CareCloud 2025 Q3 Earnings Returns to Profitability with 200% EPS Surge

CareCloud (CCLD) reported fiscal 2025 Q3 earnings on Nov 6, 2025, with revenue rising 8.8% to $31.07 million, exceeding expectations. The company raised full-year revenue guidance to $117–$119 million and returned to profitability with EPS of $0.04, reversing a $0.04 loss in the prior-year period.

Revenue

CareCloud’s total revenue grew by 8.8% year-over-year to $31.07 million in Q3 2025, reflecting strong execution in its healthcare IT and medical practice management segments. This performance underscores the company’s momentum from recent acquisitions and AI-driven innovations.

Earnings/Net Income

The company returned to profitability with EPS of $0.04 in Q3 2025, a 200% positive change from a $0.04 loss in Q3 2024. However, net income slightly declined to $3.06 million, down 2.0% from $3.12 million in the prior-year period. Despite this, the company set a 12-year high for Q3 net income, highlighting its financial resilience.

Despite a marginal net income decline, the EPS rebound reflects improved profitability and operational efficiency.

Price Action

CareCloud’s stock edged up 0.29% in the latest trading day, surged 15.28% for the week, and dropped 3.61% month-to-date.

Post-Earnings Price Action Review

The strategy of buying CareCloud shares upon a revenue raise and holding for 30 days yielded mixed results over three years. Cumulative returns reached 15%, with an annualized rate of 5%, outperforming in 2025 (20%) but lagging in 2024 (5%). While the approach slightly underperformed the S&P 500 by 3 percentage points and trailed the Nasdaq Composite, it demonstrated potential for growth. Volatility, with peak-to-trough declines of 15%, and inconsistent returns due to market corrections or company-specific news, pose risks for risk-averse investors. Investors must weigh these factors against their risk tolerance and market alignment.

CEO Commentary

Stephen Snyder and A. Hadi Chaudhry, Co-CEOs, attributed the sixth consecutive quarter of GAAP net income to the Medsphere and Map App acquisitions, which expanded hospital market reach and AI integration. Interim CFO Norman Roth highlighted reduced line of credit borrowing and “strong cash flow from operations,” emphasizing financial discipline. Leadership remains optimistic about AI-driven innovation and strategic acquisitions as long-term value drivers.

Guidance

CareCloud raised 2025 full-year revenue guidance to $117–$119 million, up from $111–$114 million, driven by acquisitions, AI initiatives, and operational efficiency. Adjusted EBITDA is projected at $26–$28 million, with EPS guidance of $0.10–$0.13.

Additional News

CareCloud’s strategic acquisitions of Medsphere and Map App in 2025 expanded its hospital IT market presence, enhancing analytics and cross-selling opportunities. The Medsphere acquisition added inpatient EHR and RCM capabilities, while Map App bolstered benchmarking tools. Leadership emphasized AI integration to optimize workflows, with agentic AI solutions in pilot testing. The company also reduced its line of credit from $8.3 million to $4.9 million post-Medsphere acquisition, underscoring financial discipline.