CareCloud (CCLD) AI Stock Analysis

• Market Cap: $94.38M
• Dividend Yield: N/A
• Average Volume (3M): 515.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.74
• Revenue Growth: -0.45%
• EPS Growth: 94.32%
• Country: US
• Employees: 3,650
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.04
• Shares Outstanding: 42,321,130
• 10 Day Avg. Volume: 318,558
• 30 Day Avg. Volume: 515,989
• PEG Ratio: 0.10
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.52
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 0.86
• Enterprise Value/Ebitda: 164.69
• 1Y Price Target: $4.13
• Price Target Upside: 91.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: $2.50 ▲(15.74%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 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 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 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
112.51M	110.84M	117.06M	138.83M	139.60M	105.12M
	Gross Profit
51.38M	49.99M	46.24M	54.39M	52.68M	40.30M
	EBIT
11.01M	9.12M	-47.12M	4.06M	3.53M	-8.26M
	EBITDA
24.64M	25.05M	-31.29M	21.02M	19.22M	4.57M
	Net Income Common Stockholders
10.04M	7.85M	-48.67M	5.43M	2.84M	-8.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.80M	5.14M	3.33M	12.30M	9.34M	20.93M
	Total Assets
73.56M	71.61M	77.83M	136.17M	140.85M	138.00M
	Total Debt
3.29M	3.47M	14.73M	13.81M	16.87M	11.47M
	Net Debt
-3.52M	-1.68M	11.40M	1.51M	7.53M	-9.46M
	Total Liabilities
19.38M	21.84M	36.11M	34.48M	42.92M	36.75M
	Stockholders Equity
54.18M	49.77M	41.72M	101.69M	97.93M	101.25M
Cash Flow		Free Cash Flow
19.15M	18.95M	3.85M	9.38M	2.77M	-8.64M
	Operating Cash Flow
21.69M	20.64M	15.46M	21.15M	13.33M	-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	-519.00K	33.42M

CareCloud Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Positive. The current price of 2.16 is above the 20-day moving average (MA) of 2.11, above the 50-day MA of 1.81, and below the 200-day MA of 2.62, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 67.65 is Neutral, 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	67 Neutral	$94.38M	―	21.00%	―	-0.45%	94.32%
FORA	57 Neutral	$63.65M	―	-13.02%	―	9.00%	-215.40%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
NEUE	51 Neutral	$60.80M	―	84.03%	―	-17.91%	83.17%
BYSI	44 Neutral	$101.19M	―	78.44%	―	―	―
CNTX	37 Underperform	$59.97M	―	-55.59%	―	―	65.02%
UNCY	28 Underperform	$64.19M	―	-2355.27%	―	-100.00%	52.65%

CareCloud Corporate Events

CareCloud Holds Annual Shareholders Meeting on May 27

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.

CareCloud Reports Strong Q1 2025 Financial Results

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.

CareCloud Declares May and June 2025 Dividends

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.

CareCloud Declares Dividends and Converts Preferred Stock

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.

CareCloud Reports Strong Financial Turnaround in 2024

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.