CareCloud (NASDAQ:CCLD) Releases Earnings Results, Beats Estimates By $0.04 EPS

CareCloud (NASDAQ:CCLD) issued its quarterly earnings data on Thursday. The company reported $0.06 EPS for the quarter, beating the consensus estimate of $0.02 by $0.04, Zacks reports. The company had revenue of $31.88 million during the quarter, compared to analysts’ expectations of $31.85 million. CareCloud had a net margin of 7.87% and a return on equity of 24.05%. CareCloud updated its FY 2026 guidance to 0.200-0.230 EPS.

Here are the key takeaways from CareCloud’s conference call:

• Revenue grew 16% year over year to $31.9 million, while recurring technology-enabled solutions increased to approximately 75% of revenue from 69% a year ago. Management also reported $5.7 million in quarterly free cash flow and the ninth consecutive quarter of GAAP profitability.
• CareCloud completed the redemption of its Series B preferred stock using a $50 million credit facility, eliminating approximately $3.3 million in annual preferred dividends with no common-share dilution. The move is expected to improve the portion of earnings attributable to common shareholders, although debt interest will increase.
• The acquisition of Empower Healthcare & Compliance Partners expands CareCloud into compliance, audit defense, and regulatory readiness, with plans to launch AI-enabled compliance software in fall 2026. Management said the near-term financial contribution will be limited, but it sees cross-selling and recurring SaaS potential across both CareCloud and Empower customers.
• CareCloud reaffirmed 2026 guidance for revenue of $128 million to $132 million, adjusted EBITDA of $29 million to $31 million, and GAAP EPS of $0.20 to $0.23. Achieving the outlook requires a stronger second half, supported by recurring-revenue growth, enterprise expansion, cross-selling, and lower integration-related costs.
• Second-quarter GAAP net income fell to $1.1 million from $2.9 million a year earlier, while adjusted EBITDA declined to $5.9 million from $6.8 million. Management attributed the pressure to higher AI and R&D investment, acquisition integration and amortization costs, and interest expense from the preferred-stock refinancing.

CareCloud Trading Down 8.9%

Shares of CCLD traded down $0.23 during trading hours on Thursday, reaching $2.31. 1,920,975 shares of the company’s stock traded hands, compared to its average volume of 249,228. CareCloud has a 12 month low of $2.03 and a 12 month high of $4.01. The stock has a market cap of $98.37 million, a PE ratio of 21.05 and a beta of 1.51. The firm’s 50 day simple moving average is $2.29 and its 200-day simple moving average is $2.62.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Wall Street Zen downgraded shares of CareCloud from a “buy” rating to a “hold” rating in a report on Saturday, May 16th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of CareCloud in a report on Wednesday, June 24th. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $3.25.

Institutional Investors Weigh In On CareCloud

Institutional investors and hedge funds have recently bought and sold shares of the stock. Acadian Asset Management LLC grew its stake in CareCloud by 481.9% in the 1st quarter. Acadian Asset Management LLC now owns 203,053 shares of the company’s stock worth $280,000 after buying an additional 168,156 shares in the last quarter. Geode Capital Management LLC raised its position in shares of CareCloud by 235.4% during the 2nd quarter. Geode Capital Management LLC now owns 359,486 shares of the company’s stock valued at $848,000 after buying an additional 252,299 shares in the last quarter. American Century Companies Inc. purchased a new stake in shares of CareCloud during the 2nd quarter valued at $78,000. Bridgeway Capital Management LLC lifted its holdings in shares of CareCloud by 43.9% during the 2nd quarter. Bridgeway Capital Management LLC now owns 313,039 shares of the company’s stock worth $739,000 after acquiring an additional 95,483 shares during the last quarter. Finally, B. Riley Wealth Advisors Inc. bought a new stake in shares of CareCloud during the 2nd quarter worth $260,000. 10.16% of the stock is owned by hedge funds and other institutional investors.

About CareCloud

CareCloud, Inc is a healthcare technology company that provides cloud-based practice management, electronic health record (EHR) and revenue cycle management (RCM) solutions to medical practices and health systems. Its flagship offering, the CareCloud Central platform, combines clinical, financial and administrative workflows into a single, unified system. The platform includes modules for scheduling, billing, coding, patient engagement and telehealth, enabling practices to streamline front- and back-office operations and improve overall practice performance.

Founded in 2009 and headquartered in Miami Beach, Florida, CareCloud serves small to mid-size physician groups and specialty clinics across the United States.