CareCloud, Inc.

Second-quarter 2026 revenue was $31.9 million, up 16% from $27.4 million in the prior-year quarter. GAAP net income was $1.1 million versus $2.9 million a year ago, adjusted EBITDA was $5.9 million, adjusted net income was $2.4 million or $0.06 per share, and free cash flow was $5.7 million versus $5.4 million last year. Gross margins were said to be consistent year over year, but no percentage was given. For the first half of 2026, revenue was $63.2 million, adjusted EBITDA was $11.3 million, and free cash flow was $8.1 million. Management reaffirmed full-year 2026 guidance of revenue of $128 million to $132 million, adjusted EBITDA of $29 million to $31 million, and GAAP EPS of $0.20 to $0.23; it said this implies a materially stronger second half, helped by seasonality, continued customer expansion, Empower cross-sell, and the full benefit of Series B dividend elimination.

Stephen Snyder framed the quarter as one of disciplined execution and strategic progress, emphasizing the company’s move toward a cleaner capital structure, a larger recurring revenue mix, and a broader platform that now includes compliance and audit defense. He said the second half should benefit from integration work that is largely behind the company, lower preferred dividend burden, and growth from existing enterprise customers and cross-selling. His tone was confident but measured, repeatedly tying near-term pressure to deliberate investment rather than margin erosion.

Norman Roth focused on the mechanics behind the quarter and the guidance bridge. He cited Q2 revenue of $31.9 million, GAAP net income of $1.1 million, adjusted EBITDA of $5.9 million, free cash flow of $5.7 million, and cash of about $13.4 million at June 30, 2026. He said the company redeemed all Series B preferred stock during the quarter, cutting annual preferred dividends by $3.3 million, and noted that an accelerated, declining-balance amortization schedule will reduce amortization over time. He also highlighted the new $50 million credit facility and $60 million at-the-market equity program as added flexibility for future growth opportunities.

Analysts pressed management on what would make the second half materially better, and the company pointed to seasonality, revenue growth on top of the existing base, better enterprise expansion, Empower cross-sell, and lower integration/amortization pressure. A question on Empower’s financial contribution got the answer that it should be minimal in the near term financially, but strategically important because CareCloud plans to turn the service into a SaaS offering and cross-sell both ways. Management also said Medsphere cross-selling still has significant runway, AI demand remains strong with more deals being signed, and the March cyber incident is believed to be contained, with insurance expected to cover related costs.