The revenue beat is offset by a clear EPS miss and declining profitability. The large increase in debt and interest expense from the capital restructuring is a new headwind. Monitor the Q3 report for margin expansion and whether the full-year EPS guidance of $0.20-0.23 remains achievable given the H1 run rate.
Price Chart
Executive Summary
CareCloud reported Q2 2026 revenue of $31.9M (+16% YoY), in line with consensus, and GAAP EPS of $0.00, which is a miss vs the $0.06 consensus. GAAP net income fell to $1.1M from $2.9M a year ago, and Adjusted EBITDA declined to $5.9M from $6.5M. The company reaffirmed its full-year 2026 guidance for revenue of $128-132M, Adjusted EBITDA of $29-31M, and GAAP EPS of $0.20-0.23. While top-line growth is strong, profitability metrics are declining due to increased R&D spending and interest expense from the Series B redemption, creating a mixed picture for traders.
Key Financial Metrics
Key Facts
- Revenue grew 16% YoY to $31.9M, in line with consensus.
- GAAP EPS of $0.00 missed the $0.06 consensus estimate.
- GAAP net income fell to $1.1M from $2.9M in Q2 2025.
- Adjusted EBITDA declined to $5.9M from $6.5M in Q2 2025.
- Full-year 2026 guidance reaffirmed: revenue $128-132M, Adj. EBITDA $29-31M, GAAP EPS $0.20-0.23.
- Completed full redemption of Series B Preferred Stock on May 15, 2026.
- Acquired Empower Healthcare & Compliance Partners, entering the compliance and audit-defense market.
- Cash balance increased to $13.4M from $3.1M at year-end 2025, driven by a new term loan and line of credit.
- Total debt increased significantly to ~$49M from ~$1.2M at year-end 2025 due to the Series B redemption and new credit facility.
Financial Impact
Revenue in line at $31.9M; GAAP EPS miss of $0.06 vs $0.00; GAAP net income down 61% YoY to $1.1M; Adj. EBITDA down 9% YoY to $5.9M
Risk Factors
- GAAP EPS miss of $0.06 vs consensus; profitability metrics (net income, Adj. EBITDA) declining YoY.
- Significant increase in total debt to ~$49M from ~$1.2M, with interest expense rising to $815K from $68K.
- Shareholders' equity dropped sharply from $59.5M to $17.4M due to the Series B redemption and debt-funded capital restructuring.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-036255 |
| Document: form8-k.htm | 0001493152-26-036255 |
| Document: 0001493152-26-036255-index-headers.html | 0001493152-26-036255 |
| Document: 0001493152-26-036255-index.html | 0001493152-26-036255 |
| Document: 0001493152-26-036255.txt | 0001493152-26-036255 |
| 8-K Data (Synthetic) | 0001493152-26-036255 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 29, 2026 27d ago | 8-K | $2.08 | awaiting T+60 | — | $1.71 (−17.79%) |
Aug 6, 2026 11w ago | 8-K | $2.32 | awaiting T+60 | — | $1.71 (−26.29%) |
Jun 26, 2026 17w ago | 8-K | $2.16 $2.15 | ▼ −0.46% | ▼ −4.85% | $1.71 (−20.83%) |
Apr 16, 2026 27w ago | Press Release | $3.05 $2.38 | ▲ +21.97% | ▲ +29.01% | $1.71 (+43.93%) |
Mar 12, 2026 32w ago | 8-K | $2.91 $2.35 | ▼ −19.24% | ▼ −29.94% | $1.71 (−41.24%) |
US Market Status
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