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1. Company Snapshot

1.a. Company Description

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States.It operates in two segments, Healthcare IT and Medical Practice Management.The company's Software-as-a-Service platform includes revenue cycle management, practice management, electronic health record, business intelligence, telehealth, and patient experience management solutions, as well as complementary software tools and business services for medical groups and health systems.


It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services.The company was formerly known as MTBC, Inc.and changed its name to CareCloud, Inc.


in March 2021.CareCloud, Inc.was founded in 1999 and is headquartered in Somerset, New Jersey.

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1.b. Last Insights on CCLD

CareCloud's recent stock performance was negatively driven by a series of announcements that raised concerns about the company's leadership and strategic direction. The leadership realignment in December 2024, aimed at driving growth in 2025, may have been seen as a sign of internal turmoil. The conversion of Series A Preferred Stock in March 2025 may have also diluted shareholder value. Additionally, the company's announcement of a proposed increase in authorized common shares in January 2025 may have been met with skepticism by investors, further contributing to the negative sentiment.

1.c. Company Highlights

2. CareCloud's Q3 2025 Earnings: A Transformative Quarter

CareCloud reported a strong third quarter of 2025, with revenue reaching $31.1 million, a 9% increase from Q3 2024. The company's GAAP EPS improved to $0.04, and adjusted EBITDA rose 13% to $7.7 million. The revenue growth was driven by the company's strategic acquisitions, including Medsphere and Map App, which expanded CareCloud's reach into the hospital market. The company raised its full-year revenue guidance to $117 million to $119 million, reaffirming adjusted EBITDA guidance of $26 million to $28 million and GAAP EPS guidance of $0.10 to $0.13. The actual EPS of $0.1 beat analyst estimates of $0.08.

Publication Date: Nov -17

📋 Highlights
  • Revenue & Profit Growth:: Q3 2025 revenue rose 9% to $31.1M, with adjusted EBITDA up 13% to $7.7M and GAAP EPS at $0.04.
  • Strategic Acquisitions:: Acquired Medsphere ($16.5M) and Map App, expanding hospital reach and adding analytics, funded 50% cash/50% credit.
  • AI Innovation:: Agentic AI front desk pilot handled 70% of patient calls autonomously, leveraging $6B+ in 2025 AI healthcare venture funding.
  • Cash Flow Strength:: Generated $19.9M cash flow from operations (9M YTD), with $10M new credit line and $4.9M drawn.
  • Margin Expansion Target:: Acquisitions expected to achieve 30%+ operating cash flow margin within three quarters via cross-selling synergies.

Strategic Acquisitions and Integration

CareCloud completed two strategic acquisitions, Medsphere and Map App, which are expected to drive growth and expand the company's offerings in the hospital market. Medsphere was acquired for $16.5 million, with roughly half funded through a new credit facility. The company is focused on integrating and modernizing Medsphere's platform portfolio, merging it with CareCloud's ONC-certified CAH platform, and enhancing it with AI-driven analytics and predictive insights.

AI Innovation and Growth Opportunities

CareCloud's AI center of excellence is driving innovation, with the upcoming launch of Agentic AI front desk solution, a multilingual voice-driven digital assistant autonomously managing patient calls. The solution has delivered strong results in pilot deployments, successfully handling over 70% of incoming patient calls end-to-end without human intervention. The company sees a tremendous opportunity to cross-sell and upsell into its existing base, handling millions of calls each year.

Valuation and Growth Prospects

With a P/E Ratio of 13.48 and an EV/EBITDA of 5.61, CareCloud's valuation appears reasonable considering its growth prospects. Analysts estimate next year's revenue growth at 11.0%, driven by the company's strategic acquisitions and AI innovation. The company's ROIC of 16.77% and ROE of 18.07% indicate strong profitability. The Net Debt / EBITDA ratio of 0.22 suggests a healthy balance sheet.

Mergers and Acquisitions

CareCloud has closed four acquisitions this year, following a disciplined playbook for accretive, well-priced deals. The company remains open to opportunities that meet its criteria, including asset purchases, non-dilutive deals, and attractive valuations. The acquisitions are expected to reach an operating cash flow margin of about 30% or greater within three quarters, driven by cross-selling and upselling synergies.

3. NewsRoom

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CareCloud Announces Plan to Pay Double Monthly Dividends on its Series B Preferred Stock Beginning in January 2026

Nov -10

Source: globenewswire.com

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CareCloud, Inc. (CCLD) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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CareCloud Reports Third Quarter 2025 Results

Nov -06

Source: globenewswire.com

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CareCloud to Present at the 2025 ThinkEquity Conference

Oct -20

Source: globenewswire.com

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CareCloud 8.75% CUM RED PERP PFD SER B: Not Your Usual Preferred Shares

Oct -17

Source: seekingalpha.com

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CareCloud to Present at the 2025 Maxim Growth Summit

Oct -15

Source: globenewswire.com

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CareCloud Announces Preferred Stock Dividend Payments

Oct -07

Source: globenewswire.com

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CareCloud Announces Acquisition of HFMA's MAP App to Expand AI-Driven Benchmarking in Hospitals and Integrated Health Systems

Sep -29

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (23.34%)

6. Segments

Healthcare Information Technology

Expected Growth: 24.5%

The healthcare information technology market is driven by the increasing adoption of electronic health records, practice management, and revenue cycle management solutions, fueled by the need for efficient healthcare services, government incentives, and the growing demand for cloud-based solutions.

Medical Practice Management

Expected Growth: 14.1%

The growth of Medical Practice Management is driven by the increasing adoption of digital healthcare solutions, need for efficient patient data management, and government incentives for healthcare IT adoption.

7. Detailed Products

CareCloud Charts

A comprehensive electronic health record (EHR) system designed to streamline clinical workflows and improve patient care.

CareCloud Revenue Cycle Management (RCM)

A comprehensive revenue cycle management solution that helps medical practices optimize their financial performance.

CareCloud Practice Management

A practice management system that streamlines front-office operations, including scheduling, registration, and billing.

CareCloud Patient Experience

A patient engagement platform that empowers patients to take an active role in their healthcare.

CareCloud Breeze

A mobile-optimized, cloud-based practice management system designed for small to medium-sized medical practices.

8. CareCloud, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CareCloud, Inc. operates in a niche market, providing cloud-based practice management, electronic health record (EHR), and medical billing solutions to healthcare providers. While there are some substitutes available, they are not as comprehensive as CareCloud's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

CareCloud, Inc.'s customers are primarily healthcare providers, who have limited bargaining power due to the specialized nature of the services provided. This reduces the bargaining power of customers.

Bargaining Power Of Suppliers

CareCloud, Inc. relies on a limited number of suppliers for its infrastructure and technology needs. The company's strong relationships with its suppliers reduce the bargaining power of suppliers.

Threat Of New Entrants

The healthcare technology industry is rapidly evolving, and new entrants can easily disrupt the market with innovative solutions. CareCloud, Inc. faces a high threat of new entrants, which could potentially disrupt its market share.

Intensity Of Rivalry

The healthcare technology industry is moderately competitive, with several established players competing for market share. CareCloud, Inc. faces moderate intensity of rivalry, which could impact its market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.65%
Debt Cost 8.16%
Equity Weight 77.35%
Equity Cost 9.28%
WACC 9.03%
Leverage 29.29%

11. Quality Control: CareCloud, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CareCloud

A-Score: 5.2/10

Value: 7.6

Growth: 6.9

Quality: 7.8

Yield: 0.0

Momentum: 8.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Privia Health Group

A-Score: 5.1/10

Value: 1.9

Growth: 8.0

Quality: 5.6

Yield: 0.0

Momentum: 9.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
OptimizeRx

A-Score: 4.3/10

Value: 3.5

Growth: 6.0

Quality: 5.2

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Phreesia

A-Score: 4.0/10

Value: 3.3

Growth: 5.9

Quality: 5.0

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Definitive Healthcare

A-Score: 3.8/10

Value: 8.7

Growth: 5.3

Quality: 4.1

Yield: 0.0

Momentum: 2.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Omnicell

A-Score: 3.1/10

Value: 4.7

Growth: 3.3

Quality: 5.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.12$

Current Price

3.12$

Potential

-0.00%

Expected Cash-Flows