Veradigm reports Q2 revenue decline, completes convertible notes repurchase

Published 30/09/2025, 21:06
Veradigm reports Q2 revenue decline, completes convertible notes repurchase

CHICAGO - Healthcare data provider Veradigm Inc. (OTCMKTS:MDRX), currently trading at $4.80 and down over 52% year-to-date, reported Tuesday that its second-quarter 2025 revenue is estimated between $145 million and $148 million, representing a 2% decline at the midpoint compared to the same period last year. InvestingPro analysis reveals several challenges facing the company, with additional insights available in the comprehensive Pro Research Report.

The company, with a current market capitalization of $815 million, disclosed cash and equivalents of approximately $350 million as of June 30, 2025, an increase of about $78 million from the previous quarter. This increase primarily reflects $72 million in net inflows from debt financing and $23 million from investment portfolio activity.

Veradigm recently completed two significant repurchases of its convertible notes. On July 1, the company repurchased notes for approximately $180 million, and on September 29, it repurchased additional notes for about $50 million. Following these transactions, Veradigm’s debt consists primarily of a $75 million term loan facility maturing in 2030.

Donald Trigg, who joined as Chief Executive Officer on September 2, outlined the company’s priorities: "The near-term path for Veradigm is clear: improve profitability, reignite growth and become current with our SEC financial filings." According to InvestingPro analysis, these priorities are crucial as the company currently suffers from weak gross profit margins and poor free cash flow yield, with a Financial Health Score rated as FAIR.

Interim Chief Financial Officer Lee Westerfield noted that the commercial team closed deals with over $30 million in annual contract value during the second quarter, matching first-quarter performance.

Veradigm reaffirmed its fiscal year 2025 outlook, expecting revenue to remain approximately flat compared to the estimated 2024 range of $583 million to $588 million. The company also anticipates maintaining a positive net cash position. Analyst price targets for the stock currently range from $4.50 to $8.00 per share, with detailed valuation analysis available through InvestingPro’s comprehensive research tools.

The preliminary financial results are subject to completion of financial closing procedures and have not been audited, according to the press release statement.

Veradigm plans to host an investor conference call on October 1, 2025, to discuss these updates further.

In other recent news, Veradigm Inc. announced significant financial and leadership developments. The company repurchased approximately $164 million in convertible senior notes due 2027, following requests from noteholders. This transaction amounted to about $180 million, including accreted and unpaid interest, and was conducted under the terms of the convertible note indenture. On the leadership front, Veradigm disclosed the termination of Thomas Langan, its Interim Chief Executive Officer, President, and Chief Commercial Officer, effective July 31. In the interim, the company will establish an Office of the Chief Executive Officer comprising Jay Bhattacharyya, Eric Jacobson, and Lee Westerfield. Additionally, Veradigm has amended its Stockholder Agreement with Charles Myers and Jessica Myers, extending its termination date to January 26, 2026. This amendment allows the Myers Parties to trade in company securities under specific conditions. These developments indicate ongoing strategic and operational adjustments within Veradigm.

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