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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company previously reported its financial results in the following three operating and reportable segments: RCM, EHR, and Patient Engagement. In May 2024, the Company made a number of changes to its organizational structure and management system to better align the Company's operating model with its strategic initiatives. As a result, the Company changed from three operating and reportable segments of (i) RCM, (ii) EHR and (iii) Patient Engagement to two operating and reportable segments of (i) EHR and (ii) RCM. The Patient Engagement segment results were transitioned into the EHR segment for all periods presented. These two segments are distinct business units with unique market dynamics and opportunities. They represent the components of the Company for which separate financial information is available and is utilized on a regular basis by the chief operating decision maker (“CODM”) in assessing segment performance and in allocating the Company's resources.
During the Company’s realignment, the reportable segments naming convention was updated. The previously reported RCM segment has been updated to Financial Health and the former EHR segment is now referred to as Patient Care. There were no additional changes to the composition of the Company’s reportable segments in connection with the name changes. The consolidated financial statements and accompanying footnotes have been updated with the new segment names.
The Company’s CODM is its Chief Executive Officer. The CODM uses revenues and Adjusted EBITDA to assess the performance of and allocate resources to each of the reportable segments during the annual budgeting and forecasting process. The significant expenses regularly reviewed by the CODM include costs of revenues, product development, sales and marketing, and general and administrative expenses. Monthly, the CODM considers forecast-to-actual variances for each of these performance measures to assess the performance of each segment. The CODM believes Adjusted EBITDA is a useful measure to assess the performance and liquidity of the Company, as it provides meaningful operating results by excluding the effects of expenses that are not reflective of the Company’s operating business performance. Accounting policies for each of the reportable segments are the same as those used on a consolidated basis.
“Adjusted EBITDA” consists of GAAP net income (loss) as reported and adjusts for (i) depreciation expense; (ii) amortization of software development costs; (iii) amortization of acquisition-related intangibles; (iv) stock-based compensation; (v) severance and other non-recurring charges; (vi) interest expense and other income; (vii) gain on sale of AHT; (viii) gain on disposal of property and equipment; and (ix) the provision for (benefit from) income taxes. There are no intersegment revenues to be eliminated in computing segment revenue.
The CODM does not evaluate operating segments nor make decisions regarding operating segments based on assets. Consequently, we do not disclose total assets by reportable segment.
The following table presents a summary of the revenues and Adjusted EBITDA of our two operating segments for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30,Six Months Ended June 30,
(In thousands)2025202420252024
Revenues:
Financial Health$54,284 $54,509 $110,417 $107,948 
Patient Care31,445 31,091 62,520 61,769 
Total revenues85,729 85,600 172,937 169,717 
Less:
Financial Health expenses:
Cost of revenues (excluding amortization and depreciation and stock compensation expense)$28,842 $30,162 $55,915 $59,685 
Product development (excluding stock compensation)3,002 1,904 6,111 4,331 
Sales and marketing (excluding stock compensation)5,029 5,012 8,859 9,295 
General and administrative expenses (excluding stock compensation)10,319 9,222 21,159 19,631 
Total Financial Health expenses$47,192 $46,300 $92,044 $92,942 
Patient Care expenses:
Cost of revenues (excluding amortization and depreciation and stock compensation expense)$11,790 $12,950 $24,031 $25,152 
Product development (excluding stock compensation)4,868 6,048 9,798 14,097 
Sales and marketing (excluding stock compensation)2,784 2,592 4,179 4,763 
General and administrative expenses (excluding stock compensation)5,352 4,266 10,911 8,995 
Total Patient Care expenses$24,794 $25,856 $48,919 $53,007 
Total segment expenses$71,986 $72,156 $140,963 $145,949 
Adjusted EBITDA by segment:
Financial Health7,092 8,209 18,373 15,006 
Patient Care6,651 5,235 13,601 8,762 
Total Adjusted EBITDA$13,743 $13,444 $31,974 $23,768 
The following table reconciles Adjusted EBITDA to income (loss) before taxes:
Three Months Ended June 30,Six Months Ended June 30,
(In thousands)2025202420252024
Total Adjusted EBITDA$13,743 $13,444 $31,974 $23,768 
Less:
Interest expense and other income2,929 4,151 6,340 8,051 
Depreciation expense312 400 603 800 
Amortization of software development costs3,245 5,980 6,316 8,722 
Amortization of acquisition-related intangibles3,046 3,126 6,098 6,253 
Stock-based compensation2,097 1,501 3,310 2,300 
Severance and other non-recurring charges1,416 4,586 3,860 8,430 
Gain on disposal of property and equipment— — (120)— 
Gain on sale of AHT— — (53)(1,250)
Income (loss) before taxes$698 $(6,300)$5,620 $(9,538)