CareCloud (CCLD) AI Stock Analysis

• Market Cap: $144.74M
• Dividend Yield: N/A
• Average Volume (3M): 446.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.58
• Revenue Growth: 0.04%
• EPS Growth: 98.87%
• Country: US
• Employees: 3,650
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.04
• Shares Outstanding: 42,322,040
• 10 Day Avg. Volume: 361,013
• 30 Day Avg. Volume: 446,225
• PEG Ratio: -0.08
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 3.12
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 1.93
• Enterprise Value/Ebitda: 3.68
• 1Y Price Target: $4.13
• Price Target Upside: 29.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: $3.50 ▲(9.37% Upside)

CareCloud's overall stock score reflects a stable financial position with strong cash flow and operational efficiency improvements. The positive earnings call results, including record-breaking earnings per share and strong free cash flow, are significant strengths. However, challenges in revenue growth, negative valuation metrics, and mixed technical indicators weigh on the score.

Positive Factors

Operational Efficiency

Achieving positive GAAP earnings per share for the first time indicates improved operational efficiency and profitability, which can enhance long-term financial stability and investor confidence.

Cash Flow Generation

Strong free cash flow growth reflects effective cash management and operational efficiency, providing the company with greater flexibility for reinvestment and debt reduction.

Market Expansion

The ONC Health IT certification for talkEHR opens access to a $1.5 billion market, enhancing growth prospects and competitive positioning in the healthcare technology sector.

Negative Factors

Revenue Growth Challenges

The year-over-year revenue decline highlights challenges in maintaining growth momentum, which could impact long-term revenue stability and market competitiveness.

Dependency on External AI Models

Reliance on external AI models may limit control over technological advancements, potentially affecting the company's ability to innovate and differentiate its offerings.

Limited AI Revenue Contribution

While AI products hold strategic value, their limited current revenue contribution suggests that significant financial benefits from these innovations may take time to materialize.

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 through a subscription-based model for its software services, which includes recurring fees for the use of its EHR and practice management solutions. Additionally, the company earns revenue from consulting services, implementation fees, and ongoing support services. Key revenue streams also include transaction-based fees from its revenue cycle management services, which are contingent on the volume of claims processed. Strategic partnerships with healthcare providers and technology companies further bolster its earnings, allowing CareCloud to expand its market reach and enhance service offerings.

CareCloud Financial Statement Overview

Summary

CareCloud demonstrates a stable financial position with strong cash flow and a solid balance sheet. Despite challenges in revenue growth, improvements in profitability and operational efficiency are positive signs. The low leverage and strong cash flow position provide a buffer against potential risks.

Income Statement

CareCloud's income statement shows mixed results. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 23.58% and a net profit margin of 10.08%, which are decent but have declined from previous periods. Revenue growth is negative, indicating a contraction in sales. However, the company has managed to improve its net income and EBIT margins compared to the previous year, showing some operational efficiency improvements.

Balance Sheet

The balance sheet is relatively strong with a low debt-to-equity ratio of 0.06, indicating low leverage and financial stability. The return on equity (ROE) is healthy at 21.82%, reflecting good profitability relative to shareholder equity. The equity ratio is also strong, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals positive trends, with a significant growth in free cash flow and a strong operating cash flow to net income ratio of 1.53. The free cash flow to net income ratio is also robust at 0.92, indicating efficient cash generation relative to net income. This suggests good liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.79M	110.84M	117.06M	138.83M	139.60M	105.12M
Gross Profit	48.05M	49.99M	46.24M	54.39M	52.68M	40.30M
EBITDA	25.22M	25.05M	-31.29M	21.02M	19.22M	4.57M
Net Income	11.27M	7.85M	-48.67M	5.43M	2.84M	-8.81M
Balance Sheet
Total Assets	75.24M	71.61M	77.83M	136.17M	140.85M	138.00M
Cash, Cash Equivalents and Short-Term Investments	10.44M	5.14M	3.33M	12.30M	9.34M	20.93M
Total Debt	3.39M	3.47M	14.73M	13.81M	16.87M	11.47M
Total Liabilities	19.17M	21.84M	36.11M	34.48M	42.92M	36.75M
Stockholders Equity	56.08M	49.77M	41.72M	101.69M	97.93M	101.25M
Cash Flow
Free Cash Flow	21.76M	18.95M	3.85M	9.38M	2.77M	-8.64M
Operating Cash Flow	24.82M	20.64M	15.46M	21.15M	13.33M	-892.00K
Investing Cash Flow	-7.44M	-7.41M	-11.61M	-11.77M	-23.15M	-31.47M
Financing Cash Flow	-9.44M	-11.26M	-13.29M	-7.65M	-519.00K	33.42M

CareCloud Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCLD, the sentiment is Negative. The current price of 3.2 is below the 20-day moving average (MA) of 3.32, below the 50-day MA of 3.33, and above the 200-day MA of 2.63, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 59.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCLD.

CareCloud Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCLD	64 Neutral	$144.74M	―	22.69%	―	0.04%	98.87%
FORA	56 Neutral	$65.96M	―	-3.20%	―	22.87%	-152.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AMWL	49 Neutral	$87.06M	―	-38.52%	―	5.83%	61.94%
BEAT	34 Underperform	$57.64M	―	-315.70%	―	―	-9.13%

CareCloud Corporate Events

CareCloud Declares Dividends for Preferred Stock

On October 7, 2025, CareCloud announced that its Board of Directors declared monthly cash dividends for its Series A and Series B Cumulative Redeemable Perpetual Preferred Stock for October, November, and December 2025. This decision reflects the company’s commitment to providing consistent returns to its shareholders, despite the recent mandatory conversion of Series A Preferred Stock into common stock and its subsequent delisting from Nasdaq. The dividends are part of CareCloud’s strategy to maintain shareholder value and confidence in its financial stability.

The most recent analyst rating on (CCLD) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on CareCloud stock, see the CCLD Stock Forecast page.

CareCloud Secures $10M Credit Facility from Provident Bank

On September 3, 2025, CareCloud, Inc. secured a $10 million credit facility from Provident Bank, replacing a previous obligation to Wells Fargo. This move, which involved borrowing $8.3 million to support the acquisition of Medsphere Systems Corp., provides more favorable terms and strengthens CareCloud’s liquidity, enhancing its ability to execute its growth strategy.

The most recent analyst rating on (CCLD) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on CareCloud stock, see the CCLD Stock Forecast page.

CareCloud Completes Acquisition of Medsphere Systems

On August 22, 2025, CareCloud, Inc. completed the acquisition of Medsphere Systems Corporation, a provider of inpatient and ambulatory solutions, thereby expanding its reach into the hospital IT market. This strategic acquisition is expected to offer affordable, scalable solutions to small and mid-sized hospitals, enhancing CareCloud’s position in the healthcare industry by integrating Medsphere’s technology with its AI capabilities to improve patient care and operational efficiency.

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 Achieves First Positive GAAP EPS in Q2 2025

CareCloud, Inc. is a healthcare technology company specializing in generative AI solutions, providing services like revenue cycle management and electronic health records to over 40,000 healthcare providers.

CareCloud’s Earnings Call Highlights AI Success and Growth

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.

CareCloud Reports First Positive GAAP EPS in Q2 2025

On August 5, 2025, CareCloud announced strong financial results for the second quarter of 2025, marking its first quarter of positive GAAP EPS since going public. The company reported a GAAP net income of $2.9 million, a 73% increase from Q2 2024, and highlighted significant achievements including the launch of an AI Center of Excellence and two recent acquisitions. These strategic moves position CareCloud at the forefront of healthcare transformation, aiming for sustained profitability and long-term growth.

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.

CareCloud Declares Dividends for Preferred Stock

On July 25, 2025, CareCloud announced that its Board of Directors declared monthly cash dividends for its Series A and Series B Cumulative Redeemable Perpetual Preferred Stock for July, August, and September 2025. This decision reflects the company’s commitment to providing returns to its shareholders and may influence its market positioning by demonstrating financial stability and shareholder value.

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.