CareCloud, Inc.

Good morning, ladies and gentlemen, and welcome to CareCloud, Inc. First Quarter 2026 Results Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star 0 for the operator. This call is being recorded on Thursday, May 7, 2026. I would now like to turn the conference over to Brandon Covello, Legal Counsel. Please go ahead.

Good morning, everyone. Welcome to CareCloud's first quarter 2026 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. These 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 our reports filed with the Securities and Exchange Act Commission, where you will find a more comprehensive discussion of our performance and factors that could cause actual results to differ materially from these forward-looking statements. For anyone who dialed into the call by telephone, you may want to download our first quarter of 2026 earnings presentation. Please visit our investor relations site, ircarecloud.com. click on News and Events, then click IR Calendar, click on First Quarter 2026 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 First Quarter 2026 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, Stephen Snyder. Stephen?

Thanks, Brendan, and good morning, everyone. I'm pleased to report that the first quarter of 2026 marked a strong start to the year for CareCloud, with revenue growth of 13%, the broadest product portfolio in our history, accelerating commercial traction in our AI platform, and a transformational simplification of our capital structure that we executed shortly after quarter's end. We delivered the kind of momentum we expected entering 2026, and we are reaffirming our full year guidance with great confidence. Let me start with our top line numbers. For the first quarter of 2026, we generated revenue of $31.3 million, up 13% from $27.6 million in Q1 of last year. On profitability, GAAP operating income was $1 million, for the quarter and GAAP net income was $900,000, as anticipated, both lower than the prior year's quarter, driven primarily by increased amortization of acquired intangible assets and integration costs associated with the MedSphere acquisition. Adjusted EBITDA, adjusted net income, and adjusted EPS were each essentially in line with the prior year and were generated $2.4 million in free cash flow. These non-GAAP measures are the cleaner read on our underlying operating performance and they show a business that is holding margin while we absorb a material acquisition. Norm will walk you through this in more detail in a few minutes. Next, I'd like to spend some time on our capital structure because what we executed in April represents the most significant simplification of CareCloud's balance sheet since our IPO. On April 13th, We closed a new $50 million credit facility with Citizens Bank and Provident Bank, comprised of a $40 million term loan and a $10 million revolving line, which replaced our previous $10 million Provident Bank facility. In parallel, we also put an at-the-market or an ATM equity facility in place, not as a financing we plan to lean on, but as a flexible, just-in-time tool we can deploy on opportunistic terms if and when it makes sense for our shareholders. The day after closing, on April 14th, our board elected to redeem 100% of our outstanding Series B preferred stock. The redemption is scheduled for May 15th. and we have already pre-funded approximately 41.6 million of the new credit facility to satisfy it. Let me underline what this means in plain terms. Together, with the conversion of approximately 80% of the Series A preferred stock that we completed in March of last year, the full redemption of our Series B preferred stock effectively removes the preferred equity overhang that has shaped our capital structure for many years. We are exchanging high-cost preferred dividends for lower-cost senior debt, dramatically simplifying our story for investors. And we are doing it with zero common shareholder deletion from the redemption itself. This is more than a balance sheet exercise. A simpler capital structure broadens our investor universe, particularly among institutional investors who have historically been deterred by complex preferred equity stacks. improving the visibility of common shareholder economics, and that lowers our weighted average cost of capital. In short, the structure of the company now aligns with the way we run it as a focused, profitable, growing healthcare IT technology platform. Turning to our acquisition portfolio, the integration of the transactions we completed in 2025 is progressing well. Through MedSphere, We entered the inpatient hospital market and significantly expanded our addressable market, adding the number one Black Book-ranked well-solved emergency department information system, the care view inpatient EHR, chart logic for surgical specialties, marketware for physician relationship management, offline for hospital supply chain, and managed IT services. That portfolio took us from ambulatory first to care continuum. On MAP-APP, our HFMA partnership is opening hospital finance conversations that would have taken years to build organically. Connie will walk you through how we're layering AI-driven recommendations on top of MAP-APP's benchmarking foundation. But the strategic point is quite simple. identifies where a hospital is underperforming and our RCM and AI capabilities demonstrate how to fix it. That is a powerful combination, and 2026 is the year where we believe we'll scale it. As to our AI platform, it is really no longer a vision. It is a product line in the market with paying customers and measurable results. Stratus AI desk agent, our agentic AI phone receptionist, reached full commercial release in December and is scaling. Across early adopters, the platform is now handling approximately 75% of inbound calls automatically. Bringing front desk staff to focus on more complex patient needs and lifting the throughput of every practice that deploys it. Our AI center of excellence launched in April of last year, is fully operational and is the engine behind everything in our AI portfolio. In a moment, Hadi will walk you through the three-track framework we use to apply AI across the business, inside our own operations, embedded in the products our clients already use every day, and as a standalone AI solution. And where each track stands today The point I want to leave you with is that the believed addressable market for our AI front desk capability alone exceeds $4 billion in the United States. And we are bringing it to the large provider customer base that already trusts CareCloud with its core clinical and revenue cycle workflows. That integration advantage is hard to replicate. Our 2026 growth strategy is unchanged and fully on track. First, we are actively cross-selling Stratus AI and our RCM services to our existing ambulatory client base. Second, we are penetrating the MedSphere installed base of hospital and health system customers with our RCM and AI capabilities, creating a multiplier effect on sales efficiency. Accordingly, we are reaffirming our 2026 guidance. We continue to expect revenue of $128 million to $132 million, adjusted EBITDA of $29 million to $31 million, and gap earnings per share of $0.20 to $0.23, which would represent more than a 100% increase over our 2025 EPS of $0.10. Our confidence in this outlook is grounded on our continued growth in our RCM business accelerating AI revenue contribution from Stratus AI, and the synergy of cross-sell opportunities from our 2025 acquisitions, each of which we expect to ramp meaningfully through the back half of the year. A brief word on operational efficiency. We are also deploying AI inside our own back office and consolidating overlapping systems from our 2025 acquisitions. And we expect that work to be an ongoing source of margin improvement through 2026 and into 2027. Adi will go deeper on this as the first of his three AI tracks. Stepping back, this is exactly the kind of quarter we wanted to deliver to start 2026. Revenue grew by 13%. Our AI platform is in market and scaling. Our acquisition portfolio is contributing as planned. Our integration work on MedSphere is well underway, and we have used the early weeks of the second quarter to fundamentally simplify our capital structure, closing a new credit facility, putting an ATM in place, and announcing the full redemption of our Series B preferred stock. The underlying business, recurring revenue, cash generation, the customer base, the product roadmap is moving in the right direction, and we are reaffirming our 2026 guidance And we are entering the rest of the year with more capability, more scale, and more momentum than at any point in our history. We are a profitable, growing company with a clear AI strategy and the operational discipline to execute on it. I look forward to sharing our progress with you throughout the year. With that, I'll call over to Hadi Chaudhry, our Chief Strategy Officer, who will provide more details on our AI strategy and product roadmap. Hadi?