By Lisa Thompson
NASDAQ: CCLD
READ THE FULL CCLD RESEARCH REPORT
CareCloud (NASDAQ: CCLD) reported Q1 2026 revenues of $31.3 million versus $27.6 million a year ago, up 13.2%. The increase of $3.6 million was entirely from acquisitions: $6.8 million in revenues from Medsphere, $300,000 from RevNu, and $191,000 from the MAP app (all versus none last year). These gains were offset by a decline in professional services of $2.7 million and a decline of $1.4 million in CareCloud business solutions. Total expenses were up $4.7 million over last year, with direct operating costs up $1.4 million, R&D up $1.2 million, G&A up $1.2 million, and depreciation and amortization up $700,000, primarily due to last year’s acquisition of Medsphere in August. The company still has higher expenses due to integrating its acquisitions, including redundant systems and personnel, and transitional costs. We expect these to decline going forward.
Operating income was $1.0 million versus $2.0 million last year. Net income was $922,000 compared to $2.0 million last year, representing the company’s eighth consecutive positive net income quarter. Net income attributable to common shareholders was a loss of $433,000 versus a loss of $848,000 last year. With the preferred redemption, the preferred stock dividend will be much reduced in future quarters, with the payment being approximately $411,000 lower in Q2 2026.
Excluding stock-based compensation expense, amortization of purchased intangible assets, other (income)/expense, transaction and integration costs, as well as preferred stock dividends, adjusted EPS totaled $0.05, flat with last year.
The company reaffirmed its guidance for the year as follows:
We expect Q2 to come in lower than we originally forecast and are lowering revenues and EPS for the quarter while keeping the year within guidance. We look forward to May 15th, when the company will redeem its Series B preferred stock. The redemption will eliminate approximately $3.2 million in annual preferred dividend obligations and replace higher-cost preferred equity with lower-cost institutional debt. Given this restructuring, the stock price could appreciate as investors see expenses reduced and cash flow improved. We remain at our current price target of $6.00 per share.
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