CareCloud Turns a Profit in Q1 as Healthcare Tech and AI Strategy Delivers Results

CareCloud (Nasdaq: CCLD), a healthcare technology company offering cloud-based solutions and AI tools for medical practices, reported $1.9 million in Q1 net income, its fourth straight quarter of profitability. Revenue grew 6% year-over-year to $27.6 million, and adjusted EBITDA rose 52% to $5.6 million, driven by expanding adoption of its AI-powered software and recent tuck-in acquisitions.

The company launched its AI Center of Excellence, with plans to scale to 500 specialists by year-end, and completed two strategic acquisitions to strengthen its presence in specialty healthcare markets. CareCloud reaffirmed its full-year guidance and said it is well-positioned to scale profitably through a combination of AI-driven innovation, automation, and disciplined M&A.

First-quarter growth was driven by strong demand for CareCloud's integrated healthcare technology platform, solid operating leverage, and ongoing cost control. The company generated $3.6 million in free cash flow, enabling the resumption of preferred dividend payments and reinvestment in high-impact initiatives.

In addition, CareCloud enhanced its capital structure by converting 3.5 million Series A preferred shares, cutting its quarterly dividend obligation by over $2 million and freeing up capital to support long-term growth.

AI and M&A Take Center Stage

CareCloud's AI Center of Excellence, launched in Q1, is now fully operational with 50+ AI professionals onboarded and a target of 500 by year-end. The center is fully self-funded through operating cash flow and is focused on automating clinical documentation, streamlining revenue cycle operations, and improving provider and patient engagement.

The company also reignited its acquisition strategy, closing two tuck-in deals, MesaBilling and RevNu Medical Management, and reaffirmed plans to pursue additional strategic acquisitions that align with its platform and service capabilities.

On the Call: Management Discussion

On the Q1 earnings call, management emphasized that CareCloud is now positioned to scale both profitably and strategically. Co-CEO Stephen Snyder noted the success of the capital restructuring and its impact on free cash flow, while highlighting the importance of leveraging tuck-in M&A to grow cost-effectively.

Co-CEO Hadi Chaudhry provided a deep dive into early traction from AI deployments, including CirrusAI Notes, an ambient clinical documentation tool, and CirrusAI Voice, an AI-powered call auditing solution currently under evaluation at two large healthcare organizations. Chaudhry emphasized that CareCloud's long-standing healthcare expertise and data footprint give it a competitive edge in building real-world, scalable AI solutions.

Interim CFO Norman Roth confirmed that AI-driven efficiencies are already helping to improve margins and that the company expects continued operating leverage throughout the year. Management also reiterated that full-year guidance remains intact and that the companys Form S-3 shelf registration provides capital flexibility, though no immediate financing is planned.

2025 Guidance Reaffirmed

CareCloud reaffirmed its full-year 2025 guidance, expecting:

• Revenue of $111 to $114 million
• Adjusted EBITDA of $26 to $28 million
• GAAP EPS of $0.10 to $0.13

Revenue growth will be driven by existing client expansion, modest organic growth, and the contribution from recent acquisitions. The company expects to continue generating positive GAAP earnings and free cash flow.

Outlook

With improving fundamentals, active AI development, and a renewed M&A strategy, CareCloud is positioning itself as a leader in intelligent healthcare transformation. Management emphasized that continued innovation, financial discipline, and strategic execution will be key drivers of value creation through the rest of 2025.

The post CareCloud Turns a Profit in Q1 as Healthcare Tech and AI Strategy Delivers Results appeared first on PRISM MarketView.

COMTEX_465273876/2927/2025-05-06T18:31:11