CareCloud 2025 Q3 Earnings Strong EPS Turnaround and Revenue Beat

CareCloud (CCLD) delivered a strong earnings report for Q3 2025, with revenue and EPS exceeding expectations. The company raised its full-year guidance, reflecting confidence in its strategic acquisitions and AI-driven growth initiatives.

Revenue

The total revenue of CareCloud increased by 8.8% to $31.07 million in 2025 Q3, up from $28.55 million in 2024 Q3. This growth outpaced analyst expectations of $28.62 million, underscoring the positive impact of recent acquisitions and market expansion.

Earnings/Net Income

CareCloud returned to profitability with EPS of $0.04 in 2025 Q3, reversing from a loss of $0.04 per share in 2024 Q3 (200.0% positive change). Meanwhile, the company's net income declined to $3.06 million in 2025 Q3, down 2.0% from $3.12 million reported in 2024 Q3. Remarkably, in 2025 Q3, the company set a new record high for fiscal Q3 net income, the highest in 12 years. The EPS turnaround highlights the company’s operational resilience despite a slight net income dip.

Price Action

The stock price of CareCloud has edged up 0.29% during the latest trading day, has surged 15.28% during the most recent full trading week, and has dropped 3.61% month-to-date.

Post-Earnings Price Action Review

Following the earnings release, CareCloud’s stock experienced mixed short-term performance. While the stock gained 15.28% over the past week, reflecting investor optimism about its strategic moves, it faced a 3.61% decline month-to-date, indicating broader market volatility or sector-specific pressures. The 0.29% daily increase suggests cautious optimism among traders, though long-term trends remain influenced by the company’s ability to sustain growth through AI integration and acquisition synergies.

CEO Commentary

Stephen Snyder, Co-Chief Executive Officer, highlighted CareCloud’s “sixth consecutive quarter of positive GAAP net income” and attributed growth to the Medsphere and Map App acquisitions, which expanded hospital market reach. A. Hadi Chaudhry, Co-Chief Executive Officer, emphasized AI-driven innovation, stating that integrating AI into acquired platforms “enhances performance, drives efficiency, and creates cross-sell opportunities.” Norman Roth, Interim CFO, noted operational strength, including reduced line-of-credit borrowing to $4.9 million post-Medsphere acquisition, sustained preferred stock dividends, and strong cash flow. The tone was optimistic, emphasizing strategic milestones, profitability, and long-term growth through acquisitions and AI.

Guidance

CareCloud raised full-year 2025 revenue guidance to $117–$119 million (up from $111–$114 million), driven by acquisitions and organic growth. Adjusted EBITDA is expected to reach $26–$28 million, with EPS of $0.10–$0.13. The guidance reflects confidence in AI initiatives, acquisition integration, and operational efficiency, with explicit expectations of continued profitability and cash flow generation.

Additional News

CareCloud’s recent acquisitions of Medsphere and Map App have expanded its hospital market presence and analytics capabilities. The Medsphere acquisition, completed in August 2025, added inpatient EHR and hospital RCM software, while Map App’s performance analytics tools enhance cross-selling opportunities. Leadership emphasized AI integration as a key differentiator, with plans to deploy agentic AI solutions for operational efficiency. The company also reported a 13% increase in adjusted EBITDA to $7.7 million, signaling improved operating leverage.

Key Takeaways:

• M&A Activity:

  Medsphere and Map App acquisitions bolster hospital market reach and analytics.

• C-Level Commentary:

  Executives highlighted AI-driven innovation and operational efficiency.

• Financial Strength:

  Reduced debt post-Medsphere acquisition and strong cash flow support long-term growth.

CareCloud’s strategic focus on AI and acquisitions positions it to capitalize on healthcare IT trends, though challenges in integrating new platforms and navigating regulatory complexities remain. The company’s revised guidance and strong EBITDA growth underscore its confidence in sustaining profitability and market expansion.