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CareCloud (CCLD)
NASDAQ:CCLD

CareCloud (CCLD) AI Stock Analysis

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CareCloud

(NASDAQ:CCLD)

Rating:67Neutral
Price Target:
$2.50
▲(11.61%Upside)
CareCloud's overall score is driven by strong financial performance and a positive earnings call, which highlight improvements in profitability and strategic direction. The technical analysis and valuation present challenges, with indications of volatility and overvaluation concerns. Continued strategic management and focus on growth initiatives are key to offsetting these risks.
Positive Factors
Financial Performance
CareCloud reported 1Q25 results with revenue up 6% year-over-year, and adjusted EBITDA up 52% year-over-year, both topping expectations.
Strategic Initiatives
Management is rolling out a Healthcare AI Center of Excellence with plans to grow to 500 employees, highlighting a significant focus on AI.
Valuation
CCLD trades at a 2026 EV/EBITDA multiple of 4.3x vs. a peer group average of 12.5x, suggesting it may be undervalued compared to peers.
Negative Factors
Dividend Obligations
The mandatory conversion of Preferred A stock improves free cash flow and reduces dividend obligations by over $10M.
Revenue Growth
This was the first quarter of year-over-year revenue growth in over two years, attributed to traction in AI and growth in healthcare IT services.

CareCloud (CCLD) vs. SPDR S&P 500 ETF (SPY)

CareCloud Business Overview & Revenue Model

Company DescriptionCareCloud, Inc. (CCLD) is a healthcare technology company that provides cloud-based solutions for healthcare providers. It operates in the healthcare IT sector, focusing on delivering a comprehensive suite of solutions designed to enhance clinical, financial, and administrative workflows for medical practices. CareCloud's core products and services include electronic health records (EHR), practice management software, revenue cycle management (RCM) solutions, and patient experience management tools, all aimed at improving the efficiency and profitability of healthcare practices.
How the Company Makes MoneyCareCloud makes money through a combination of subscription and service fees for its technology solutions. The company primarily generates revenue by offering its software-as-a-service (SaaS) platform to healthcare providers, who pay recurring subscription fees to access its suite of cloud-based tools. Additionally, CareCloud earns revenue through revenue cycle management services, where it provides billing and collection services for healthcare practices, often taking a percentage of the collections as a fee. The company may also engage in strategic partnerships and collaborations that can enhance its product offerings and expand its market reach, thereby contributing to its revenue growth.

CareCloud Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 28.00%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook for CareCloud, highlighting significant financial improvements, strategic initiatives in AI, and successful cost management. While there were some areas with limited growth expectations, the positive achievements and strategic direction outweigh these concerns.
Q1-2025 Updates
Positive Updates
Revenue Growth in Q1 2025
CareCloud reported revenue of $27.6 million for Q1 2025, up from $26 million in the same period last year, indicating ongoing demand for their integrated AI-enabled RCM solutions.
Significant Increase in GAAP Net Income
The company reported a GAAP net income of $1.9 million, a considerable improvement from a net loss of $241,000 in Q1 2024.
Adjusted EBITDA Growth
Adjusted EBITDA rose to $5.6 million, up 52% year-over-year, highlighting successful cost management and operational efficiency.
Series A Preferred Stock Conversion
The conversion of Series A preferred stock into common stock reduced dividend obligations from $3.9 million to $1.5 million per quarter, enhancing financial flexibility.
Launch of AI Center of Excellence
CareCloud launched an AI Center of Excellence, aiming to expand to 500 AI professionals by the end of the year, focusing on various AI-driven healthcare automation initiatives.
Strategic Acquisitions
Completed acquisitions of MesaBilling and RevNu Medical Management, expected to be accretive within 90 days, marking a return to M&A activities.
Negative Updates
Limited Growth in MedSR
Despite a special project contributing to growth, MedSR revenue is expected to remain flat moving forward.
Small Contribution from RPM and CCM Services
Remote Patient Monitoring and Chronic Care Management services, while growing, still represent a small portion of total revenue, under 5%.
Company Guidance
In the first quarter of fiscal year 2025, CareCloud, Inc. reported revenue of $27.6 million, up from $26 million in the same period of the previous year, driven by demand for its AI-enabled RCM solutions. GAAP net income reached $1.9 million, a turnaround from a net loss of $241,000 in Q1 2024, with adjusted EBITDA increasing by 52% year-over-year to $5.6 million. The company executed a mandatory conversion of Series A preferred stock, reducing dividend obligations from $3.9 million to $1.5 million per quarter and enhancing financial flexibility. CareCloud launched an AI Center of Excellence with over 50 professionals, targeting 500 by year-end, focusing on automating processes and improving patient engagement. The company also completed strategic acquisitions of MesaBilling and RevNu Medical Management, expected to be accretive within 90 days, signaling a renewed focus on growth through acquisitions. The company reaffirmed its full-year 2025 revenue guidance of $111 million to $114 million and adjusted EBITDA of $26 million to $28 million.

CareCloud Financial Statement Overview

Summary
CareCloud demonstrates a strong financial recovery and stability, particularly in cash flow and profitability. The company has effectively managed costs and improved operational efficiency, as reflected in the margins. While the balance sheet is solid with low debt, a high reliance on equity could be a constraint. Continued focus on revenue growth and strategic financial management will be key to sustaining this positive momentum.
Income Statement
75
Positive
CareCloud's income statement exhibits a positive trajectory, with a significant recovery from a loss in 2023 to a profitable position in TTM 2025. The gross profit margin stands at 45.7% and the net profit margin is at 8.9%, indicating efficient cost management. Despite a slight revenue decline in the past, the EBIT margin has improved to 9.8% in TTM 2025, reflecting better operational performance.
Balance Sheet
70
Positive
The balance sheet shows strong equity with a debt-to-equity ratio of 0.06, indicating low financial leverage. The return on equity (ROE) is 18.5%, demonstrating effective use of shareholders' funds to generate profits. However, the equity ratio of 73.6% suggests a heavy reliance on equity financing, which could limit growth opportunities.
Cash Flow
80
Positive
Cash flow analysis reveals a robust performance with a free cash flow growth rate of 1.1%. The operating cash flow to net income ratio of 2.16 signifies strong cash generation ability relative to net earnings. The free cash flow to net income ratio is 1.91, indicating efficient cash management and potential for reinvestment or debt reduction.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
112.51M110.84M117.06M138.83M139.60M105.12M
Gross Profit
51.38M49.99M46.24M54.39M52.68M40.30M
EBIT
11.01M9.12M-47.12M4.06M3.53M-8.26M
EBITDA
24.64M25.05M-31.29M21.02M19.22M4.57M
Net Income Common Stockholders
10.04M7.85M-48.67M5.43M2.84M-8.81M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.80M5.14M3.33M12.30M9.34M20.93M
Total Assets
73.56M71.61M77.83M136.17M140.85M138.00M
Total Debt
3.29M3.47M14.73M13.81M16.87M11.47M
Net Debt
-3.52M-1.68M11.40M1.51M7.53M-9.46M
Total Liabilities
19.38M21.84M36.11M34.48M42.92M36.75M
Stockholders Equity
54.18M49.77M41.72M101.69M97.93M101.25M
Cash FlowFree Cash Flow
19.15M18.95M3.85M9.38M2.77M-8.64M
Operating Cash Flow
21.69M20.64M15.46M21.15M13.33M-892.00K
Investing Cash Flow
-7.05M-7.41M-11.61M-11.77M-23.15M-31.47M
Financing Cash Flow
-11.81M-11.26M-13.29M-7.65M-519.00K33.42M

CareCloud Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.24
Price Trends
50DMA
1.79
Positive
100DMA
2.34
Negative
200DMA
2.63
Negative
Market Momentum
MACD
0.09
Negative
RSI
63.45
Neutral
STOCH
69.61
Neutral
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 2.24 is above the 20-day moving average (MA) of 2.10, above the 50-day MA of 1.79, and below the 200-day MA of 2.63, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 69.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCLD.

CareCloud Risk Analysis

CareCloud disclosed 72 risk factors in its most recent earnings report. CareCloud reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

CareCloud Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$94.38M21.00%-0.45%94.32%
57
Neutral
$63.65M-13.02%9.00%-215.40%
54
Neutral
$5.37B3.35-45.10%2.79%16.77%-0.01%
51
Neutral
$60.44M84.03%-17.91%83.17%
44
Neutral
$101.19M78.44%
37
Underperform
$59.97M-55.59%65.02%
28
Underperform
$91.00M-2355.27%-100.00%52.65%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CCLD
CareCloud
2.24
-0.59
-20.85%
BYSI
Beyondspring
2.91
0.55
23.31%
FORA
Forian
2.06
-0.56
-21.37%
NEUE
NeueHealth Inc
6.81
1.41
26.11%
UNCY
Unicycive Therapeutics
0.63
-0.03
-4.55%
CNTX
Context Therapeutics
0.62
-1.38
-69.00%

CareCloud Corporate Events

Executive/Board ChangesShareholder Meetings
CareCloud Holds Annual Shareholders Meeting on May 27
Neutral
May 28, 2025

CareCloud held its Annual Meeting of Shareholders on May 27, 2025, in Somerset, New Jersey, where key decisions were made regarding the company’s governance and financial oversight. During the meeting, three directors were elected to the Board, executive compensation was approved, and Rosenberg Rich Baker Berman, P.A. was appointed as the independent registered public accounting firm for the year ending December 31, 2025.

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.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
CareCloud Reports Strong Q1 2025 Financial Results
Positive
May 6, 2025

On May 6, 2025, CareCloud reported strong financial results for Q1 2025, with a 6% year-over-year revenue increase to $27.6 million and a GAAP net income of $1.9 million, marking a significant turnaround from a net loss in Q1 2024. The company launched an AI Center of Excellence, completed strategic acquisitions, and converted preferred stock to strengthen cash flow, positioning itself for sustained profitability and growth.

DividendsBusiness Operations and Strategy
CareCloud Declares May and June 2025 Dividends
Positive
May 2, 2025

On May 2, 2025, CareCloud announced that its Board of Directors declared monthly cash dividends for its 8.75% Series A and Series B Cumulative Redeemable Perpetual Preferred Stock for May and June 2025. The announcement highlights the company’s continued commitment to providing returns to its shareholders, reflecting its stable financial position and strategic focus on maintaining investor confidence.

Delistings and Listing ChangesDividends
CareCloud Declares Dividends and Converts Preferred Stock
Neutral
Mar 14, 2025

On March 14, 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 March and April 2025. The dividends reflect an 8.75% annual rate, with additional payments for Series A due to previous higher dividend rates. The announcement also noted the mandatory conversion of Series A Preferred Stock into common stock on March 6, 2025, leading to its delisting from the Nasdaq Global Market. This move may impact stakeholders by altering the company’s stock structure and market presence.

DividendsBusiness Operations and StrategyFinancial Disclosures
CareCloud Reports Strong Financial Turnaround in 2024
Positive
Mar 13, 2025

On March 13, 2025, CareCloud reported strong financial results for the full year 2024, marking a significant turnaround from 2023. The company achieved a GAAP net income of $7.9 million, compared to a net loss of $48.7 million the previous year, and adjusted EBITDA increased by 56% to $24.1 million. The company also resumed preferred dividends and fully repaid its credit line, positioning itself for future growth. CareCloud’s strategic execution and AI-driven innovation have contributed to its improved financial performance and strengthened balance sheet, setting the stage for continued profitability and long-term growth.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.