CareCloud Q3 profit grows on AI-driven efficiency gains

Overview

• Healthcare tech provider's Q3 revenue rose 9% yr/yr

• Adjusted EPS for Q3 rose to $0.14

• Company says AI automation drove efficiency and higher profitability

Outlook

• CareCloud reaffirms 2026 revenue guidance of $128 mln to $132 mln

• Company expects 2026 adjusted EBITDA of $29 mln to $31 mln

• CareCloud sees 2026 GAAP EPS between $0.20 and $0.23

Result Drivers

• AI AUTOMATION - Co said AI and automation in claims processing reduced manual work and increased efficiency, supporting higher profitability

• HIGHER-MARGIN OFFERINGS - Shift toward higher-margin products and improved operational efficiency lifted margins

• COMPLIANCE SERVICES - Recent acquisition of Empower contributed to new client wins and cross-selling opportunities

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for CareCloud Inc is $7.00, about 288.9% above its November 4 closing price of $1.80

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Nov 4 - Upland Software's Q3 revenue falls due to customer churn

• Nov 4 - Customer experience software maker NICE slightly beats Q3 revenue on AI growth, raises FY outlook

• Nov 4 - HubSpot Q3 revenue beats estimates driven by subscription growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)