A banger quarter for CareCloud
Earnings Update CCLD Q3 2025
But is the company still a buy after a 300% increase since April?
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Normally, I had scheduled a new company write-up, but in view of what happened in the previous quarter for Carecloud, I decided to change things up, to give you my current recommendation of this company.
Short recap
Company name: CareCloud
Ticker: CCLD
Current market cap: $147 M
Let’s get deep into the weeds on what happened this last quarter.
Remember the thesis
CareCloud earns money by collecting revenue for doctors and hospitals. They take a % of this.
It is a serial acquirer in the Revenue Cycle Management industry, active in the health sector. After years of constrained growth (didn’t have the tech, the means, the balance sheet), it is poised for future growth. CareCloud has done some strategic acquisitions to make sure they have the capabilities for the future. Their strengthened balance sheet and operational cash flow will allow for future acquisitions without dilution of shareholders.
It’s an IT company, using a workforce arbitrage (most employees live in Pakistan), leveraging AI to provide an essential service to the healthcare sector at a lower cost compared to competitors.
Since the previous quarter, they have acquired Medsphere and Map App.
You can find our initial write-up here.
This quarter shows how those acquisitions will benefit the future.
What was in this quarter?
The good (strengthens thesis)
[This is a summary of what is in line with the original thesis. Certain metrics are KPI that confirm what we outlined at the start]TAM Increase
The biggest takeaway for me during this quarter is that their TAM increased through the acquisition of Medsphere.
Before, CareCloud mainly serviced physician practices and 6,300 Medicare-certified ambulatory hospitals without overnight stays.
Now, they can service an additional 5,100 community hospitals. And although that number is similar to the ambulatory ones, these are bigger operations with bigger needs. My own preliminary estimate would be a TAM increase of about 150 %.
Expectations beat
Revenue and EBITDA expectations were beaten with an additional increase in guidance for the full year.
The full year guidance for 2025:
Revenue increase to $117-119M
Adjusted EBITDA increased to $26-28M
Balance sheet discipline
They acquired Medsphere for $16.5M half cash, half debt. But thanks to their operational cash flow strength, they’ve already paid down an additional half of the debt. Which means there’s about $5M remaining to pay down.
Data-enhanced sales pitch
We hadn’t discussed their rationale for the acquisition of Map App before. When you go see a physician to sell your product, you pitch him your product.
Map App is a hospital benchmarking and performance analytics platform. It allows hospitals to track revenue cycle management KPI’s:
Cash collection efficiency
Denial performance
Cost to collect
These bigger hospitals are businesses with a CFO.
That means they now have the means to talk directly to the CFO and provide data and insights. Map Ap can then be used to create a current picture of the RCM situation at a hospital, and CareCloud can show a clear path on how to improve that.
Basically, it’s easier for them to show ROI.
This means going forward, Map Ap is used to increase its sales conversion rate.
Agentic AI