CareCloud (CCLD) AI Stock Analysis

• Market Cap: $153.40M
• Dividend Yield: N/A
• Average Volume (3M): 387.96K
• Price to Earnings (P/E): 102.2
• Beta (1Y): 2.59
• Revenue Growth: 2.97%
• EPS Growth: N/A
• Country: US
• Employees: 3,650
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.04
• Shares Outstanding: 42,492,950
• 10 Day Avg. Volume: 514,876
• 30 Day Avg. Volume: 387,959
• PEG Ratio: -0.75
• Price to Book (P/B): 18.55
• Price to Sales (P/S): 9.16
• P/FCF Ratio: 46.40
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 3.75
• Enterprise Value/Ebitda: 5.46
• 1Y Price Target: $5.63
• Price Target Upside: 55.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.14
• Revenue Forecast (FY): $130.84M

• Rating: 73 Outperform
• Price Target: $4.00 ▲(10.80% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is driven primarily by strong financial momentum (profitability rebound, low leverage, and rising operating/free cash flow) and a constructive, confidence-building earnings outlook for 2026. Offsetting these positives are an expensive valuation (very high P/E) and technically overbought momentum signals that increase near-term downside risk.

Positive Factors

Strong operating and free cash flow

Sustained, material cash generation (OCF $28.6M and FCF ~$20.5M in 2025) strengthens internal funding for growth, funds acquisitions without dilution, supports debt servicing and R&D, and provides a durable cushion for strategic investment and execution over the next 2–6 months.

Conservative leverage and stronger equity base

Very low debt and a growing equity base reduce refinancing and solvency risk, giving management flexibility to fund investments or absorb shocks. This conservative capital structure supports strategic M&A, product rollouts and regulatory compliance without overreliance on external financing.

Disciplined, low-multiple M&A expanding TAM

Acquisitions bought at low multiples and funded from FCF expanded product set into inpatient/ED markets and added immediate revenue. This inorganic growth broadens addressable market and cross-sell opportunities while preserving shareholder dilution, enhancing durable revenue diversification.

Negative Factors

Historical profit and cash volatility

Past swings—large 2023 loss and earlier negative cash flow—indicate operating performance can revert in adverse conditions. The uneven history reduces visibility into sustained margin improvement and raises risk that recent gains may be cyclical or exposed to volume, reimbursement or client churn shocks.

Acquisition integration and AI execution risk

Growth and margin plans rely on integrating multiple acquisitions and commercializing new AI products. Execution delays, integration complexity, HIPAA/regulatory hurdles or weaker-than-expected AI adoption could push out synergies and revenue realization, impairing durable growth prospects.

Modest cash buffer and tight working capital

Low on-hand cash and limited working capital increase reliance on operating cash flow and the undrawn $10M credit line for near-term needs. That thin cushion constrains flexibility for opportunistic investments or to absorb short-term shocks while integration and AI investments continue.

CareCloud Business Overview & Revenue Model

Company Description

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's Software-as-a-Service platform includes revenue cycle management, practice management, electronic health record, business intelligence, telehealth, and patient experience management solutions, as well as complementary software tools and business services for medical groups and health systems. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.

How the Company Makes Money

CareCloud generates revenue primarily by selling healthcare software and by providing recurring, outsourced services to provider organizations. Key revenue streams include: (1) Subscription/SaaS and software-related revenue: recurring fees for access to its cloud-based platforms (e.g., practice management, EHR, patient engagement) typically structured as subscription contracts (often per provider, per user, or per location) and may include implementation, training, support, and other software-related services where applicable. (2) Revenue cycle management (RCM) and other managed services: fees for end-to-end or modular billing operations such as coding, charge capture support, claims submission, denial management, payment posting, and collections services; compensation is commonly structured as recurring service fees and/or a percentage of collections (specific contractual terms vary by client and are not provided here). (3) Professional services and other services: project-based or usage-based fees for implementation, consulting, and operational support services that help clients deploy or optimize CareCloud’s systems and workflows. Significant factors influencing earnings include the size and retention of its client base (recurring contracts), transaction/volume levels tied to medical billing activity for service-based fees, and cross-selling between software subscriptions and outsourced operational services. Specific material partnerships or partner economics: null.

CareCloud Financial Statement Overview

Summary

Strong recent turnaround with improving profitability (positive net income in 2024–2025) and very strong cash generation (2025 operating cash flow $28.6M and robust free cash flow), supported by conservative leverage. Main offset is uneven multi-year consistency (notably the 2023 loss and prior cash flow volatility) and incomplete 2025 gross margin reporting.

Income Statement

Profitability has improved meaningfully after a very weak 2023: net income rebounded to $7.9M in 2024 and $10.8M in 2025, with net margin rising to ~9.0% in 2025 (vs ~7.1% in 2024). EBITDA margin remains healthy (~21–23% in 2024–2025). The key weakness is inconsistent history—2023 posted a large loss (net margin ~-41.6%), and revenue has been choppy (down in 2023 and 2024, then +5.4% growth in 2025). Also, 2025 gross profit/gross margin appears reported as 0, which limits margin quality assessment for that year.

Balance Sheet

Leverage looks conservative, with very low debt relative to equity in 2024–2025 (~0.07x debt-to-equity) and total debt only $4.3M in 2025. Equity has grown (to $59.5M in 2025 from $41.7M in 2023), and returns on equity are solid in the last two years (~15.8% in 2024 and ~18.1% in 2025). The main concern is the sharp profitability/return deterioration in 2023 (ROE deeply negative), highlighting that while the balance sheet is currently strong, earnings stability has not been consistent across the full period.

Cash Flow

Cash generation is a clear strength: operating cash flow increased from $20.6M (2024) to $28.6M (2025), and free cash flow reached $28.6M in 2025 with strong growth (~32.7%). Cash flow also supports earnings quality, with operating cash flow exceeding net income in both 2024 and 2025 (coverage ~1.05x and ~1.17x, respectively). A notable weakness is historical volatility—2020 had negative operating and free cash flow, and 2023 free cash flow was comparatively low ($3.8M), indicating the cash profile has improved but hasn’t been uniformly steady.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	120.50M	110.84M	117.06M	138.83M	139.60M
Gross Profit	41.08M	49.99M	46.24M	54.39M	52.68M
EBITDA	28.22M	25.05M	-31.29M	21.02M	19.70M
Net Income	10.80M	7.85M	-48.67M	5.43M	2.84M
Balance Sheet
Total Assets	87.60M	71.61M	77.83M	136.17M	140.85M
Cash, Cash Equivalents and Short-Term Investments	3.12M	5.14M	3.33M	12.30M	9.34M
Total Debt	4.28M	3.47M	14.73M	13.81M	16.87M
Total Liabilities	28.09M	21.84M	36.11M	34.48M	42.92M
Stockholders Equity	59.51M	49.77M	41.72M	101.69M	97.93M
Cash Flow
Free Cash Flow	23.78M	18.95M	3.85M	9.38M	2.77M
Operating Cash Flow	28.56M	20.64M	15.46M	21.15M	13.33M
Investing Cash Flow	-24.54M	-7.41M	-11.61M	-11.77M	-23.15M
Financing Cash Flow	-5.61M	-11.26M	-13.29M	-7.65M	-519.00K

CareCloud Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCLD, the sentiment is Positive. The current price of 3.61 is above the 20-day moving average (MA) of 2.69, above the 50-day MA of 2.71, and above the 200-day MA of 2.87, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 80.58 is Negative, neither overbought nor oversold. The STOCH value of 94.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCLD.

CareCloud Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCLD	73 Outperform	$153.40M	102.20	18.98%	―	2.97%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FORA	49 Neutral	$63.39M	-115.62	-2.79%	―	42.60%	67.76%
AMWL	46 Neutral	$92.69M	-0.82	-35.88%	―	4.33%	50.50%
BEAT	44 Neutral	$53.41M	-3.85	-571.06%	―	―	4.31%

CareCloud Corporate Events

CareCloud Director Resignation Supports Nasdaq Governance Compliance

On March 10, 2026, CareCloud, Inc. announced that director A. Hadi Chaudhry resigned from its Board of Directors, effective immediately, to help the company regain compliance with Nasdaq’s director independence rule requiring a majority-independent board. The company stated that Chaudhry’s resignation did not stem from any disagreement over its operations, policies, or practices.

Separately, on March 12, 2026, CareCloud made available a set of slides to accompany its earnings presentation, offering investors and other stakeholders additional context on its financial performance and outlook. The move underscores the company’s ongoing engagement with the market while it addresses corporate governance requirements tied to its Nasdaq listing status.

The most recent analyst rating on (CCLD) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on CareCloud stock, see the CCLD Stock Forecast page.

CareCloud Declares Monthly Dividends on Preferred Stock

On January 20, 2026, CareCloud announced that its board had declared monthly cash dividends for its 8.75% Series A and Series B Cumulative Redeemable Perpetual Preferred Stock for January, February and March 2026, with per-share dividends of $0.18229 and corresponding ex-dividend, record and payment dates set through April 15, 2026. The board also approved additional dividend payments on the Series B preferred shares to address dividend arrearages, a move that underscores CareCloud’s effort to regularize distributions to preferred shareholders while maintaining flexibility through existing optional redemption provisions on both Series A and Series B preferred stock, including varying redemption prices and change-of-control terms for Series B that could affect investor returns and capital structure decisions.

The most recent analyst rating on (CCLD) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on CareCloud stock, see the CCLD Stock Forecast page.

CareCloud Announces Leadership Realignment to Advance AI Strategy

On December 29, 2025, CareCloud announced a leadership realignment effective January 1, 2026, with A. Hadi Chaudhry transitioning from Co-Chief Executive Officer to Chief Strategy Officer to lead the company’s enterprise AI vision and platform innovation, while Stephen Snyder moves from Co-Chief Executive Officer to Chief Executive Officer to drive execution, financial performance and the scaling of AI-enabled solutions across ambulatory and hospital markets. As part of the same move, CareCloud set new employment terms for both executives, including base salaries of $300,000 for Chaudhry and $350,000 for Snyder, bonus opportunities tied to board-set objectives, and potential severance of up to 24 months’ salary and bonus, and also amended the contracts of Executive Chairman and Founder Mahmud Haq and President Crystal Williams to raise their salaries and extend agreements, underscoring a broader shift to an execution-focused operating model aimed at capitalizing on the company’s strengthened financial profile and recent expansion into the inpatient software market via acquisitions such as Medsphere Systems and HFMA MAP App.

The most recent analyst rating on (CCLD) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on CareCloud stock, see the CCLD Stock Forecast page.