CareCloud : Earning Document (CareCloud Q1 2026 Earnings Presentation)

Published: 2026-05-07 07:35:13 ET CCLD

Published on 05/07/2026 at 07:35 am EDT

NASDAQ GLOBAL MARKET: CCLD, CCLDO

Earnings Call

A leading provider of technology-enabled services and AI-based solutions for the healthcare revenue cycle.

Q1 2026 EARNINGS CALL · HOSTS

Mahmud Haq

Founder & Executive Chairman

Stephen Snyder

Chief Executive Officer

A. Hadi Chaudhry

Chief Strategy Officer

Norman Roth

CFO & Corporate Controller

FOR THE EXCLUSIVE USE OF INVESTORS & ANALYSTS · NASDAQ: CCLD, CCLDO

OPENING REMARKS

Chief Executive Officer

Q1 2026 · FINANCIAL HIGHLIGHTS

A strong, on-plan start to the year

REVENUE

$31.3M

+13% vs. $27.6M

RECURRING REVENUE

~74%

of total, up from 64%

REVENUE · Q1 YEAR-OVER-YEAR ($M)

$31.3

$27.6

ADJUSTED EBITDA

$5.4M

vs. $5.6M prior year

ADJ. EPS

$0.05

in line with prior year

GAAP impact: Operating income $1.0M / Net income $0.9M - lower as expected, driven by amortization and integration from 2025 acquisitions.

Q1 2025 Q1 2026

APRIL 2026 · CAPITAL STRUCTURE

A watershed balance-sheet simplification

NEW CREDIT FACILITY

$50M

$40M term loan + $10M revolver

Citizens Bank · Provident Bank

Closed April 13, 2026

Series B fully redeemed

100% redemption authorized April 14; ~$41.6M prefunded. Scheduled May 15, 2026.

Preferred overhang removed

Combined with March 2025 Series A conversion (~80%), the preferred-equity overhang is effectively eliminated.

Cleaner story, no dilution

High-cost preferred dividends swapped for lower-cost senior debt - with zero common

shareholder dilution from the redemption.

FULL-YEAR 2026 · GUIDANCE REAFFIRMED

Confidence in our 2026 outlook

Driven by RCM growth + AI ramp + 2025

acquisition synergies

$128-$132M

REVENUE

Margin expansion as integration costs roll off

through H2

$29-$31M

ADJUSTED EBITDA

>100% increase vs. 2025 EPS of $0.10

$0.20-$0.23

GAAP EPS

More capability, more scale, more momentum than at any point in our history.

AI & STRATEGY ·

Chief Strategy Officer

OUR AI STRATEGY

Three Tracks. One Compounding Investment.

Outcome: margin expansion

AI applied to our own RCM, financial, and

administrative operations.

Back-end Optimization

Outcome: retention & expansion

AI built into EHR, PM, patient engagement,

and benchmarking - products clients already use.

Embedded AI in Existing Apps

Outcome: new revenue lines

Standalone AI for high-value workflows.

stratusAI, cirrusAI, and an expanding

pipeline.

New AI Products

Same investment. Three economic outcomes. Each de-risks the others.

TRACK 1 / BACK-END OPTIMIZATION

AI Inside Our Own Operations

OPERATIONS

RCM, Financial, Admin

Reducing claim errors

across submission workflows

Improving documentation accuracy

in RCM and clinical workflows

Increasing first-pass acceptance

rates with payers

Higher volumes, same headcount

across admin and finance teams

↑ Higher code quality

↑ Output per engineer

Two compounding outcomes

App design

QA & testing

Code review

Code generation

Adopting AI tools across the software development lifecycle:

AI Across the SDLC

R&D

TRACK 1 / HOW WE MEASURE PROGRESS

Watch the Lead Indicators, Not Just the Lag

Acceptance rates

Denial ratios

Final reimbursement

LAG INDICATORS

What already happened

LEAD INDICATORS

What predicts performance

How early errors are caught in the workflow

How many claims are pre-validated before submission

Human intervention required per claim

AI predicts denials → rules configured proactively

NORTH STAR

Zero-Touch Claims

AI handles intake, validation, submission, and follow-up - billing teams focus on exceptions, not routine processing.

TRACK 2 / EMBEDDED AI

AI Inside the Apps Clients Already Use

EHR

Clinical workflows

Practice Management

Scheduling & intake

Patient Engagement

Communications

Benchmarking

Performance analytics

+ AI embedded inside each platform

Hospital systems, health networks, and emergency departments. AI work

is in earlier stages - platforms get more valuable when AI is part of them.

ACQUISITION LEVERAGE

Medsphere & MAP App

THE THESIS

Invisible AI

AI invisible to the user - they simply find that the software is doing more for them than it used to.

TRACK 3 / NEW AI PRODUCTS

Depth Before Breadth

stratusAI

EXPANDING

Desk Agent

Agentic AI Front Desk

Q1 STATUS

Continued signing new business - almost entirely from existing client base

Focus: every signed agent implemented well,

completes trial, expands inside account

Expansion = more agents, more functions, longer

hours, broader use cases

stratusAI

COMPLEMENTARY

Voice Audit

Conversational Intelligence

Q1 STATUS

Visibility into AI-handled and staff-handled patient calls

Adopted alongside Desk Agent on day one - or later

as deployment matures

Deepens stratusAI footprint inside the account

cirrusAI

EXPANDING TO INPATIENT

Notes

Ambient Clinical Documentation

Q1 STATUS

Q1 focus: integration into the inpatient platforms acquired through Medsphere

Different clinical workflow, different user, different

buying center

Cross-pollination between acquisitions and AI

portfolio - the multiplier effect

TRACK 3 / THE PIPELINE

What's Coming Next

In active development inside the AI Center of Excellence - bringing to market is a goal for this year.

Reduces revenue leakage and turnaround time

Automating one of the most significant

administrative burdens in healthcare - predicting authorization requirements, pre-populating documentation, routing requests automatically.

AI Prior Authorization

In Development

Higher first-pass acceptance, fewer denials

Helping practice and hospital billing teams

improve coding accuracy and consistency - with AI suggestions that are reviewed and confirmed by human coders.

AI-Assisted Medical Coding

In Development

Provider time saved, better record quality

Expanding the ambient documentation capability

beyond Notes to support new workflows and specialties - building on what cirrusAI has already proven.

Additional Clinical

Documentation

In Development

WHY THREE TRACKS TOGETHER

Only Track 1

Captures margin, but doesn't differentiate the product.

Each Track De-Risks the Others

Only Track 3

Bet rests entirely on new products achieving scale.

Only Track 2

Strengthens retention, but no new revenue lines.

Q1: each track moved forward - together they are the durable, profitable AI strategy we are executing.

ALL THREE AT ONCE

CareCloud's AI Strategy

Internal AI improves economics regardless of new-product scale

Embedded AI strengthens existing revenue base regardless of new markets

New AI products open new revenue lines on top of a stronger installed base

FINANCIAL REVIEW

Interim CFO & Corporate Controller

Q1 2026 · FINANCIAL REVIEW

Q1 2026 Highlights

Revenue

$31.3

$27.6

Q1 2025

Q1 2026

Net Income

$1.9

$0.9

Q1 2025

Q1 2026

8th consecutive quarter of positive GAAP net income · recurring tech-enabled revenue +$5.3M Y/Y

Q1 2026 · FINANCIAL REVIEW

Q1 2026 Highlights - Non-GAAP

Adjusted EBITDA*

$5.6

$5.4

Q1 2025

Q1 2026

Free Cash Flow*

$3.6

$2.4

Q1 2025

Q1 2026

Adjusted Net Income*

$2.3

$2.2

Q1 2025

Q1 2026

* Non-GAAP measure - see appendix for reconciliation

CLOSING REMARKS

Founder & Executive Chairman

carecloud.com

INVESTOR RELATIONS

ir.carecloud.com

Stephen Snyder · Chief Executive Officer

[email protected]

A1 · NON-GAAP RECONCILIATION

GAAP Net Income to Adjusted EBITDA

$ in thousands

Q1 2025

Q1 2026

GAAP net income

$ 1,948

$ 922

Provision for income taxes

Net interest expense

Foreign exchange / other expense

Stock-based compensation expense

108

Depreciation and amortization

3,337

4,037

Transaction and integration costs

158

Restructuring costs

114

Change in contingent consideration

Adjusted EBITDA

$ 5,595

$ 5,370

A2 · NON-GAAP RECONCILIATION

GAAP Net Income to Adjusted Net Income

$ in thousands

Q1 2025

Q1 2026

GAAP net income

$ 1,948

$ 922

Foreign exchange / other expense

Stock-based compensation expense

108

Amortization of purchased intangible assets

928

Transaction and integration costs

158

Lease termination & restructuring costs

114

Change in contingent consideration

Adjusted Net Income

$ 2,290

$ 2,161

A3 · NON-GAAP RECONCILIATION

Net Cash Provided by Operating Activities to Free Cash Flow

$ in thousands

Q1 2025

Q1 2026

Net cash provided by operating activities

$ 5,113

$ 3,611

Purchases of property and equipment

(624)

(412)

Capitalized software & other intangibles

(846)

(820)

Free Cash Flow

$ 3,643

$ 2,379

Net cash used in investing activities¹

$ (1,510)

$ (1,232)

Net cash used in financing activities

$ (1,932)

$ (2,150)

1. Net cash used in investing activities includes payments for acquisitions, purchases of property and equipment and capitalized software and other intangible assets. Purchases of property and equipment and capitalized software and other intangibles are included in our computation of free cash flow.

Disclaimer

CareCloud Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 11:32 UTC.