CareCloud 2025 Q1 Earnings Strong Turnaround as Net Income Soars 908.3%
Wednesday, May 7, 2025 2:12 am ET
4min read CareCloud (CCLD) reported its fiscal 2025 Q1 earnings on May 6th, 2025. The company showcased robust financial performance, with revenue reaching $27.63 million, marking a 6% year-over-year increase. CareCloud's strategic initiatives, including AI-driven innovations, contributed to the remarkable turnaround in net income, which soared to $1.95 million, a 908.3% positive shift from a loss in the previous year. The company's guidance for 2025 remains in line, projecting revenue between $111 million and $114 million, with adjusted EBITDA expected to hit $26 million to $28 million.
Revenue
CareCloud achieved a notable revenue increase of 6.4%, totaling $27.63 million in Q1 2025, up from $25.96 million in Q1 2024. The Healthcare IT segment was a significant contributor, generating $24.64 million. Technology-enabled business solutions added $17.70 million, while professional services brought in $5.89 million. Printing and mailing services contributed $879,000, and group purchasing services added $168,000. Medical Practice Management saw a revenue of $2.99 million, with medical practice management services also contributing $2.99 million to the total.
Earnings/Net Income
CareCloud witnessed a substantial improvement in earnings, narrowing losses to $0.04 per share from $0.10 in the previous year, representing a 60% improvement. The company achieved a record net income of $1.95 million, a 908.3% positive swing from the previous year's net loss of $241,000. This marks the highest fiscal Q1 net income in 12 years. The EPS reflects positive momentum and financial health.
Post-Earnings Price Action Review
CareCloud's strategy of purchasing shares after a quarter-over-quarter revenue decline and holding for 30 days has historically resulted in a 14.78% loss over the past five years. This trend suggests that the strategy has not been profitable, indicating that adjustments may be necessary. Investors might consider extending the holding period or combining it with other trading strategies to enhance profitability. The recent price action, characterized by significant increases in stock value, highlights the need for a reevaluation of investment approaches to align with CareCloud's evolving financial landscape.
CEO Commentary
“The launch of our AI Center of Excellence marks a pivotal moment in CareCloud’s evolution,” said A. Hadi Chaudhry, Co-CEO of CareCloud. He emphasized the aim to build one of the largest healthcare AI teams globally to enhance operational efficiency and improve patient outcomes, driving sustainable profitability. Co-CEO Stephen Snyder expressed excitement about the company’s momentum entering 2025, highlighting recent acquisitions and the AI initiative as efforts to lead market changes. Interim CFO Norman Roth noted the achievement of four consecutive quarters of positive GAAP net income, a sign of strong financial health and commitment to reinvestment.
Guidance
CareCloud reconfirms its earnings guidance for 2025, expecting revenue of approximately $111 to $114 million. Adjusted EBITDA is projected to be between $26 million and $28 million, reflecting the benefits of cost reduction initiatives. The company anticipates net income per share (EPS) in the range of $0.10 to $0.13 for the fiscal year ending December 31, 2025. This guidance is based on expectations regarding revenue from existing clients, organic growth, and small tuck-in acquisitions.
Additional News
CareCloud recently reignited its acquisition strategy, completing two strategic acquisitions in March and April 2025. These acquisitions are part of the company's efforts to expand its footprint and enhance its service offerings. Additionally, CareCloud launched its AI Center of Excellence, aiming to onboard over 500 AI specialists by the fourth quarter of 2025, fully funded through operating cash flows. The company also completed the conversion of Series A preferred stock into common shares, which significantly reduced its annual dividend commitment by approximately $7.7 million, strengthening its cash flow and capital structure.
Revenue
CareCloud achieved a notable revenue increase of 6.4%, totaling $27.63 million in Q1 2025, up from $25.96 million in Q1 2024. The Healthcare IT segment was a significant contributor, generating $24.64 million. Technology-enabled business solutions added $17.70 million, while professional services brought in $5.89 million. Printing and mailing services contributed $879,000, and group purchasing services added $168,000. Medical Practice Management saw a revenue of $2.99 million, with medical practice management services also contributing $2.99 million to the total.
Earnings/Net Income
CareCloud witnessed a substantial improvement in earnings, narrowing losses to $0.04 per share from $0.10 in the previous year, representing a 60% improvement. The company achieved a record net income of $1.95 million, a 908.3% positive swing from the previous year's net loss of $241,000. This marks the highest fiscal Q1 net income in 12 years. The EPS reflects positive momentum and financial health.
Post-Earnings Price Action Review
CareCloud's strategy of purchasing shares after a quarter-over-quarter revenue decline and holding for 30 days has historically resulted in a 14.78% loss over the past five years. This trend suggests that the strategy has not been profitable, indicating that adjustments may be necessary. Investors might consider extending the holding period or combining it with other trading strategies to enhance profitability. The recent price action, characterized by significant increases in stock value, highlights the need for a reevaluation of investment approaches to align with CareCloud's evolving financial landscape.
CEO Commentary
“The launch of our AI Center of Excellence marks a pivotal moment in CareCloud’s evolution,” said A. Hadi Chaudhry, Co-CEO of CareCloud. He emphasized the aim to build one of the largest healthcare AI teams globally to enhance operational efficiency and improve patient outcomes, driving sustainable profitability. Co-CEO Stephen Snyder expressed excitement about the company’s momentum entering 2025, highlighting recent acquisitions and the AI initiative as efforts to lead market changes. Interim CFO Norman Roth noted the achievement of four consecutive quarters of positive GAAP net income, a sign of strong financial health and commitment to reinvestment.
Guidance
CareCloud reconfirms its earnings guidance for 2025, expecting revenue of approximately $111 to $114 million. Adjusted EBITDA is projected to be between $26 million and $28 million, reflecting the benefits of cost reduction initiatives. The company anticipates net income per share (EPS) in the range of $0.10 to $0.13 for the fiscal year ending December 31, 2025. This guidance is based on expectations regarding revenue from existing clients, organic growth, and small tuck-in acquisitions.
Additional News
CareCloud recently reignited its acquisition strategy, completing two strategic acquisitions in March and April 2025. These acquisitions are part of the company's efforts to expand its footprint and enhance its service offerings. Additionally, CareCloud launched its AI Center of Excellence, aiming to onboard over 500 AI specialists by the fourth quarter of 2025, fully funded through operating cash flows. The company also completed the conversion of Series A preferred stock into common shares, which significantly reduced its annual dividend commitment by approximately $7.7 million, strengthening its cash flow and capital structure.
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