CareCloud, Inc. Q4 FY2026 earnings call

Marked 2025 as transformational with exceptional financial performance, strategic acquisitions (e.g., Medsphere and MapApp), launch of Stratus AI Front Desk Agent, completion of Series A preferred share conversion, full repayment of credit line. Achieved first full year of positive EPS since IPO, generated strong free cash flow, expanded AI capabilities across platforms, and positioned for growth in 2026 with focus on AI product suite expansion, cross-selling, and building AI center of excellence.

For the full year 2025, CareCloud generated revenue of $120.5 million, with Q4 revenue at $34.4 million. GAAP net income for 2025 was $10.8 million, up over 37% year-over-year. Adjusted EBITDA expanded to $27.5 million with a 23% margin in 2025. GAAP operating cash flow was $28.6 million for the full year, up 38% year-over-year. Non-GAAP free cash flow reached approximately $20.5 million in 2025, a significant increase from prior years. Acquisitions like Medsphere Systems and MapApp expanded market reach. The ambulatory and inpatient markets are key segments with growth drivers including AI integration and cross-selling.

Expects revenue of $128 million to $130 million in 2026, adjusted EBITDA of $29 to $31 million, and GAAP EPS of $0.20 to $0.23 per share, representing over 100% increase from 2025. Guidance reflects continued growth with accelerating profitability, driven by top-line growth, integration savings, AI efficiencies, and elimination of preferred dividend obligations.

Forward-looking statements subject to risks and uncertainties beyond control, including factors that could cause actual results to differ materially from forward-looking statements. Risks related to market competition, AI adoption challenges, regulatory changes, and potential impact of economic conditions on healthcare spending.

Q: Expand on monetizing AI in 2026?

A: Integrate AI into acquired platforms like Medsphere, use AI and automation for back office processing to drive margins.

Q: Contract wins and future opportunities?

A: Focus on cross-selling and upselling to existing customers, new wins like Wellsoft and supply chain product.

Q: AI exposure and beneficiary?

A: Differentiated from companies threatened by AI, leveraging healthcare-specific data, regulations, and integrated platform.

Q: 2026 guidance assumptions and growth trajectory?

A: 2026 guidance based on top-line growth, AI efficiencies, and elimination of preferred dividends; growth to continue beyond 2026.

Q: AI impact on operations and use of excess cash?

A: AI saves costs and increases margins, excess cash used for acquisitions, capital structure enhancement, and AI investment.

Q: Competition and CapEx?

A: Compete with eClinical Works, Advanced MD, etc.; CapEx and software spending expected to be stable or less, AI benefits on expense side.