CareCloud’s Earnings Call Highlights AI Success and Growth

Carecloud, Inc. ((CCLD)) has held its Q2 earnings call. Read on for the main highlights of the call.

CareCloud’s recent earnings call conveyed a positive sentiment, highlighting the company’s robust financial performance and strategic advancements. Despite a minor year-over-year revenue decline due to a non-recurring item, the company showcased its operational efficiency and innovation, particularly in AI integration, as key drivers of success.

Positive GAAP Net Income and EPS

CareCloud reported a significant increase in GAAP net income, reaching $2.9 million, a 73% rise from $1.7 million in the same period last year. The company also delivered a positive GAAP earnings per share of $0.04, a substantial improvement from a loss of $0.14 per share in Q2 2024.

Record Free Cash Flow and Adjusted EBITDA

The company achieved a record $9 million in free cash flow, marking an 85% increase year-over-year. Additionally, CareCloud reported an adjusted EBITDA of $12.1 million, reflecting a 20% increase from the previous year.

Successful AI Integration

CareCloud’s AI Center of Excellence is now fully operational, employing 100 full-time AI professionals and 100 interns. The company is leveraging AI to enhance both internal operations and client-facing solutions, such as cirrusAI Notes and Voice.

M&A Activity and Strategic Growth

The company completed two acquisitions focused on specialty AI-powered revenue cycle management, supporting its strategic growth. CareCloud continues to actively evaluate additional opportunities in this area.

Expansion into New Markets

CareCloud received ONC Health IT certification for its talkEHR platform, designed for critical access hospitals. This certification opens access to a $1.5 billion addressable market across more than 1,300 rural hospitals.

Year-over-Year Revenue Decline

The company experienced a revenue decline of approximately $700,000 year-over-year, attributed to a one-time non-recurring revenue item in Q2 2024.

Revenue Mix and RPM Contribution

Remote patient monitoring (RPM) contributes about 5% or less to CareCloud’s overall revenue mix, indicating a limited impact on total revenue.

Forward-Looking Guidance

CareCloud reaffirmed its full-year 2025 guidance, expecting revenue between $111 million and $114 million, adjusted EBITDA in the range of $26 million to $28 million, and GAAP earnings per share between $0.10 and $0.13. The company is focusing on AI-driven innovation to enhance operational efficiencies and scale profitably.

In summary, CareCloud’s earnings call highlighted a positive outlook driven by strategic growth initiatives and AI integration. The company’s financial discipline and commitment to shareholder value were evident, with strong performance metrics and forward-looking guidance underscoring its potential for continued success.