CareCloud(US:CCLD)2025-11-06 12:06Financial 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]