Recently, we encountered a compelling bullish investment thesis for TruBridge, Inc. (TBRG) authored by Leo Caroli on Negócios pelo Mundo’s Substack. This article seeks to encapsulate the primary bullish arguments presented regarding TruBridge. As of September 19th, TBRG shares traded at $21.79, accompanied by a forward price-to-earnings (P/E) ratio of 9.81, according to Yahoo Finance.
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Founded in 1979, TruBridge, Inc. specializes in providing technology solutions tailored to the U.S. healthcare industry, with a particular emphasis on supporting small rural and community hospitals. The company’s operations are primarily categorized into two segments: Financial Health, which encompasses revenue cycle management services like billing, collections, and medical coding; and Patient Care, which focuses on electronic health records and patient engagement solutions.
The Financial Health segment currently accounts for 64% of TruBridge’s revenue, emerging as the company’s principal growth driver. As part of its strategy, the company is undergoing a rebranding from CPSI to TruBridge, set to fully materialize in 2024. Despite facing challenges from past acquisitions—including Healthland, TruCode, and Viewgol—that resulted in substantial impairments and significant stock declines in 2023, recent investor interest has revitalized the company’s prospects. Notably, Pinetree Capital, directed by Damien Leonard, and Ocho Investments now hold a combined 25% equity stake, prompting essential governance reforms, such as the institution of annual board elections, the elimination of the poison pill, and enhanced collaboration with management.
Operationally, TruBridge remains committed to enhancing its Financial Health services while utilizing the robust retention rates in the Patient Care segment to facilitate cross-selling opportunities. Additionally, the company is shifting towards offshore operations post-Viewgol acquisition, targeting cost reductions and aiming to improve margins with an adjusted EBITDA goal of around 20%. Furthermore, TruBridge has demonstrated enhanced cash flow management through stricter working capital controls and debt management, reducing leverage from 4.4x in 2024 to a more controllable range of 2.5x to 3x.
While regulatory risks persist—particularly regarding potential funding adjustments linked to Medicare and Medicaid—stricter compliance requirements could increase demand for TruBridge’s services. With improved governance structures, enhanced financial rigor, and a structured approach to margin expansion, TruBridge is poised as a turnaround case with several catalysts for future upside potential.
In prior discussions, we presented a bullish thesis on Oscar Health, Inc. (OSCR) in March 2025, which highlighted its attractive valuation, resilience to potential ACA risks, insider buying patterns, and advantages stemming from AI technologies. Since our analysis, Oscar Health’s stock value has surged approximately 22%, validating the bullish thesis as it capitalized on intact ACA subsidies and accelerating growth. Similarly, Leo Caroli’s perspective on TruBridge, Inc. (TBRG) shares parallels this narrative, prioritizing governance reform and margin growth as crucial catalysts going forward.
This rewritten article maintains the structure of the original while presenting a unique analysis of TruBridge, Inc. (TBRG) and integrating well into a WordPress platform.
