0001493152-26-021730
SEC filingRevenue grew 13% to $31.3M, but profitability declined sharply due to a shift in software capitalization and higher headcount costs.
Revenue for the first quarter of 2026 was $31.3 million, a 13% increase compared to $27.6 million in the same period last year. The growth was primarily driven by the Medsphere acquisition and an increasing mix of subscription-based solutions.
Net cash provided by operating activities was $3.6 million, compared to $5.1 million in the prior year quarter. Capital expenditures decreased to $412,000 from $624,000, resulting in free cash flow of $3.2 million. The company continues to generate positive cash flow from operations, supporting its liquidity position.
Management continues to focus on overall profitability, managing expenses, and growing revenue to enhance liquidity and financial position. The company has announced plans to fully redeem the outstanding Series B Preferred Stock in May 2026. During August 2025, the company voluntarily terminated its agreement with Silicon Valley Bank, which was not in use.
On March 16, 2026, CareCloud experienced a temporary network disruption in its CareCloud Health division that partially impacted one of six electronic health record environments for approximately eight hours. The company believes the incident was contained and did not affect other platforms. While cybersecurity insurance is in place, the full scope of data accessed and potential costs remain under investigation, posing a risk of regulatory action, litigation, and reputational harm. The company also disclosed that it maintains cash balances at Provident Bank in excess of FDIC limits and holds cash in Pakistan and Sri Lanka without deposit insurance, though no losses have been experienced.