CareCloud (NASDAQ:CCLD) executives emphasized accelerating profitability, stronger cash generation, and a broadened product footprint during the company’s fourth-quarter and full-year 2025 earnings call, highlighting strategic acquisitions and what management described as early traction for its newly launched AI offerings.
2025 results: revenue growth, first full year of positive GAAP EPS since IPO
CEO Stephen Snyder said 2025 was a “transformational year,” pointing to full-year revenue of $120.5 million, up nearly 9% year over year. Fourth-quarter revenue was $34.4 million, up nearly 22% from the prior-year period, which Snyder said showed “accelerating momentum” entering 2026. He also noted the company raised revenue guidance twice in 2025 and exceeded its final target.
Interim CFO and Corporate Controller Norman Roth added that fourth-quarter GAAP net income was $2.9 million, compared with $3.3 million in the year-ago quarter, and said the company has now recorded seven consecutive quarters of positive GAAP net income.
Adjusted EBITDA for the full year was $27.5 million, representing a 23% margin, according to Snyder, while Roth said adjusted EBITDA increased 15% year over year from $24.1 million in 2024. In the fourth quarter, adjusted EBITDA was $7.7 million, or 22% of revenue, compared with $7.1 million a year earlier.
Cash flow and capital structure: preferred dividends, credit line repaid
Management repeatedly returned to free cash flow as a key theme. Snyder said the company generated $28.6 million of GAAP operating cash flow in 2025, up 38% year over year, including $8.7 million in the fourth quarter, up 66%.
CareCloud defined non-GAAP free cash flow as cash from operations less purchases of property and equipment and capitalized software and other intangible assets. Roth said free cash flow was $20.5 million in 2025, up 55% from $13.2 million in 2024, while Snyder described it as a “dramatic improvement” that has increased financial flexibility.
Snyder said the company resumed dividends on its preferred shares at the beginning of 2025 and plans to begin paying double dividends on its Series B preferred stock starting in 2026 to address accumulated arrearages. He also said CareCloud completed the conversion of approximately 80% of its Series A preferred shares into common stock in 2025, eliminating more than $7 million in annual dividend obligations.
On liquidity and leverage, Snyder said the company fully repaid its Provident Bank credit line by year-end, entering 2026 with no amount drawn. Roth said CareCloud borrowed on the line for the Medsphere acquisition, repaid the balance at year-end, and now has the full $10 million line available. As of Dec. 31, 2025, Roth reported approximately $3.6 million of cash and net working capital of approximately $1.3 million.
Acquisitions expand reach into hospitals, with cross-sell focus
CareCloud highlighted multiple acquisitions completed during 2025. Snyder said the deals were funded entirely through free cash flow generated during the year and resulted in no common shareholder dilution, adding they were executed at less than 1x revenue multiples.
The most significant transaction, according to management, was the August acquisition of Medsphere Systems, which Snyder said brought CareCloud into the inpatient hospital market and added ambulatory and inpatient software products, including the “#1 Black Book-ranked” Wellsoft Emergency Department Information System. Snyder described the acquisition as moving CareCloud from “ambulatory first” to a “care continuum” company supporting outpatient, emergency department, and inpatient workflows across the revenue cycle and supply chain.
Roth said fourth-quarter revenue included approximately $7.2 million related to the Medsphere acquisition.
Management also discussed the October acquisition of the MAP App from the Healthcare Financial Management Association (HFMA), along with what Snyder called a long-term joint marketing agreement. Snyder described MAP App as a hospital benchmarking and revenue cycle performance analytics platform and said it can help identify underperformance, while CareCloud’s revenue cycle management (RCM) services and AI tools provide solutions.
During the Q&A session, Snyder said the company added more than 100 new hospitals and health systems through the Medsphere and MAP App transactions and expects much of its 2026 opportunity to come from deeper wallet share among these existing relationships.
AI strategy: Desk Agent launch, RCM automation, and product roadmap
Chief Strategy Officer A. Hadi Chaudhry said CareCloud launched an AI Center of Excellence in April 2025, describing it as a “production-grade” initiative focused on building AI solutions integrated into healthcare workflows.
Chaudhry said the company’s flagship AI product in 2025 was stratusAI Desk Agent, an “agentic AI phone receptionist” that reached full commercial release in December. He said Desk Agent can handle tasks such as appointment scheduling and changes, eligibility verification and demographic capture, routing prescription refills, lab result inquiries, referral requests, and automated reminders, escalating to live staff when human judgment is required. Chaudhry cited an example from The Lung Center, where he said stratusAI Desk Agent is handling nearly 80% of inbound scheduling-related calls.
Chaudhry also highlighted stratusAI Voice Audit, a conversational intelligence product designed to provide visibility into patient phone interactions with monitoring, quality scoring, trend analysis, and sentiment insights.
Within RCM operations, Chaudhry said AI tools are being used to reduce claim errors, improve appeals and documentation accuracy, and increase first-pass acceptance rates. He said CareCloud aims to shift from lagging indicators such as denial rates and days in accounts receivable to earlier “leading indicators” at intake, eligibility verification, coding, and claim creation. He described a longer-term ambition of “zero touch claims,” where AI manages intake, validation, submission, and payer follow-up with minimal human intervention.
Chaudhry said CareCloud is developing AI-driven prior authorization capabilities and an AI-assisted medical coding product, and he discussed cirrusAI Notes as a tool to reduce documentation burden by generating structured notes for clinician review and sign-off. He said AI-assisted coding and prior authorization AI are targeted for release in 2026.
2026 guidance and outlook: growth and margin expansion, no M&A assumed
For 2026, Snyder guided to revenue of $128 million to $130 million and adjusted EBITDA of $29 million to $31 million, reflecting margin expansion. He also guided to GAAP EPS of $0.20 to $0.23 per share, which management said would represent an increase of more than 100% over 2025.
In response to an analyst question, management said 2026 guidance does not include any unannounced material acquisitions. Roth also said that, based on 2025 levels, capital expenditures and capitalized software spending in 2026 would be “the same or maybe a little less.”
In the Q&A, executives described AI as both a product opportunity and a source of efficiency. Snyder said CareCloud has increased revenue while reducing headcount compared with 2024, attributing the shift in part to AI and automation. He also said the company believes it can achieve AI objectives with a leaner team than initially envisioned as underlying AI models have advanced.
When asked about AI disruption risk for SaaS companies, Snyder argued that healthcare IT has “deep industry moats,” citing regulatory and compliance considerations, the company’s role as a system of record, and what he described as more than 25 years of proprietary data across hundreds of millions of claims used to inform AI products and revenue cycle performance.
About CareCloud (NASDAQ:CCLD)
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.
