UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Exact name of registrant as specified in its charter) Delaware 22-3832302 (State or other jurisdiction of incorporation or organization) (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Nu ...

Financial Data and Key Metrics Changes - CareCloud achieved GAAP net income of $2,900,000, a 73% improvement from $1,700,000 in the same period last year [6] - The company reported its first positive GAAP earnings per share at $0.04 compared to a loss of $0.14 per share in 2024 [6] - Year-to-date GAAP net income reached $4,900,000, more than tripling the amount reported in 2024 [7] - Adjusted EBITDA stood at $12,100,000, a 20% increase year over year [7] - Free cash flow reached $9,000,000, up 85% over the same period [7] - Revenue for the second quarter was $27,400,000, down approximately $700,000 year over year due to a one-time non-recurring revenue item in Q2 2024 [26] - Non-GAAP adjusted net income for the second quarter was $3,300,000 or $0.07 per share [27] Business Line Data and Key Metrics Changes - CareCloud Wellness generated approximately $1,000,000 in revenue for the quarter and approximately $1,800,000 for the first six months of the year [26] - The company reported positive GAAP operating income of $3,000,000 compared to $2,300,000 in Q2 2024 [26] Market Data and Key Metrics Changes - CareCloud has received ONC Health IT certification for its Talk EHR platform tailored specifically for critical access hospitals, opening access to a market of over 1,500,000,000 across more than 1,300 rural hospitals [22][23] Company Strategy and Development Direction - The company is focused on AI-driven innovation, operational discipline, and sustainable growth, marking a continuation of the transformation initiated in 2024 [5] - CareCloud is actively using AI to enhance provider and patient experiences while improving internal operations and cost structures [8][9] - The company has returned to a more active posture in M&A, completing two acquisitions this year aligned with its focus on specialty AI-powered revenue cycle management [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver profitability at scale and to lead the next wave of intelligent healthcare delivery [12] - The management team emphasized the importance of maintaining financial discipline and shareholder alignment, having declared nine consecutive months of preferred dividend payments funded entirely from free cash flow [10] - The company anticipates continued positive EPS and modest revenue increases in the second half of the year [75] Other Important Information - The AI Center of Excellence is fully operational, with 100 full-time AI professionals and 100 interns onboarded [13][14] - The company is embedding intelligence into its platform to improve operational efficiency and scalability [24] Q&A Session Summary Question: How does the company view the spend on the AI Center of Excellence relative to potential revenue opportunities? - Management indicated a threefold focus: generating incremental revenue, enhancing product competitiveness, and optimizing back-office operations [35] Question: How is the company approaching sales for new offerings targeting specialized practices? - The company sees opportunities in providing end-to-end solutions for specialty practices, particularly in areas where existing EHRs lack next-generation capabilities [39][41] Question: How did MedAssar Remote Patient Monitoring and Chronic Care Management perform? - Management reported stable revenue for MedAssar, with RPM expected to contribute about 5% or less to overall revenue [45][46] Question: What is the company's outlook on M&A and funding capacity? - The company is seeing an active M&A environment and believes it is well-positioned to pursue strategic acquisitions funded through internally generated cash flow and an untapped credit facility [54][56]

Q2 2025 Performance Highlights - Net income increased by 73%[20] - Free cash flow increased by 102%[20] - Earnings per share became positive for the first time[20] Financial Results - Q2 2025 revenue was $27.4 million compared to $28.1 million in Q2 2024[43] - Q2 2025 net income was $2.9 million compared to $1.7 million in Q2 2024[43] - Q2 2025 adjusted EBITDA was $6.5 million compared to $6.4 million in Q2 2024[43] - Q2 2025 earnings per share was $0.04 compared to -$0.14 in Q2 2024[43] - Q2 2025 free cash flow was $5.4 million compared to $2.7 million in Q2 2024[43] - Year-to-date 2025 revenue was $55.0 million compared to $54.1 million in year-to-date 2024[46] - Year-to-date 2025 net income was $4.9 million compared to $1.4 million in year-to-date 2024[46] - Year-to-date 2025 adjusted EBITDA was $12.1 million compared to $10.1 million in year-to-date 2024[46] - Year-to-date 2025 earnings per share was $0.02 compared to -$0.24 in year-to-date 2024[46] - Year-to-date 2025 free cash flow was $9.0 million compared to $4.9 million in year-to-date 2024[46] 2025 Guidance - Revenue guidance is $111 million to $114 million[27] - Adjusted EBITDA guidance is $26 million to $28 million[27] - Earnings per share guidance is $0.10 to $0.13[27]

Exhibit 99.1 CareCloud Reports Second Quarter 2025 Results Delivers first quarter of positive GAAP EPS in Company's history since going public, announces initial results from AI Initiative SOMERSET, N.J. August 5, 2025 (GLOBE NEWSWIRE) - CareCloud, Inc. (Nasdaq: CCLD, CCLDO), ("CareCloud" or the "Company"), a leader in healthcare technology and generative AI solutions, today announced strong financial results for the quarter ended June 30, 2025. CareCloud's strategic execution, AI-driven innovation, and dis ...

Core Viewpoint - CareCloud, Inc. has launched a fully integrated, AI-driven dermatology EHR aimed at enhancing clinical workflows, patient engagement, and financial outcomes for dermatology practices, addressing the $9 billion dermatology services market in the U.S. [1][2] Company Overview - CareCloud is a leader in healthcare technology and generative AI solutions, providing tools to improve operational performance and streamline clinical workflows for over 40,000 providers [6]. Product Features - The new Dermatology EHR includes AI-powered charting with customizable templates, advanced image management, integrated telehealth, and patient portal features to enhance patient engagement [3][4]. - It offers optimized billing and revenue cycle management (RCM) with dermatology-specific coding and automated claim scrubbing, ensuring maximum reimbursements [4]. Market Position - The dermatology services sector is a significant part of the U.S. healthcare market, valued at approximately $9 billion in 2024, indicating a strong demand for efficient technology solutions [2]. - CareCloud's Dermatology EHR is designed to replace outdated systems, thereby improving efficiency and focusing more on patient care [2]. Availability - The CareCloud Dermatology EHR is now available for dermatology providers across the nation, with options for personalized demos [5].

Core Insights - CareCloud, Inc. will release its financial results for the second quarter ended June 30, 2025, before the market opens on August 5, 2025 [1] - A conference call for investors will follow at 8:30 a.m. Eastern Time on the same day [1] Company Overview - CareCloud is a leader in AI-powered healthcare technology and revenue cycle management solutions, serving medical practices and health systems across the nation [1] - The company offers a suite of solutions aimed at improving financial and operational performance, streamlining clinical workflows, and enhancing patient experience [4] - More than 40,000 providers rely on CareCloud to improve patient care while reducing administrative burdens and operating costs [4]

Core Insights - CareCloud, Inc. experienced a stock price increase of approximately 70% in Q2 2025, positioning it among the top gainers in the Russell Microcap Index [1][2] - The company was officially added to the Russell Microcap Index effective June 30, 2025, reflecting its growing visibility and investor confidence [2] - Co-CEO Stephen Snyder highlighted the company's focus on AI innovation, targeted acquisitions, and a strengthened capital structure as key drivers for long-term growth [3] Company Performance - CareCloud's disciplined execution is expected to lead to continued momentum into the second half of 2025 [4] - The company launched a new AI Center of Excellence and resumed M&A activity targeting high-potential verticals [9] - CareCloud completed the conversion of 3.5 million Series A Preferred shares into Common Stock and ended the quarter with over $10 million in cash [9] Company Overview - CareCloud is a leading provider of healthcare technology solutions, offering a comprehensive suite of revenue cycle, practice management, and patient engagement solutions supported by AI technologies [5]

Core Insights - CareCloud, Inc. has been added to the Russell Microcap® Index, effective June 30, 2025, highlighting its growing recognition in the healthcare technology sector [1][3] - The company's common stock price increased by approximately 70% during Q2 2025, driven by key developments including the launch of an AI Center of Excellence and a strong cash position of around $10 million [2] Company Developments - The launch of CareCloud's AI Center of Excellence is a significant milestone aimed at enhancing its technological capabilities [2] - The company resumed acquisition activities in targeted growth areas, indicating a strategic focus on expansion [2] - Approximately 3.5 million shares of Series A Preferred Stock were converted into Common Stock on March 6, 2025, reflecting a shift in capital structure [2] Financial Performance - CareCloud reported a strong cash position of approximately $10 million at the end of Q2 2025, which supports its operational and strategic initiatives [2] - The inclusion in the Russell Microcap Index serves as a benchmark for performance in the U.S. small-cap equity market, potentially attracting more institutional investors [3]

Core Points - CareCloud has surpassed the accelerated filer threshold with a public float of $85.1 million as of June 30, 2025, triggering new compliance requirements under SEC regulations [1] - The achievement is seen as a validation of CareCloud's growth trajectory and investor confidence, with a commitment to compliance and corporate governance emphasized by the Co-CEO [2] - The current audit firm cannot perform the required ICFR attestation, necessitating a change in auditors to ensure compliance [2] - CareCloud has initiated a process to engage a new audit firm capable of fulfilling the necessary services for fiscal year 2025 [3] Company Overview - CareCloud specializes in AI-driven healthcare technology solutions, helping over 40,000 providers enhance patient care while reducing administrative burdens and operating costs [4]

Core Viewpoint - CareCloud, Inc. may need to engage a new independent registered public accounting firm if an ICFR auditor attestation is required for fiscal year 2025 due to its current audit firm's inability to perform the required services [1][2]. Group 1: Audit and Compliance - The current audit firm has indicated it lacks the capacity to perform an ICFR attestation, which is necessary if CareCloud's public float exceeds $75 million [2]. - The determination of whether an ICFR attestation is required will be based on CareCloud's public float as of June 30, 2025, with a threshold of $75 million for classification as an accelerated filer [3]. - CareCloud plans to provide an update on July 1, 2025, regarding its public float and any implications for its audit arrangements [3]. Group 2: Company Overview - CareCloud is a leader in AI-driven healthcare technology solutions, offering services that enhance financial and operational performance, streamline clinical workflows, and improve patient experiences [4]. - The company serves over 40,000 providers, focusing on reducing administrative burdens and operating costs through its suite of solutions, including revenue cycle management, practice management, electronic health records, and digital health [4].