CareCloud, Inc.

Greetings. Welcome to CareCloud Incorporated fourth quarter 2025 results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the former presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Brendan Covello, Corporate Counsel. Please begin.

Good morning, everyone. Welcome to CareCloud's fourth quarter and full year 2025 conference call. On today's call are Mahmoud Haque, our founder and executive chairman, Stephen Snyder, our chief executive officer, A. Hadi Chaudhry, our chief strategy officer, and Norman Roth, our interim chief financial officer and corporate controller. Before we begin, I would like to remind you that certain statements made during this call are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21 of the Securities Exchange Act of 1934 as amended. All statements other than the statements of historical fact made during this call are forward-looking statements, including without limitation statements regarding our expectations and guidance for future financial and operational performance, expected growth, business outlook, and potential organic growth and acquisition. Forward-looking statements may sometimes be identified with words such as will, may, expect, plan, anticipate, approximately, upcoming, believe, estimate, or similar terminology and a negative of these terms. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties, many of which are beyond our control. which could cause actual results to differ materially from those contemplated in these forward-looking statements. The statements reflect our opinions only as to the date of this presentation, and we undertake no obligation to revise these forward-looking statements in light of new information or future events. Please refer to our press release and other reports filed with the Securities and Exchange Commission, where you will find a more comprehensive discussion of our performance and factors that could cause actual results to differ materially from those forward-looking statements. For anyone who dialed in the call by telephone, you may want to download our fourth quarter and full year 2025 earnings presentation. Please visit our investors relations site, ircarecloud.com. Click on news and events, then click IR calendar. Click on fourth quarter and full year 2025 results conference call and download the earnings presentation. Finally, on today's call, we may refer to certain non-GAAP financial measures. Please refer to today's press release announcing our fourth quarter and full year results for reconciliation of these non-GAAP performance measures to our GAAP financial results. With that said, I'll now turn the call over to our CEO, Steven Snyder. Steven?

Thanks, Brendan, and good morning, everyone. I'm pleased to report that 2025 was a transformational year for CareCloud. Marked by exceptional financial performance, strategic acquisitions that expanded our market reach, and a successful launch of our flagship AI platform. We delivered results that underscore the strength of our business model and validate our vision for the company's future. In particular, I'm pleased to be able to talk today about our revenue growth, the remarkable acceleration of our profitability and free cash flow, the current status of our capital structure, the significance of our 2025 acquisitions, the evolution of our services offering and AI platform, our market position and growth drivers as we enter 2026, and our guidance for the year ahead. First, let me start with our top line numbers. For the full year 2025, we generated revenue of $120.5 million, representing nearly 9% year-over-year growth. In Q4 specifically, we achieved revenue of $34.4 million, up nearly 22% year over year, demonstrating accelerating momentum as we entered this year. Importantly, we raised our revenue guidance twice during 2025 and still exceeded the final target, a pattern that reflects the underlying health and predictability of our recurring revenue streams. As to profitability, we reported GAAP net income of $10.8 million for 2025, a year-over-year increase of more than 37%. We achieved earnings per share of 10 cents, marking our first full year of positive EPS since our 2014 IPO, a remarkable milestone that reflects our multi-year transformation to sustainable profitability. In Q4 alone, we posted GAAP earnings per share of 4 cents. Adjusted EBITDA expanded to $27.5 million with a 23% margin, up more than 14% year over year. But perhaps most importantly, we generated $28.6 million in GAAP operating cash flow for the full year, a 38% increase year over year, and $8.7 million in Q4 alone, up 66%. Non-GAAP free cash flow reached approximately $20.5 million for 2025 compared to $13.2 million in 2024 and representing growth of more than 500% from 2023. This dramatic improvement in free cash flow generation has been transformational to our financial flexibility and strategic optionality. It enabled us to resume dividends on our preferred shares at the beginning of 2025, to begin paying double dividends on our Series B preferred stock starting in 2026 to address the accumulated arrearages, and to fund multiple acquisitions during 2025 entirely from free cash flow generated during that year. Third, As to our capital structure, during 2025, we completed the conversion of approximately 80% of our Series A preferred shares into common. The conversion eliminated more than $7 million in annual dividend obligations, and we full repaid our Provident Bank credit line by year end, entering 2026 with zero drawn on our credit line. Reducing the complexity of our capital structure remains a core priority. Fourth, we made significant strides during 2025 on the M&A front. We completed multiple transactions during the year, each strategically selected to expand our capabilities and market reach. These deals were all executed at less than one times revenue multiples, funded entirely through free cash flow we generated during 2025, and resulted in zero common shareholder dilutions. The most significant of these was our August acquisition of Medsphere Systems, which brought us into the inpatient hospital market. Through Medsphere, we added a suite of ambulatory and inpatient software products, including the number one BlackBook-ranked Wellsoft Emergency Information Department system. This was a watershed moment for CareCloud. We evolved from an ambulatory-first to care continuum company, able to support the full patient and clinician journey from outpatient clinic to emergency department to inpatient bed through the revenue cycle and into the supply chain. Integration is well underway. We are incorporating our AI tools into the platform, and we are already seeing new customer wins under the CareCloud umbrella. We also acquired MapApp from the Healthcare Financial Management Association, or HFMA, in October of last year, alongside a long-term joint marketing agreement. MapApp is a hospital benchmarking and performance analytics platform used by leading hospitals and integrated delivery networks to measure and compare revenue cycle metrics. MapApp identifies where a hospital is underperforming And CareCloud's RCM and AI provide the solution. A sales motion with built-in urgency and quantifiable ROI that we intend to scale in 2026 and beyond. Through MedSphere and MapApp, we now serve hospital systems and health networks, creating a natural cross-selling runway for our AI solutions and RCM services. Our 2026 growth strategy centers on penetrating these newly acquired health system customers with our RCM and AI products, exactly the kind of operating leverage that justifies these strategic investments. Fifth, we have continued to position ourselves as an emerging leader in healthcare IT. We recognize that the healthcare technology market is at an inflection point. AI adoption is moving from pilot programs to production deployment, and providers are actively seeking partners who can integrate AI across their clinical and administrative workflows. We are operating in a market with a multi-billion dollar addressable opportunity in the U.S. alone for our AI front desk assistant, and that is just one application in our broader AI framework. We launched Stratus AI front desk agent, in December 2025 and are already seeing strong early traction. Hiding will provide more details on our AI products and roadmap, but from a business perspective, our combination of domain expertise, distribution, and clinical data gives us a competitive moat that is extraordinarily difficult to replicate. Sixth, let me turn to our market position and growth drivers. In 2026, we will continue to leverage our dual platform footprint ambulatory and inpatient markets to drive organic growth and acquisition synergies. Our primary growth factors, ambulatory cross-selling, deeper hospital penetration of existing relationships, and AI monetization represent a compounding opportunity that positions us for durable growth. As we have noted in prior calls, strategic acquisitions have been a cornerstone of our growth historically. And 2025 marked the year where we reignited that momentum after a multi-year pause during which we refreshed our financial foundation, achieved sustainable profitability, and launched our AI center of excellence. We were patient because we wanted to acquire from a position of strength, and that patience has paid off. All of our 2025 acquisitions follow the same discipline playbook. Acquisition purchases, non-dilutive to common shareholders, structure to maintain balance sheet flexibility and priced at attractive valuations of one times revenue or less. What is particularly exciting now is that AI is further accelerating our acquisition opportunity set. We expect to remain active in the M&A front in 2026 and beyond as we identify complementary targets that extend our reach and can benefit from our AI capabilities. Seventh, Turning to our guidance for 2026, it reflects continued growth with accelerating profitability. We expect revenue of $128 million to $130 million and adjusted EBITDA of $29 to $31 million, reflecting margin expansion. We further expect GAAP EPS of $0.20 to $0.23 per share, which would represent an increase of more than 100% over 2025. We have set this guidance at levels that we believe are achievable and consistent with our track record, we intend to execute against it with discipline. As we reflect on 2025, we are humbled by the progress we have made across every dimension of our business. We exceeded previously raised revenue guidance. We delivered our first year of positive EPS as a public company. We generated exceptional free cash flow. growth, increasing more than 500% over the last three years. We executed strategic acquisitions without diluting shareholders. We launched a transformational AI platform that is already gaining market traction. And we strengthened our market position through acquisition-driven diversification. Together, they represent a fundamental reposition of CareCloud as a full continuum healthcare technology platform with AI at its core. We believe these achievements position us to deliver sustained value creation for our shareholders, clients, and employees. We are entering 2026 with more momentum, more scale, and a stronger balance sheet than any point in time in our history. And we look forward to achieving our objectives in 2026 and beyond. With that, I'll turn the call over to Hadi Chaudhry, our Chief Strategy Officer, who will provide more details on our acquisition strategy and product roadmap.