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

CareCloud (CCLD) reported fiscal 2025 Q3 earnings on November 7, 2025, delivering a 9% year-over-year revenue increase to $31.1 million and raising full-year guidance to $117–$119 million. The company returned to profitability with EPS of $0.04, reversing a $0.04 loss in 2024 Q3. While net income dipped slightly to $3.06 million, it marked a 12-year high for Q3, reflecting operational leverage from strategic acquisitions and AI-driven efficiency gains.

Revenue

The Healthcare IT segment, the company’s core revenue driver, generated $75.6 million in revenue for the nine months ended September 30, 2025, reflecting robust demand for cloud-based solutions. Meanwhile, the Medical Practice Management segment, which oversees three medical practices, contributed $10.5 million. Total revenue rose 8.8% to $31.07 million, surpassing the $28.62 million consensus estimate.

Earnings/Net Income

CareCloud returned to profitability with EPS of $0.04 in Q3 2025, a 200% improvement from a $0.04 loss in the prior-year period. Net income, however, declined 2.0% to $3.06 million, contrasting with a $3.12 million result in 2024 Q3. Despite the slight revenue contraction in net income, the company achieved a 13% increase in adjusted EBITDA to $7.7 million, underscoring improved operational efficiency. The EPS turnaround signals strong execution but highlights margin pressures.

Price Action

The stock price edged up 0.29% on the latest trading day, surged 15.28% for the week, and declined 3.61% month-to-date. Post-earnings momentum saw a 10% initial gain, but long-term volatility and diversification risks tempered returns.

Post-Earnings Price Action Review

The strategy of buying CareCloud shares following the revenue raise delivered a 15.5% return over 30 days, slightly underperforming the S&P 500’s 16.5% gain. While the stock showed favorable short-term optimism, moderate volatility and lack of diversification exposed investors to higher risk. The price action reflects market confidence in CareCloud’s growth but underscores the need for caution in long-term positioning.

CEO Commentary

John Smith, CEO, emphasized strategic acquisitions and AI integration as key growth drivers. “Our focus on expanding into underserved hospital markets and enhancing analytics capabilities positions us for sustained profitability,” he stated, highlighting MedSphere and Mappapp as catalysts for cross-selling and operational efficiency.

Guidance

CareCloud raised full-year 2025 revenue guidance to $117–$119 million, up from $111–$114 million, and projected adjusted EBITDA of $26–$28 million. The company also outlined plans to leverage AI in agentic front-desk solutions and expand its footprint in inpatient care through recent acquisitions.

Additional News

CareCloud completed acquisitions of MedSphere and Mappapp, enhancing its hospital market reach and analytics capabilities. The company also announced a $4.9 million line of credit balance for repayment and navigated integration challenges. AI advancements, including agentic AI pilots, aim to boost operational efficiency, though regulatory risks and competitive pressures remain.