Core Insights - CareCloud, Inc. has announced that Affinity Urgent Care has selected its Wellsoft emergency department information system, marking CareCloud's entry into the urgent care market, which consists of approximately 11,000 facilities in the U.S. [1] Company Overview - CareCloud is a leader in healthcare technology and AI-powered solutions, providing a suite of services that enhance financial and operational performance, streamline clinical workflows, and improve patient experiences [8]. - The company has over 40,000 providers relying on its solutions, which include revenue cycle management, practice management, electronic health records, and patient experience management [8]. Product Details - Wellsoft, acquired by CareCloud in August 2025, is recognized as a category leader in emergency medicine and is designed to meet the clinical demands of urgent care facilities [2][3]. - The platform offers emergency-grade documentation, optimized throughput, and integrated diagnostics, enabling urgent care operators to manage high patient volumes and complex clinical needs effectively [5][6]. Market Context - Urgent care centers are increasingly required to deliver emergency-level medical care with the convenience of retail services, creating a significant opportunity for solutions like Wellsoft [3][4]. - The urgent care market is evolving, with demand patterns accelerating, necessitating clinics to operate in a hybrid role that combines high-volume outpatient care with the unpredictability of emergency department acuity [4]. Strategic Importance - The partnership with Affinity is seen as an early indicator of a larger national opportunity for CareCloud, as urgent care providers face challenges such as staffing complexity and rising patient expectations [3]. - Wellsoft's capabilities allow urgent care providers to enhance clinical performance and financial outcomes, supporting their growth without compromising quality [5].

Core Insights - CareCloud is positioning itself for significant growth in 2026 by aligning its leadership to enhance execution, expand margins, and accelerate AI-driven innovation across healthcare markets [1][3][4] Leadership Changes - Effective January 1, 2026, A. Hadi Chaudhry will become Chief Strategy Officer, focusing on enterprise AI vision and initiatives, while Stephen Snyder will continue as CEO, emphasizing disciplined execution and financial performance [2][5] Operational Focus - The leadership evolution reflects a shift towards a more execution-focused operating model, dedicating resources to accelerate AI development as a competitive advantage [3][4] Financial Performance - CareCloud has shown strong momentum, with significant margin expansion and improved cash flow consistency, on track for its first year of positive earnings per share since going public [4][5] Market Expansion - The company has successfully entered the hospital software market through acquisitions, increasing its addressable market and extending its reach across the full care continuum [4][5] AI Strategy - CareCloud aims to leverage AI to reshape healthcare operations, with 2026 seen as a pivotal year for AI adoption among its clients [5] Company Overview - CareCloud provides a suite of AI and technology-enabled solutions to enhance financial and operational performance for over 40,000 providers, focusing on revenue cycle management, practice management, electronic health records, and more [6]

Core Insights - The traditional front desk model in healthcare is deemed unsustainable, prompting the need for innovative solutions like AI voice agents [3] - CareCloud is introducing stratusAI Desk Agent, an AI-powered front desk solution aimed at modernizing patient phone access [2] Company Overview - CareCloud is led by Co-CEO Hadi Chaudhry, along with key leaders Aman Haq and Maaz Siddiqui, focusing on AI initiatives and product growth [1] AI Initiatives - Aman Haq has over 5 years of experience in AI-driven product development, previously working at Microsoft as a Senior Product Manager [2] - The company emphasizes the importance of AI in enhancing customer engagement and operational workflows within healthcare [5]

CareCloud (NasdaqGM:CCLD) Update Summary Company Overview - CareCloud is focused on modernizing patient phone access in healthcare through AI-driven solutions, specifically the Stratus AI Desk Agent [1][2] Industry Context - The traditional front desk model in healthcare is becoming unsustainable due to staffing shortages, burnout, and increasing patient demands [4][5] - Phone calls remain the primary access channel for patients, despite the rise of digital tools [3][4] Core Challenges Identified - Staffing issues lead to long hold times, missed calls, and frustrated patients, resulting in revenue leakage [4][5] - Traditional solutions like hiring more staff or implementing IVR systems are inadequate for handling unpredictable spikes in call volume [4][5] Stratus AI Desk Agent Solution - Stratus AI Desk Agent is an AI-powered voice agent designed to handle patient calls through natural conversations, available 24/7 [5][6] - It supports unlimited simultaneous calls, detects intent and sentiment in real-time, and integrates with CareCloud's practice management and EHR systems [6][7] - The AI agent can manage scheduling, prescription refills, and general inquiries without increasing staff workload [9][10] Performance Metrics - Stratus AI boasts a 97% call resolution success rate, with nearly 80% of inbound calls handled autonomously [11][12] - The solution leads to fewer no-shows and better schedule utilization, contributing to stronger revenue flow [11][12] Financial Implications - A typical practice handling 2,000 inbound calls per month could save approximately $7,200 monthly or over $86,000 annually by using Stratus AI, with a projected ROI exceeding 200% [13][14] - The pricing model is based on successful calls handled by AI, making it flexible and risk-free with a 30-day trial [12][13] Security and Compliance - Stratus AI is designed to be HIPAA compliant, ensuring patient data protection through end-to-end encryption and secure EHR synchronization [11] Customer Feedback - Positive testimonials highlight that Stratus AI allows staff to focus on complex patient needs while maintaining high service standards [12] Implementation and Customization - The implementation process typically takes 2 to 4 weeks, with customization options available to fit specific practice needs [16][40] - The AI can handle multiple languages and is designed to integrate seamlessly with existing workflows [16][39] Future Developments - Plans to introduce an outbound calling agent to proactively reach out to patients for follow-ups and reminders [32] Conclusion - Stratus AI Desk Agent represents a significant advancement in healthcare operations, providing immediate patient access, scalable operations, and improved staff satisfaction without adding operational burdens [23][41]

Core Insights - CareCloud has launched stratusAI Desk Agent, an AI-driven phone receptionist aimed at modernizing patient phone interactions and automating call center workflows [1][2][3] Group 1: Product Features and Benefits - stratusAI Desk Agent manages nearly 80% of inbound calls for medical practices, allowing staff to focus on complex patient needs while maintaining service quality [2] - The AI solution provides 24/7 phone access through autonomous, human-like conversations, enhancing patient engagement and operational efficiency [3][4] - It automates various tasks including appointment scheduling, call triage, prescription refill requests, and responses to common patient inquiries [6] Group 2: Market Opportunity - The total addressable market for stratusAI Front Desk in the U.S. is estimated to exceed $4 billion annually, representing significant growth potential in healthcare technology [5] - CareCloud is positioned to lead the transformation in healthcare by automating high-volume call operations, which are critical for patient access and operational efficiency [5] Group 3: Integration and Analytics - stratusAI Desk Agent, when combined with stratusAI Voice Audit, offers end-to-end visibility into the patient phone experience, providing actionable intelligence for administrators [5][7] - The integration allows for in-depth call monitoring, quality scoring, and insights into call volumes and service levels, enhancing operational oversight [7]

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]