CareCloud (NASDAQ:CCLD) Issues Quarterly Earnings Results

Key Points

• CareCloud beat quarterly estimates, reporting EPS of $0.14 versus $0.10 expected and revenue of $33.73 million versus $33.50 million expected. Third-quarter revenue rose 9% to $33.7 million, while GAAP net income climbed 54% to $4.7 million.
• AI and automation are improving operating efficiency: manual claim touches fell about 44% in three months, zero-touch processing reached 84%, and the revenue-cycle-management denial rate was below 4%.
• CareCloud reaffirmed its 2026 guidance and reduced debt, repaying its $9 million revolver draw and bringing its term loan down to $34.2 million by November 2; debt repayment remains a priority.

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

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 Stock Performance

Shares of NASDAQ CCLD traded up $0.14 during midday trading on Friday, hitting $2.30. The company's stock had a trading volume of 682,047 shares, compared to its average volume of 228,131. The firm has a market capitalization of $97.73 million, a price-to-earnings ratio of 17.69 and a beta of 1.57. The company has a current ratio of 1.02, a quick ratio of 1.01 and a debt-to-equity ratio of 2.20. The stock has a fifty day moving average price of $2.01 and a 200 day moving average price of $2.46. CareCloud has a one year low of $1.67 and a one year high of $3.81.

Wall Street Analyst Weigh In

CCLD has been the subject of a number of recent analyst reports. 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. Weiss Ratings upgraded shares of CareCloud from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, October 12th. Finally, Wall Street Zen raised shares of CareCloud from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, CareCloud currently 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.

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