Core Viewpoint - CareCloud, Inc. has announced a formal plan to address 14 months of accumulated unpaid dividends on its Series B Preferred Stock, reflecting the company's financial turnaround and confidence in its growing recurring revenues and margins [1][4]. Dividend Plan - The company plans to issue double monthly dividend payments, starting with the January 2026 dividend, which will include one regular payment and one additional payment for the arrears [2][6]. - The total amount of accumulated dividends in arrears is approximately $3.9 million, equating to $2.55 per share of Series B Preferred Stock [6]. Financial Strength and Commitment - CareCloud's leadership emphasizes the company's renewed financial strength, operational efficiency, and commitment to fulfilling obligations to shareholders [4][6]. - The double-payment structure is designed to maintain regular monthly dividends while systematically addressing the arrears without compromising the company's growth trajectory [4][6]. Dividend Payment Details - Dividends on the Series B Preferred Stock are cumulative and payable monthly, with payments expected around the 15th of each month [4][6]. - The company anticipates completing the catch-up payments by the end of the first quarter of 2027 [6].

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Financial Performance - For the three months ended September 30, 2025, net revenue was $31,067,000, an increase of 8.3% from $28,546,000 in the same period of 2024[175]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $19,857,000, up 17.5% from $16,916,000 in 2024[175]. - GAAP net income for the three months ended September 30, 2025, was $3,060,000, compared to $3,122,000 in 2024, reflecting a decrease of 2%[175]. - Adjusted net income for Q3 2025 was $4.41 million, up from $3.47 million in Q3 2024, representing a 27% increase[177]. - Net revenue for Q3 2025 was $31.07 million, a 9% increase from $28.55 million in Q3 2024[194]. - The company reported a GAAP net income of $3.06 million for Q3 2025, compared to $3.12 million in Q3 2024[177]. - Net income was $3.1 million for the three months ended September 30, 2025, and $7.9 million for the nine months ended September 30, 2025[211]. Operating Metrics - Adjusted operating margin for the three months ended September 30, 2025, was 14.5%, an increase from 12.9% in the same period of 2024[175]. - GAAP operating margin for the nine months ended September 30, 2025, was 9.6%, compared to 6.9% in 2024[175]. - Operating income margin for Q3 2025 was 10.4%, compared to 11.5% in Q3 2024[193]. - Direct operating costs as a percentage of net revenue decreased to 52.2% in Q3 2025 from 54.0% in Q3 2024[193]. - Medical practice management services contributed approximately 14% of revenue in Q3 2025, up from 12% in Q3 2024[182]. - Personnel-related costs accounted for approximately 77% of total expenses in offshore operations for the nine months ended September 30, 2025[171]. Cash and Liquidity - The company held cash of approximately $1.2 million in Pakistan and Sri Lanka as of September 30, 2025, compared to $119,000 as of December 31, 2024[164]. - Cash provided by operating activities was $19.9 million for the nine months ended September 30, 2025, an increase of $4.5 million or 29% compared to $15.4 million for the same period in 2024[215]. - The company had total cash of $5.1 million and net working capital of $6.1 million as of September 30, 2025[210]. - The company expects sufficient liquidity to meet its obligations for the next twelve months from the date of the financial statements' issuance[212]. Investment and Financing Activities - Net cash used in investing activities was $21.2 million for the nine months ended September 30, 2025, compared to $5.1 million in 2024, indicating a significant increase in investment[217]. - Capital expenditures increased to $2.7 million in 2025 from $759,000 in 2024, primarily for computer equipment and leasehold improvements[217]. - Payments for acquisitions totaled $16 million during the nine months ended September 30, 2025, highlighting ongoing strategic growth initiatives[217]. - Net cash provided by financing activities was $1.2 million in 2025, a decrease from $10.7 million in 2024, indicating reduced financing activity[218]. - Cash used for preferred stock dividends was $4.8 million in 2025, with additional payments for debt obligations and tax withholding obligations[218]. - Net proceeds and repayments on the line of credit were $6.5 million in 2025, down from $10.0 million in 2024, suggesting tighter credit management[218]. Compliance and Financial Structure - The company maintained compliance with all covenants under its line of credit as of September 30, 2025, ensuring financial stability[219]. - As of September 30, 2025, there were no off-balance sheet arrangements or relationships with unconsolidated entities, indicating a straightforward financial structure[220]. - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[221]. Workforce and Technology - The company employs approximately 350 health industry experts in the U.S. and has a specialized offshore workforce of about 3,500 team members[170]. - The AI-powered solutions, such as cirrusAI Notes, save providers 20% more time per day by alleviating documentation burdens[169]. - Revenue from technology-enabled business solutions accounted for approximately 69% of total revenue in Q3 2025, up from 63% in Q3 2024[181].

Financial Data and Key Metrics Changes - CareCloud reported Q3 2025 revenue of $31.1 million, a 9% increase from the same period last year, with GAAP EPS improving by $0.08 year-over-year to $0.04 [6][31] - Adjusted EBITDA increased 13% to $7.7 million, demonstrating operating leverage in the business model [6][31] - Full-year revenue guidance was raised to $117-$119 million, up from the previous guidance of $111-$114 million [5][13] Business Line Data and Key Metrics Changes - CareCloud Wellness generated approximately $900,000 in revenue for Q3 and about $2.6 million for the first nine months of 2025 [30] - The MedSphere acquisition contributed approximately $3.4 million in revenue for Q3, enhancing CareCloud's capabilities in the hospital market [30] Market Data and Key Metrics Changes - The company is now positioned to serve community hospitals, regional systems, and critical access hospitals, expanding its market reach significantly [8][9] - The acquisition of MapApp allows CareCloud to provide benchmarking and performance analytics, enhancing its competitive position in the hospital finance sector [11][12] Company Strategy and Development Direction - CareCloud is transitioning from an ambulatory-first company to one that serves the entire care continuum, integrating inpatient EHR and revenue cycle management [8][9] - The company aims to build an integrated AI-enabled platform that meets the needs of both ambulatory and hospital segments, focusing on operational efficiency and long-term growth [21][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, highlighting the strategic acquisitions of MedSphere and MapApp as pivotal for future growth [5][13] - The focus remains on profitability, cash flow, and delivering long-term shareholder value, with expectations for continued operational efficiency [32][33] Other Important Information - The company has made significant progress in integrating AI across its platform, with the upcoming launch of the Agentic AI Front Desk Solution expected to enhance patient communication and operational efficiency [16][17] - CareCloud's cash flow from operations for the nine months ended September 30, 2025, was $19.9 million, compared to $15.4 million in the same period last year [30][32] Q&A Session Summary Question: Plans to win new customers and grow sales in the hospital space - Management highlighted the importance of the MedSphere and MapApp acquisitions in establishing credibility and expanding sales opportunities within the hospital market [36][37] Question: Rollout of new AI offerings - The company discussed the evolving AI landscape and its competitive advantages in operational execution and compliance within healthcare [40][42] Question: Competitive landscape and M&A expectations - Management noted that AI is driving M&A conversations, with sellers recognizing the need to integrate AI into their platforms to meet market expectations [48][49] Question: Potential for acquisitions to achieve company margins - Management stated that the goal is to achieve an operating cash flow margin of about 30% or greater for the recent acquisitions, with strong upselling and cross-selling opportunities [58]

Q3 2025 Financial Highlights - Revenue for Q3 2025 increased to $31.1 million, a 9% increase compared to $28.5 million in Q3 2024[18, 32] - Net income remained consistent at $3.1 million in Q3 2025, the same as in Q3 2024[18, 32] - Adjusted EBITDA for Q3 2025 increased to $7.7 million, a 13% increase compared to $6.8 million in Q3 2024[18, 32] - Earnings per share increased by $0.08, from -$0.04 in Q3 2024 to $0.04 in Q3 2025[18, 32] Year-to-Date (YTD) 2025 Financial Highlights - Revenue for YTD 2025 increased to $86.1 million, compared to $82.6 million in YTD 2024[35] - Net income for YTD 2025 increased to $7.9 million, compared to $4.6 million in YTD 2024[35] - Adjusted EBITDA for YTD 2025 increased to $19.9 million, compared to $16.9 million in YTD 2024[35] - Earnings per share increased from -$0.28 in YTD 2024 to $0.07 in YTD 2025[35] - Adjusted net income for YTD 2025 increased to $10.0 million, compared to $6.6 million in YTD 2024[35] Acquisitions - The company closed four acquisitions year-to-date in 2025[20] - Map App was acquired on August 22, 2025, for a purchase price of $16.5 million[21] 2025 Guidance - The company projects revenue between $117 million and $119 million for FY 2025[15] - The company projects adjusted EBITDA between $26 million and $28 million for FY 2025[15] - The company projects earnings per share between $0.10 and $0.13 for FY 2025[15]

Financial Performance - CareCloud reported Q3 2025 revenue of $31.1 million, a 9% increase from $28.5 million in Q3 2024[2] - The company achieved GAAP net income of $3.1 million, maintaining profitability compared to the same quarter last year[2] - Adjusted net income rose by 27% to $4.4 million, up from $3.5 million year-over-year[2] - CareCloud increased its full-year 2025 revenue guidance to $117 – $119 million, up from the previous range of $111 – $114 million[5] - GAAP EPS improved to $0.04, a $0.08 increase from a loss of $0.04 in the same quarter last year[2] - Net revenue for the three months ended September 30, 2025, was $31,067 million, a 5.3% increase from $28,546 million in the same period of 2024[21] - Operating income for the nine months ended September 30, 2025, rose to $8,225 million, compared to $5,665 million in 2024, reflecting a 45.1% increase[21] - Net income attributable to common shareholders for the three months ended September 30, 2025, was $1,695 million, compared to a loss of $667 million in 2024[21] - Adjusted EBITDA for the nine months ended September 30, 2025, was $19,857 million, up from $16,916 million in 2024, representing a 17.3% increase[27] Cash Flow and Investments - CareCloud's cash flow from operations remains strong, allowing for continued payment of preferred stock dividends[4] - Cash provided by operating activities for the nine months ended September 30, 2025, was $19,886 million, compared to $15,413 million in 2024, indicating a 29.5% increase[23] - The company reported a net cash used in investing activities of $21,200 million for the nine months ended September 30, 2025, significantly higher than $5,144 million in 2024[23] - The company ended the period with cash and restricted cash of $5,073 million, up from $2,782 million in 2024[23] Acquisitions and Strategic Growth - The company completed four strategic acquisitions in 2025, enhancing its market presence[3] - The company reduced its line of credit borrowing to $4.9 million from $8.3 million, funding the Medsphere acquisition with a total cash purchase price of $16.5 million[4] Research and Development - Research and development expenses increased significantly to $3,839 million for the nine months ended September 30, 2025, up from $2,768 million in 2024, marking a 38.6% rise[21] Non-GAAP Financial Measures - Management emphasizes the importance of non-GAAP financial measures to understand operational strength and historical trends[37] - Adjusted EBITDA is defined as GAAP net income before taxes, net interest expense, stock-based compensation, and other specified expenses[34] - Non-GAAP adjusted operating income excludes stock-based compensation, amortization of intangible assets, and other costs, providing a clearer view of operational performance[35] - Non-GAAP adjusted net income is calculated by excluding stock-based compensation and other non-recurring items, offering a more accurate reflection of profitability[36] - Management excludes foreign exchange losses and other non-operating expenses from non-GAAP measures as they are not considered part of ongoing operations[38] - Stock-based compensation is treated as a non-cash expense and excluded from operational assessments due to its variability based on external factors[39] - Amortization of purchased intangible assets is not included in operating decisions as it does not reflect ongoing operational performance[40] - Transaction costs related to acquisitions are excluded as they do not correlate with future business operations[41] - Integration costs associated with acquisitions are not considered in operational assessments due to their lack of correlation with future performance[42] - Restructuring costs are excluded from operational evaluations as they are related to optimization efforts rather than ongoing operations[43]

Core Insights - CareCloud, Inc. has raised its full-year 2025 revenue guidance to $117 – $119 million, up from the previous range of $111 – $114 million, reflecting strong financial performance and growth momentum [1][7] - The company reported a 9% year-over-year increase in quarterly revenue, marking its sixth consecutive quarter of positive GAAP net income [1][2] - CareCloud's strategic focus on AI-driven innovation and successful integration of recent acquisitions is enhancing its position in the healthcare technology sector [1][5] Financial Highlights - For the three months ended September 30, 2025, CareCloud reported revenue of $31.1 million, compared to $28.5 million in the same period of 2024, representing a 9% increase [2] - GAAP net income remained stable at $3.1 million, with GAAP EPS improving to $0.04 from a loss of $0.04 in the previous year [2] - Adjusted net income for the quarter was $4.4 million, a 27% increase from $3.5 million in 2024, and adjusted EBITDA rose by 13% to $7.7 million [2] Year-to-Date Performance - For the nine months ended September 30, 2025, total revenue was $86.1 million, up 4% from $82.6 million in 2024 [4] - GAAP net income increased by 74% to $7.9 million, with GAAP EPS improving to $0.07 from a loss of $0.28 [4] - Adjusted net income for the nine months was $10.0 million, a 50% increase from $6.6 million in the previous year [4] Strategic Updates - The company has completed four strategic acquisitions in 2025, including Medsphere, which is expected to broaden its reach in the hospital market [5][6] - CareCloud has established an AI Center of Excellence to drive product innovation and enhance operational efficiency [6] - Management emphasized the synergy between recent acquisitions and AI initiatives, which are expected to create significant value for clients and shareholders [5] 2025 Guidance - CareCloud's updated guidance for 2025 includes revenue expectations of $117 – $119 million, adjusted EBITDA of $26 – $28 million, and EPS of $0.10 - $0.13 [7][8] - The revenue guidance reflects management's expectations regarding contributions from recent acquisitions and organic growth [7]

Core Insights - CareCloud, Inc. will showcase its AI innovations, strategic acquisitions, and growth momentum at the ThinkEquity Conference on October 30, 2025 [1][3] - The company has completed four significant transactions in the year to date, including the acquisition of Medsphere and the addition of HFMA's MAP App, which have enhanced its capabilities and client reach [3] Company Overview - CareCloud specializes in healthcare technology solutions, offering a suite of AI and technology-enabled services aimed at improving financial and operational performance, clinical workflows, and patient experience [4] - The company serves over 40,000 providers, helping them enhance patient care while reducing administrative burdens and operating costs [4]

Group 1 - Preferred shares are typically viewed as fixed income instruments, although they do not appear on the 'Liabilities' section of the balance sheet [1] - Investors utilize these capital market instruments primarily for income generation, with limited potential for capital appreciation [1] - Binary Tree Analytics (BTA) aims to enhance transparency and analytics in capital markets, focusing on Closed-End Funds (CEFs), Exchange-Traded Funds (ETFs), and Special Situations [1] Group 2 - BTA has over 20 years of investment experience, having a background in investment banking cash and derivatives trading [1] - The company seeks to deliver high annualized returns while maintaining a low volatility profile [1]

Core Insights - CareCloud will participate in the 2025 Maxim Growth Summit, focusing on acquisitions, growth, and AI strategy [1] - Maxim Group named CareCloud its 'Top Healthcare IT Pick for 2025' due to its AI strategy, strong financial results, and renewed M&A activity [2] Company Developments - CareCloud has closed four M&A transactions year-to-date, including the acquisition of Medsphere and HFMA's MAP App [9] - The AI Center of Excellence was launched earlier this year and aims to scale to approximately 500 AI professionals to enhance innovation in EHR, RCM, analytics, and patient engagement [9] - Revenue guidance for 2025 has been raised to $116–$118 million, reflecting strong execution [9] - CareCloud has been added to the Russell Microcap Index, which is expected to broaden investor awareness [9] Product and Service Offerings - CareCloud provides a suite of AI and technology-enabled solutions aimed at improving financial and operational performance, streamlining clinical workflows, and enhancing patient experience [5] - The company serves over 40,000 providers, helping them reduce administrative burdens and operating costs [5]