CareCloud(US:CCLD)2025-11-06 21:31Financial 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].