CareCloud raises FY25 rev. outlook to $116-$118mln, expects $128-$130mln FY26 rev.

• CareCloud raises 2025 revenue outlook to $116-$118M. • Medsphere acquisition expands hospital IT market participation. • 2026 revenue expected to be $128-$130M. • Cross-selling opportunities and AI innovation drive growth. • CareCloud anticipates continued hospital adoption.

CareCloud, a healthcare technology and AI-powered solutions provider, has raised its 2025 revenue outlook to $116-$118 million following the acquisition of Medsphere Systems Corporation. The acquisition, which closed on August 22, 2025, expands CareCloud's hospital IT market participation and positions the company for continued growth through cross-selling opportunities and AI innovation.

The acquisition of Medsphere, a provider of enterprise inpatient and ambulatory solutions, includes a range of solutions that cover the full care continuum. Medsphere's comprehensive hospital IT ecosystem, now part of CareCloud, includes integrated inpatient and ambulatory Electronic Health Record (EHR) systems, cloud-hosted Revenue Cycle Management (RCM) platforms, Emergency Department Information Systems (EDIS), supply chain and inventory management tools, and practice management suites [2].

CareCloud anticipates that the Medsphere acquisition will drive incremental revenue and operational synergies. The company has revised its 2025 revenue forecast to $116-$118 million, up from its prior estimate of $111 million to $114 million. This upward revision reflects expected revenue from Medsphere, which is estimated to be approximately $16.5 million on an annualized basis [1].

The acquisition is expected to have a meaningful impact on CareCloud's earnings. The company has raised its Adjusted EPS estimates for 2025 to $0.31, up from its prior estimate of $0.30. For 2026, the company expects Adjusted EPS to reach $0.46, up from its prior estimate of $0.40. These revisions reflect revenue and operating income accretion from Medsphere, partially offset by incremental interest expense related to the assumption of $8.25 million of loans [1].

The Medsphere acquisition aligns with CareCloud's strategy to expand its footprint in the hospital IT market. The company's EHR platform recently attained ONC Health IT Certification for Critical Access Hospitals (CAHs), positioning it to increasingly penetrate a $1.5+ billion addressable market spanning over 1,300 CAHs across rural markets needing to upgrade legacy EHR systems [1].

CareCloud anticipates continued hospital adoption of its comprehensive hospital IT solutions, driven by the integration of Medsphere's technology capabilities and services with its own AI and R&D infrastructure. The company's platform will span Medsphere's hospital IT services along with its own AI capabilities, culminating in comprehensive and differentiated solutions offered within competitive cost structures [1].

The acquisition of Medsphere is part of a broader trend of strategic acquisitions in the healthcare technology sector. For example, TELUS recently acquired TELUS Digital for $539 million to boost AI/SaaS innovation in telecom, health, and agriculture. This acquisition reflects the growing importance of AI and data solutions in driving operational synergies and long-term value [3].

In conclusion, CareCloud's acquisition of Medsphere Systems Corporation is expected to drive significant growth and earnings acceleration for the company. The acquisition aligns with CareCloud's strategy to expand its hospital IT market participation and capitalize on cross-selling opportunities and AI innovation. The company's upward revision of its 2025 revenue outlook to $116-$118 million reflects the expected benefits of the acquisition.

References:
[1] https://finance.yahoo.com/news/ccld-accretive-acquisition-leading-hospital-091400985.html
[2] https://hitconsultant.net/2025/08/27/carecloud-acquires-medsphere/
[3] https://www.ainvest.com/news/telus-strategic-acquisition-telus-digital-catalyst-ai-driven-saas-growth-key-verticals-2509/