Bullish indicating open at $55-$60, IPO prices at $37
CHICAGO - Veradigm Inc. (OTC Expert Market:MDRX), a company specializing in computer integrated systems design with a market capitalization of $703.75 million, has announced a change in its certifying accountant. Following a competitive selection process by its audit committee, Veradigm has engaged BDO USA, P.C. as its new independent registered public accountant effective April 15, 2025. This change comes after the dismissal of Grant Thornton LLP on April 14, 2025. The announcement comes as the company’s stock trades at $4.15, having declined over 53% in the past six months, according to InvestingPro data.
The decision to replace Grant Thornton was not due to any disagreements over accounting principles or practices, financial statement disclosure, or auditing scope or procedures that, if unresolved, would have required a reference in their report. However, Grant Thornton’s audit report for the fiscal year ended December 31, 2022, contained an adverse opinion on the company’s internal control over financial reporting due to material weaknesses. InvestingPro analysis shows the company maintains a "FAIR" financial health score of 2.06, with several key metrics suggesting operational challenges. For deeper insights into Veradigm’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
These weaknesses related to the company’s control environment, revenue recognition accounting, expected credit losses measurement, financial reporting, divestiture accounting, impairment accounting for long-lived and intangible assets, and bonus accruals. These issues were disclosed in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on March 18, 2025.
Veradigm has provided Grant Thornton with a copy of this announcement, and the auditing firm has agreed with the statements made herein, as confirmed by a letter dated April 17, 2025, filed with the SEC.
The appointment of BDO marks a new chapter for Veradigm as it works to remediate the identified material weaknesses. During the fiscal years ended December 31, 2022, and December 31, 2021, and the interim period through April 15, 2025, Veradigm did not consult BDO on any matters or events that would require disclosure under SEC regulations. With a negative P/E ratio of -25.56 and analyst price targets ranging from $5 to $15, the company faces significant challenges in restoring investor confidence.
This announcement is based on a recent SEC filing by Veradigm Inc.
In other recent news, Veradigm Inc reported its Q4 2024 earnings, revealing stable financial performance amid a challenging market environment. The company reported earnings per share of $0.3079, slightly below the forecast of $0.31, while revenue met expectations at $168.7 million. Despite a revenue shortfall of $42 million for the year, Veradigm maintained a recurring revenue rate of around 80% and ended 2024 with a net cash position of $87 million. Looking forward, Veradigm expects its revenue to remain approximately flat in 2025 compared to 2024, with a continued focus on cost optimization and AI-enabled solutions.
Additionally, Veradigm is pursuing additional debt financing to support its strategic initiatives. The company aims to complete its financial reporting remediation by 2026, a process that involves addressing identified material weaknesses and enhancing internal controls. Veradigm’s leadership has expressed confidence in the company’s business model and market positioning, despite ongoing challenges in the healthcare data and intelligence market. The firm continues to leverage its presence in the small and mid-market healthcare provider segments, focusing on expanding its core provider base and enhancing the value of its offerings.
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