CareCloud (CCLD) AI Stock Analysis

• Market Cap: $114.90M
• Dividend Yield: N/A
• Average Volume (3M): 249.60K
• Price to Earnings (P/E): 66.6
• Beta (1Y): 2.66
• 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: 42,397,038
• 10 Day Avg. Volume: 252,028
• 30 Day Avg. Volume: 249,596
• 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: 1.04
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 2.25
• Enterprise Value/Ebitda: 4.61
• 1Y Price Target: $6.42
• Price Target Upside: 136.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $3.00 ▲(10.70% Upside)

The score is supported by solid financial performance (profitability, cash generation, and low leverage) and a constructive earnings update with raised revenue guidance. Offsetting this are weak technicals (downtrend vs key moving averages with negative MACD) and a demanding valuation (high P/E with no common dividend yield provided).

Positive Factors

Cash Generation

Consistent cash conversion (OCF > net income and positive FCF growth) gives CareCloud durable internal funding to invest in AI, integrations and pay down acquisition-related liabilities, reducing reliance on external financing and supporting multi-year growth execution.

Conservative Capital Structure

Low leverage and strengthened ROE signal prudent balance-sheet management, enabling the company to pursue M&A and scale enterprise software offerings without excessive financial risk, preserving flexibility through market cycles for 2-6 months and beyond.

Strategic AI & Market Expansion

Operational AI that automates high-volume front-desk tasks materially raises product stickiness and service economics. Coupled with acquisitions into inpatient/hospital segments, this expands total addressable market and supports sustainable recurring revenue growth over the medium term.

Negative Factors

Gross Margin Compression

A sharp drop in gross margin signals structural cost pressure or pricing mix shifts that can erode operating leverage. Unless addressed via product repricing, efficiency gains, or higher-margin sales, margin compression risks limiting sustainable profitability and cash generation.

Modest Revenue Momentum

Sub-3% trailing revenue growth suggests limited top-line traction relative to addressable digital health demand. Without acceleration from cross-sell, larger enterprise wins, or faster inpatient adoption, organic growth may constrain long-term margin expansion and returns on AI investments.

Preferred Dividend Obligations

Committing cash to clear long-standing preferred dividend arrears ties up liquidity and limits reinvestment ability. These fixed outflows reduce capital available for product development or acquisitions and could constrain balance-sheet flexibility until arrears are eliminated.

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 multiple key streams, primarily by offering subscription-based services for its cloud-based software products. The company's EHR and practice management systems are available via monthly subscription fees, allowing healthcare providers to access essential tools for managing patient information and billing processes. Additionally, CareCloud earns revenue through its revenue cycle management services, which include billing and collections, helping practices optimize their financial performance. The company may also benefit from partnerships with healthcare organizations that seek integrated solutions, further enhancing its market reach and driving sales. Significant factors contributing to its earnings include the growing demand for digital health solutions, the shift towards value-based care, and the increasing adoption of telehealth services, especially in the wake of the COVID-19 pandemic.

CareCloud Financial Statement Overview

Summary

Solid overall fundamentals: improving net profitability (8.61% TTM) and operating efficiency, strong cash conversion (operating cash flow to net income 1.08 TTM) and positive free cash flow growth (2.9% TTM), plus low leverage (debt-to-equity 0.17) and improved ROE (18.07% TTM). Main weakness is meaningful gross margin compression (to 30.55% TTM), signaling cost pressure.

Income Statement

CareCloud's income statement shows a positive trajectory with a recent revenue growth rate of 2.26% TTM, indicating recovery from previous declines. The gross profit margin has decreased from 45.11% to 30.55% TTM, suggesting increased cost pressures. However, the net profit margin improved to 8.61% TTM, reflecting better cost management and profitability. The EBIT and EBITDA margins have shown improvement, indicating enhanced operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.17 TTM, indicating prudent leverage management. Return on equity improved to 18.07% TTM, showcasing effective use of equity to generate profits. The equity ratio remains strong, suggesting a solid capital structure with a good proportion of equity financing.

Cash Flow

Cash flow analysis reveals a healthy operating cash flow to net income ratio of 1.08 TTM, indicating strong cash generation relative to net income. Free cash flow growth is positive at 2.9% TTM, supporting future investments and debt servicing. The free cash flow to net income ratio of 0.89 TTM highlights efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	114.31M	110.84M	117.06M	138.83M	139.60M	105.12M
Gross Profit	53.14M	49.99M	46.24M	54.39M	52.68M	40.30M
EBITDA	25.91M	25.05M	-31.29M	21.02M	19.70M	4.80M
Net Income	11.21M	7.85M	-48.67M	5.43M	2.84M	-8.81M
Balance Sheet
Total Assets	90.58M	71.61M	77.83M	136.17M	140.85M	138.00M
Cash, Cash Equivalents and Short-Term Investments	5.07M	5.14M	3.33M	12.30M	9.34M	20.93M
Total Debt	9.67M	3.47M	14.73M	13.81M	16.87M	11.47M
Total Liabilities	32.77M	21.84M	36.11M	34.48M	42.92M	36.75M
Stockholders Equity	57.80M	49.77M	41.72M	101.69M	97.93M	101.25M
Cash Flow
Free Cash Flow	21.52M	18.95M	3.85M	9.38M	2.77M	-8.64M
Operating Cash Flow	25.11M	20.64M	15.46M	21.15M	13.33M	-892.00K
Investing Cash Flow	-23.46M	-7.41M	-11.61M	-11.77M	-23.15M	-31.47M
Financing Cash Flow	648.00K	-11.26M	-13.29M	-7.65M	-519.00K	33.42M

CareCloud Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.71 is below the 20-day moving average (MA) of 2.92, below the 50-day MA of 3.02, and below the 200-day MA of 2.76, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 33.82 is Neutral, neither overbought nor oversold. The STOCH value of 9.50 is Positive, 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	58 Neutral	$114.90M	66.58	21.49%	―	2.97%	―
AMWL	55 Neutral	$74.49M	-0.63	-38.35%	―	4.33%	50.50%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FORA	49 Neutral	$65.25M	-76.64	-2.94%	―	42.60%	67.76%
BEAT	43 Neutral	$49.94M	-2.18	-792.01%	―	―	4.31%

CareCloud Corporate Events

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.

CareCloud Mourns Loss of Director John Daly

CareCloud announced the passing of Mr. John N. Daly, a respected director of the company, who served since July 2014, on November 24, 2025. His passing marks a significant loss for the company, impacting its leadership and potentially affecting its strategic direction.

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 Plans Double Dividends for Series B Stock

CareCloud announced a plan to pay double monthly dividends on its Series B Preferred Stock starting January 2026, aiming to address 14 months of accumulated unpaid dividends from November 2023 through December 2024. This decision reflects CareCloud’s successful financial turnaround, with improved margins and growing recurring revenues, and is designed to fulfill obligations to shareholders without diluting common stock. The double payments are expected to continue until the arrears are fully satisfied, anticipated by the end of the first quarter of 2027.

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 Reports Strong Q3 2025 Financial Results

On November 6, 2025, CareCloud announced its third-quarter 2025 financial results, reporting a 9% year-over-year revenue increase and its sixth consecutive quarter of positive GAAP net income. The company raised its full-year revenue guidance to $117-$119 million, driven by successful acquisitions and AI initiatives, positioning itself as a growing leader in the healthcare technology sector.

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.