Loading...
01/11 03:17
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with record net income and improved free cash flow. The guidance is optimistic with revenue growth and EPS projections. The Q&A section reinforces positive sentiment, with management focusing on AI-driven efficiencies and growth in RPM and CCM. The reduction in dividend obligations and Series A conversion enhances financial flexibility. Despite some concerns about M&A risks and economic factors, the overall sentiment is positive, supported by strong financial metrics and strategic initiatives.
Revenue $27.6 million, an increase from $26 million year-over-year, reflecting ongoing demand for integrated AI-enabled RCM solutions.
GAAP Net Income $1.9 million, a turnaround from a net loss of $241,000 in Q1 2024, due to cost management initiatives and operational streamlining.
Adjusted EBITDA $5.6 million, up 52% year-over-year from $3.7 million, underscoring the impact of cost management and operational efficiency.
Recurring Technology-Enabled Business Solution Revenue $17.7 million, up approximately $400,000 from Q1 2024, indicating growth in core business offerings.
Non-Recurring Professional Services Revenue Increased by approximately $1.5 million, contributing to overall revenue growth.
Free Cash Flow $3.6 million for Q1 2025, a significant increase compared to previous periods, highlighting improved cash generation.
Dividend Obligations Reduced from approximately $3.9 million to $1.5 million per quarter following the conversion of Series A preferred stock, enhancing financial flexibility.
Adjusted Net Income $2.3 million, or $0.05 per share, compared to $220,000, or $0.01 per share last year, reflecting improved profitability.
Cash and Net Working Capital Approximately $6.8 million in cash and $11.7 million in net working capital as of March 31, 2025, indicating a strong liquidity position.
AI Center of Excellence Launch: Officially launched with over 50 AI professionals, targeting a team of 500 by year-end, focusing on automating coding, claims, documentation, and enhancing patient engagement.
cirrusAI notes: Gaining traction for streamlining documentation and improving clinical workflows, with features like multilingual support and intelligent prompts.
cirrusAI voice: AI-powered call center auditing platform deployed with two healthcare organizations, generating real-time insights into agent performance.
cirrusAI assist: Embedded in EHR to help providers retrieve information and generate summaries through natural language commands.
Acquisitions: Completed two strategic acquisitions: MesaBilling in February and RevNu Medical Management in April, marking a return to M&A after nearly four years.
Specialty-based EHR Strategy: Advancing purpose-built EHR solutions for high-value specialties like dermatology and cardiology, with several systems approaching launch.
Financial Performance: Q1 2025 revenue of $27.6 million, up from $26 million in Q1 2024; GAAP net income of $1.9 million, a turnaround from a loss of $241,000.
Cost Management Initiatives: Operational streamlining and reduced vendor reliance have improved efficiency and expanded margins.
Free Cash Flow: Generated $3.6 million in free cash flow for Q1 2025, with a significant reduction in dividend obligations.
Capital Structure Improvement: Converted Series A preferred stock, reducing outstanding shares from 4.5 million to less than 1 million, decreasing quarterly dividend obligations from $3.9 million to $1.5 million.
AI-Driven Growth Strategy: Focus on intelligent automation across clinical workflows and revenue cycle operations, aiming for a fully AI-enabled experience.
Competitive Pressures: CareCloud is entering a competitive landscape with its AI initiatives, which may face challenges from established players and new entrants in the healthcare technology sector.
Regulatory Issues: The company operates within a highly regulated healthcare environment, which poses risks related to compliance and potential changes in regulations that could impact operations.
Supply Chain Challenges: While CareCloud has not been directly affected by recent tariffs, the overall uncertainty in the supply chain and potential economic downturns could indirectly impact their service demand.
Economic Factors: The company acknowledges potential economic pressures, including inflation and recession, which could affect the financial health of their clients and, in turn, demand for CareCloud's services.
M&A Risks: The return to M&A activities introduces risks related to integration, financial performance of acquired companies, and ensuring that acquisitions align with long-term strategic goals.
AI Center of Excellence: Launched with over 50 AI professionals, targeting a team of 500 by year-end 2025, focusing on automating coding, claims, documentation, predicting denials, and enhancing patient engagement.
Acquisitions: Completed two strategic acquisitions: MesaBilling in February and RevNu Medical Management in April 2025, marking a return to M&A after nearly four years.
Financial Flexibility: Mandatory conversion of Series A preferred stock reduced outstanding shares from 4.5 million to less than 1 million, decreasing quarterly dividend obligations from $3.9 million to approximately $1.5 million.
2025 Revenue Guidance: Anticipated full year revenue of approximately $111 million to $114 million, primarily from existing clients with small organic growth.
2025 Adjusted EBITDA Guidance: Expected to be between $26 million and $28 million, reflecting improvements from cost reduction efforts.
GAAP EPS Guidance: Expected GAAP earnings per share of $0.10 to $0.13, marking the first positive GAAP EPS after dividends since going public in 2014.
Quarterly Dividend Obligation Q1 2024: $3.9 million
Quarterly Dividend Obligation Q1 2025: $1.5 million
Free Cash Flow Q1 2024: $2.2 million
Free Cash Flow Q1 2025: $3.6 million
Annual Cash Savings from Series A Preferred Stock Dividends: $10 million
Series A Preferred Stock Conversion: Reduced outstanding shares from 4.5 million to less than 1 million.
Accrued but Unpaid Dividends Satisfied: $11.4 million.
GAAP Earnings Per Share Guidance for 2025: $0.10 to $0.13.
The earnings call highlights strong financial performance with a 9% revenue increase, improved GAAP EPS, and increased adjusted EBITDA. AI initiatives and product development show promise, with successful acquisitions enhancing market reach. The company maintains strong guidance and is strategically positioned for growth. The Q&A section reflects confidence in strategy execution and future profitability. Overall, despite some economic uncertainties and integration risks, the positive financial metrics and strategic initiatives suggest a positive stock price movement in the short term.
The earnings call summary reveals strong financial performance with positive GAAP EPS, increased adjusted EBITDA, and robust free cash flow. The company has a strategic focus on AI, enhancing product competitiveness and operational efficiency, which is positively received by customers. Despite a slight revenue decline due to a non-recurring item, the overall financial health is strong. The Q&A section supports the positive outlook with plans for growth through AI and M&A. Therefore, the stock price is likely to see a positive movement in the next two weeks.
The earnings call highlights strong financial performance with record net income and improved free cash flow. The guidance is optimistic with revenue growth and EPS projections. The Q&A section reinforces positive sentiment, with management focusing on AI-driven efficiencies and growth in RPM and CCM. The reduction in dividend obligations and Series A conversion enhances financial flexibility. Despite some concerns about M&A risks and economic factors, the overall sentiment is positive, supported by strong financial metrics and strategic initiatives.
Despite strong financial metrics like a significant increase in free cash flow and a return to profitability, the company missed earnings expectations and experienced a revenue decline. The resumption of dividends is positive, but the lack of recent acquisitions and competitive pressures pose risks. The Q&A revealed uncertainty in the M&A pipeline and complex dividend management. These mixed signals suggest a neutral market reaction, with potential positive or negative adjustments based on future developments.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
