CareCloud (MTBC) investor relations material

Executive summary

• Q1 2026 revenue grew 13% year-over-year to $31.3 million, driven by AI expansion, product portfolio growth, and recent acquisitions.

• Adjusted EBITDA was $5.4 million, slightly down from $5.6 million in Q1 2025; adjusted EPS remained steady at $0.05.

• GAAP net income was $922,000, down from $1.9 million year-over-year, due to higher amortization, integration, and R&D costs.

• Major capital structure simplification executed post-quarter, including a $50 million credit facility and full redemption of Series B preferred stock.

• AI platform is now a commercial product line, with stratusAI Desk Agent automating up to 75% of inbound calls and new AI products in development.

Financial highlights

• Q1 2026 revenue: $31.3 million, up from $27.6 million in Q1 2025; recurring revenue rose to 74% of total.

• GAAP net income: $922,000, down from $1.9 million year-over-year.

• Adjusted EBITDA: $5.4 million (17% margin), slightly down from $5.6 million last year.

• Free cash flow: $2.4 million, compared to $3.6 million in Q1 2025.

• Operating expenses rose 18% to $30.3 million, with R&D up 96% and G&A up 27%.

Outlook and guidance

• 2026 revenue expected at $128–$132 million; adjusted EBITDA at $29–$31 million; GAAP EPS guidance of $0.20–$0.23, more than doubling 2025 EPS.

• Margin expansion expected as integration costs decline and AI-driven efficiencies scale.

• Free cash flow projected to exceed $2 million per month in the back half of 2026.

• Management expects sufficient liquidity for the next twelve months.