CCLD

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Chief Executive Officer - Stephen Snyder Chief Strategy Officer - A. Hadi Chaudhry Interim Chief Financial Officer and Corporate Controller - Norman Roth Founder and Executive Chairman - Mahmud Haq Corporate Counsel - Brendan Covello Operator: Greetings. Welcome to the CareCloud, Inc. Second Quarter 2026 Results Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Brendan Covello, Corporate Counsel. Thank you, Brendan. You may begin. Brendan Covello: Good morning, everyone. Welcome to CareCloud's second quarter 2026 conference call. On today's call are Mahmud Haq, our Founder and Executive Chairman; Stephen Snyder, our Chief Executive Officer; A. Hadi Chaudhry, our Chief Strategy Officer; and Norman Roth, our Interim Chief Financial Officer and Corporate Controller. Before we begin, I would like to remind you that certain statements made during this call are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than the statements of historical fact made during this call are forward-looking statements, including without limitation statements regarding our expectations and guidance for future financial and operational performance, expected growth, business outlook, and potential organic growth and acquisition. Forward-looking statements may sometimes be identified with words such as will, may, expect, plan, anticipate, approximately, upcoming, believe, estimate, or similar terminology and a negative of these terms. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. These statements reflect our opinions only as to the date of this presentation and we undertake no obligation to revise these forward-looking statements in light of new information or future events. Please refer to our press release and our reports filed with the Securities and Exchange Commission, where you will find a comprehensive discussion of our performances and factors that could cause actual results to differ materially from these forward-looking statements. For anyone who dialed into the call by telephone, you may want to download our second quarter 2026 earnings presentation. Please visit our investor relations site, ir.carecloud.com. Click on News and Events, then click on Events, and under Second Quarter 2026 Results Conference Call, click on the earnings presentation to download. Finally, on today's call, we may refer to certain non-GAAP financial measures. Please refer to today's press release announcing our second quarter 2026 results for a reconciliation of these non-GAAP performance measures to our GAAP financial results. That said, I'll now turn the call over to CEO Stephen Snyder. Stephen? Stephen Snyder: Thank you, Brendan, and good morning, everyone. The second quarter reflected disciplined execution across our strategic priorities and another quarter of meaningful progress against our long-term plan. We delivered 16% revenue growth year-over-year. Our ninth consecutive quarter of positive GAAP net income completed the full redemption of our Series B preferred stock and entered an entirely new market, healthcare compliance and audit defense, through our acquisition of Empower Healthcare and Compliance Partners. This morning, I'll take you through the quarter's results, the redemption of our Series B preferred stock, our entry into the compliance market, where we are taking the company, and the path to our full-year guidance. Let me start with the numbers. For the second quarter, revenue was $31.9 million, up 16% from $27.4 million in the second quarter of last year. During the first half of 2026, revenue was $63.2 million, up 15% year-over-year. Just as important as our overall growth is the composition of that growth. Our recurring technology-enabled business solutions represented approximately 75% of revenue this quarter, up from 69% a year ago. That continuing shift towards recurring subscription-based revenue is foundational. On the bottom line, GAAP net income was $1.1 million, our ninth consecutive quarter of GAAP profitability, and adjusted EBITDA was $5.9 million. Both are lower than the prior year quarter for reasons that reflect investment strategy rather than margin erosion. Amortization and integration costs from the acquisitions are driving our growth. A more than doubling of our R&D expense as we accelerate AI development with more of the work now expensed rather than capitalized and new interest expense on the facility that retired our high cost preferred stock. In each case, we traded near-term reported earnings for durable earnings power, and we expect that trade to begin paying off through the second half of the year. Shifting our focus now to our capital structure, the recent retirement of our Series B preferred stock marked the most significant simplification of CareCloud's balance sheet since our IPO. On May 15th, we redeemed 100% of our outstanding Series B preferred stock, funded through a $50 million credit facility with Citizens Bank and Provident Bank, with zero dilution to common shareholders. That single step eliminates approximately $3.3 million of annual preferred dividends, and with it the preferred overhang that shaped our capital structure for many years. Let me take a moment to explain what this means for our financial results and, more importantly, for our shareholders moving forward. Through the first six months of 2026 we paid approximately $6.4 million of preferred dividends. With the Series B fully redeemed, the substantial majority of that preferred dividend obligation is now permanently behind us. Beginning the third quarter, far more of every dollar of net income we generate flows through to our common shareholders, reduced only by the cost of the debt that replaced the preferred, which is meaningfully less costly. That structural shift combined with our operating plan is an important part of the earnings per share outlook we are reaffirming today. So that's the balance sheet. Let me now turn to the business we're building on top of it, starting with our most recent acquisition. In May, we acquired Empower Healthcare and Compliance Partners, a full-service compliance and advisory firm founded by industry veteran, Mitchell Brie, who joined us as President of Empower. The transaction was funded from operating cash flow and follows the same disciplined tuck-in playbook we have now executed more than 20 times since our IPO. Empower takes CareCloud into an entirely new category, compliance, audit defense, and regulatory readiness. At precisely the moment, demand for those services is accelerating. The providers we serve are contending with rising payer scrutiny and audit activity, industry-wide denial rates, expanding privacy and security obligations, and a new layer of governance questions raised by the very AI adoption now sweeping through healthcare. Compliance has moved from back-office checkbox to an operational priority, and Empower gives our providers a trusted partner for all of it, delivered through the platform they already rely upon every day. We saw that value proposition in action within a few weeks of closing. In June, Empower's certified coding and compliance team helped a wound care provider reverse more than $1 million in alleged overpayments in a successful audit defense before a hearing and appeals board. That is the kind of concrete high stakes outcome that builds durable client relationships. And it is a story we can now tell across our entire client base. Looking ahead, we plan to launch AI-enabled compliance software solutions during the fall of 2026, converting Empower's expertise into a scalable, recurring revenue model. This will include a tiered subscription-based proactive compliance program driven by our AI-powered SaaS platform and supported by Empower's certified compliance professionals. It is the same motion we have run with every acquisition. Acquire trusted capability, integrate that capability into our platform, and amplify it with AI. And that motion, acquire, integrate, amplify with AI, is a thread that runs through everything we're doing because our AI portfolio continues to scale. Hadi will walk you through our AI progress in a moment. What I'll offer here is the market context, because the environment is moving decisively in our direction. Industry surveys show that physician adoption of AI has more than doubled over the past three years, with administrative burden consistently ranked as the single largest opportunity for AI in medicine. At the same time, the pressures on provider economics, denial, staffing, documentation, regulatory complexity, are intensifying, not easing. Taken together, these secular trends reinforce our strategy and strengthen our confidence in a long-term opportunity for our solution, an integrated platform that pairs AI with clinical, financial, and now compliance workflows, allows providers to rely upon our solution as the one that they trust. Separately, it was a true pleasure to have the opportunity to spend time with many of you in person last quarter. For those who are not able to attend, in May, we hosted our Analyst Day at the Nasdaq MarketSite and rang the Nasdaq closing bell, where we laid out four themes that define CareCloud. An AI-first operating model, second a clean common stock story, third compounding free cash flow, and finally a proven acquisition engine. And in June, our shareholders overwhelmingly approved every proposal in our annual meeting. The second quarter was, in every respect, execution against these four themes. All that brings me to our outlook. We are reaffirming our full year 2026 guidance of revenue of $128 million to $132 million, adjusted EBITDA of $29 million to $31 million, and GAAP earnings per share of $0.20 to $0.23. With $63.2 million in revenue and $11.3 million in adjusted EBITDA in the first half, our guidance implies a meaningfully stronger second half. The shape of our plan is first half weighted towards investment and integration, and second half that focuses on harvesting those investments. Building blocks of that ramp are specific and they're underway. Continued growth in our recurring revenue base. The expansion of relationships with existing enterprise clients, expense management and integration initiatives designed to align our cost structure with our profitability objectives. On earnings per share, specifically the elimination of the Series B preferred dividend for the entire second half of the year. As always, our expectations depend on the signing and continuation of certain client and vendor relationships, the anticipated timing and scope of client projects, and our timely execution of the integration and expense management initiatives that support these objectives. It is an important but demanding plan, and our team is working hard to deliver it. Before I hand it over to Hadi, let me step back and leave you with where we stand. Healthcare providers we serve are operating under enormous pressure, rising denials, workforce shortages, documentation burden, and a regulatory environment that grows more complex every year. Every one of these pressures increases the value of what CareCloud delivers. We entered the second half of 2026 with more than 40,000 providers on our platform, nine consecutive quarters of GAAP profitability, the cleanest capital structure our company has had in a decade, and a growing recurring revenue base. In addition to that, an AI portfolio that is in-market and scaling and within Empower, a foothold in one of the fastest growing needs in healthcare operations. The market opportunity in front of us is as large as it has ever been, and CareCloud is better positioned to capture it at any point in time in our history. With that, I'll turn the call over to Hadi Chaudhry, our Chief Strategy Officer, who will walk you through our AI strategy and product progress. Hadi? Hadi Chaudhry: Thank you, Steve, and good morning, everyone. Last quarter, I laid out our AI strategy across three tracks, using AI internally to do our existing work faster and at lower cost, embedding AI into the products our clients already use, and building new standalone AI products. I'm pleased to report that we have made significant progress on all three, and I want to give you the substance behind that this morning. Let me start with our new AI product. Our AI prior authorization and AI-assisted medical coding remain on track to bring to market this year. Both have continued to mature through the quarter. Prior authorization is moving through pilot deployments and coding continues to run internally as we refine it to the accuracy levels our clients expect. These are two of the most painful, most costly problems in healthcare administration, and we intend to meet the timeline we gave you. On stratusAI Front Desk, our AI voice agent, demand is strong and we are continuing to sign new business. With a new category like this, the work right now is in the implementation and we are prioritizing getting each deployment right over maximizing the count. The depth-before-breadth approach I described last quarter. Revenue is still in its early stages, but the product is performing in production, and we are building the operational foundation that turns these deployments into durable recurring revenue. We will report that revenue as it scales. Now let me turn to our platform work, because last quarter, I made you some specific dated commitments and I want to report against them directly. On our Inpatient Revenue Cycle platform, we have completed the parity gaps between the legacy system and RCM Cloud. On CareVue, the parity items we committed to for this quarter, bringing legacy CareVue onto this modern platform are complete. And on Wellsoft, we completed two integrations this quarter, our Breeze patient experience layer, and cirrusAI notes are both now live in the emergency department workflow. The stratusAI integration follows next quarter, and the modernization of Wellsoft into a full cloud-based SaaS platform is on track to complete later this year. The takeaway is simple. These were specific commitments and we delivered them. We saw the same execution in Marketware, our physician relationship platform. This quarter, we completed our flagship integration with PracticeMatch, added an integration with DocCafe, and launched a new candidate-facing portal that lets physicians and hospital staff apply and submit their credentials, degrees, experience letters, and licensure directly to the hiring manager. We also brought our AI candidate matching engine live, turning Marketware from a relationship management tool into an AI-powered recruitment engine. It was part of more than 20 enhancements delivered this quarter, with another 20 plus including Workday and DocuSign integrations underway for next quarter. I also want to flag something new that we are excited about. We are in active conversations with an existing private equity-based enterprise client about an AI-powered platform engagement. I will hold the details for now, but it's a strong validation of the capabilities we have built and we will share the specifics as they materialize. Finally, a word on where all this thing is heading. Our growth through acquisitions has, over time, left us running a number of independent platforms, each with its own back end. We have begun the work of consolidating them, moving towards a single modular platform on a shared back end with the common data and AI foundation underneath. In that model, a client simply turns on the modules they need, ambulatory, inpatient, revenue cycle, compliance, patient engagement, while everything runs on one foundation with one patient record and one place to bring our AI to bear. I'm not going to put a timeline on the full journey today. This is a multi-year vision, and we will be disciplined about how we sequence it. But the direction is deliberate. Fewer, stronger platforms built so that every new AI capability we create can be deployed everywhere at once. So across all three tracks, internal efficiency, smarter products, and new AI offerings, this was the quarter of visible measurable progress. With that, I will turn the call over to our Interim Chief Financial Officer and Corporate Controller, Norman Roth, to walk you through the quarter's financials in more detail. Norm? Norman Roth: Thanks, Hadi, and thanks everyone for joining our call today. I will provide some financial results for the second quarter and year-to-date. Our second quarter reflects continued execution of our long-term strategy. We return to revenue growth following the Medsphere acquisition, generated strong free cash flow, remained GAAP profitable for the ninth consecutive quarter, and continued investing in the capabilities we believe will support long-term profitable growth. Revenue for the second quarter of 2026 was $31.9 million compared to $27.4 million for the second quarter of 2025. Recurring technology-enabled business solution revenue was $24 million during the second quarter of 2026, up approximately $5 million from the second quarter of 2025, while the non-recurring project-based professional services revenue from medSR decreased approximately $1.3 million. Revenue increased 16% from the second quarter of 2025, driven primarily by the Medsphere acquisition. Recurring revenue continues to represent the foundation of our business model and provides increased visibility into our future financial performance. Second quarter 2026 GAAP net income was $1.1 million, as compared to net income of $2.9 million in the same period last year. As expected, profitability this quarter reflects continued strategic investments in AI-enabled capabilities that we believe will enhance our platform, strengthen our competitive position, and drive long-term customer value. Higher interest expense due to the borrowings to redeem the Series B preferred stock and additional amortization expense due to the intangibles acquired in our recent acquisitions also impacted net income. Gross margins remain consistent between periods. Earnings per share for the three months ended June 30, 2026, was breakeven after deducting $941,000 of preferred stock dividends. As part of our ongoing capital allocation strategy, we redeemed all outstanding Series B preferred stock during the quarter, reducing our annual preferred dividend obligation by $3.3 million. Our dividend obligation going forward will be just for the remaining Series A preferred shareholders. Free cash flow generation, as defined for the second quarter of 2026, was $5.7 million as compared to $5.4 million in the second quarter of 2025, reflecting the cash generative nature of our recurring revenue model and continued financial discipline. Adjusted EBITDA for the second quarter was $5.9 million. Adjusted net income was $2.4 million, or $0.06 per share, compared to $3.3 million, or $0.07 per share, in the same period last year, calculated using the end-of-period common shares outstanding. As of June 30, 2026, the company had approximately $13.4 million of cash and net working capital of $695,000. Our balance sheet remains well positioned to support our strategic priorities. During the quarter, we strengthened our capital structure through a new $50 million credit facility and established a $60 million at-the-market equity program, providing additional capital to support future growth opportunities when conditions warrant. Given our technology-enabled services model, we believe CareCloud remains relatively insulated from tariff-related risks affecting the physical goods industries. Additionally, healthcare demand has historically proven resilient through varying macroeconomic environments, supporting continuing demand for our solutions. Revenue for the first six months of 2026 was $63.2 million compared to $55 million in the prior period. For the first six months of 2026, the company's GAAP net income was $2 million, compared to a GAAP net income of $4.9 million for the same period in 2025. This equates to a loss of $0.01 per share after subtracting the preferred stock dividends. Non-GAAP adjusted net income for the first six months of 2026 was $4.5 million or $0.11 per share. Year-to-date, adjusted EBITDA was $11.3 million compared to $12.1 million in the same period last year. We generated $8.1 million of free cash flow as defined for the first six months of the year, compared to $9.1 million in the same period last year. Near-term profitability reflects the investment phase we planned, and we are focusing on converting it in the second half of the year. Our long-term strategy remains unchanged. We continue to see meaningful opportunities in our core markets and believe the investments we have made in our platform, AI capabilities, and recent acquisitions position us well for long-term growth. With that, I'll now turn the call over to our Chairman, Mahmud, for his closing remarks. Mahmud? Mahmud Haq: Thank you, Norm. This quarter marks an exciting milestone for CareCloud. We have simplified our capital structure, are delivering profitable growth, and are accelerating our AI-driven healthcare compliance strategy. With strong momentum and a clear path forward, we believe the best is yet to come. I would like to thank our employees for their dedication, our clients for their continued trust, and our shareholders for their confidence and support. Operator, we are now ready to open the line for questions. Thank you. Operator: [Operator Instructions] Our first question is from Allen Klee with Maxim Group. Please proceed with your question. Allen Klee: Good morning. What would you say are the major factors that you expect to make second half '26 different from first half from a financial perspective? Stephen Snyder: Allen, forgive us, would you mind just repeating that? We lost your volume for a minute. Allen Klee: Oh, just what are the major factors that you expect to make second half '26 financially different from first half '26? Stephen Snyder: Okay, very good. And I'll let Norm dig into that a little bit more. As you said, the second half of the year, we expect to be much stronger than the first half of the year. Part of that is simply related to the natural seasonality that exists in our space. So a component of that is seasonality. But if we look at the revenue, only part of that is really seasonality. The other part of that relates to the fact that we will continue to layer growth on top of the existing business that we have, both through the expansion of the existing customer relationships, some of the enterprise relationships, and also through the Empower cross-selling that is well underway. So part of it -- part of the story will be revenue. You think about from a revenue perspective, we'll need to go from roughly $32 million in Q2 to $33 million, $34 million per quarter in the balance of the year to achieve our guidance. And we feel comfortable that is very doable. The other part of it really relates more to the adjusted EBITDA and EPS component. So if we think about some of the downward pressure from a profitability perspective, some of the downward pressure really relates to the fact that we've been spending significant energies integrating the Medsphere acquisition. So from the perspective of the performance of the Medsphere acquisition, we've really been very pleased. But as we talked about at the time when we acquired Medsphere, there's significant tech debt that we knew going into the acquisition really had to be remediated. So we've been working hard to deploy the research and development resources that are necessary to accomplish that to really ensure that we have a solid foundation moving forward. Some of that development work relates to also making sure that the platform is really driven by AI, like the balance of our ambulatory platform. And a lot of that energy and those resources have really been spent during the first half of the year, but we believe we'll see the benefits of that in the second half of the year. Also, from an integration perspective and cost duplication. We see a significant amount of that integration efforts really being in our rearview mirror having already been accomplished. There's still some more work to be done, but the lion's share of that was completed during the first and second quarters of the year. We'll see the benefits of that in the second half of the year. Are there other areas that would be helpful to talk about? Norman Roth: Well, I think, Steve, that was comprehensive. You know, our amortization will be decreasing. Allen, you know, we use a declining balance. It's an accelerated amortization that's related to the intangibles. That will be decreasing over time. And as Steve said, you know, we look very carefully at our forecasted revenue and expenses. You know, we feel comfortable with the sales pipeline and what opportunities will turn into recognized revenue. You know, so, you know, how we're going to manage those expenses going forward. Allen Klee: That was very comprehensive. Thank you. And then for the Empower Healthcare and Compliance Partners acquisition, should we be thinking of this as minor on a financial impact but then maybe becomes bigger from the cross-selling perspective or how should we think about it? Stephen Snyder: Yes, that's exactly how I think it makes sense to think about it. So again, the acquisition we closed in the middle of May. So from the perspective of Q2 results, it had minimal impact and frankly, overall it won't have a material impact on the financial data from the perspective of revenue contribution or overall EBITDA. But the benefit that we see really will be twofold. First of all, we're able now to be able to take the healthcare compliance and audit defense services that are really critical and becoming more and more important to the providers who we serve. And we're able to incorporate that expertise and that knowledge base now into our broader platform. And we expect to be able to roll out a SaaS version of what has been up to this point in time, delivered manually from the perspective of the professional delivering these services, we'll scale that and be able to bring that to the market in a SaaS platform that we further supplemented and augmented by the professionals who we have on board through Empower. So part of it will be taking our existing customer base and cross-selling that customer base into the SaaS platform. The other part will be being able to leverage cross-selling from the perspective of the existing Empower clients and cross-selling our revenue cycle management services and EHR solution into that base. The individual who now serves as the President of Empower, Mitch Brie, joined us through that acquisition for the company that he founded and grew. And just as a side note, we've known Mitch for some time. And Mitch has referred business to us that today represents about 10% of our overall revenue on an annualized basis. So he's really been instrumental in terms of partnering with us and helping us grow our business from an organic growth perspective. And we think that he can do far more by being a member of the team and by having a overall structure as part of the acquisition that's heavily aligned -- heavily aligns Mitch, and Empower with what we're trying to achieve in terms of growth. And in terms of the overall structure, I would just note that the overall structure of the acquisition really followed and tracked the same sort of structure you've seen in prior acquisitions with a minimal amount down, roughly 30% of the trailing revenues, trailing 12 months revenue, paid at closing, and then the balance of that will be paid from an earn-out, that's really based upon the ability of Empower to help us grow and to be successful in leading cross-selling initiatives. Allen Klee: Thank you. On slide 11 of the presentation, I think it's stratusAI Front Desk, it might be referring to, you know, you have a section called demand and you say, you talk of new business signed through Q2. Basically, I was wondering if you could dig into a little bit of the -- when you say new business signed through Q2 and demand from across the client base? Stephen Snyder: Absolutely. So from an AI perspective, I'll let Hadi talk a little bit more about the AI initiatives that we're seeing success on today, both in terms of stratusAI and also within our broader platform. And one other thing I'd mention too is that we're in conversations also, and some of these conversations are in the relatively early phases, but we're in active conversations with private equity groups about whether or not there may be an opportunity that relates to their portfolio companies. So private equity groups that are focused on healthcare companies. And we really see an opportunity to be able to partner with these private equity groups long term and to be able to assist them in accomplishing the ability to optimize their overall revenue structure and increase revenues while at the same time being able to be effective in helping them reduce their costs. So really the same thing that we do as we acquire companies. We think we can accomplish the same thing on their behalf. And a lot of those discussions really revolve around our ability to assist them in particular with regard to the AI needs that their portfolio companies have. Again, no promise that any of these individual conversations will result in new business, but we've had some promising conversations. But in terms of the overall AI, Hadi, if you don't mind just providing a little bit more color on that, that'd be great. Hadi Chaudhry: Thanks, Steve. So, as Steve mentioned, in terms of the stratusAI, I think your question, we continue to see the demand. We continue to sign up more deals on from stratusAI and other AI products. We are extensively in the implementation phase, and I think when we get to a point of where the numbers, the AI specific revenue numbers are scalable enough that we should be able to start disclosing, we will separate it out from the technology-enabled service revenue. But if you look at it from the AI, it's the same three tracks we continue. One is our using it internally to perform the work more efficiently and effectively and cost efficiently, and then the front-end application that we are developing and selling to the customers. Operator: [Operator Instructions] Our next question is from Richard Hantke with Zacks. Please proceed with your question. Richard Hantke: Hello, everyone. Yes, I'm filling in. Lisa had to jump off at 9:00, so as you know, I'm going to ask a couple questions on her behalf. How are you doing? Stephen Snyder: Doing well, Richard. Thanks for calling in. Richard Hantke: All right. Yes, good. Now, her first set of questions related to AI and what's going on there, I think you guys have covered that quite extensively, both in your remarks and in answer to the previous question. So we're going to -- I think you've covered that. I think she got what she needs there. Let's talk about cross-selling a little bit. I know, Hadi, you made a comment that you're in the early innings of cross-selling opportunities. Are you referring to Empower and Medsphere, or just Empower? Let's just focus on Medsphere. Have you exhausted all the opportunities there? Stephen Snyder: Good question. And if we kind of break that up, so from the perspective of Empower, we're focused heavily today on these cross-selling initiatives. So cross-selling is already well underway with regards to Empower. We don't have any new signings yet in terms of from the perspective of the Empower cross-selling, but since it's only been a couple months, I guess that would be understandable. From the Medsphere perspective, we still have significant opportunity to score additional wins from a Medsphere cross-sell perspective. We've already really seen some pretty significant traction in terms of the hospitals that we're working with from Medsphere acquisition perspective, we've been able to cross-sell and to expand the overall wallet share of those hospitals. Having said that, I still think we're just beginning in the whole scheme of cross-selling from a Medsphere perspective. And, Hadi might add to that. Hadi Chaudhry: Right. So, actually, the one that you were referring to, Richard, that I was referring to, and I'll be careful here because that deal has not yet been signed, but all that I can say is that we are in active conversation with one existing PE-backed, a large enterprise client about an AI-powered platform engagement. So we will hold the specifics for now in terms of the name, the scope, or any number until it gets materialized. I would simply frame it as a strong validation of our capabilities in AI and over the decades that we have developed into our space. So that's other than the Empower or the cross-sell opportunities that Steve is referring to. Richard Hantke: Okay, excellent. Thank you. Now, next question I think is related. Lisa was under the understanding that you have tripled your sales force. I'm not sure over what period of time that was. How's that changed your expectations? Are they up to speed? Are you -- do you to plan to expand any further? Could you talk a little bit about your sales force? Stephen Snyder: That's correct, Richard. We really significantly expanded the overall sales force, and the sales force continues to be focused primarily on cross-selling, expanding the existing wallet share. That's where we see the opportunity. That's where we're seeing the successes, and from an expense structure perspective, in terms of the overall cost, it's less expensive to sell to our existing customers as opposed to pursuing more broadly net new wins. So we continue to focus on that cross-selling. The team is fully up to speed in terms of our applications. Many of the individuals who are part of this expanded sales team joined us through the Medsphere acquisition. So they already understood their applications, understand the place in the market for those various applications and solutions, and also how to position those solutions from a cross-selling perspective. Richard Hantke: Okay, excellent. Thank you for that. Just one final question, different subject completely. You had that cyber breach back, I guess it was in Q1, March, something like that. Any update on that? Insurance is going to substantially cover all the costs, too early to tell. Any update there? Stephen Snyder: Certainly based upon what we know today, we don't believe that this incident will have any material impact on our operations or financial conditions. So we still feel very strongly that's the case. But if we just back up for a minute, we just talk more generally about the security incident. I think you're referring to the March 16th incident that we had. And as you recall, this was really an incident that affected a single environment within CareCloud Health. And we were really thankful that we had the ability to fully restore our system the same day that it was impacted. We restored it the same afternoon that it was impacted. Also, I'd say beyond that, from the perspective of customers, I think they can rest assured that we were able to expel the bad actor from our system on that same day, on March 16th. And we've since had forensic analyses performed that validate our belief that we had cut off their access or essentially kicked them out of the system on March 16th. So it was a limited universe of our overall platform and client base. It was restored quickly and the threat no longer, to the best of our knowledge, exists within our platform as validated by our third-party forensic examiner. We are in the process right now of sending out notices to the patients who were impacted by that breach. So that's well underway. And we continue once again to believe that the insurance coverage will provide everything that we need from a financial perspective to be able to both communicate these -- to the patients, to perform the forensic analysis, which is already in our rearview mirror, legal costs, litigation fees, and the like, we believe will be within that premium -- I'm sorry, within that coverage amount. Richard Hantke: Okay, sounds like you had it very well contained. That's excellent. All right, well, then I'll just leave you with this. It looks to me like you met or slightly exceeded Lisa's expectations for you, top and bottom line for Q2, so that's good. Anyway, thank you and thanks for taking my call. Stephen Snyder: Thank you, Richard. Operator: [Operator Instructions] We have reached the end of the question-and-answer session. I would like to turn the floor back over to Norman Roth for closing comments. Norman Roth: Thank you, everyone, for attending our call today. Have a great day. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in CareCloud, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CareCloud wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. 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CareCloud (CCLD) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CareCloud Inc (NASDAQ:CCLD) delivered 16% year-over-year revenue growth in Q2 2026, marking its ninth consecutive quarter of positive GAAP net income. The company completed the full redemption of its Series B preferred stock, eliminating approximately $3.3 million in annual preferred dividends and simplifying its capital structure with zero dilution to common shareholders. CareCloud Inc (NASDAQ:CCLD) entered the high-demand healthcare compliance and audit defense market through the acquisition of Empower Healthcare and Compliance Partners, which has already demonstrated success in reversing over $1 million in alleged overpayments for a client. The company's recurring technology-enabled business solutions now represent approximately 75% of revenue, up from 69% a year ago, providing increased visibility into future financial performance. CareCloud Inc (NASDAQ:CCLD) is making significant progress in its AI strategy, with Stratus AI front desk signing new business, AI prior authorization and coding on track for market launch, and a potential AI-powered platform engagement with an existing private equity-based enterprise client. GAAP net income for Q2 2026 was $1.1 million, down from $2.9 million in the same period last year, due to strategic investments in AI, higher interest expense, and increased amortization from acquisitions. Adjusted EBITDA for Q2 2026 was $5.9 million, lower than the prior year quarter, reflecting the company's investment phase rather than margin erosion. Earnings per share for Q2 2026 was breakeven after deducting $941,000 of preferred stock dividends, and the first half of 2026 resulted in a loss of $0.01 per share after preferred dividends. The company's net working capital is thin at $695,000 as of June 30, 2026, which could pose liquidity concerns despite having $13.4 million in cash. The company experienced a cyber breach in March 2026, and while it believes insurance will cover costs, the incident required forensic analysis and patient notifications, and the full financial impact is not yet completely resolved. Warning! GuruFocus has detected 2 Warning Sign with CCLD. Is CCLD fairly valued? Test your thesis with our free DCF calculator. Q: What are the major factors expected to make the second half of 2026 financially different from the first half? A: CEO Steve Snyder explained that the second half is expected to be much stronger due to natural seasonality, continued growth from existing enterprise relationships, and cross-selling from the Empower acquisition. He noted revenue needs to grow from roughly $32 million in Q2 to $33-34 million per quarter to hit guidance. The profitability improvement will come from reduced integration costs for the MedSphere acquisition, which consumed significant R&D resources in the first half, and the benefits of that work materializing in the second half. Interim CFO Norman Roth added that amortization will decrease over time due to accelerated declining balance method on intangibles. Q: Should the Empower Healthcare and Compliance Partners acquisition be viewed as minor financially but bigger from a cross-selling perspective? A: CEO Steve Snyder confirmed this is exactly how to think about it. The acquisition closed mid-May and had minimal impact on Q2 results. The real value is twofold: incorporating compliance expertise into the broader platform to launch a SaaS version of what was previously delivered manually, and cross-selling revenue cycle management and EHR solutions to Empower's existing client base. He noted that Empower's founder, Mitch Bree, had previously referred business representing about 10% of CareCloud's annualized revenue, and the acquisition structure includes an earnout based on Empower's ability to drive growth and cross-selling initiatives. Q: Can you provide more detail on the new business signed through Q2 for Stratus AI Front Desk and demand across the client base? A: CEO Steve Snyder noted that CareCloud is in active conversations with private equity groups focused on healthcare companies about partnering to optimize revenue structures and reduce costs, particularly around AI needs. Chief Strategy Officer Hadi Chaudhry added that demand for Stratus AI continues to grow with new deals being signed, but the company is prioritizing implementation depth over breadth. AI-specific revenue will be disclosed separately once it reaches a scalable level, but currently remains embedded in technology-enabled services revenue. Q: Regarding cross-selling, are you referring to Empower and MedSphere, and have you exhausted all opportunities with MedSphere? A: CEO Steve Snyder clarified that cross-selling with Empower is already well underway, though no new signings have occurred yet given it's only been a couple of months. For MedSphere, there remains significant opportunity for additional wins. The company has already seen traction in expanding wallet share with hospitals from the MedSphere acquisition, but is still in the early innings of the overall cross-selling opportunity. Hadi Chaudhry added that there is an active conversation with an existing private equity-based enterprise client about an AI-powered platform engagement, which serves as strong validation of their AI capabilities, though specifics will be shared once materialized. Q: You tripled your sales forcehow has that changed expectations, are they up to speed, and do you plan to expand further? A: CEO Steve Snyder confirmed the significant expansion of the sales force, which remains focused primarily on cross-selling and expanding existing wallet share. This approach is less expensive than pursuing net new wins. The team is fully up to speed on the applications, particularly those who joined through the MedSphere acquisition, as they already understand the products and how to position them for cross-selling opportunities. Q: Any update on the cyber breach from March, and will insurance substantially cover all costs? A: CEO Steve Snyder stated that based on current knowledge, the incident will not have any material impact on operations or financial condition. The March 16th incident affected a single environment within CareCloud Health, and the system was fully restored the same afternoon. Forensic analyses validated that the bad actor was expelled on March 16. Notices are being sent to impacted patients, and the company believes insurance coverage will cover all costs including patient communications, forensic analysis, legal costs, and litigation fees. Q: Can you elaborate on the factors driving the lower GAAP net income and adjusted EBITDA in Q2 2026 compared to the prior year? A: Interim CFO Norman Roth explained that profitability was impacted by continued strategic investments in AI-enabled capabilities, higher interest expense from borrowings to redeem the Series B preferred stock, and additional amortization expense from recent acquisitions. Gross margins remained consistent between periods. The company views these as investments that will drive long-term customer value and strengthen competitive position, with benefits expected to materialize in the second half of the year. Q: What is the status of the AI product development timeline, particularly for prior authorization and AI-assisted medical coding? A: Chief Strategy Officer Hadi Chaudhry confirmed that AI prior authorization and AI-assisted medical coding remain on track for market launch this year. Prior authorization is moving through pilot deployments, while coding continues to run internally as it's refined to expected accuracy levels. These address two of the most painful and costly problems in healthcare administration. The company also completed specific platform commitments, including parity gaps on the inpatient revenue cycle platform, CareView modernization, and WellSoft integrations with Breeze and Stratus AI notes in emergency department workflows. Q: How is the company's capital structure improved following the Series B preferred stock redemption? A: CEO Steve Snyder highlighted that the full redemption of Series B preferred stock on May 15, funded through a $50 million credit facility with zero dilution to common shareholders, eliminates approximately $3.3 million of annual preferred dividends. Through the first six months of 2026, the company paid approximately $6.4 million of preferred dividends, but the substantial majority of that obligation is now permanently behind them. Beginning in Q3, far more of every dollar of net income will flow through to common shareholders, reduced only by the cost of the less expensive debt that replaced the preferred stock. Q: What progress has been made on the MarketWare physician relationship platform? A: Chief Strategy Officer Hadi Chaudhry reported that MarketWare completed its flagship integration with Practice Match, added an integration with Doc Cafe, and launched a new candidate-facing portal allowing physicians and hospital staff to apply and submit credentials directly to hiring managers. The company also brought its AI candidate matching engine live, transforming MarketWare from a relationship management tool into an AI-powered recruitment engine. This was part of more than 20 enhancements delivered in the quarter, with another 20+ including Workday and DocuSign integrations underway for next quarter. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 16% revenue growth driven primarily by the integration of the Medsphere acquisition and a shift toward recurring technology-enabled solutions, which now represent 75% of total revenue. Completed the full redemption of Series B preferred stock, eliminating approximately $3.3 million in annual dividends to simplify the balance sheet and increase earnings flow-through to common shareholders. Entered the healthcare compliance and audit defense market via the acquisition of Empower Healthcare and Compliance Partners to address rising payer scrutiny and industry-wide denial rates. Reported ninth consecutive quarter of GAAP profitability despite increased R&D spending to accelerate AI development and higher interest expense from the new credit facility used to retire preferred stock. Executed a 'depth-before-breadth' implementation strategy for stratusAI Front Desk, prioritizing successful deployments over rapid volume to ensure durable recurring revenue. Modernized legacy platforms by completing parity gaps for Inpatient Revenue Cycle and CareVue, while integrating AI notes and patient experience layers into the Wellsoft emergency department workflow. Reaffirmed full-year 2026 guidance, implying a significantly stronger second half driven by seasonality, enterprise client expansion, and the full-period impact of eliminated preferred dividends. Planned launch of AI-enabled compliance software in fall 2026 to convert Empower's professional expertise into a scalable, recurring SaaS revenue model. Anticipated margin improvement in the second half as integration costs and 'tech debt' remediation for recent acquisitions move into the rearview mirror. Advancing a multi-year vision to consolidate independent back-ends into a single modular platform with a unified patient record and common AI foundation. Guidance assumes timely execution of expense management initiatives and the successful conversion of the current sales pipeline into recognized revenue. Established a $60 million at-the-market (ATM) equity program to provide flexible capital for future growth opportunities when market conditions are favorable. Managed a March 2026 cyber incident affecting a single environment; management believes insurance will cover related costs and that there is no material impact on operations. Transitioned to a $50 million credit facility with Citizens Bank and Provident Bank to fund the Series B redemption, replacing high-cost preferred equity with lower-cost debt. Increased R&D expense reflects a strategic shift toward expensing rather than capitalizing AI development costs to build long-term durable earnings power. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects a ramp to $33 million-$34 million in quarterly revenue driven by natural seasonality and the layering of growth from Empower cross-selling. Profitability is expected to rise as the 'lion's share' of Medsphere integration efforts and accelerated amortization of intangibles decrease over time. The acquisition followed a disciplined playbook with a low upfront payment (30% of trailing revenue) and an earn-out structure aligned with growth targets. Beyond immediate revenue, the deal provides a foothold in audit defense through the acquisition of Empower, whose founder has already referred business representing 10% of CareCloud's current annualized revenue. Management confirmed active conversations with a large, private equity-backed enterprise client regarding an AI-powered platform engagement. The potential deal serves as a validation of CareCloud's AI capabilities, though management declined to share specific scope or timelines until the deal materializes. The sales force has been significantly expanded, primarily through personnel joined via the Medsphere acquisition who are already familiar with the applications. The strategy remains focused on cross-selling to existing customers, which management noted is more cost-effective than pursuing net-new wins.

CareCloud, Inc. (CCLD) came out with quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -14.29%. A quarter ago, it was expected that this company would post earnings of $0.06 per share when it actually produced earnings of $0.05, delivering a surprise of -16.67%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. CareCloud, which belongs to the Zacks Medical Info Systems industry, posted revenues of $31.88 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.21%. This compares to year-ago revenues of $27.38 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CareCloud shares have lost about 13% since the beginning of the year versus the S&P 500's gain of 12.8%. While CareCloud has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CareCloud was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.13 on $34.52 million in revenues for the coming quarter and $0.38 on $131.48 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Info Systems is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Hims & Hers Health, Inc. (HIMS), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of -141.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Hims & Hers Health, Inc.'s revenues are expected to be $690.21 million, up 26.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CareCloud, Inc. (CCLD) : Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Revenue Grows 16%; Ninth Consecutive Quarter of Positive GAAP Net Income SOMERSET, N.J., Aug. 06, 2026 (GLOBE NEWSWIRE) -- CareCloud, Inc. (Nasdaq: CCLD), a leader in AI-powered healthcare technology and revenue cycle management solutions for medical practices and health systems nationwide, today announced financial results for the quarter ended June 30, 2026 and reaffirmed its full-year guidance. Second Quarter 2026 Financial Highlights: Revenue of $31.9 million, compared to $27.4 million in Q2 2025 GAAP net income of $1.1 million, compared to $2.9 million in Q2 2025 GAAP EPS of $0.00 per share, compared to $0.04 per share in Q2 2025 Adjusted EBITDA of $5.9 million, compared to $6.5 million in Q2 2025 Year-to-date 2026 Highlights: Revenue of $63.2 million, compared to $55.0 million in the same period last year GAAP net income of $2.0 million, compared to $4.9 million in the same period last year GAAP EPS of ($0.01) per share, compared to $0.02 per share in the same period last year Adjusted EBITDA of $11.3 million, compared to $12.1 million in the same period last year Key Second Quarter Accomplishments: Compliance and Audit-Defense Market Entry: Expanded the product portfolio through the acquisition of Empower Healthcare & Compliance Partners, opening a new growth opportunity by bringing trusted compliance, audit-defense, and regulatory expertise to CareCloud's network of more than 40,000 providers. Full Redemption of Series B Preferred Stock: Completed the redemption of all outstanding Series B Preferred Stock on May 15, 2026. Sustained Profitability: Delivered the ninth consecutive quarter of positive GAAP net income. Management Commentary “This quarter we grew revenue 16%, delivered our ninth consecutive quarter of positive GAAP net income, and entered the compliance and audit-defense market through our acquisition of Empower Healthcare. We're investing deliberately in what we believe defines our next phase of growth — our AI solutions, our expanding capabilities, and the cross-sell opportunity across our more than 40,000 providers.” — Stephen Snyder, Chief Executive Officer, CareCloud “Our AI and acquisition strategies have become a single, unified growth engine. Every platform we bring into CareCloud becomes smarter, faster, and more valuable when we layer in our AI capabilities. We are still in the early innings of unlocking the cross-sell potential across our expanded client base, and we are increasingly seeing customers adopt our AI-enabled offerings.” — A. Hadi Chaudhry, Chief Strategy Officer, CareCloud "As expected, profitability this quarter reflects deliberate investments we are making today — increased R&D spending on our AI-enabled capabilities and increased interest expense from simplifying our capital structure through the Series B redemption — that we believe will deliver returns over time. We expect these investments to enhance scalability, improve operational efficiency, and support long-term margin expansion." — Norman Roth, Interim Chief Financial Officer and Corporate Controller, CareCloud 2026 Outlook The Company is reaffirming its guidance for calendar year 2026. Our expectations regarding future profitability, including adjusted EBITDA and earnings-per-share guidance, are based on management’s current beliefs and assumptions regarding, among other things, the signing and continuation of certain client and vendor relationships, the anticipated timing and scope of client projects, and our timely execution of integration and expense-management initiatives intended to align our cost structure with those objectives. Conference Call Information CareCloud management will host a live conference call today, August 6, 2026, at 8:30 a.m. Eastern Time to discuss second quarter 2026 results and the Company’s 2026 strategy. Webcast: ir.carecloud.com/eventsDial-in (Audio Only): 201-389-0920 | Reference: “CareCloud, Inc. Second Quarter 2026 Results Conference Call.” Replay Dial-in: 412-317-6671 | Access Code: 13761329 (available approximately 3 hours after the call). About CareCloud CareCloud brings disciplined innovation to the business of healthcare. Our suite of AI and technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care, while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health, at carecloud.com. Follow CareCloud on LinkedIn, X and Facebook. For additional information, please visit our website at carecloud.com. To listen to video presentations by CareCloud’s management team, read recent press releases and view the latest investor presentation, please visit ir.carecloud.com. Contacts Use of Non-GAAP Financial Measures In our earnings releases, prepared remarks, conference calls, slide presentations and webcasts, we use and discuss non-GAAP financial measures, as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investor Relations section of our web site at ir.carecloud.com. Forward-Looking Statements This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “forecasts,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology. Our operations involve risks and uncertainties, many of which are outside our control and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management's expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities and the expected results from the integration of our acquisitions. These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, manage and keep our information systems secure and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made. RECONCILIATION OF NON-GAAP FINANCIAL MEASURESTO COMPARABLE GAAP MEASURES (UNAUDITED) The following is a reconciliation of the non-GAAP financial measures used by us to describe our financial results determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). An explanation of these measures is also included below under the heading “Explanation of Non-GAAP Financial Measures.” While management believes that these non-GAAP financial measures provide useful supplemental information to investors regarding the underlying performance of our business operations, investors are reminded to consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies, and management may utilize other measures to illustrate performance in the future. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Adjusted EBITDA to GAAP Net Income Set forth below is a reconciliation of our “adjusted EBITDA” to our GAAP net income. Non-GAAP Adjusted Operating Income to GAAP Operating Income Set forth below is a reconciliation of our non-GAAP “adjusted operating income” and non-GAAP “adjusted operating margin” to our GAAP operating income and GAAP operating margin. Non-GAAP Adjusted Net Income to GAAP Net Income Set forth below is a reconciliation of our non-GAAP “adjusted net income” and non-GAAP “adjusted net income per share” to our GAAP net income and GAAP net income per share. For purposes of determining non-GAAP adjusted earnings per share, the Company used the number of common shares outstanding as of June 30, 2026 and 2025. Non-GAAP adjusted earnings per share does not take into account dividends declared or earned on preferred stock. Net cash provided by operating activities to free cash flow Set forth below is a reconciliation of our non-GAAP “free cash flow” to our GAAP net cash provided by operating activities. Explanation of Non-GAAP Financial Measures We report our financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, management believes that, in order to properly understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in frequency and impact on continuing operations. Management also uses results of operations before such items to evaluate the operating performance of CareCloud and compare it against past periods, make operating decisions and serve as a basis for strategic planning. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts. Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. Management uses adjusted EBITDA, adjusted operating income, adjusted operating margin, and non-GAAP adjusted net income to provide an understanding of aspects of operating results before the impact of investing and financing charges and income taxes. Adjusted EBITDA may be useful to an investor in evaluating our operating performance and liquidity because this measure excludes non-cash expenses as well as expenses pertaining to investing or financing transactions. Management defines “adjusted EBITDA” as the sum of GAAP net income before provision for income taxes, net interest expense, other (income) expense, stock-based compensation expense, depreciation and amortization, integration costs, transaction costs, and change in contingent consideration. Management defines “non-GAAP adjusted operating income” as the sum of GAAP operating income before stock-based compensation expense, amortization of purchased intangible assets, integration costs, transaction costs, and change in contingent consideration, and “non-GAAP adjusted operating margin” as non-GAAP adjusted operating income divided by net revenue. Management defines “non-GAAP adjusted net income” as the sum of GAAP net income before stock-based compensation expense, amortization of purchased intangible assets, other (income) expense, integration costs, transaction costs, change in contingent consideration, any tax impact related to these preceding items and income tax expense related to goodwill, and “non-GAAP adjusted net income per share” as non-GAAP adjusted net income divided by common shares outstanding at the end of the period, including the shares which were issued but are subject to forfeiture and considered contingent consideration. Management considers all of these non-GAAP financial measures to be important indicators of our operational strength and performance of our business and a good measure of our historical operating trends, in particular the extent to which ongoing operations impact our overall financial performance. In addition to items routinely excluded from non-GAAP EBITDA, management excludes or adjusts each of the items identified below from the applicable non-GAAP financial measure referenced above for the reasons set forth with respect to that excluded item: Foreign exchange loss/other expense. Other expense is excluded because foreign currency gains and losses and other non-operating expenses are expenditures that management does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expense is partially outside of our control. Foreign currency gains and losses are based on global market factors which are unrelated to our performance during the period in which the gains and losses are recorded. Stock-based compensation expense. Stock-based compensation expense is excluded because this is primarily a non-cash expenditure that management does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expenditure is partially outside of our control because it is based on factors such as stock price, volatility, and interest rates, which may be unrelated to our performance during the period in which the expenses are incurred. Amortization of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are recorded. Contingent consideration. Contingent consideration represents the portion of consideration payable to the seller of some of our acquisitions, the amount of which is based on the achievement of defined performance measures contained in the purchase agreements. Contingent consideration is adjusted to fair value at the end of each reporting period. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Transaction costs. Transaction costs are upfront costs related to acquisitions and related transactions, such as brokerage fees, pre-acquisition accounting costs and legal fees, and other upfront costs related to specific transactions. Management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Integration costs. Integration costs are severance payments for certain employees relating to our acquisitions and exit costs related to terminating leases and other contractual agreements. Accordingly, management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Restructuring costs. Restructuring costs primarily consist of severance and separation costs associated with the optimization of the Company’s operations and profitability improvements. Management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Income tax expense related to goodwill. Income tax expense resulting from the amortization of goodwill related to our acquisitions represents a charge to record the tax effect resulting from amortizing goodwill over 15 years for tax purposes. Goodwill is not amortized for GAAP reporting. This expense is not anticipated to result in a cash payment. Free cash flow. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company's financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net operating results as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, the Company's definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our condensed consolidated statements of cash flows.

Interested in CareCloud, Inc.? Here are five stocks we like better. CareCloud’s Q2 revenue rose 16% to $31.9 million, marking its ninth consecutive quarter of GAAP profitability, although net income declined to $1.1 million due to AI investments, higher interest expense and acquisition-related amortization. The company redeemed all Series B preferred stock using a $50 million credit facility, eliminating about $3.3 million in annual preferred dividends without diluting common shareholders, though debt will increase interest costs. CareCloud reaffirmed 2026 guidance of $128 million–$132 million in revenue and $29 million–$31 million in adjusted EBITDA, expecting a stronger second half driven by recurring revenue, cross-selling, integration savings and new AI products. CareCloud (NASDAQ:CCLD) reported second-quarter revenue growth of 16% and its ninth consecutive quarter of GAAP profitability, while emphasizing investments in artificial intelligence, acquisition integration and an expanded healthcare compliance offering. Revenue for the quarter ended June 30 totaled $31.9 million, compared with $27.4 million a year earlier. First-half revenue rose 15% to $63.2 million. The company said recurring technology-enabled business solutions accounted for about 75% of quarterly revenue, up from 69% in the prior-year period. → 3 Drone Stocks That Should Soar After the Summer Slump GAAP net income was $1.1 million in the second quarter, down from $2.9 million a year earlier. Adjusted EBITDA was $5.9 million, while adjusted net income was $2.4 million, or $0.06 per share, compared with $3.3 million, or $0.07 per share, in the prior-year quarter. After preferred-stock dividends, earnings per share were breakeven for the quarter. Interim Chief Financial Officer and Corporate Controller Norman Roth said lower reported profitability reflected investments in AI-enabled capabilities, higher interest expense associated with new borrowings and amortization from acquired intangible assets. He said gross margins were consistent between periods. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth CareCloud completed the redemption of all outstanding Series B preferred stock on May 15, funding the transaction through a $50 million credit facility with Citizens Bank and Provident Bank. Chief Executive Officer Stephen Snyder said the redemption was completed without dilution to common shareholders and eliminates approximately $3.3 million in annual preferred dividends. The company paid about $6.4 million in preferred dividends during the first six months of 2026. Snyder said that, beginning in the third quarter, a larger share of net income should be available to common shareholders, offset by interest costs on the debt facility, which he described as meaningfully less costly than the preferred-stock obligation. → Jersey Mike's Serves Fresh Gains After IPO Stumble As of June 30, CareCloud had approximately $13.4 million in cash and net working capital of $695,000. The company also established a $60 million at-the-market equity program to provide potential capital for future growth opportunities. Free cash flow, as defined by the company, increased to $5.7 million in the second quarter from $5.4 million a year earlier. First-half free cash flow was $8.1 million, compared with $9.1 million in the prior-year period. In May, CareCloud acquired Empower Healthcare & Compliance Partners, a compliance and advisory firm founded by Mitchell Brie, who joined the company as president of Empower. Snyder said the deal was funded with operating cash flow and represents CareCloud’s entry into compliance, audit defense and regulatory-readiness services. The acquisition had minimal financial impact during the second quarter because it closed in mid-May, Snyder said during the question-and-answer session. He added that the company does not expect Empower to make a material near-term contribution to revenue or EBITDA. Instead, CareCloud sees the primary opportunity in cross-selling compliance offerings to its existing customer base and introducing its revenue-cycle management and electronic health record services to Empower clients. CareCloud plans to introduce AI-enabled compliance software in the fall of 2026. The planned offering will include a tiered, subscription-based proactive compliance program supported by Empower’s compliance professionals. Snyder said Empower’s coding and compliance team helped a wound-care provider reverse more than $1 million in alleged overpayments in an audit-defense matter during June. Chief Strategy Officer A. Hadi Chaudhry said CareCloud’s AI prior-authorization and AI-assisted medical-coding products remain on track for commercial introduction this year. The prior-authorization product is in pilot deployments, while the coding product is being used internally as the company works to meet desired accuracy levels. The company is also signing new business for its stratusAI Desk Agent voice product, though Chaudhry said revenue remains at an early stage and CareCloud is prioritizing implementation quality over rapidly increasing deployment counts. During the quarter, CareCloud completed platform parity work between its legacy inpatient revenue-cycle system and RCM Cloud, as well as planned CareVue parity items. It also integrated its Breeze patient-experience layer and cirrusAI Notes into Wellsoft’s emergency-department workflow. A Stratus AI integration is planned for the following quarter, while Wellsoft’s transition to a cloud-based SaaS platform remains on track for completion later in 2026. CareCloud also completed integrations with PracticeMatch and DocCafe for its Marketware physician relationship platform, launched a candidate portal and put its AI candidate-matching engine into production. Chaudhry said the company is pursuing a longer-term effort to consolidate acquired platforms onto a shared modular platform and common data and AI foundation. CareCloud reaffirmed its full-year 2026 guidance for revenue of $128 million to $132 million, adjusted EBITDA of $29 million to $31 million and GAAP earnings per share of $0.20 to $0.23. Management said the outlook implies a stronger second half, supported by seasonal factors, recurring-revenue growth, expanded enterprise relationships, cross-selling initiatives, integration savings and the absence of Series B preferred dividends for the full second half. Snyder said the company would need quarterly revenue of roughly $33 million to $34 million during the remainder of the year to meet its revenue guidance. Roth said amortization expense is expected to decline because the company uses an accelerated, declining-balance approach for acquired intangibles. Separately, Snyder addressed a March cybersecurity incident affecting one CareCloud Health environment. He said the company restored the affected system the same day, removed the unauthorized actor from the system and subsequently received third-party forensic validation of that assessment. The company is sending notices to affected patients and does not expect the incident to have a material impact on operations or financial condition, with insurance expected to cover related costs. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "CareCloud Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Investors were underwhelmed by the solid earnings posted by CareCloud, Inc. (NASDAQ:CCLD) recently. We did some digging and actually think they are being unnecessarily pessimistic. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Over the twelve months to March 2026, CareCloud recorded an accrual ratio of -0.29. That indicates that its free cash flow quite significantly exceeded its statutory profit. Indeed, in the last twelve months it reported free cash flow of US$19m, well over the US$4.31m it reported in profit. CareCloud shareholders are no doubt pleased that free cash flow improved over the last twelve months. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. As we discussed above, CareCloud's accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Because of this, we think CareCloud's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! And it's also positive that the company showed enough improvement to book a profit this year, after losing money last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. So while earnings quality is important, it's equally important to consider the risks facing CareCloud at this point in time. In terms of investment risks, we've identified 1 warning sign with CareCloud, and understanding it should be part of your investment process. This note has only looked at a single factor that sheds light on the nature of CareCloud's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

It's been a mediocre week for CareCloud, Inc. (NASDAQ:CCLD) shareholders, with the stock dropping 19% to US$2.36 in the week since its latest quarterly results. Revenues of US$31m beat expectations by a respectable 2.5%, although statutory losses per share increased. CareCloud lost US$0.01, which was 50% more than what the analysts had included in their models. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Following the latest results, CareCloud's four analysts are now forecasting revenues of US$131.1m in 2026. This would be a modest 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 92% to US$0.20. Before this earnings report, the analysts had been forecasting revenues of US$131.2m and earnings per share (EPS) of US$0.17 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results. See our latest analysis for CareCloud There's been no major changes to the consensus price target of US$6.13, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values CareCloud at US$8.00 per share, while the most bearish prices it at US$2.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that CareCloud is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.6% annualised growth until the end of 2026. If achieved, this would be a much better result than the 4.0% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 10% per year. So although CareCloud's revenue growth is expected to improve, it is still expected to grow slower than the industry. The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CareCloud following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that CareCloud's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$6.13, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple CareCloud analysts - going out to 2027, and you can see them free on our platform here. We also provide an overview of the CareCloud Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Image source: The Motley Fool. Thursday, May 7, 2026 at 8:30 a.m. ET Founder and Executive Chairman — Mahmud Haq Chief Executive Officer — Stephen Snyder Chief Strategy Officer — A. Hadi Chaudhry Interim Chief Financial Officer and Corporate Controller — Norman Roth Need a quote from a Motley Fool analyst? Email [email protected] Mahmud Haq, our Founder and Executive Chairman; Stephen Snyder, our Chief Executive Officer; A. Hadi Chaudhry, our Chief Strategy Officer; and Norman Roth, our Interim Chief Financial Officer and Corporate Controller. Before we begin, I would like to remind you that certain statements made during this call are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21 of the Securities Exchange Act of 1934 as amended. All statements other than the statements of historical facts made during this call are forward-looking statements, including, without limitation, statements regarding our expectations and guidance for future financial and operational performance, expected growth, business outlook and potential organic growth and acquisitions. Forward-looking statements may sometimes be identified with words such as will, may, expect, plan, anticipate, approximately, upcoming, believe, estimate or similar terminology and the negative of these terms. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. These statements reflect our opinions only as to the date of this presentation, and we undertake no obligation to revise these forward-looking statements in light of new information or future events. Please refer to our press release and our reports filed with the Securities and Exchange Act Commission, where you will find a more comprehensive discussion of our performance and factors that could cause actual results to differ materially from these forward-looking statements. For anyone who dialed into the call by telephone, you may want to download our first quarter 2026 earnings presentation. Please visit our Investor Relations site, ircarecloud.com. Click on News and Events, then click IR calendar, click on first quarter 2026 results conference call and download the earnings presentation. Finally, on today's call, we may refer to certain non-GAAP financial measures. Please refer to today's press release announcing our first quarter 2026 results for a reconciliation of these non-GAAP performance measures to our GAAP financial results. With that said, I'll now turn the call over to our CEO, Stephen Snyder. Stephen? Stephen Snyder: Thanks, Brendan, and good morning, everyone. I'm pleased to report that the first quarter of 2026 marked a strong start to the year for CareCloud, with revenue growth of 13%, the broadest product portfolio in our history, accelerating commercial traction in our AI platform and a transformational simplification of our capital structure that we executed shortly after quarter's end. We delivered the kind of momentum we expected entering 2026, and we are reaffirming our full year guidance with great confidence. Let me start with our top line numbers. For the first quarter of 2026, we generated revenue of $31.3 million, up 13% from $27.6 million in Q1 of last year. On profitability, GAAP operating income was $1 million for the quarter and GAAP net income was $900,000 as anticipated, both lower than the prior year's quarter, driven primarily by increased amortization of acquired intangible assets and integration costs associated with the Medsphere acquisition. Adjusted EBITDA, adjusted net income, and adjusted EPS were each essentially in line with the prior year, and we generated $2.4 million in free cash flow. These non-GAAP measures are the cleaner read on our underlying operating performance, and they show a business that is holding margin while we absorb a material acquisition. Norm will walk you through this in more detail in a few minutes. Next, I'd like to spend some time on our capital structure, because what we executed in April represents the most significant simplification of CareCloud's balance sheet since our IPO. On April 13, we closed a new $50 million credit facility with Citizens Bank and Provident Bank, comprised of a $40 million term loan and a $10 million revolving line, which replaced our previous $10 million Provident Bank facility. In parallel, we also put an at-the-market or an ATM equity facility in place, not as a financing we plan to lean on, but as a flexible just-in-time tool we can deploy on opportunistic terms if and when it makes sense for our shareholders. The day after closing, on April 14, our Board elected to redeem 100% of our outstanding Series B preferred stock. The redemption is scheduled for May 15, and we have already prefunded approximately $41.6 million of the new credit facility to satisfy it. Let me underline what this means in plain terms. Together with the conversion of approximately 80% of the Series A preferred stock that we completed in March of last year, the full redemption of our Series B preferred stock effectively removes the preferred equity overhang that has shaped our capital structure for many years. We are exchanging high-cost preferred dividends for lower-cost senior debt, dramatically simplifying our story for investors. And we are doing it with zero common shareholder dilution from the redemption itself. This is more than a balance sheet exercise. A simpler capital structure broadens our investor universe, particularly among institutional investors who have historically been deterred by complex preferred equity stocks, improving the visibility of common shareholder economics and it lowers our weighted average cost of capital. In short, the structure of the company now aligns with the way we run it as a focused, profitable, growing healthcare IT technology platform. Turning to our acquisition portfolio. The integration of the transactions we completed in 2025 is progressing well. Through Medsphere, we entered the inpatient hospital market and significantly expanded our addressable market, adding the #1 Black Book-ranked Wellsoft emergency department information system, the CareView inpatient EHR, ChartLogic for surgical specialties, Marketware for physician relationship management, offline for hospital supply chain and managed IT services. That portfolio took us from ambulatory first to care continuum. On MAP App, our HFMA partnership is opening hospital finance conversations that would have taken years to build organically. Hadi will walk you through how we're layering AI-driven recommendations on top of MAP App's benchmarking foundation. But the strategic point is quite simple, MAP App identifies where hospitals underperforming and our RCM and AI capabilities demonstrate how to fix it. That is a powerful combination and 2026 is the year where we believe we'll scale it. As to our AI platform, it is really no longer a vision, it is a product line in the market with paying customers and measurable results. StratusAI Desk Agent, our agentic AI phone receptionist, reached full commercial release in December and is scaling. Across early adopters, the platform is now handling approximately 75% of inbound calls automatically, bringing Front Desk staff to focus on more complex patient needs and lifting the throughput of every practice that deploys it. Our AI Center of Excellence launched in April of last year is fully operational and is the engine behind everything in our AI portfolio. In a moment, Hadi will walk you through the 3-track framework we use to apply AI across the business inside our own operations embedded in the products our clients already use every day, and as a stand-alone AI solution. And where each track stands today? The point I want to leave you with is that the believed addressable market for our AI Front Desk capability alone exceeds $4 billion in the United States, and we are bringing it to the large provider customer base that already trust CareCloud with its core clinical and revenue cycle workflows. That integration advantage is hard to replicate. Our 2026 growth strategy is unchanged and fully on track. First, we are actively cross-selling stratusAI and our RCM services to our existing ambulatory client base. Second, we are penetrating the Medsphere installed base of hospital and health system customers with our RCM and AI capabilities, creating a multiplier effect on sales efficiency. Accordingly, we are reaffirming our 2026 guidance. We continue to expect revenue of $128 million to $132 million, adjusted EBITDA of $29 million to $31 million, and GAAP earnings per share of $0.20 to $0.23, which would represent more than a 100% increase over our 2025 EPS of $0.10. Our confidence in this outlook is grounded on our continued growth in our RCM business, accelerating AI revenue contribution from stratusAI and the synergy of cross-sell opportunities from our 2025 acquisitions, each of which we expect to ramp meaningfully through the back half of the year. A brief word on operational efficiency. We are also deploying AI inside our own back office and consolidating overlapping systems from our 2025 acquisitions, and we expect that work to be an ongoing source of margin improvement through 2026 and into 2027. Hadi will go deeper on this as the first of his 3 AI tracks. Stepping back, this is exactly the kind of quarter we wanted to deliver to start 2026. Revenue grew by 13%. Our AI platform in-market and scaling. Our acquisition portfolio is contributing as planned. Our integration work on Medsphere is well underway, and we have used the early weeks of the second quarter to fundamentally simplify our capital structure, closing a new credit facility, putting an ATM in place and announcing the full redemption of our Series B preferred stock. The underlying business, recurring revenue, cash generation, the customer base, the product road map is moving in the right direction, and we are reaffirming our 2026 guidance, and we are entering the rest of the year with more capability, more scale and more momentum than at any point in our history. We are a profitable, growing company with a clear AI strategy and the operational discipline to execute on it. I look forward to sharing our progress with you throughout the year. With that, I'll turn the call over to Hadi Chaudhry, our Chief Strategy Officer, who will provide more details on our AI strategy and product road map. Hadi? A. Chaudhry: Thank you, Steve, and good morning, everyone. Before I get into first quarter, I want to remind everyone of the framework we are using to apply AI across CareCloud, because everything I'm about to walk you through fits inside that framework. And I think it's the clearest way to understand both what we are doing today and what compounds over time. As Steve mentioned, we are pursuing AI along 3 parallel tracks. The first is back-end cost and efficiency optimization, where AI applied inside our own RCM, financial, and administrative operations to do the work we already do for our clients, but faster, more accurately and at a much lower cost. The economic outcome shows up in the margins. The second is embedding AI into our existing customer-facing applications, our EHR, practice management, patient engagement and benchmarking platforms, bringing AI inside the products our clients already use makes them smarter, stickier and more valuable without asking clients to buy something new. The outcome shows up in retention, expansion and the strength of our existing revenue base. The third is building entirely new AI products for discrete, high-value problems in healthcare operations. StratusAI Front Desk Agent and cirrusAI Notes are the 2 most visible examples today with AI prior authorization, AI-assisted medical coding and additional clinical documentation capability and active development. The outcome is new revenue lines as those products mature. These 3 tracks are not separate strategies competing for resources, they are the same investment compounding 3 different ways. Let me walk you through where each one stands at the end of Q1. On the back-end track, we continued in Q1 to apply AI across our own RCM financial and administrative operations. This is a track that gets the least external attention, but it is where AI is creating its most measurable near-term impact. Inside our RCM operations, AI is reducing claim errors, improving documentation accuracy and increasing first pass acceptance rates to payers. Across our administrative and financial functions, it is helping our internal teams handle higher volumes with the same headcount. We are also adopting AI-driven tools across the software development life cycle such as code generation, code review, QA and testing and application design. This is the same productivity revolution the broader software industry is going through, and we are participating in it as a deliberate strategy. Over time, we expect 2 compounding outcomes, higher code quality and meaningfully more output per engineer. For a company shipping across the wide product surface EHR, RCM, practice management, patient engagement, benchmarking and an expanding AI portfolio, that engineering leverage matters. How we measure progress on this track matters. We are not just tracking lag indicators, outcomes like acceptance rates and denial ratios that tell you what already has happened. We are actively monitoring lead indicators, the signals that predict revenue cycle performance before it shows up in the financials. How early errors are caught, how many claims are pre-validated before submission, how much human intervention is required for a claim and how effectively our AI predicts denials, so that rules can be configured proactively, not reactively. These upstream metrics are where AI creates its leverage, and they are what give us confidence in where the trajectory is heading, not just where it has been. Our longer-term ambition is to set a new industry benchmark, zero-touch claims, a fully automated workflow where AI handles intake, validation, submission and follow-up with minimal human intervention, allowing billing teams to focus on acceptance rather than routine processing. Q1 was a quarter of measurable progress on the underlying lead indicators that bring that vision closer. The second track is bringing AI into the products our clients already use every day. Our existing suite, EHR practice management, patient engagement, benchmarking represents thousands of touch points per client per day. Everyone is an opportunity to make our software more intelligent without asking the client to buy something new. This creates more lasting AI value than launching a new product, because it improves everything already deployed with customers. In Q1, we continued deepening AI inside these platforms, improving how our EHR surfaces relevant information at the point of care, making our practice management system more predictive about scheduling and intake, and enhancing the analytical depth of our benchmarking capabilities. None of this is a new product announcement, it is continuous embedded improvement to platforms our clients are already paying for. The most successful version of this track is one where AI inside the product is invisible to the user. They simply find that the software is doing more for them than it used to. We will share specific results as they become meaningful to disclose. This track is also where leverage on our acquisitions plays out. Some of the platforms we brought in through Medsphere and the MAP App serve a different client segment than our ambulatory base, hospital systems, health networks and emergency departments. The AI work there is in earlier stages, but the principle is the same. The platforms get more value and AI is part of them. And that value accrues to clients already on them, that is leverage we paid for, and we are working through it methodically. The third track is the one that gets the most public attention, new stand-alone AI products for specific high-value workflows. This is where stratusAI Front Desk Agent and cirrusAI Notes live and where our development pipeline continues to expand. Let me start with stratusAI Front Desk Agent, our agentic AI Front Desk solution. We continue to sign new business in Q1, almost entirely from within our existing client base, exactly the motion we wanted at this stage. Our priority right now is not maximizing contracts signed, it is making sure every agent we sign is implemented well, completes its trial successfully and earns the right to expand inside this account. Expansion means more agents per client, additional functions, extended coverage hours and broader used cases. This is the curve we are deliberately working depth before breadth, because it produces durable standing revenue rather than a flurry of signed contracts that don't convert into real used case. Within the Desk Agent suite, stratusAI Voice Audit continues to play an important complementary role, giving practice administrators visibility into both AI handled and staff handled calls. Some clients adopt Voice Audit alongside Desk Agent from day one. Others bring it on later as their AI deployment matures. Either way, it deepens our broader stratusAI footprint inside the account. Turning to cirrusAI Notes, our ambient documentation product. Notes continues to be an entry point for many providers into the cirrusAI family on ambulatory side, where it serves the most acute pain point in clinician stay. What I want to highlight this quarter is the integration efforts underway to bring cirrusAI Notes into the inpatient platforms we acquired through Medsphere, opening the door to AI-assisted documentation inside hospitals and health systems, a different clinical workflow, user and buying center that ambulatory market we have served historically. This is exactly the cross-pollination between our acquisitions and our AI portfolio that we described as the multiplier effect when we closed Medsphere. Beyond Front Desk Agent and Notes, our pipeline continues to advance. AI prior authorization, AI-assisted medical coding and additional clinical documentation capabilities are all in active development inside the AI Center of Excellence and bringing those to market is a goal for this year. We will share more on each as they get closer to client readiness. Let me close by coming back to the 3 tracks framework, because I think this is where the strategic picture comes together. A company pursuing only the third track, only new AI products is making the bet that depends entirely on those products achieving scale. A company pursuing only the first track, only internal cost optimization captures margin, but doesn't differentiate its products. A company pursuing only the second track only bringing AI into existing apps strengthens retention, but doesn't create new revenue lines. CareCloud is doing all 3 at once, and the reason that matters is that each track derisks the other. Internal AI improves our economics regardless of how fast the new AI products itself. Embedded AI strengthens our existing revenue base regardless of how fast we capture new markets. And new AI products give us a path to entirely new revenue lines built on top of an installed base that AI is already making stronger every day. Q1 was a quarter where each of those 3 tracks move forward. Each one continue to compound in the direction we have been describing and together, they form the durable profitable AI strategy we are executing. With that, I will turn it over to Norm to walk you through the financials. Norm? Norman Roth: Thanks, Hadi, and thanks, everyone, for joining our call today. As you've just heard, we had another strong quarter and are moving forward with our plans for the remainder of the year. In particular, we are continuing to generate sufficient amounts of free cash flow, and in May, we will liquidate all of the outstanding Series B preferred shares. Revenue for the first quarter of 2026 was $31.3 million compared to $27.6 million for the first quarter of 2025. Recurring technology-enabled business solution revenue was $23 million during the first quarter of 2026, up approximately $5.3 million from the first quarter of 2025, while the non-recurring project-based professional services revenue from ASR decreased approximately $2.9 million. First quarter 2026 GAAP net income was $922,000 as compared to net income of $1.9 million in the same period last year. This is our eighth consecutive quarter of positive GAAP net income. Although our revenue has increased, we are continuing to integrate the Medsphere acquisition and eliminating duplicative costs. As a result of the 2025 acquisitions, there was also an increase in the amortization of intangibles and transitional costs impacting net income. We generated $2.4 million of free cash flow for the first quarter of this year compared to $3.6 million last year. Again, the decrease resulted primarily from the Medsphere integration. Adjusted EBITDA for the first quarter 2026 was $5.4 million or 17% of revenue compared to $5.6 million in the same period last year. Adjusted net income was $2.2 million or $0.05 per share compared to $2.3 million in the same period last year, calculated using the end-of-period common shares outstanding. As of March 31, 2026, the company had approximately $3.9 million of cash and net working capital was $2.6 million, both of which have slightly improved since year-end. We are fortunate that we have not been affected by any of the tariffs that were instituted or are contemplated since tariffs are being applied to physical goods, not services. Even better, the revenue of doctors' practices, our customers should not be significantly affected by the tariffs or the uncertainty of potential recessions or inflation, so we don't anticipate the pressure of reduced demand for our services. The conflicts in the Middle East and Ukraine have also not impacted us. Our financial position remains strong as the company continues to take a disciplined approach to spending, ensuring our investments are aligned with clear returns. We are encouraged by the progress we've made and remain focused on executing through the remainder of the year. We look forward to reporting strong results for the remainder of 2026. With that, I'll now turn the call over to our Chairman, Mahmud, for his closing remarks. Mahmud? Mahmud Haq: Thank you, Norm. CareCloud is a profitable growing company. The full redemption of our Series B preferred and last year's Series A conversion mark a major step towards a simpler capital structure and a stronger story for our investors. We are also focused on leading the industry transformation and our AI strategy positions us well for what's ahead. Thank you to our employees, clients and shareholders for their continued support. Operator, please open the line for questions. Operator: [Operator Instructions] We will now take our first question, and this comes from the line of Allen Klee from Maxim Group. Allen Klee: To start with in the in-house like patient software segment, talk a little about your traction and the plans to -- it seems like you have a good strategy there, but it seems like this could be a big driver for the future. So if you could maybe just highlight kind of what you're focused on strategically? A. Chaudhry: Thanks for joining. And that's a great question. And I think I'll use this as an opportunity to dive into a little bit details about whatever road map or the strategy is when it comes to the Medsphere product. So as you know, this acquisition brought us a comprehensive suite of platforms across the inpatient and hospital ecosystem, as example, Wellsoft in emergency, and CareView for inpatient EHR, Marketware for physician relationship management and Healthline for hospital supply chain. Across all 4, we are executing on a deliberate value creation strategy with 4 parallel work streams. So first one is, if you think about the technical debt remediation and modernization. So as Medsphere had paused most enhancement activity going into the acquisition. So the foundational catch-up has been substantial. So Wellsoft, CareView, they are being modernized from tech client desktop application to fully cloud-based SaaS platforms. To put one number on it, just if you think about on the RCM side only, we are closing more than 50 carryforward items this quarter to bring desktop and cloud to functional parity. Similar work is running in parallel across the entire portfolio. Our second one is the net new capability development, moving these platforms well beyond where we acquired them on Marketware alone, more than 20 new features are in active development this quarter, including our flagship integration with PracticeMatch, that's the leading physician talent network that automates candidate data transfer and streamline recruiter workflows. On the supply chain side, we have already delivered web-based mobility for warehouse workflows, and we are building exploration and implant log tracking as an example. Third is our cross-portfolio integration with the existing CareCloud suite. Wellsoft is being integrated with -- our patient experience platform, which will bring a seamless patient engagement layer into the emergency department. And we are also connecting Wellsoft to CareCloud's RCM infrastructure to extend RCM capabilities into urgent care. And the fourth one is our AI infusion. The clearest example is integration of cirrusAI into Wellsoft emergency department workflows, NBN clinical documentation and care setting that has historically been an underserved AI innovation, as we believe. We are also embedding AI into market player to surface intelligent candidate recommendation, turning it from a relationship management tool into AI-powered recruitment engine. So -- and in addition to that, there's a lot of other things from the ONC, from the compliance standpoint, ONC Cures Certification, SOC 2 Type 2 for EPCS migrations and the like. So we are -- our focus at the moment is just making sure we go through these 4 tracks simultaneously. And we already -- the teams have started to reach out to the customers where we can bring the value and then start cross-selling and upselling activity. I'm sorry for the long answer, but I just want to take this opportunity to give you the -- our strategy and the road map for the entire acquisition of Medsphere platforms. Allen Klee: No, that was great. In terms of some of your new AI products like stratusAI, Voice Audit and Notes, can you just give us a sense of how customers have been how -- any feedback you've been getting? A. Chaudhry: Right. So first of all, there has been no lack of interest at all from the customers. We are getting a lot of traction. We continue to close the new business from the existing client base throughout the first quarter. And as you know, our strategy has been the first -- after the signing of the contract, they will be going through an initial implementation, then there is a 30-days trial, then many times the customers say just because of the first AI adoption resistance, you would say, or okay, we'll only implement refill agent as an example. So we go through those one by one. And as I mentioned in our -- in my remarks earlier, our goal today is that every single customer and the agent is implemented, complete the trial successfully and start growing beyond just the trial and keep adding and activating more agents. So to answer your question, we are getting a lot of tractions, there are no issues in terms of finding the interest and rolling the contracts. We are right now laser-focused on implementation and expansion. Allen Klee: My last question now is you showed your pipeline of AI prior authorization, AI-assisted medical coding and additional clinical documentation. How do you think about what the opportunity is here? A. Chaudhry: And for both of those, and just to give a little more detail for -- as an example, for medical coding, we already have started to deploy it internally, because, as you know, we provide the medical coding to many clients today. So internally, we have -- and that will be used as a proof point and maturing and refining the product to achieve the right accuracy levels. And then we can start expanding and start selling into the other -- the client base where we are not doing the coding as an example today. And then also, this also helps us define further our cirrusAI and Notes application because our long-term vision is it should be a one cohesive starting from this Notes. The coding should be done automatically right off of that. So that's our -- and these pieces will eventually will be integrated into that entire workflow or the stream. Same case goal for the prior authorizations since we also, in addition to the AI-based development on our side, we also need to complete our integration with external clearing houses and the payers, so we can submit those authorizations electronically. We are -- we have completed significant milestones in terms of completing the testing -- in the testing environment. We are in the initial phase of picking up the pilot customers to deploy this AI authorization. So if you think about both of these 2 things and authorization as an example, I don't have the industry numbers in front of me at the moment, but this is one of the most -- one of the pain points, especially in this healthcare industry for specialties such as orthopedics, for neurosurgeries, where you really need these authorizations to be done accurately on time before the procedure is done. And then in the hospital space on the Medsphere, we see a tremendous opportunity there once these products get materialized. Operator: And the next question comes from Lisa Thompson from Zacks Investment Research. Lisa Thompson: I have a few questions for you. First off, I would like to -- for you to discuss the Series B redemption. I know it's a good thing and you enumerated some things that were positive. But could you talk about the timing? Why now? A. Chaudhry: For sure. Thanks for the question, Lisa. So as you mentioned, this probably is the single biggest capital structure simplification in our history, at least as a public company. The Series B redemption removes a preferred equity overhang that has existed since shortly after IPO. But it's a good question like why now? Why is now the right time to make sure that we remove that overhang. And at least from our perspective, there are 3 main reasons, that first is from an operating performance and free cash flow. We've really reached an inflection point. We're generating the cash to support a senior debt funded redemption. So we have the capacity, we have the capability to do it. That's one. Second would be from a credit market perspective, we're able to secure an attractive senior debt facility with attractive economics for the $50 million facility. So the ability to move forward with very attractive senior debt economics was another key driver. And then the third thing was the fact that we're eliminating the preferred dividend burden and that really frees us up from a cash flow perspective to redirect the capital to growth investment, M&A and common shareholders. So from a strategic perspective, there's been a long-standing complexity in our equity story that really is driven by the preferred. It's something that we've heard in the majority of the conversations we have with institutional investors. And we really believe that this transformation allows us with zero dilution to create an investment in the common shares that's far more attractive for a broader base of investors. So for a variety of reasons, we thought the time is now, and we're excited about being able to move forward with that redemption. Of course, the official redemption will occur later this month on the 15. Lisa Thompson: Okay. Great. And as far as the ATM goes, you said that you would be using it when appropriate. Could you give us some examples of when that might be appropriate? A. Chaudhry: Sure. So think about the ATM, Lisa, as really simply a tool that gives us optionality, not as a plan. So our default posture has always been and will continue to be a very conservative posture. We've intentionally refrained from issuing new common equity opportunistically, and we'll continue to do that. So it's not a general financing source. When would we consider it, we really consider it in a few different circumstances. One, we would consider it to fund attractive accretive M&A transactions where the strategic value is moving quickly, and we can do so without dilution. So that will be one to be able to fund M&A transactions. The second would be if the stock price is trading at a level where we're able to opportunistically derisk the balance sheet, we'd consider it then. And then maybe a final point would be more so to support clear growth objectives, so investments with a defined return profile. So those would be really the 3 main reasons why we would use it. But again, I think it's important to remember that, again, our posture has been very conservative. We'll continue to be very conservative. We'll only use the proceeds when there's a clearly accretive acquisition or one of these other criteria is met. Lisa Thompson: Okay. Great. That makes sense. I was wondering if you could just talk about where you are with AI versus competitors? Are there other people out there with the same capabilities? And in that respect, what functionality is AI giving you that's most helpful for the salesforce when they're going out versus the competition? Stephen Snyder: Absolutely. Yes I'll let Hadi dive into that a little bit more, but the common theme that we hear is that AI incorporated into the fully integrated system, which includes EHR, the practice management system and patient health experience that, that AI that's embedded within that ecosystem or that environment is really what unlocks the utility, the usefulness of AI. So really where we've been focusing from a sales perspective has been on things like stratusAI, where there's a very clear picture from a healthcare provider's perspective in terms of the return on that investment. So they're able to see a very clear path towards return on that investment and to free up their internal resources to focus on higher-value activities. So really stratus, I think, exemplifies one of the key areas where our healthcare providers are increasingly appreciating the value of AI and are embracing it. But I'll let Hadi address that more broadly. A. Chaudhry: Sure. And as Steve mentioned, Lisa, there is no shortage of point solution AI vendors. They are targeting individual workflows in healthcare. As an example, you might find very -- many vendors who are providing the NBN solutions. Other, you will find vendors who are providing something similar to what we are -- with our stratusAI Front Desk Assistant Agent as an example. But what really differentiates us is it's a full embedded integrated solution versus a bolt-on solution, which most of these vendors are providing. So as our overall AI strategy is a 3-pronged approach. So back-end optimization to embedding the AI into the existing platform, as Steve is saying. And the third one is where stratus is the NBN solution of our stratusAI most application and the like. So those are the ones from the net new revenue perspective, where the sales team is focusing on. Operator: And we have a follow-up question from Allen Klee from Maxim Group. Allen Klee: You stated that you're reaffirming your full year guidance and the first quarter is seasonally always the lowest quarter and then you had integration-related items during the quarter. But I thought it was important how you said that margins you expect to improve throughout the year. Could you comment a little on how you think about how that progresses and any seasonality? Stephen Snyder: Sure. Thanks, Allen. And I'll let Norm jump in. But to your point, quarter one is always a seasonally weak quarter for us, because of deductibles and other factors. So that not only compresses our overall top line, but also from a profitability perspective, you see the impact associated with that reduced revenue. I'll let Norm talk about it in a little bit more detail. Norman Roth: Sure. Thank you, Steve. Thanks, Allen. So we bought the Medsphere Corporation in August of '23. So even in the first quarter, we were eliminating some duplicative costs with some transitional costs and integration costs. So we're trying to get through those, sometimes duplicative personnel. Also, you see in our purchase price allocation, a significant amount of intangible assets that are amortized. We amortize them on a double declining balance. So that amortization is going to decrease over time. So as we digest the acquisition, we removed the duplicative costs and get past the transitional cost, we would expect margins to improve. Stephen Snyder: Allen, maybe one other thing to think about -- sorry, Allen, I was just going to mention one other thing to think about in terms of margins for the year is as we progress through the year, as you get -- especially as we get into the back half of the year, you'll see those margins continue to grow. And if you just think about the kind of the typical average month, we believe that free cash flow will exceed $2 million on average during any given month. If you kind of counterbalance that against our obligations, the obligations associated with the loan will result in payment obligations of about $1 million, $1.1 million. So from a cash flow perspective, we have that cash to continue to reinvest in attractive M&A opportunities. We have the cash to continue to invest in other growth opportunities and the like. So even from an ATM perspective, that's why we truly say that ATM is really -- it's really a tool to give us optionality down the road, really not a plan. Obviously, we went public at -- or you may recall, we went public at $5 per share. There really have to be a very compelling reason to sell shares at less than that. It doesn't mean it's impossible, but there has to be a very compelling thesis to sell shares at something lower than $5. And that's because we're generating this cash flow internally. If you think about the acquisitions last year, we closed 4 total acquisitions, and those acquisitions were paid with zero common shares, so zero dilution and paid from our internally generated cash flow. So we continue to see really that being the proper path for us as we move forward. Allen Klee: That's great. Is it available any of the terms on the new credit facility? Stephen Snyder: Yes, Allen, we filed an 8-K and in there is all of the exhibits as required in the 8-K, so you can see all the related documents. Allen Klee: Great. And maybe the last thing, just you guys had a history of like you could buy things with a better cost of customer acquisition cost than doing it organically. But now it seems like you have the opportunity on both sides. In terms of like having a salesforce to go after the opportunities you have, how are you approaching that? Stephen Snyder: So from a salesforce perspective, our salesforce today is multiple times what it was at the same time last year. So I would say it's grown probably 3x compared to what it was last year at the same time. So that sales team is focused on cross-selling within our existing base. And as our existing base continues to grow through the Medsphere acquisition and through organic growth and through the other acquisitions, then the overall size and scope of that cross-selling campaign continues to increase. So that team is really primarily focused on sales activities that are oriented towards expanding the wallet share within our existing base. So I think that will continue to be the case. But I think what we have now is now we have really 2 prongs from the growth strategy perspective that we're comfortable with, one prong being the organic growth and the other prong being the acquisitive growth of the inorganic growth. From a cost perspective, you'll recall that the acquisitive growth for us generally is somewhere between 0.6x and 1x revenue is the cost of acquiring portfolios of customers, recurring revenue relationships in the context of these acquisitions. In our space, of course, the industry average is somewhere between 1.2x to 1.4x revenue for that same cost of acquiring that customer relationship. We're attempting to do that at a lower cost. And again, we're -- you'll appreciate the fact that we're relatively early in terms of this overall expansion. So the jury is still out, quite candidly, in terms of whether we can do that at a comparable CAC to our acquisitive growth, but that's what we're endeavoring to do. We have the capital to push forward and to give that a full try, and which is what we're doing. So with the capacity, with the capital to be able to invest in that 2-pronged strategy, that's what we're doing. And we believe that the results will bear out the wisdom of that overall approach. But again, time will tell. Operator: And there are no further questions that came through at this time. I'll now turn the call over back to Norman Roth for any closing remarks. Please go ahead, sir. Norman Roth: Yes. Thank you, everyone, for attending our call today. Hope you have a great day. Thank you. Operator: Thank you. This concludes our conference call for today. Thank you all for participating. You may now disconnect. Before you buy stock in CareCloud, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CareCloud wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. CareCloud (CCLD) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Reaffirms Guidance Following Capital Structure Simplification; Revenue Grows 13% Year-Over-Year SOMERSET, N.J., May 07, 2026 (GLOBE NEWSWIRE) -- CareCloud, Inc. (Nasdaq: CCLD, CCLDO) (“CareCloud” or the “Company”), a leader in AI-powered healthcare technology and revenue cycle management solutions for medical practices and health systems nationwide, today announced financial results for the quarter ended March 31, 2026. The Company reaffirmed its previously issued financial guidance following the successful closing of a $50 million credit facility, the announced redemption of 100% of its Series B Preferred Stock, and AI product launches. Together, these milestones mark a pivotal step in CareCloud’s ongoing growth trajectory—positioning the Company to scale its AI-driven revenue and expand margins, reporting its eighth consecutive quarter of positive GAAP net income with a meaningfully simpler capital structure for the future. First Quarter 2026 Financial Highlights: Revenue of $31.3 million, compared to $27.6 million in Q1 2025 GAAP net income of $922,000, compared to a net income of $1.9 million in Q1 2025 Adjusted EBITDA of $5.4 million, compared to $5.6 million in Q1 2025 GAAP EPS of ($0.01), compared to ($0.04) per share in Q1 2025 Recent Accomplishments Full Scheduled Redemption of Series B Preferred Stock: Redemption scheduled for May 15, 2026 Inpatient Software Market Entry: Expanded product portfolio includes inpatient EHR, RCM and analytics. #1 Black Book ranked EDIS platform— significantly broadening the total addressable market AI Center of Excellence Live: Launched stratusAI Desk Agent (~75% of inbound calls automated) and stratusAI Voice Audit Management Commentary “Q1 2026 marks the start of an exciting new chapter for CareCloud. We delivered 13% year-over-year revenue growth, expanded our AI offering and our addressable market into the inpatient segment, and took decisive action to simplify our capital structure with the announced full redemption of our Series B Preferred Stock and the closing of a new $50 million credit facility. With the Medsphere integration substantially complete, a stronger balance sheet, and our 2026 guidance reaffirmed, we believe CareCloud is uniquely positioned to translate this momentum into accelerating, durable shareholder value through the balance of 2026 and beyond.” — Stephen Snyder, Chief Executive Officer, CareCloud “This was the quarter our AI strategy moved from promise to performance. stratusAI Desk Agent is now resolving approximately 75% of inbound patient calls autonomously, stratusAI Voice Audit is surfacing revenue and compliance opportunities in real time, and our newly launched AI Center of Excellence is shipping new agentic capabilities at an accelerating pace. By layering these AI services on top of our expanded ambulatory and inpatient platform—including our #1 Black Book–ranked EDIS—we are building a differentiated, full-stack healthcare technology offering that scales with every customer we serve and creates a durable, technology-led competitive advantage.” — A. Hadi Chaudhry, Chief Strategy Officer, CareCloud “We are reaffirming our 2026 guidance based on our confidence for the year. The integration of our Medsphere acquisition impacted our earnings as anticipated this quarter and is now substantially complete, positioning us to deliver improving margins through the balance of 2026. We look forward to redeeming all of our Series B Preferred Stock for cash on May 15.” — Norman Roth, Interim Chief Financial Officer and Corporate Controller, CareCloud 2026 Outlook CareCloud entered 2026 with significant operating momentum and is reaffirming its guidance for calendar year 2026. Revenue guidance is based on management’s expectations for contributions from existing clients, together with cross-selling and other organic and inorganic growth. EPS guidance of $0.20–$0.23 represents a 100-130% increase from the $0.10 achieved in full year 2025. Adjusted EBITDA guidance is $29–$31 million compared to the 2025 amount of $27.5 million. As anticipated, Q1 2026 GAAP net income reflects a temporary, near-term impact from elevated amortization of acquired intangible assets and one-time integration costs tied to the Medsphere acquisition (which closed August 2025) and our other 2025 acquisitions. Q1 2026 adjusted EBITDA was depressed due to transition costs from Medsphere which have largely been eliminated by the end of Q1, so they will have a decreasing impact in future quarters. These items are non-recurring and integration-related, are expected to subside as the integrations are completed, and are not indicative of the underlying earnings power of the business. Management expects margin expansion to resume as we move through 2026, consistent with the full-year guidance reaffirmed above. Conference Call Information CareCloud management will host a live conference call today, May 7, 2026, at 8:30 a.m. Eastern Time to discuss first quarter 2026 results and the Company’s 2026 strategy. Webcast: ir.carecloud.com/events Dial-in (Audio Only): 646-307-1865 | Reference: “CareCloud, Inc. First Quarter 2026 Results Conference Call.” Replay Dial-in: 412-317-6671 | Access Code: 1116667 (available approximately 3 hours after the call). About CareCloud CareCloud brings disciplined innovation to the business of healthcare. Our suite of AI and technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 45,000 providers count on CareCloud to help them improve patient care, while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health, at carecloud.com. Follow CareCloud on LinkedIn, X and Facebook. For additional information, please visit our website at carecloud.com. To listen to video presentations by CareCloud’s management team, read recent press releases and view the latest investor presentation, please visit ir.carecloud.com. Contacts Use of Non-GAAP Financial Measures In our earnings releases, prepared remarks, conference calls, slide presentations and webcasts, we use and discuss non-GAAP financial measures, as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investor Relations section of our web site at ir.carecloud.com. Forward-Looking Statements This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “forecasts,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology. Our operations involve risks and uncertainties, many of which are outside our control and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, and the expected results from the integration of our acquisitions. These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, manage and keep our information systems secure and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made. CARECLOUD, INC. CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2026 AND DECEMBER 31, 2025 ($ in thousands, except share and per share amounts) CARECLOUD, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 ($ in thousands, except share and per share amounts) CARECLOUD, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 ($ in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP MEASURES (UNAUDITED) The following is a reconciliation of the non-GAAP financial measures used by us to describe our financial results determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). An explanation of these measures is also included below under the heading “Explanation of Non-GAAP Financial Measures.” While management believes that these non-GAAP financial measures provide useful supplemental information to investors regarding the underlying performance of our business operations, investors are reminded to consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies, and management may utilize other measures to illustrate performance in the future. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Adjusted EBITDA to GAAP Net Income Set forth below is a reconciliation of our “adjusted EBITDA” to our GAAP net income. Non-GAAP Adjusted Operating Income to GAAP Operating Income Set forth below is a reconciliation of our non-GAAP “adjusted operating income” and non-GAAP “adjusted operating margin” to our GAAP operating income and GAAP operating margin. Non-GAAP Adjusted Net Income to GAAP Net Income Set forth below is a reconciliation of our non-GAAP “adjusted net income” and non-GAAP “adjusted net income per share” to our GAAP net income and GAAP net income per share. For purposes of determining non-GAAP adjusted earnings per share, the Company used the number of common shares outstanding as of March 31, 2026 and 2025. Non-GAAP adjusted earnings per share does not take into account dividends declared or earned on preferred stock. Net cash provided by operating activities to free cash flow Set forth below is a reconciliation of our non-GAAP “free cash flow” to our GAAP net cash provided by operating activities. 1. Net cash used in investing activities includes payments for acquisitions, purchases of property and equipment and capitalized software and other intangible assets. Purchases of property and equipment and capitalized software and other intangible assets are included in our computation of free cash flow. Explanation of Non-GAAP Financial Measures We report our financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, management believes that, in order to properly understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in frequency and impact on continuing operations. Management also uses results of operations before such items to evaluate the operating performance of CareCloud and compare it against past periods, make operating decisions and serve as a basis for strategic planning. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts. Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. Management uses adjusted EBITDA, adjusted operating income, adjusted operating margin, and non-GAAP adjusted net income to provide an understanding of aspects of operating results before the impact of investing and financing charges and income taxes. Adjusted EBITDA may be useful to an investor in evaluating our operating performance and liquidity because this measure excludes non-cash expenses as well as expenses pertaining to investing or financing transactions. Management defines “adjusted EBITDA” as the sum of GAAP net income (loss) before provision for (benefit from) income taxes, net interest expense, other (income) expense, stock-based compensation expense, depreciation and amortization, integration costs, transaction costs, impairment charges and changes in contingent consideration. Management defines “non-GAAP adjusted operating income” as the sum of GAAP operating income (loss) before stock-based compensation expense, amortization of purchased intangible assets, integration costs, transaction costs, impairment charges and changes in contingent consideration, and “non-GAAP adjusted operating margin” as non-GAAP adjusted operating income divided by net revenue. Management defines “non-GAAP adjusted net income” as the sum of GAAP net income (loss) before stock-based compensation expense, amortization of purchased intangible assets, other (income) expense, integration costs, transaction costs, impairment charges, changes in contingent consideration, any tax impact related to these preceding items and income tax expense related to goodwill, and “non-GAAP adjusted net income per share” as non-GAAP adjusted net income divided by common shares outstanding at the end of the period, including the shares which were issued but are subject to forfeiture and considered contingent consideration. Management considers all of these non-GAAP financial measures to be important indicators of our operational strength and performance of our business and a good measure of our historical operating trends, in particular the extent to which ongoing operations impact our overall financial performance. In addition to items routinely excluded from non-GAAP EBITDA, management excludes or adjusts each of the items identified below from the applicable non-GAAP financial measure referenced above for the reasons set forth with respect to that excluded item: Foreign exchange loss/other expense. Other expense is excluded because foreign currency gains and losses and other non-operating expenses are expenditures that management does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expense is partially outside of our control. Foreign currency gains and losses are based on global market factors which are unrelated to our performance during the period in which the gains and losses are recorded. Stock-based compensation expense. Stock-based compensation expense is excluded because this is primarily a non-cash expenditure that management does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expenditure is partially outside of our control because it is based on factors such as stock price, volatility, and interest rates, which may be unrelated to our performance during the period in which the expenses are incurred. Stock-based compensation expense includes cash-settled awards based on changes in the stock price. Amortization of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are recorded. Contingent consideration. Contingent consideration represents the portion of consideration payable to the seller of some of our acquisitions, the amount of which is based on the achievement defined performance measures contained in the purchase agreements. Contingent consideration is adjusted to fair value at the end of each reporting period. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Transaction costs. Transaction costs are upfront costs related to acquisitions and related transactions, such as brokerage fees, pre-acquisition accounting costs and legal fees, and other upfront costs related to specific transactions. Management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Integration costs. Integration costs are severance payments for certain employees relating to our acquisitions and exit costs related to terminating leases and other contractual agreements. Accordingly, management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Restructuring costs. Restructuring costs primarily consist of severance and separation costs associated with the optimization of the Company’s operations and profitability improvements. Management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Free cash flow. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company’s financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net operating results as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, the Company’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our condensed consolidated statements of cash flows.