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

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

CCLD opened at $2.63 on Friday. The firm has a 50-day moving average price of $2.30 and a 200-day moving average price of $2.62. CareCloud has a twelve month low of $2.03 and a twelve month high of $4.01. The company has a market capitalization of $111.75 million, a price-to-earnings ratio of 37.57 and a beta of 1.51.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on CCLD shares. Wall Street Zen upgraded CareCloud from a “hold” rating to a “buy” rating in a report on Saturday. Weiss Ratings reaffirmed 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 given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $3.25.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. State Street Corp boosted its stake in CareCloud by 5.0% in the 4th quarter. State Street Corp now owns 173,103 shares of the company’s stock worth $505,000 after purchasing an additional 8,300 shares during the period. Bridgeway Capital Management LLC grew its holdings in CareCloud by 2.9% during the 3rd quarter. Bridgeway Capital Management LLC now owns 322,018 shares of the company’s stock valued at $1,034,000 after buying an additional 8,979 shares in the last quarter. Centiva Capital LP bought a new stake in shares of CareCloud during the third quarter valued at about $47,000. HRT Financial LP purchased a new stake in shares of CareCloud in the fourth quarter worth about $43,000. Finally, Bank of America Corp DE lifted its holdings in shares of CareCloud by 19.9% in the third quarter. Bank of America Corp DE now owns 103,381 shares of the company’s stock worth $332,000 after buying an additional 17,158 shares in the last quarter. 10.16% of the stock is currently owned by hedge funds and other institutional investors.

CareCloud Company Profile

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.