---
title: "CareCloud | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 31.27 M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285619781.md"
datetime: "2026-05-07T21:05:17.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285619781.md)
  - [en](https://longbridge.com/en/news/285619781.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285619781.md)
---

# CareCloud | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 31.27 M

Revenue: As of FY2026 Q1, the actual value is USD 31.27 M, beating the estimate of USD 30.51 M.

EPS: As of FY2026 Q1, the actual value is USD -0.01.

EBIT: As of FY2026 Q1, the actual value is USD 1.048 M.

#### Net Revenue

-   **Three Months Ended March 31, 2026**
    -   Net revenue was $31,270 thousand, an increase of 13% compared to the prior year period.
    -   Healthcare IT segment revenue was $27,504 thousand.
    -   Medical Practice Management segment revenue was $3,766 thousand.
    -   Revenue from technology-enabled business solutions was $23,032 thousand, representing approximately 74% of total revenue.
    -   Revenue from professional services was $3,144 thousand.
    -   Revenue from printing and mailing services was $1,101 thousand.
    -   Revenue from group purchasing services was $227 thousand.
    -   Revenue from medical practice management services was $3,766 thousand, representing approximately 12% of total revenue.
    -   Revenue from the Medsphere acquisition was approximately $6.8 million.
    -   Revenue from the MAP App acquisition was approximately $191 thousand.
    -   Revenue from the RevNu acquisition was approximately $300 thousand.
    -   Revenue from chronic care management was approximately $516 thousand.
    -   Revenue from remote patient monitoring was approximately $214 thousand.
-   **Three Months Ended March 31, 2025**
    -   Net revenue was $27,632 thousand.
    -   Healthcare IT segment revenue was $24,643 thousand.
    -   Medical Practice Management segment revenue was $2,989 thousand.
    -   Revenue from technology-enabled business solutions was $17,705 thousand, representing approximately 64% of total revenue.
    -   Revenue from professional services was $5,891 thousand.
    -   Revenue from printing and mailing services was $879 thousand.
    -   Revenue from group purchasing services was $168 thousand.
    -   Revenue from medical practice management services was $2,989 thousand, representing approximately 11% of total revenue.
    -   Revenue from chronic care management was approximately $582 thousand.
    -   Revenue from remote patient monitoring was approximately $176 thousand.

#### Operating Expenses

-   **Three Months Ended March 31, 2026**
    -   Total operating expenses were $30,270 thousand, an increase of 18%.
    -   Direct operating costs were $16,850 thousand (9% increase).
        -   Healthcare IT direct operating costs: $13,822 thousand.
        -   Medical Practice Management direct operating costs: $3,028 thousand.
    -   Selling and marketing expenses were $1,414 thousand (25% increase).
        -   Healthcare IT selling and marketing: $1,406 thousand.
        -   Medical Practice Management selling and marketing: $8 thousand.
    -   General and administrative expenses were $5,496 thousand (27% increase).
        -   Healthcare IT general and administrative: $2,673 thousand.
        -   Medical Practice Management general and administrative: $643 thousand.
    -   Research and development expenses were $2,416 thousand (96% increase).
        -   Healthcare IT research and development: $2,416 thousand.
        -   Medical Practice Management research and development: $0 thousand.
    -   Change in contingent consideration was $57 thousand.
        -   Healthcare IT change in contingent consideration: $57 thousand.
    -   Depreciation and amortization expenses were $4,037 thousand (12.9% of net revenue).
        -   Healthcare IT depreciation and amortization: $3,955 thousand.
        -   Medical Practice Management depreciation and amortization: $82 thousand.
    -   Restructuring costs were $0 thousand.
-   **Three Months Ended March 31, 2025**
    -   Total operating expenses were $25,613 thousand.
    -   Direct operating costs were $15,464 thousand.
        -   Healthcare IT direct operating costs: $12,904 thousand.
        -   Medical Practice Management direct operating costs: $2,560 thousand.
    -   Selling and marketing expenses were $1,131 thousand.
        -   Healthcare IT selling and marketing: $1,124 thousand.
        -   Medical Practice Management selling and marketing: $7 thousand.
    -   General and administrative expenses were $4,332 thousand.
        -   Healthcare IT general and administrative: $2,112 thousand.
        -   Medical Practice Management general and administrative: $642 thousand.
    -   Research and development expenses were $1,235 thousand.
        -   Healthcare IT research and development: $1,235 thousand.
        -   Medical Practice Management research and development: $0 thousand.
    -   Depreciation and amortization expenses were $3,337 thousand (12.1% of net revenue).
        -   Healthcare IT depreciation and amortization: $3,255 thousand.
        -   Medical Practice Management depreciation and amortization: $82 thousand.
    -   Restructuring costs were $114 thousand.
        -   Healthcare IT restructuring costs: $114 thousand.

#### Operating Income (Loss)

-   **Three Months Ended March 31, 2026**
    -   Operating income was $1,000 thousand (3.2% operating margin).
    -   Healthcare IT segment operating income was $3,175 thousand.
    -   Medical Practice Management segment operating income was $5 thousand.
    -   Total segment operating income was $3,180 thousand.
-   **Three Months Ended March 31, 2025**
    -   Operating income was $2,019 thousand (7.3% operating margin).
    -   Healthcare IT segment operating income was $3,899 thousand.
    -   Medical Practice Management segment operating loss was - $302 thousand.
    -   Total segment operating income (loss) was $3,597 thousand.

#### Net Income (Loss)

-   **Three Months Ended March 31, 2026**
    -   Net income was $922 thousand.
    -   Net loss attributable to common shareholders was - $443 thousand.
-   **Three Months Ended March 31, 2025**
    -   Net income was $1,948 thousand.
    -   Net loss attributable to common shareholders was - $863 thousand.

#### Cash Flow

-   **Three Months Ended March 31, 2026**
    -   Net cash provided by operating activities was $3,611 thousand.
    -   Net cash used in investing activities was - $1,232 thousand.
    -   Net cash used in financing activities was - $2,150 thousand.
    -   Effect of exchange rate changes on cash and restricted cash was $8 thousand.
    -   Net increase in cash and restricted cash was $237 thousand.
-   **Three Months Ended March 31, 2025**
    -   Net cash provided by operating activities was $5,113 thousand.
    -   Net cash used in investing activities was - $1,510 thousand.
    -   Net cash used in financing activities was - $1,932 thousand.
    -   Effect of exchange rate changes on cash and restricted cash was - $11 thousand.
    -   Net increase in cash and restricted cash was $1,660 thousand.

#### Other Key Financial and Operational Metrics

-   **Providers and Practices Served**
    -   As of March 31, 2026, CareCloud, Inc. provided services to approximately 45,000 providers and 2,900 independent medical practices, hospitals, and service organizations.
    -   As of March 31, 2025, CareCloud, Inc. provided services to approximately 40,000 providers.
-   **Offshore Operations**
    -   Offshore operations in Pakistan and Sri Lanka accounted for approximately 17% of total expenses for both the three months ended March 31, 2026 and 2025.
    -   Personnel-related costs comprised approximately 76% and 78% of these foreign expenses for the three months ended March 31, 2026 and 2025, respectively.
-   **Capitalized Software Costs**
    -   The carrying amount of internally-developed capitalized software in use was $3.7 million as of March 31, 2026, down from $5.3 million as of December 31, 2025.
-   **Deferred Commissions**
    -   Deferred commissions were approximately $167 thousand as of March 31, 2026.
    -   Amortization of deferred sales commissions was approximately $48 thousand for the three months ended March 31, 2026.
-   **Trade Accounts Receivable - Allowance for Doubtful Accounts**
    -   The ending balance for the allowance for expected credit losses was $953 thousand as of March 31, 2026.

#### Future Outlook and Strategy

CareCloud, Inc. plans to use proceeds from a new $50 million credit facility for general corporate purposes, including the redemption of its outstanding Series B Preferred Stock. The company also entered into an At The Market Offering Agreement to sell up to $60 million in common stock for general corporate purposes, which may include acquisitions, debt repayment, capital expenditures, and preferred stock redemption. Management expects to maintain sufficient liquidity for the next twelve months by focusing on overall profitability, expense management, and revenue growth.

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