CareCloud, Inc. (CCLD)·Q3 2025 Earnings Summary

Executive Summary

• Q3 revenue of $31.07M grew 9% YoY and ~13.5% QoQ, with Adjusted EBITDA up 13% YoY to $7.73M; “sixth consecutive quarter of positive GAAP net income” and GAAP EPS of $0.04 .
• Results beat S&P Global consensus: revenue $31.07M vs $29.01M*, and Primary EPS $0.10 vs $0.04*; management raised FY25 revenue guidance to $117–$119M (from $116–$118M on 9/2 and $111–$114M previously); Adjusted EBITDA $26–$28M and GAAP EPS $0.10–$0.13 reaffirmed .
• MedSphere (closed Aug 22) contributed ~$3.4M revenue in Q3 and expanded CCLD into inpatient/hospital IT; line of credit reduced to $4.9M post-quarter, with intention to pay to zero “as soon as possible” .
• AI momentum: Agentic AI Front Desk piloting at >70% call automation and >80% scheduling success; MapApp adds benchmarking-led entry into CFO conversations; cross-sell/upsell into hundreds of hospitals is the near-term GTM focus .

What Went Well and What Went Wrong

• What Went Well

  • Raised 2025 revenue guidance again to $117–$119M on the back of MedSphere/MapApp and organic momentum; reaffirmed $26–$28M Adjusted EBITDA and GAAP EPS $0.10–$0.13 .
  • Q3 revenue beat and EPS beat vs S&P Global; revenue +9% YoY to $31.07M; Adjusted EBITDA +13% YoY to $7.73M; sixth straight quarter of GAAP profitability .
  • AI execution: “Agentic AI Front Desk” slated for mid-December launch; pilots automated >70% of incoming calls end-to-end and >80% success in scheduling tasks; management positioning as proprietary and integrated to EHR/PM .

• What Went Wrong

  • GAAP operating margin slipped YoY to 10.3% (from 11.4% in Q3’24), as amortization/integration costs rose with acquisitions, though adjusted operating margin improved to 14.5% .
  • Elevated amortization and integration expenses related to acquisitions persist; management explicitly calls out non-cash amortization impacting GAAP EPS (unchanged guidance range) .
  • Balance sheet leverage increased with the new credit facility for MedSphere (line of credit $6.5M at 9/30, reduced to $4.9M post-quarter), though management is rapidly deleveraging with operating cash flow .

Financial Results

Q3 2025 vs S&P Global consensus

• Coverage depth: EPS estimates n=1*, revenue estimates n=2* (S&P Global).
• Note: Primary EPS as tracked by S&P aligns with non-GAAP adjusted EPS here. GAAP EPS to common was $0.04 .

Selected KPIs and items (Q3 2025)

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We are pleased to raise our full-year 2025 revenue guidance… This performance… reflects the positive impact of the Medsphere and Map App acquisitions, broadening our reach within the hospital market…” — Stephen Snyder, Co-CEO .
• “By infusing AI into acquired platforms, we’re enhancing performance, driving efficiency, and opening new cross-sell and up-sell opportunities…” — A. Hadi Chaudhry, Co-CEO .
• “This is our sixth consecutive quarter of positive GAAP net income… We have reduced our line of credit borrowing to $4.9 million from the $8.3 million borrowed for the Medsphere acquisition…” — Norman Roth, Interim CFO .
• “Said simply, we are building an integrated AI-enabled ambulatory and hospital platform…” — Stephen Snyder .
• “Agentic AI Front Desk… successfully handling over 70% of incoming patient calls end-to-end… over 80% success in appointment scheduling…” — A. Hadi Chaudhry .

Q&A Highlights

• Hospital GTM: Near-term focus is cross-sell/upsell AI and RCM into hundreds of installed MedSphere hospitals; second priority is new wins, initially in critical access hospitals (~1,400 in the U.S.) .
• AI rollout: Emphasis on healthcare domain depth, compliance, and native integration with EHR/PM; pilots demonstrate automation and empathy in complex calls; large cross-sell opportunity across ambulatory + MedSphere bases .
• M&A environment/valuations: AI is compressing valuations for sellers lacking AI capability; CCLD targeting asset purchases, non-dilutive, ≤1x sales, and balance sheet flexibility .
• Deal structures and synergy goals: MedSphere $16.5M price, roughly half cash/half new credit facility; ~70–75% of consideration effectively funded by internally generated cash; target ~30%+ operating cash flow margin on acquisitions within ~3 quarters .

Estimates Context

• Q3 2025 results versus S&P Global consensus: Revenue $31.07M vs $29.01M* (beat by ~7%); Primary EPS $0.10 vs $0.04* (beat by $0.06). Estimates depth thin (EPS: 1 estimate; revenue: 2 estimates)*. The Primary EPS tracked aligns with non-GAAP adjusted EPS; GAAP EPS to common was $0.04 .
• Guidance implications: FY25 revenue guidance raised to $117–$119M (from $116–$118M on 9/2 and $111–$114M previously), implying upward pressure on revenue forecasts; Adjusted EBITDA ($26–$28M) and GAAP EPS ($0.10–$0.13) unchanged, with management noting non-cash amortization from acquisitions .

Values marked with an asterisk (*) were retrieved from S&P Global.

Key Takeaways for Investors

• Clear top-line and adjusted EPS beats alongside another profitable quarter support the turnaround and AI-led growth narrative .
• Guidance raise to $117–$119M signals confidence in MedSphere/MapApp integration and AI monetization; EBITDA/EPS maintained despite amortization drag .
• Hospital market expansion is now tangible: an at-scale installed base and a benchmarking-led sales motion should drive cross-sell/upsell in 2026+ .
• Strong cash generation (YTD CFO ~$19.9M) is funding deleveraging; LOC already down to $4.9M post-quarter, reducing financial risk and preserving optionality .
• AI Agentic Front Desk is a near-term product catalyst (mid-Dec launch) with demonstrated pilot efficacy, potentially a marquee driver of recurring revenue and operating leverage .
• Watch GAAP margins: adjusted profitability expanding, but GAAP operating margin down YoY on amortization/integration costs; track normalization as integration synergies kick in .
• Trading setup: narrative catalysts include AI product launch, hospital cross-sell traction, deleveraging updates, and any additional non-dilutive tuck-ins at ≤1x revenue .

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Citations:

• Press release and 8-K Q3 2025:
• Earnings call transcript Q3 2025:
• Q2 2025 results:
• Q2 2025 press release mirrors metrics:
• Q1 2025 results:
• Sept 2, 2025 guidance update:

S&P Global estimates used in “Financial Results” estimates table:

• Primary EPS Consensus Mean, Revenue Consensus Mean, and number of estimates for Q3 2025 (values marked with “*”).