By Lisa Thompson
NASDAQ: CCLD
READ THE FULL CCLD RESEARCH REPORT
We are adjusting our estimates to reflect the redemption of the preferred shares and tweaking quarterly revenues and earnings to account for seasonality in health care usage, which impacts CareCloud’s (NASDAQ: CCLD) revenues and earnings. In the second half of the year, revenues are typically higher as patients rush to address needs before the year ends, use up allowances, and buy drugs and services once their deductibles are met. Q3 is typically higher than Q4 because of Q4 holidays. On the flip side, Q1 is typically weak as patients and medical providers both put off activity and billing until deductibles are met.
We are not changing annual estimates or valuation. Please see our model for the changes.
Redemption of the Series B Preferred
CareCloud announced it closed a $50 million credit facility with Citizens Bank, N.A., and Provident Bank on April 13, 2026, and that will allow it to redeem 100% of its outstanding 8.75% Series B Cumulative Redeemable Perpetual Preferred Stock on May 15th. The redemption will eliminate approximately $3.2 million in annual preferred dividend obligations and replace higher-cost preferred equity with lower-cost institutional debt.
Other News
Cyber Breach Shuts Down CareCloud Health for a Few Hours, But Insurance Will Cover Costs
On March 16, 2026, CareCloud experienced a temporary network disruption in its CareCloud Health division that partially affected functionality and data access in one of its six electronic health record environments for approximately eight hours. It was fully restored that evening. Upon discovery, the company promptly reported the matter to its cybersecurity carrier. It engaged a cyber response team from KPMG to perform external cybersecurity work and to assist with securing the environment, as well as to conduct a comprehensive IT forensic investigation to determine the nature and scope of this incident. CareCloud believes that the incident was contained to the CareCloud Health environment. At this time, the company believes that its cybersecurity insurance will cover any potential losses, including any potential regulatory fines for privacy violations. It believes that the incident was caused by an unauthorized third party, who has been reported to the appropriate law enforcement authorities.
On April 6, 2026, CareCloud announced that Arkansas Otolaryngology Center, P.A., a multi-location Ear, Nose, Throat, Allergy, and Sleep practice based in Little Rock, has selected CareCloud’s AI-powered practice management and revenue cycle management solutions.
REFINING EPS ESTIMATES; NO CHANGE TO $6.00 PRICE TARGET
On a GAAP basis, our updated model calls net income attributable to common shareholders of $0.23 per share for 2026 (at the high end of management’s guidance range of $0.20 to $0.23), followed by $0.32 per share in 2027. Excluding stock-based compensation expense, amortization of purchased intangible assets, other (income)/expense, integration costs, transaction costs, goodwill impairment charges, changes in contingent considerations, and related tax impacts, as well as preferred stock dividends, we forecast Adjusted EPS of $0.41 for 2026 and $0.49 for 2027. From a top-line perspective, we forecast total revenues of $130.5 million in 2026 (within management’s $128 million to $132 million guidance range), followed by $143.5 million in 2027, as business development initiatives increasingly take hold and management captures incremental economics from existing customers via complementary services. Furthermore, senior executives provided 2026 Adjusted EBITDA guidance of $29 million to $31 million.
Turning to valuation, no change to the $6.00 DCF-derived price target, representing meaningful upside potential from current levels. We continue to look for an upward revaluation for shares of CCLD, as awareness and appreciation of the company’s unique business model, durable competitive advantages, and reaccelerating growth prospects compound. Moreover, comparable Healthcare Information Services small-cap stocks continue to trade at meaningfully higher Price-to-Earnings multiples across the board, thereby reinforcing our valuation work.
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