Veradigm (MDRX) Investor Update summary

Financial performance and outlook

• Q2 2025 GAAP revenue estimated at $145–$148 million, down 2% year-over-year; year-to-date revenue down 1% at midpoint.

• Recurring revenue remains strong at 79% of total, with provider segment as the largest contributor.

• Cash and equivalents reached $350 million as of June 30, 2025, up $78 million from March 31, 2025; debt was $283 million, primarily from convertible notes and a term loan facility.

• After $230 million in convertible note repurchases, nearly all debt consists of a $75 million term loan facility; pro forma net cash after repayments is $46 million.

• Fiscal year 2025 revenue expected to remain flat versus 2024’s estimated $583–$588 million, with continued net cash positive position.

Strategic priorities and operational updates

• Focus areas include improving profitability, reigniting growth, and regaining current SEC filing status.

• Efficiency initiatives underway, including global workforce expansion and disciplined capital allocation.

• Product portfolio under review for growth and profitability, with emphasis on AI-driven revenue cycle efficiencies.

• Strong sales pipeline in provider and payer businesses, with notable new contracts and expanded gap closure solutions; commercial team closed over $30 million in annual contract value in Q2 2025, matching Q1 performance.

• Life sciences business leverages a large, geographically representative ambulatory data set for pharmaceutical research.

SEC filings and relisting process

• Audits for 2023 and 2024 are underway, with 2022 restatement completed; 2025 audit to follow.

• Material weaknesses in controls are being remediated, with new systems and processes implemented.

• Targeting current SEC filing status and relisting of common stock during 2026.

• Relisting process seen as an opportunity to refine long-term vision and operational structure.