CareCloud(US:CCLD)2026-03-12 20:31Financial Performance - Net revenue for the year ended December 31, 2025, was $120.5 million, an increase of 8.5% from $110.8 million in 2024[267] - Adjusted EBITDA for 2025 was $27.5 million, up from $24.1 million in 2024, reflecting a growth of 10.3%[267] - GAAP net income increased to $10.8 million in 2025, compared to $7.9 million in 2024, representing a growth of 37.3%[267] - Adjusted net income for 2025 was $14.4 million, compared to $10.5 million in 2024, marking a 37.3% increase[270] - Operating income improved to $11,343,000 in 2025, compared to $9,121,000 in 2024, marking a 24.3% increase[272] - Net income for 2025 was $10.7 million, representing 8.9% of total revenue, compared to 7.1% in 2024[312] - Net income for Q4 2025 was $2,888,000, an increase from $1,948,000 in Q4 2024, representing a year-over-year growth of 48.3%[277] - Adjusted EBITDA for Q4 2025 was $7,692,000, compared to $5,595,000 in Q4 2024, reflecting a 37.6% increase[277] Margins and Expenses - Adjusted operating margin improved to 12.2% in 2025 from 10.3% in 2024[267] - The company’s GAAP operating margin increased to 9.4% in 2025 from 8.2% in 2024[267] - Direct operating costs for 2025 were $64,456,000, up from $60,842,000 in 2024, indicating a 2.7% increase[272] - Direct operating costs rose to $64.5 million in 2025, a 6% increase from $60.8 million in 2024[315] - Total operating expenses decreased to 90.6% of total revenue in 2025 from 91.8% in 2024[312] - General and administrative expenses accounted for approximately 21% of total expenses in 2025, down from 22% in 2024[288] Assets and Equity - Total assets as of December 31, 2025, were $87,598,000, an increase from $71,614,000 in 2024[273] - Shareholders' equity rose to $59,506,000 in 2025, compared to $49,774,000 in 2024, reflecting a 19.3% increase[273] - The number of end-of-period common shares increased to 42,437,949 in 2025 from 16,256,236 in 2024[270] Cash Flow and Financing - Cash flow from operations was $28.6 million for the year ended December 31, 2025, a 38% increase from $20.6 million in 2024[331] - Cash provided by operating activities increased to $28.6 million in 2025 from $20.6 million in 2024, reflecting a net income increase of $2.9 million[335] - Cash used in investing activities was $24.5 million in 2025, up from $7.4 million in 2024, primarily due to $16.5 million spent on acquisitions[337] - Cash used by financing activities decreased to $5.6 million in 2025 from $11.3 million in 2024, including $6.3 million in preferred stock dividends[338] - The company borrowed approximately $9.3 million on the line of credit in 2025 to finance the acquisition of Medsphere[338] Operational Highlights - The company served approximately 45,000 providers as of December 31, 2025, up from 40,000 providers in 2024, indicating a growth of 12.5%[279] - The customer renewal rate for 2025 was 91%, down from 95% in 2024, suggesting a decline in client retention[280] - Revenue from technology-enabled business solutions accounted for approximately 63% of total revenues in 2025, down from 67% in 2024[281] - The company earned approximately 12% of its revenue from medical practice management services in 2025, a slight decrease from 13% in 2024[284] - The company continues to invest in technology-enabled business solutions, including AI tools and telehealth solutions, to enhance service offerings[259] Research and Development - Research and development expenses increased by 69% to $6.4 million in 2025, up from $3.8 million in 2024[318] Other Financial Metrics - The company experienced a net interest expense reduction to $81,000 in 2025 from $812,000 in 2024[272] - Interest income increased by 134% to $206,000 in 2025, compared to $88,000 in 2024[323] - The company had a total federal NOL carry forward of approximately $271 million as of December 31, 2025[329] - The company recorded no impairment charges for goodwill during the years ended December 31, 2025, and 2024[308] - The company capitalized $3.2 million in software costs in 2025, down from $5.7 million in 2024[337] - The company maintained compliance with all SVB and Provident covenants in 2025[339] - As of December 31, 2025, the company had no off-balance sheet financing arrangements[340] - The interest rate on the Provident line of credit has been declining slightly since its inception[334]