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

CareCloud (NASDAQ:CCLD) posted its quarterly earnings data on Thursday. The company reported $0.06 EPS for the quarter, topping analysts’ consensus estimates of $0.02 by $0.04, Zacks reports. CareCloud had a net margin of 6.21% and a return on equity of 22.31%. The firm had revenue of $31.88 million during the quarter, compared to analyst estimates of $31.85 million. 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 Up 13.4%

CareCloud stock traded up $0.31 during mid-day trading on Friday, hitting $2.63. 455,963 shares of the company’s stock were exchanged, compared to its average volume of 332,481. CareCloud has a 1-year low of $2.03 and a 1-year high of $4.01. The stock has a 50 day moving average of $2.30 and a two-hundred day moving average of $2.62. The stock has a market cap of $111.75 million, a P/E ratio of 37.57 and a beta of 1.51.

Institutional Investors Weigh In On CareCloud

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Acadian Asset Management LLC raised its position in shares of CareCloud by 481.9% in the first quarter. Acadian Asset Management LLC now owns 203,053 shares of the company’s stock valued at $280,000 after purchasing an additional 168,156 shares during the period. Geode Capital Management LLC boosted its holdings 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 worth $848,000 after buying an additional 252,299 shares during the period. American Century Companies Inc. acquired a new position in CareCloud in the 2nd quarter valued at $78,000. Bridgeway Capital Management LLC grew its stake in CareCloud by 43.9% in the 2nd quarter. Bridgeway Capital Management LLC now owns 313,039 shares of the company’s stock valued at $739,000 after buying an additional 95,483 shares during the last quarter. Finally, B. Riley Wealth Advisors Inc. bought a new position in CareCloud in the 2nd quarter worth $260,000. 10.16% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research firms have recently issued reports on CCLD. Wall Street Zen lowered CareCloud from a “buy” rating to a “hold” rating in a report on Saturday, May 16th. Weiss Ratings reiterated a “hold (c-)” rating on shares of CareCloud in a report on Wednesday, June 24th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $3.25.

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.