CareCloud (NASDAQ:CCLD) Announces Quarterly Earnings Results, Beats Expectations By $0.04 EPS

CareCloud (NASDAQ:CCLD) posted its quarterly earnings results on Thursday. The company reported $0.14 earnings per share for the quarter, topping analysts’ consensus estimates of $0.10 by $0.04, FiscalAI reports. The business had revenue of $33.73 million during the quarter, compared to analyst estimates of $33.50 million. CareCloud had a net margin of 6.21% and a return on equity of 27.07%.

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

• CareCloud reported record third-quarter profitability: revenue rose 9% to $33.7 million, GAAP net income increased 54% to $4.7 million, and adjusted EBITDA grew 28% to $9.9 million. Gross margin expanded 270 basis points to 50.5%.
• Management said AI and automation are improving operating efficiency: manual claim touches fell about 44% over three months, zero-touch processing reached 84%, and the RCM denial rate was below 4%. Some expense improvement also reflected lower depreciation and amortization and capitalized development costs.
• The capital restructuring is directing more earnings to common shareholders: about 89% of third-quarter net income was attributable to them, versus 55% a year earlier. CareCloud repaid its $9 million revolver draw and reduced its term loan to $34.2 million by November 2, though debt repayment remains a priority.
• CareCloud reaffirmed 2026 guidance of $128 million–$132 million in revenue, $29 million–$31 million in adjusted EBITDA, and $0.20–$0.23 in GAAP EPS, while noting seasonal effects and execution dependencies. Growth initiatives include enterprise AI development for KabaFusion and a planned subscription compliance product, but these opportunities are still developing.

CareCloud Trading Up 6.5%

CCLD traded up $0.14 during midday trading on Friday, reaching $2.30. 682,047 shares of the company were exchanged, compared to its average volume of 228,131. The stock has a market capitalization of $97.73 million, a P/E ratio of 17.69 and a beta of 1.57. CareCloud has a one year low of $1.67 and a one year high of $3.81. The stock’s 50-day simple moving average is $2.01 and its 200 day simple moving average is $2.46. The company has a debt-to-equity ratio of 2.20, a quick ratio of 1.01 and a current ratio of 1.02.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Wall Street Zen upgraded CareCloud from a “buy” rating to a “strong-buy” rating in a report on Saturday. Weiss Ratings raised shares of CareCloud from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, October 12th. Finally, Roth Capital dropped coverage on shares of CareCloud in a report on Tuesday, September 15th. They set a “neutral” rating for the company. Prior estimates, ratings, and price targets should no longer be relied upon. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy”.

About CareCloud

CareCloud, Inc (NASDAQ: CCLD) provides cloud-based health care information technology and revenue cycle management services to medical practices, hospitals and other health care organizations. The company’s solutions are designed to help providers manage administrative, clinical and financial operations through integrated software and technology-enabled services.

Its offerings include electronic health records, practice management, medical billing and revenue cycle management, patient engagement tools, telehealth capabilities and related health care technology services.