning now to our Q3 2025 financial performance. Total revenue for the third quarter was $86.1 million, an increase of approximately 2% compared to a year ago. However, I'd like to point out the year-over-year growth included approximately $1 million impact from the sunset of our Centriq product in the Patient Care unit. Normalizing for this, revenue would have been up 2.8% versus the prior year. Further, recurring revenue continued to be high around 94% of our total revenue.

現在來看看我們 2025 年第三季的財務表現。第三季總營收為 8,610 萬美元，比去年同期成長約 2%。不過，我想指出的是，年比增幅包含了因病患照護部門 Centriq 產品停產而造成的約 100 萬美元的影響。剔除此因素後，營收將比上年成長 2.8%。此外，經常性收入仍然很高，佔總收入的 94% 左右。

Financial Health revenue of $54.5 million in the quarter represented approximately 63% of the total company revenue and was essentially flat year-over-year. Mid-single-digit growth in our CBO business and strong growth in Encoder revenue were offset by slower performance in other products. Financial Health gross margin of 46.2% were almost flat compared to the prior year as labor efficiencies were offset by incremental investments in the stabilization of CBO business.

本季財務健康業務收入為 5,450 萬美元，約占公司總收入的 63%，與去年同期基本持平。CBO 業務的個位數中成長和編碼器收入的強勁成長被其他產品業績放緩所抵消。財務健康毛利率為 46.2%，與前一年相比幾乎持平，因為勞動力效率的提高被 CBO 業務穩定方面的新增投資所抵消。

Patient Care revenue was $31.6 million, reflecting 5.3% year-over-year growth, primarily driven by growth in SaaS and some nonrecurring revenues offset by the sun setting of Centriq. Excluding Centriq, growth in Patient Care revenue would have been 8.9% in the third quarter. Patient Care gross margin expanded meaningfully to approximately 60%, an increase of nearly 370 basis points versus last year, driven by continued operational efficiencies in vendor spend and labor costs.

病患照護收入為 3,160 萬美元，年增 5.3%，主要得益於 SaaS 的成長和一些非經常性收入，但被 Centriq 的退出所抵消。如果排除 Centriq，第三季患者護理收入成長率將達到 8.9%。病患照護業務的毛利率顯著成長至約 60%，比去年成長了近 370 個基點，這主要得益於供應商支出和勞動成本方面持續的營運效率提升。

Operating expenses of $40 million represented 46% of revenue and were roughly flat to the prior year as a slight increase in investments in product development for Encoder and Financial Health and in support functions were offset by lower nonrecurring costs. All of this resulted in third quarter adjusted EBITDA of $16.3 million with an 18.9% margin, representing a 155 basis point improvement compared to 17.3% in the third quarter of 2024. This margin expansion is primarily driven by gross profit improvement and our disciplined approach to cost management.

營運支出為 4000 萬美元，佔收入的 46%，與上一年基本持平，原因是編碼器和財務健康產品開發以及支援職能方面的投資略有增加，但非經常性成本有所下降。所有這些因素共同促成了第三季調整後 EBITDA 為 1,630 萬美元，利潤率為 18.9%，與 2024 年第三季的 17.3% 相比，提高了 155 個基點。利潤率的提升主要得益於毛利的提高和我們嚴格的成本管理方法。

We ended the quarter with $19.9 million in cash, an increase of $11.3 million, 132% year-over-year and an increase of $7.6 million sequentially, primarily driven by improved profitability, lower interest expense and disciplined working capital management. Net debt was approximately $144 million, and our net leverage ratio improved to 2.2x, marking our strongest leverage position in several years. In Q3, we repaid approximately $2 million on our debt, including normal amortization payments, bringing our total payments to approximately $35 million since January 2024.

本季末，我們持有現金 1,990 萬美元，年增 1,130 萬美元，增幅達 132%，環比增長 760 萬美元，主要得益於盈利能力提高、利息支出降低以及嚴格的營運資本管理。淨債務約為 1.44 億美元，淨槓桿率改善至 2.2 倍，這是我們近年來槓桿水平最高的一次。第三季度，我們償還了約 200 萬美元的債務，其中包括正常的攤銷付款，自 2024 年 1 月以來，我們的總付款額約為 3,500 萬美元。

Finally, turning to guidance for the fourth quarter and the rest of the year. For the fourth quarter of 2025, we expect revenue of $86 million to $89 million and adjusted EBITDA of $16.5 million to $19.5 million. And for the full year 2025, we expect revenue of $345 million to $348 million and adjusted EBITDA of $65 million to $68 million. Once again, we will be increasing the adjusted EBITDA guidance for the full year despite lowering the midpoint of revenue. At the revised midpoint, margins expand approximately 260 basis points compared to the prior year, driven by a continued focus on prudent cost management and ROI-driven cost rationalization. As communicated in the past quarters, we expect the adjusted EBITDA margin in Q4 2025 to be around 20% at the guidance midpoint.

最後，展望第四季及今年剩餘時間的業績。我們預計 2025 年第四季營收為 8,600 萬美元至 8,900 萬美元，調整後 EBITDA 為 1,650 萬美元至 1,950 萬美元。對於 2025 年全年，我們預計營收為 3.45 億美元至 3.48 億美元，調整後 EBITDA 為 6,500 萬美元至 6,800 萬美元。儘管我們下調了全年收入中點，但我們仍將再次提高全年調整後 EBITDA 預期。以修訂後的中間值計算，利潤率較上年同期增長約 260 個基點，這主要得益於公司持續關注審慎的成本管理和以投資回報率為導向的成本合理化。正如過去幾季所溝通的那樣，我們預計 2025 年第四季的調整後 EBITDA 利潤率將在預期中位數為 20% 左右。

While we will not provide formal 2026 guidance until early next year as usual, we do want to take this opportunity to share that we believe we will deliver further adjusted EBITDA expansion -- margin expansion of around 200 basis points from the midpoint of our full year 2025 guidance. This is primarily driven by the next level of cost optimization actions we have identified and are in process of realizing along with the net savings from the next phase of global offshore transitions. Through the first 3 quarters of the year, I'm pleased with the meaningful progress in improving the quality of our earnings and looking forward to end the year on a strong financial footing. There is still more work to be done and will continue to be laser focused on continuous improvement.

雖然我們不會像往常一樣在明年年初之前提供正式的 2026 年業績指引，但我們想藉此機會分享，我們相信我們將實現進一步的調整後 EBITDA 增長——利潤率將比我們 2025 年全年業績指引的中點增長約 200 個基點。這主要是由我們已經確定並正在實施的下一階段成本優化措施以及下一階段全球離岸轉型帶來的淨節省所驅動的。今年前三個季度，我對公司獲利品質的顯著提升感到滿意，並期待以強勁的財務基礎結束這一年。還有很多工作要做，我們將繼續專注於持續改進。

Thank you. And I will now turn the call over to Christine for questions.

謝謝。現在我將把電話交給克里斯汀，她可以回答一些問題。

(Operator Instructions)

（操作說明）

Sarah James, Cantor Fitzgerald.

莎拉詹姆斯，坎托費茲傑拉。

This is Gabbie on for Sarah.

這裡是 Gabbie 為 Sarah 報道。

I had a quick question about bookings coming in at $15.5 million, and I appreciate the fact that they're higher quality bookings. But can you talk about where this landed in terms of your internal initial expectations for bookings in the quarter? And if we should expect the cadence of bookings to be with higher EBITDA margin from here?

我有個關於1550萬美元預訂額的問題想請教一下，我很欣賞這些高品質的預訂。但您能否談談，就您內部對本季預訂量的最初預期而言，實際結果如何？我們是否可以預期，從現在開始，預訂量的成長速度將與更高的 EBITDA 利潤率相符？

Yes. So first of all, Gabbie, and please share our congratulations to Sarah as well. Obviously, not the number that we were looking for. I would say we're probably 20% off the number of what we were expecting for the quarter. And again, it wasn't like we saw a negative decision influence on this. It was more of a delayed decision. And I think that, that's showing through in the early success of Q4 and what we're seeing in October.

是的。首先，Gabbie，也請代我們向Sarah表示祝賀。顯然，這不是我們想要的數字。我認為我們本季的實際業績可能比預期低了 20%。而且，我們也沒有看到任何負面決策對此產生影響。這算是遲來的決定。我認為，第四季初的成功以及我們在10月份看到的情況都體現了這一點。

I will say we are being very intentional on the bookings that we're going after on the Patient Care side focused on our conversion to the SaaS model, which is a larger overall booking and does have some more complexity. So it has expanded the buying decision at the customer level. On the Financial Health side, we continue to be optimistic about the opportunity that's out there. We've just got to continue to get these hospitals to see the value and the need for the additional services to come in. As the regulatory landscape settles down a little bit, I do think that the focus on improvement for the RCM side of the house for the hospitals will continue to be a priority and will lead to increased bookings efforts going forward.

我想說的是，我們在患者護理方面非常注重預訂，重點是向 SaaS 模式的轉型，這是一個更大的整體預訂量，也更複雜一些。因此，它擴大了消費者層面的購買決策範圍。在財務健康方面，我們仍然對現有的機會持樂觀態度。我們必須繼續努力，讓這些醫院認識到新增服務的價值和必要性。隨著監管環境逐漸穩定下來，我認為醫院在收入週期管理方面的改進仍將是優先事項，並將推動未來預訂工作的增加。

And on the margin question that you asked on -- on the bookings, Gabbie, we are seeing an improved quality from a margin also like for example, bookings for our Encoder business, which is like a very high 70%, 80% margin. Year-to-date 2025, the bookings percent for Encoder in the last year to this year has almost doubled. The more we get, the better margin we have. But obviously, the mix of the bookings, obviously, have a bearing, but I think we have seen a trend to be positive.

關於您提到的利潤率問題——關於預訂量，Gabbie，我們看到利潤率也有所提高，例如，我們的編碼器業務的預訂量利潤率非常高，達到 70%、80%。截至 2025 年，Encoder 的預訂量佔去年同期的百分比幾乎翻了一番。我們得到的越多，利潤就越高。但很顯然，預訂的組合肯定會產生影響，但我認為我們已經看到了積極的趨勢。

Okay. Great. And then just one more follow-up on that, if I could. In the conversations where the hospitals are choosing to delay implementation, are you seeing that any commonality and if it's referenced to Medicaid funding cuts coming through One Big Beautiful Bill? Or is the $50 billion rural hospital fund and net benefit coming up at all in your conversations? And could that be a tailwind in '26?

好的。偉大的。如果可以的話，我還想再補充一點。在醫院選擇推遲實施的討論中，您是否發現任何共同點？這是否與即將通過《一項偉大的法案》削減醫療補助資金有關？或者，你們的談話中是否提到500億美元的農村醫院基金和淨收益？那會不會是 2026 年的順風呢？

Yes. I think it will be a tailwind. Again, I think the uncertainty is, again, not changing people's decision. It's just delaying them for just a beat. We are seeing that pickup. I think there's also the impact of the vast majority of our hospitals are on a calendar year budget cycle. So you take the impact of the budget process and what they're doing or what they're trying to figure out relative to what the OBBB may have an impact on their next year is creating some delay. But again, as they're shoring up what their spending needs are for '26, we're starting to see those decisions accelerate.

是的。我認為這將是順風。我再次認為，這種不確定性並不會改變人們的決定。這只是暫時耽擱一下而已。我們看到了這種成長勢頭。我認為，我們絕大多數醫院的預算週期都是按日曆年計算的，這也會產生影響。所以你要考慮到預算流程的影響，以及他們正在做的事情或他們試圖弄清楚的事情，而 OBBB 可能會對他們的下一年產生影響，從而造成一些延誤。但是，隨著他們確定 2026 年的支出需求，我們開始看到這些決策正在加速。

(Operator Instructions)

（操作說明）

Jeff Garro, Stephens.

傑夫·加羅，史蒂芬斯。

Maybe we'll follow up a little bit on the bookings front and great to hear the mention of October bookings success. It sounds like that kind of reflects timing, maybe some decisions pushing out of Q3. So with that, I was hoping you could discuss kind of the broader pipeline, the state of the pipeline. And then kind of help us level set bookings growth expectations for the year. Just more specifically, if some decisions pushed out from Q3 into Q4, is there enough in the pipeline that kind of pro forma back half of the year could deliver in line with maybe what you were intending or could compare to last year as well if there should be an expectation for overall growth or not?

或許我們會再跟進一下預訂情況，很高興聽到十月份的預訂情況很成功。聽起來這似乎反映了時間安排的問題，也許有些決定要推遲到第三季之後。所以，我希望您能討論一下更廣泛的管道系統，以及管道系統的現狀。然後幫助我們設定今年的預訂成長預期。更具體地說，如果一些決策從第三季度推遲到第四季度，那麼下半年的業績是否有足夠的專案可以達到預期目標，或者是否可以與去年同期進行比較，從而預測整體成長情況？

Yes. First of all, Jeff, thanks for being on the call. Yes. The short answer is I would say, I wouldn't draw a straight line to the second half of the year based on the early success of October kind of covering up the shortfall in Q3 at the very top of it. With that being said, obviously, we are focused on driving as much performance from a bookings perspective into this year as we can. Obviously, Mike has stepped in with guns blazing at the October 1. And while a leadership change can also lead to a little bit of disruption, we're pleased with the continuity and the smooth transition that we've seen from Dawn to Mike and how the team has rallied behind him.

是的。傑夫，首先感謝你參加電話會議。是的。簡而言之，我認為不能僅憑 10 月的早期成功就斷定下半年業績會很好，也不能認為 10 月的成功就能彌補第三季初的不足。綜上所述，很顯然，我們今年的重點是盡可能提高預訂量的表現。顯然，麥克在10月1日那天火力全開。雖然領導層的更迭也可能導致一些混亂，但我們很高興看到從 Dawn 到 Mike 的過渡非常順利，團隊也團結在他周圍。

So with that said, we're off to a good start. We've got the bookings. We've got the pipeline coverage to cover what we expect for Q4. However, what we could see is a very similar outcome to Q3, which is those bookings continue or those pipeline decisions continue to delay. We try to balance the optimism that we're seeing with making sure that we're setting the right expectations, obviously. So with that said, we're very focused on making sure that we convert on those opportunities to close this year. I think the balance of the rest of this year will also set up how we're looking into going into next year.

綜上所述，我們開局不錯。我們已經收到預訂了。我們的管道供應足以滿足我們對第四季的預期。然而，我們可能會看到與第三季非常相似的結果，即預訂繼續進行或相關決策繼續推遲。我們努力在保持樂觀情緒的同時，確保我們設定正確的預期，這當然是很重要的。因此，綜上所述，我們非常注重確保今年能抓住這些機會完成交易。我認為今年剩餘時間的安排也將決定我們明年的計畫。

What is positive as we see the pipeline build is that there is coverage on a lot of fronts. You heard Vinay talk about the Encoder and the success we're seeing there. We're seeing that same optimism build on the Patient Care side with the SaaS bundled opportunities and again, in the Financial Health, both from a cross-sell standpoint and into that net new space. So now it's just a matter of seeing that pipeline convert to those bookings opportunities.

從管道建設的角度來看，積極的一面是，很多方面都有所覆蓋。你聽Vinay談到了編碼器以及我們在這方面取得的成功。我們看到，在病患照護方面，隨著 SaaS 捆綁銷售機會的出現，這種樂觀情緒也在不斷增強；同樣，在財務健康領域，無論是從交叉銷售的角度來看，還是從全新的領域來看，這種樂觀情緒都在增強。所以現在的問題是如何將這些潛在客戶轉化為實際的預訂機會。

Excellent. I appreciate that. And I want to follow-up on one thing there. On the new sales leadership, just kind of hoping to get a little bit more detail on kind of what's needed. What's the path from here? What's the process for improvement? I want to recognize there have been efforts over the last couple of years to increase quality and consistency of bookings. And I think for the most part, you've had positive returns there. So curious how -- or whether new leadership will need to bring in new tenants and rebuild from the ground up? Or is there a case to be made that Mike can just be an immediate difference maker as you try to convert more of that pipeline to close bookings?

出色的。我很感激。我想就此事補充一點。關於新的銷售領導層，我只是想了解具體需要哪些方面的資訊。接下來該怎麼走？改進流程是什麼？我想肯定的是，在過去幾年裡，各方一直在努力提高預訂的品質和穩定性。而且我認為，在大多數情況下，你都獲得了正面的回報。所以很好奇，新的領導層將如何——或者是否需要引入新的租戶並從頭開始重建？或者，是否有理由認為，當您嘗試將更多潛在客戶轉化為實際訂單時，Mike 可以立即發揮關鍵作用？

Yes. That's a very fair question. I would say it's probably a mix of both, right? I mean if you look at how we've gone through the other areas where we brought new leadership, I think we want to make sure that we're taking advantage of the talent and the continuity that we have, but also make sure that we're finding the resources and the talent that have been down the road that we're trying to go down. I think the Financial Health organization is a great example of that, where we brought in additional talent and leadership under Merideth that have been a part of a transition to India or operating a successful global environment.

是的。這是一個非常合理的問題。我覺得可能是兩者兼而有之，對吧？我的意思是，如果你看看我們在其他領域引入新領導層的方式，我認為我們希望確保我們能夠充分利用我們現有的才能和連續性，同時也要確保我們能夠找到我們一直在努力的方向所需的資源和人才。我認為金融健康組織就是一個很好的例子，我們在 Merideth 的領導下引入了更多的人才和領導層，他們參與了向印度的過渡或在成功的全球環境中運作。

So I think that Mike will do the same thing. I think that we're going to make sure that we have the right infrastructure in place for him. I'm excited about also tying together the sales, marketing and the client success function together under him so that we do have that holistic view of a customer, both in the pipeline and all the way through as we onboard them and that we've got single ownership there and accountability to deliver on the fronts that are most important to us, which is the retention and the growth. So a long-winded way of saying. I think that we're going to give Mike the latitude to bring in the team and support him to make sure that we're able to achieve the bookings goals that we've got set for ourselves over the coming years.

所以我認為麥克也會這樣做。我認為我們會確保為他配備合適的設施。我很高興能將銷售、行銷和客戶成功職能整合到他的領導下，這樣我們就能對客戶有一個全面的了解，無論是在銷售管道還是在客戶入職的整個過程中，我們都能擁有統一的負責人和責任，從而在對我們最重要的方面——客戶留存和增長——取得成功。換句話說，就是：我認為我們會給予麥克足夠的自主權來組建團隊，並支持他確保我們能夠實現未來幾年為自己設定的預訂目標。

Excellent. That helps. One more for me. I want to make sure to hit the retention front. And I'll ask it in part as a housekeeping question, whether you have the recurring backlog number that usually shows up in the 10-Q on hand. And then from a fundamental perspective, I wanted to recognize that that's a bit of a legacy metric, but given the focus on renewals and retention and recurring revenue, I think there's a case to be made that it's as important as ever. So I would appreciate any color on whether you guys are managing to that backlog, I guess, most specifically the recurring backlog metric internally.

出色的。那很有幫助。我再來一個。我想確保在客戶留存方面取得進展。我還要問一下，作為一項例行公事，你們手頭上是否有通常會在 10-Q 表格中顯示的待處理訂單數量？從根本上講，我想指出這雖然是一個比較傳統的指標，但考慮到續約、留存和經常性收入的重要性，我認為它仍然像以往一樣重要。所以，我很想知道你們是否能夠處理好積壓的工作，特別是內部的週期性積壓工作指標。

Yes. So we do look at the backlog because we run it this way. And that number, obviously, will be in the 10-Q coming up in the next few hours. So on how we do it, just to give you a little color more is on backlog for that number is contracted and noncontracted. Contracted revenue is at a client level, monitored with ins and out to it. And like we said, in like in Financial Health, it's like 95%, 96% is generally how we start the year. Like if you look at our recurring numbers that I see right now, it's 94%, Financial Health is like 95%, 96%. So we have a huge contracted revenue there. But obviously, the ins and out of that is attrition that happens and how the bookings fill in, that gives the impact on the growth rate. But I think the backlog number should be coming out in the 10-Q -- in the next few hours.

是的。所以我們之所以要查看積壓工作，是因為我們就是這樣運作的。很顯然，這個數字將會在接下來的幾個小時內發布的 10-Q 報告中公佈。為了讓您更清楚地了解我們是如何做的，積壓訂單中既有已簽約的，也有未簽約的。合約收入是在客戶層面決定的，對其收支情況進行監控。正如我們所說，在財務健康方面，我們年初的財務健康水準通常在 95% 到 96% 之間。如果你看看我現在看到的這些經常性指標，財務健康狀況是 94%，財務健康狀況是 95%、96%。因此，我們在那裡有一筆巨額的合約收入。但很顯然，其中的利弊在於人員流失以及預訂情況的填補，這將對成長率產生影響。但我認為積壓訂單數量應該會在接下來的幾個小時內，在 10-Q 報告中公佈。

Gene Mannheimer, Freedom Capital.

吉恩‧曼海默，《自由資本》。

Let's see. I just had 2 quick ones. The Patient Care revenue was the best growth we've seen in some time. You called out a combination of SaaS build and nonrecurring. I mean, since that SaaS build is pretty gradual, I'm thinking you recognize some good nonrecurring business in the quarter. Can you tell us what specifically customers are buying in those cases?

讓我們來看看。我剛才只吃了兩顆。患者護理業務的收入實現了近一段時間以來的最佳成長。你指出了SaaS建構和非經常性收入的組合。我的意思是，由於 SaaS 的構建是一個相當漸進的過程，我認為你們在這個季度裡已經獲得了一些不錯的非經常性業務。您能具體告訴我們一下，在這些情況下，顧客都買了哪些商品嗎？

Yes. So you're right. There are 2 parts to that. Obviously, SaaS based on a few wins of the past shows up as a double-digit growth. But the nonrecurring part -- and nonrecurring part is the mix of implementation revenues when it gets recognized because sometimes it gets recognized at the time. Then there are other nonrecurring revenues for some regulatory related consulting work and regularly related stuff that we do. So we do see an uptick and some of compared to last year, we saw in this quarter a little bit more. But if you see that swings happen by Q4 of '24 was a much higher number because of these. So the swings on -- other than SaaS continued build on our partner ecosystem that we see on products like Multiview and all implementation, sometimes we do have some hardware sales requested by the customers and some ancillary products.

是的。你說得對。這包含兩個部分。顯然，基於過去幾次成功案例的 SaaS 業務實現了兩位數的成長。但非經常性部分－非經常性部分是指實施收入的確認方式，因為有時它會在當時被確認。此外，我們還會獲得一些與監管相關的諮詢工作以及其他一些定期相關工作所帶來的非經常性收入。因此，我們確實看到了成長，與去年同期相比，本季成長幅度更大一些。但如果你看到，由於這些原因，2024 年第四季的波動幅度要大得多。所以，除了 SaaS 繼續發展，以及我們在 Multiview 等產品和所有實施方面與合作夥伴生態系統的合作之外，有時我們也會收到客戶要求的硬體銷售和一些輔助產品。

Okay. Great. That's helpful, Vinay.

好的。偉大的。那很有幫助，維奈。

And my follow-up would be, your comment earlier was encouraging to hear, if I heard it right, 200 bps of EBITDA margin expansion expected next year. I'm thinking that, that's going to be due primarily to continued cost efficiencies? Or should we infer that there could be an acceleration of revenue growth next year?

我的後續問題是，您先前的評論令人鼓舞，如果我沒聽錯的話，預計明年 EBITDA 利潤率將成長 200 個基點。我認為，這主要歸因於持續的成本效益？或者我們可以推斷，明年營收成長可能會加速？

That's a great question. That's a great question, and I think you guys know me well by now. For me, 200 bps is primarily from the cost optimization first. And that's not just a hope part of it. As you saw last year, it's a continued effort, and it will continue. We did the lowest level last year, which was all that Chris and I and the leadership team could see. And then over the years, we built our next level of optimization with help from internal teams and our adviser, external advisers. And this momentum that we started more in the second half of this year is targeting a little more complex solutions like Patient Care support, tech support, cloud ops and ROI driven on some other products. So that line of sight and the potential that I see next year and at least that DNA, I can say, we have built in there, we are maniacally going to make sure it falls to the bottom line.

這是一個很好的問題。這是一個很好的問題，我想你們現在應該很了解我了。對我來說，200 bps 主要首先來自於成本最佳化。這不僅僅是一種希望。正如你去年所看到的，這是一項持續的努力，而且還會繼續下去。去年我們只做了最低階的工作，這也是克里斯、我和領導團隊所能做的全部。多年來，在內部團隊、顧問和外部顧問的幫助下，我們不斷優化，最終達到了下一個階段。而我們在今年下半年開始的這股勢頭，目標是更複雜的解決方案，例如患者護理支援、技術支援、雲端營運以及一些其他產品的 ROI 驅動型解決方案。所以，從這個角度來看，明年我看到了這種潛力，至少可以說，我們已經融入了這個基因，我們將不遺餘力地確保它最終實現。

So that's one of the big drivers for that number along with the benefits that we would see from the global workforce optimization should be there. Now obviously, some implicit scenarios on revenue growth has been built. But as Chris said, it's a little early for us to give that guidance. But from a various scenario analysis we did, we felt getting that 200 bps from our midpoint of our guidance was very achievable. And that is what we felt to share with you because 4 quarters back, we shared that we will be touching 20% in Q4 '25, and that was a good goal for us. So it helped us be laser focused. So at this point, we felt 200 bps over and above was -- we could see a few paths to get there.

因此，這是推動這一數字成長的主要因素之一，此外，全球勞動力優化帶來的好處也應該會顯現出來。顯然，現在已經建構了一些關於收入成長的隱性情境。但正如克里斯所說，現在給出這樣的指導還為時過早。但根據我們進行的各種情境分析，我們認為實現比指導價中點高出 200 個基點的目標非常容易。這就是我們想和大家分享的，因為四個季度前，我們曾說過我們將在 2025 年第四季達到 20% 的目標，這對我們來說是一個很好的目標。所以它幫助我們集中精力。所以，在這一點上，我們覺得比目標高出 200 個基點——我們可以看到實現目標的幾種途徑。

Yes. And I think, Gene, I think there's also a trend that we're trying to create here. So if you go back 2 years ago, as Vinay came in, and you're seeing the stability and the financial improvement in the company, that's the first layer of the cake. The second layer is Merideth and her team coming in and stabilizing the Financial Health business and accelerating and delivering on that opportunity for the global transitions, which is going to be the big driver in the margin expansion next year. And then now we brought in Mike to really kind of focus on that upsized opportunity from a sales growth and quality of bookings going forward.

是的。吉恩，我認為，我們也在努力創造一種趨勢。所以，如果你回顧兩年前 Vinay 加入公司的時候，你會看到公司的穩定性和財務狀況的改善，那隻是成功的第一步。第二層是梅瑞迪斯和她的團隊加入並穩定金融健康業務，加速並抓住全球轉型帶來的機遇，這將是明年利潤率擴張的主要驅動力。然後，我們邀請了 Mike，讓他真正專注於提升銷售成長和提高預訂品質所帶來的更大機會。

So it's the 3 layers of the cake that we've built. We've shown that we can bring that right talent and deliver on the financial excellence. We're delivering on the performance from the financial health and the stabilization of that business. And now we look forward to success on the sales front going forward. So just continuing to replicate a model that seems to work in each of the areas to put it all together to extract the value we think is still ready to unlock in the organization.

所以，這就是我們搭建的蛋糕的三層。我們已經證明，我們能夠招攬到合適的人才，並實現卓越的財務表現。我們正在實現業績目標，這得益於公司財務狀況的良好和業務的穩定。現在，我們期待在銷售方面取得更大的成功。因此，我們只是繼續複製在各個領域都行之有效的模式，並將所有因素結合起來，以提取我們認為組織中仍有待釋放的價值。

Mr. Fowler, we have no further questions at this time. I'd like to turn the floor back over to you for closing comments.

福勒先生，我們目前沒有其他問題了。現在我想把發言權交還給您，請您做總結發言。

Thank you, and thank you to all for your continued interest in TruBridge, and thanks to all of our team members for their continued efforts at the company and all that they do. And lastly, a very early Happy Veterans Day. We express our gratitude to all those that have served our great country, and hope everyone has a wonderful weekend, and thanks again. Goodbye.

謝謝大家，也感謝大家一直以來對 TruBridge 的關注，同時感謝我們所有團隊成員為公司所做的持續努力和辛勤工作。最後，提前祝各位退伍軍人節日快樂。我們向所有為我們偉大的國家服務的人們表示衷心的感謝，並祝大家週末愉快，再次感謝。再見。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。您可以在此時斷開線路。感謝您的參與，祝您有美好的一天。