Financial Performance - For the six months ended June 30, 2025, net revenue was $55.009 million, a slight increase from $54.052 million in the same period of 2024[157]. - Adjusted EBITDA for the three months ended June 30, 2025, was $6.529 million, compared to $6.389 million in 2024, reflecting a year-over-year increase of approximately 2.2%[157]. - GAAP net income for the six months ended June 30, 2025, was $4.850 million, significantly higher than $1.433 million in 2024, indicating a growth of over 238%[157]. - GAAP operating income for the three months ended June 30, 2025, was $2.996 million, compared to $2.271 million in 2024, representing an increase of approximately 32%[157]. - GAAP net income for Q2 2025 was $2.9 million, compared to $1.7 million in Q2 2024, representing a year-over-year increase of 73.5%[160]. - Non-GAAP adjusted net income for Q2 2025 was $3.3 million, up from $3.0 million in Q2 2024, reflecting a 10.9% increase[160]. - Net income was $2.9 million for the three months ended June 30, 2025, compared to $1.7 million for the same period in 2024[192]. Revenue and Expenses - Total net revenue for Q2 2025 was $27.4 million, a decrease of $713,000 or 3% from $28.1 million in Q2 2024[176]. - Revenue from technology-enabled business solutions accounted for approximately 69% of total revenue in Q2 2025, compared to 68% in Q2 2024[163]. - Direct operating costs for Q2 2025 were $14.5 million, down 5% from $15.2 million in Q2 2024[178]. - Selling and marketing expenses decreased by 33% to $1.1 million in Q2 2025 from $1.7 million in Q2 2024[178]. - General and administrative expenses increased by 8% to $4.4 million in Q2 2025 compared to $4.0 million in Q2 2024[178]. - Restructuring costs significantly decreased by 80% to $23,000 in Q2 2025 from $116,000 in Q2 2024[178]. Cash Flow and Capital Expenditures - Cash provided by operations was $12.5 million for the six months ended June 30, 2025, compared to $8.3 million for the same period in 2024, representing a 50% increase[197]. - Total cash as of June 30, 2025, was $10.4 million, with net working capital of $14.9 million[191]. - The company had no borrowings under the credit facility as of June 30, 2025, compared to $5.0 million outstanding as of June 30, 2024[191]. - Capital expenditures were $1.8 million for the six months ended June 30, 2025, compared to $425,000 for the same period in 2024[198]. Operational Insights - Offshore operations in Pakistan and Sri Lanka accounted for approximately 18% and 14% of total expenses for the six months ended June 30, 2025, and 2024, respectively[152]. - The company has approximately 300 experienced health industry experts in the U.S. and a specialized offshore workforce of about 3,600 team members, which is approximately 18% of the cost of comparably educated and skilled workers in the U.S.[150]. - The company’s technology-enabled business solutions include a full suite of proprietary cloud-based solutions for healthcare providers, enhancing operational efficiency and patient care[148]. - The company served approximately 40,000 providers as of June 30, 2025, consistent with the previous year[162]. Expense Breakdown - Selling and marketing expenses decreased by $546,000 or 33% to $1.1 million for the three months ended June 30, 2025, compared to $1.7 million for the same period in 2024[179]. - General and administrative expenses increased by $330,000 or 8% to $4.4 million for the three months ended June 30, 2025, compared to $4.0 million for the same period in 2024[180]. - Research and development expenses decreased by approximately $35,000 or 3% to $1.0 million for the three months ended June 30, 2025, compared to $1.1 million for the same period in 2024[181]. - Depreciation expense increased by $91,000 to $594,000 for the three months ended June 30, 2025, compared to $503,000 for the same period in 2024[182]. - Amortization expense decreased by $423,000 or 13% to $2.8 million for the three months ended June 30, 2025, compared to $3.2 million for the same period in 2024[183]. Company Classification - The company is classified as a smaller reporting company and is not required to provide information under Item 305(e) of Regulation S-K[202].
CARECLOUD(CCLDO) - 2025 Q2 - Quarterly Report