CareCloud (MTB0) Q3 2026 Earnings Report
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DE:MTB0 Q3 2026 EPS Results
- Actual EPS
- EUR 0.09
- Consensus EPS
- EUR 0.09
- Beat/Miss
- Met expectations
- One Year Ago EPS
- EUR 0.04
DE:MTB0 Q3 2026 Revenue Results
- Actual Revenue
- EUR 30.08M
- Expected Revenue
- EUR 29.88M
- Beat/Miss
- Beat by +EUR 200.71K
- YoY Revenue Growth
- +8.56%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/05/2026
- Time
- Before Open
- Conference Call
- Thursday, November 5, 2026
DE:MTB0 Upcoming Earnings
CareCloud's next earnings date is estimated for March 18, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:MTB0 Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, led by record profitability, expanding margins, substantial improvement in earnings attributable to common shareholders, debt reduction, strong AI operating metrics, progress in enterprise AI and compliance, and reaffirmed full-year guidance. The company also cited lower medSR project revenue, financing costs, seasonal billing patterns and execution dependencies, but these challenges were limited relative to the breadth of the reported improvements.
Company Guidance
CareCloud reaffirmed its full year 2026 guidance of revenue of $128 million to $132 million, adjusted EBITDA of $29 million to $31 million and GAAP earnings per share of $0.20 to $0.23; management said it was “pretty confident” it would meet all 3, was “on track” for Q4, expected “some seasonality,” and advised investors to be “modest” in their overall perspectives with regard to the 3 factors.
- Record Quarterly ProfitabilityCareCloud reported its most profitable quarter in company history, with record GAAP net income of $4.7 million, up 54% year-over-year; record GAAP EPS of $0.10 versus $0.04; and record adjusted EBITDA of $9.9 million, up 28% year-over-year. The $0.10 earned per share in the quarter matched the amount earned during all of 2025.
- Revenue Growth and Nine-Month PerformanceThird-quarter revenue was $33.7 million, up 9% year-over-year. Revenue for the first nine months of 2026 was $96.9 million, up 13% year-over-year.
- Expanded Margins and Operating LeverageGross margin expanded to 50.5% from 47.8% a year ago, an improvement of approximately 270 basis points. Adjusted EBITDA margin increased to approximately 29% from 25%, while revenue grew approximately 9% and direct operating costs increased only 3%. Total operating expenses decreased 2.5% year-over-year to $27.2 million.
- AI and Automation Improved Operating EfficiencyAI and automation across revenue-cycle operations, including automated claim validation, denial prediction and remittance processing, reduced manual claim touches by approximately 44% over the past three months. The company said it handled more volume with the same headcount, with more than 200,000 manual claim-touch instances eliminated compared with four months earlier.
- Higher-Margin Revenue MixCareCloud is deliberately growing higher-margin technology and compliance offerings while moving away from lower-margin project-based services. Technology-enabled business solutions revenue increased to $24.3 million from $21.6 million year-over-year.
- More Earnings Attributable to Common ShareholdersFollowing the redemption of all Series B preferred stock, net income attributable to common shareholders increased to $4.2 million from $1.7 million a year ago. Approximately 89% of third-quarter net income was attributable to common shareholders versus approximately 55% in the prior-year quarter. Quarterly preferred dividends declined to approximately $538,000 from approximately $1.4 million.
- Capital Structure Simplification and Debt ReductionCareCloud replaced perpetual preferred stock with lower-cost debt and fully repaid the $9 million revolver draw during the quarter, leaving the revolver completely undrawn and the full $10 million available. The term loan declined to $36.7 million at September 30 and $34.2 million as of November 2, representing an approximately $7.4 million reduction in less than six months. The company reported $4.6 million in cash, approximately $37.3 million in total debt, $32.7 million in net debt and approximately 1.1x net leverage.
- Positive RCM Automation MetricsZero-touch processing in the division serving most RCM clients increased to 84% from 74% a year ago. The third-quarter denial rate across RCM operations was under 4%, down from approximately 8% a year earlier, compared with reported major RCM vendor rates of roughly 6% to 8% and an MGMA benchmark of around 7% to 8%.
- Progress Across AI Product TracksCareCloud reported measurable progress across its three AI tracks: using AI internally, embedding AI into existing products and building new AI-enabled platforms. StratusAI now answers calls in CareCloud's patient call center, AI-assisted coding is deployed in client coding services, the AI prior-authorization solution is live with a pilot client, and cirrusAI Notes and Breeze integrations were expanded in Wellsoft.
- Prior Authorization Product PerformanceCareCloud is connected to 105 payers, with 75 accepting electronic prior-authorization submissions and the remainder supporting authorization verification. The solution reduced submission time from approximately 15 minutes to under 2 minutes and achieved a 91% initial-pass approval rate across more than 600 submissions.
- Enterprise AI Development with KabaFusionKabaFusion selected CareCloud to develop LailaCare, an AI-native platform connecting referral intake, eligibility and authorization, patient engagement and revenue-cycle management for home infusion and specialty pharmacy. CareCloud recognized its first revenue from the work in the third quarter, establishing a model for developing AI-powered systems for sophisticated enterprise healthcare organizations.
- Empower Compliance Growth EngineEmpower, acquired in May, recently reversed more than $1 million in alleged payer overpayments for a client. Empower relationships have already generated RCM signings with a management services organization and a wound care practice. CareCloud appointed Empower founder Mitch Brie as Chief Compliance Officer and plans to launch a subscription software-based compliance offering later in the quarter for more than 40,000 healthcare providers.
- Medsphere Contribution and Product ModernizationMedsphere contributed $6.3 million of third-quarter revenue. Core integration work was largely completed in the first half of 2026, while CareCloud expanded Wellsoft functionality, added a cirrusAI Notes companion app and deeper Breeze integration, completed DEA audit certification testing and security hardening, and kept the full cloud-based Wellsoft SaaS modernization on track for completion later this year.
- Product Release ActivityCareCloud delivered 36 product releases during the quarter, including 16 Marketware enhancements and 9 MAP App releases, including advanced AI-chatbot features. The company also continued integrating its inpatient product suite from Medsphere and MAP App.
- Reaffirmed Full-Year GuidanceCareCloud reaffirmed 2026 guidance for revenue of $128 million to $132 million, adjusted EBITDA of $29 million to $31 million and GAAP EPS of $0.20 to $0.23. Management said it was confident it would meet all three targets and that the fourth-quarter building blocks include recurring-revenue growth, enterprise development work, the compliance offering launch, cross-selling and the benefits of the simplified capital structure.
- Continued Investment and Capital Allocation PrioritiesThe company plans to continue investing in technology and AI platforms, reduce outstanding debt and pursue selective, disciplined, accretive acquisitions such as Empower. CareCloud also said it will continue investing selectively in sales and marketing while keeping broader overhead tight.
- IT Consulting Stabilization and Future OpportunityManagement said the lower-margin medSR IT consulting business is stabilizing sequentially. It also identified AI consulting and enterprise relationships similar to KabaFusion as a growth opportunity, particularly among sophisticated, private-equity-backed healthcare organizations.
DE:MTB0 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 18, 2027 | 2026 (Q4) | 0.11- | 0.04 | ― | ― |
| Nov 05, 2026 | 2026 (Q3) | 0.090.09 | 0.04 | 150.00% (+0.05) | |
| Aug 06, 2026 | 2026 (Q2) | 0.020.00 | 0.04 | -100.00% (-0.04) | |
| May 07, 2026 | 2026 (Q1) | -0.01-0.01 | -0.04 | 75.00% (+0.03) | |
| Mar 12, 2026 | 2025 (Q4) | 0.040.04 | 0 | ― | |
| Nov 06, 2025 | 2025 (Q3) | 0.020.04 | -0.04 | 200.00% (+0.07) | |
| Aug 05, 2025 | 2025 (Q2) | 0.010.04 | -0.12 | 128.57% (+0.16) | |
| May 06, 2025 | 2025 (Q1) | -0.04-0.04 | -0.02 | -100.00% (-0.02) | |
| Mar 13, 2025 | 2024 (Q4) | -0.050.00 | -2.68 | 100.00% (+2.68) | |
| Nov 12, 2024 | 2024 (Q3) | -0.12-0.04 | -0.37 | 90.48% (+0.34) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
