TruBridge, Inc. (TBRG): A Bull Case Theory

We came across a bullish thesis on TruBridge, Inc. (TBRG) on Negócios pelo Mundo’s Substack by Leo Caroli. In this article, we will summarize the bulls’ thesis on TBRG. TruBridge, Inc. (TBRG)'s share was trading at $21.79 as of September 19^th. TBRG’s forward P/E was 9.81, according to Yahoo Finance.

TruBridge, founded in 1979, provides technology solutions for the U.S. healthcare sector, focusing on small rural and community hospitals. The company operates across two main segments: Financial Health, which covers revenue cycle management services such as billing, collections, and medical coding, and Patient Care, which includes electronic health records and patient engagement platforms.

Financial Health now represents 64% of revenue and has become the company’s growth engine, driving a rebranding from CPSI to TruBridge in 2024. However, years of costly acquisitions, including Healthland, TruCode, and Viewgol, weighed heavily on performance and led to significant impairments. Shares hit all-time lows in 2023 before attracting new investors, notably Pinetree Capital led by Damien Leonard and Ocho Investments, who now own a combined 25% stake. Their entry brought governance reforms such as annual board elections, removal of the poison pill, and closer engagement with management.

Operationally, TruBridge is focused on expanding its Financial Health services, leveraging strong retention rates in Patient Care to drive cross-selling. The company is also pushing offshore operations following the Viewgol acquisition, aiming to reduce costs and lift margins toward a 20% adjusted EBITDA target. Cash flow has improved with tighter working capital management and debt reduction, bringing leverage down from 4.4x in 2024 to a manageable 2.5x–3x range.

While regulatory risks remain, including potential funding changes tied to Medicare and Medicaid, stricter compliance requirements could also boost demand for TruBridge’s solutions. With improved governance, stronger financial discipline, and a clear margin expansion strategy, TruBridge represents a turnaround story with multiple catalysts for upside.

Previously we covered a bullish thesis on Oscar Health, Inc. (OSCR) by convexititties in March 2025, which highlighted the company’s discounted valuation, resilience to ACA risks, insider buying, and its AI-driven cost advantages. The company’s stock price has appreciated approximately by 22% since our coverage. This is because the thesis played out with strong execution and investor confidence. This is because ACA subsidies remained intact and growth accelerated. Leo Caroli shares a similar thesis on TruBridge, Inc. (TBRG) but emphasizes governance reforms and margin expansion as the key drivers.

TruBridge, Inc. (TBRG) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held TBRG at the end of the second quarter which was 23 in the previous quarter. While we acknowledge the potential of TBRG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.