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CareCloud
(NASDAQ:CCLD)
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Rating:81Outperform
Price Target:
$2.50
▲(12.61% Upside)
Action:Upgraded
Date:06/06/26
The overall score reflects a fundamentally strong but not risk-free story, led by robust financial recovery and attractive valuation, tempered by technical softness and integration-related near-term pressures. The most important driver is the company’s improved financial profile: a return to steady profitability, sharply reduced leverage, and healthy cash flows give the business a solid foundation even as gross and adjusted margins see some compression. Valuation is supportive, with a low P/E multiple against management guidance for significant EPS growth and AI- and acquisition-driven revenue expansion, suggesting upside if execution stays on track. The latest earnings call reinforced this constructive view by reaffirming guidance, highlighting growing AI traction and capital structure simplification, yet also acknowledged that amortization, integration costs, and seasonality will weigh on near-term GAAP results and free cash flow. Technically, the stock is volatile and trading below its intermediate and long-term moving averages, indicating that market sentiment has not fully embraced the fundamental story and that price action may remain choppy. Corporate events, including the equity incentive plan and preferred redemption via a new credit facility, modestly boost the score by aligning incentives and reducing structural overhangs, while adding some leverage and potential dilution risk. Taken together, these factors support an above-average score of 81, signaling a fundamentally improving, growth-oriented name with valuation appeal but elevated execution and market-risk considerations.
Positive Factors
Cash generation
Consistent operating cash flow and TTM free cash flow about equal to net income indicate durable cash conversion. This supports reinvestment in AI and product modernization, services scaling, and debt service capacity, reducing reliance on external financing over the medium term.
Negative Factors
Gross-margin compression
Sustained gross-margin pressure erodes the company's margin buffer and limits downstream EBITDA and net income expansion. If driven by mix shifts, higher service costs, or acquisition amortization, it can blunt the benefit of revenue growth and delay durable margin recovery until cost or pricing actions take effect.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating cash flow and TTM free cash flow about equal to net income indicate durable cash conversion. This supports reinvestment in AI and product modernization, services scaling, and debt service capacity, reducing reliance on external financing over the medium term.
Read all positive factors
CareCloud (CCLD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$102.41M
Dividend YieldN/A
Average Volume (3M)199.58K
Price to Earnings (P/E)30.7
Beta (1Y)1.94
Revenue Growth10.34%
EPS GrowthN/A
CountryUS
Employees3,650
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.08
Shares Outstanding42,492,950
10 Day Avg. Volume164,695
30 Day Avg. Volume199,584
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)18.55
Price to Sales (P/S)9.16
P/FCF Ratio53.74
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$5.25Price Target Upside136.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.19
Revenue Forecast (FY)$130.93M
CareCloud Business Overview & Revenue Model
Company Description
CareCloud, Inc. operates as a specialized healthcare technology firm, delivering a comprehensive portfolio of cloud-powered solutions and related professional services. Its primary clientele consists of medical providers and hospitals throughout t...
How the Company Makes Money
CareCloud primarily generates revenue by selling software and services to healthcare providers. Key revenue streams typically include: (1) subscription and usage-based fees for its cloud software products (e.g., practice management and EHR platfor...
CareCloud Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and strategic picture: double-digit revenue growth (13% Y/Y), commercialization and scaling of AI products (StratusAI handling ~75% of inbound calls for early adopters), successful capital structure simplification (new $50M facility and Series B redemption with no common dilution), and reaffirmation of full-year guidance with a forecasted >100% EPS improvement versus 2025. Offsetting these positives are near-term integration and amortization headwinds from the Medsphere acquisition, a drop in free cash flow and modest declines in certain adjusted metrics; management expects margins and cash generation to improve as integration and amortization effects subside and AI and cross-sell synergies ramp in the back half of the year. On balance, the call conveys momentum and clear strategic progress despite expected short-term integration costs.Positive Updates
Revenue Growth
Total revenue of $31.3 million in Q1 2026, up 13% from $27.6 million in Q1 2025.
Negative Updates
GAAP Net Income Decline vs Prior Year
Q1 2026 GAAP net income of $922,000 declined from $1.9 million in Q1 2025, primarily driven by increased amortization of acquired intangible assets and integration/transitional costs from the Medsphere acquisition.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $31.3 million in Q1 2026, up 13% from $27.6 million in Q1 2025.
Read all positive updates
Company Guidance
CareCloud reaffirmed full-year 2026 guidance calling for revenue of $128.0–$132.0 million, adjusted EBITDA of $29.0–$31.0 million and GAAP EPS of $0.20–$0.23 (more than a 100% increase versus 2025 EPS of $0.10). In Q1 the company delivered $31.3 million of revenue (up 13% year-over-year from $27.6M), GAAP operating income of ~$1.0M and GAAP net income of ~$0.9M (its eighth consecutive quarter of positive GAAP net income), adjusted EBITDA of $5.4M (17% of revenue), adjusted net income of $2.2M or $0.05 per share, and $2.4M of free cash flow; the balance sheet included ~$3.9M of cash and $2.6M of net working capital as of March 31. Management also highlighted capital moves that de-risk the outlook: a new $50M credit facility ($40M term loan / $10M revolver), an ATM equity facility for optionality, and a fully funded (~$41.6M) redemption of Series B preferred stock scheduled for May 15; on the product side they noted that stratusAI Front Desk targets a U.S. addressable market exceeding $4 billion.CareCloud Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 124.14M | 120.50M | 110.84M | 117.06M | 138.83M | 139.60M |
| Gross Profit | 39.30M | 56.04M | 49.99M | 46.24M | 54.39M | 52.68M |
| EBITDA | 28.30M | 28.26M | 25.05M | -31.29M | 21.02M | 19.70M |
| Net Income | 9.77M | 10.80M | 7.85M | -48.67M | 5.43M | 2.84M |
Balance Sheet | ||||||
| Total Assets | 86.72M | 87.60M | 71.61M | 77.83M | 136.17M | 140.85M |
| Cash, Cash Equivalents and Short-Term Investments | 3.85M | 3.12M | 5.14M | 3.33M | 12.30M | 9.34M |
| Total Debt | 5.74M | 4.28M | 3.47M | 14.73M | 13.81M | 16.87M |
| Total Liabilities | 28.39M | 28.09M | 21.84M | 36.11M | 34.48M | 42.92M |
| Stockholders Equity | 58.33M | 59.51M | 49.77M | 41.72M | 101.69M | 97.93M |
Cash Flow | ||||||
| Free Cash Flow | 26.45M | 20.53M | 18.95M | 3.85M | 9.38M | 2.77M |
| Operating Cash Flow | 27.06M | 28.56M | 20.64M | 15.46M | 21.15M | 13.33M |
| Investing Cash Flow | -24.26M | -24.54M | -7.41M | -11.61M | -11.77M | -23.15M |
| Financing Cash Flow | -5.83M | -5.61M | -11.26M | -13.29M | -7.65M | -519.00K |
CareCloud Technical Analysis
Positive
2.22
Price Trends
2.28
Positive
2.65
Negative
2.78
Negative
Market Momentum
-0.02
Positive
46.54
Neutral
16.16
Positive
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 2.22 is below the 20-day moving average (MA) of 2.29, below the 50-day MA of 2.28, and below the 200-day MA of 2.78, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.54 is Neutral, neither overbought nor oversold. The STOCH value of 16.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCLD.
CareCloud Risk Analysis
CareCloud disclosed 73 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $102.41M | 30.65 | 16.87% | ― | 10.34% | ― | |
70 Outperform | $4.02B | 29.32 | 3.59% | ― | 19.23% | 44.44% | |
61 Neutral | $655.82M | 70.50 | 2.79% | ― | 14.05% | ― | |
59 Neutral | $181.12M | -1.98 | -35.14% | ― | -9.29% | 46.89% | |
52 Neutral | $153.70M | -0.56 | -99.78% | ― | -2.83% | -223.32% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $357.69M | -0.66 | -77.89% | ― | -21.26% | -290.08% |
* Healthcare Sector Average
CCLD
CareCloud
2.44
0.13
5.63%
EVH
Evolent Health
3.09
-6.89
-69.04%
PHR
Phreesia
10.73
-15.61
-59.26%
HCAT
Health Catalyst
2.09
-1.43
-40.63%
AMWL
American Well
10.75
3.74
53.35%
WAY
Waystar Holding Corp.
21.11
-14.48
-40.69%
CareCloud Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
CareCloud Amends Credit Agreement to Refine Financing Terms
Neutral
Jun 26, 2026
On June 25, 2026, CareCloud, Inc. disclosed that it entered into a First Amendment to its Credit Agreement with Citizens Bank, N.A., effective as of May 6, 2026, adjusting certain post-closing obligations and conditions tied to its financing arran...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
CareCloud Shareholders Approve 2026 Equity Incentive Plan
Positive
Jun 5, 2026
At its June 4, 2026 annual meeting in Somerset, N.J., CareCloud shareholders approved a 2026 Equity Incentive Plan authorizing up to 1,000,000 new shares of common stock, following prior board approval. The plan is intended to support equity-based...
Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and Compliance
CareCloud fully redeems and delists Series B preferred
Neutral
May 15, 2026
CareCloud, Inc. redeemed and delisted its 8.75% Series B Cumulative Redeemable Perpetual Preferred Stock in May 2026, while keeping its common stock listed on the Nasdaq Global Market under the symbol CCLD. The Series B preferred shares were delis...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
CareCloud posts Q1 results, expands AI healthcare offerings
Positive
May 7, 2026
On May 7, 2026, CareCloud reported first-quarter 2026 results showing revenue of $31.3 million, up 13% year over year from $27.6 million, alongside its eighth consecutive quarter of positive GAAP net income, though profit dipped to $922,000 from $...
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.