Following the release of its third-quarter financial results, shares of CareCloud, Inc. (NASDAQ: CCLD) have experienced a sharp increase. As of the most recent check, CCLD stock rose by 34.48%, trading at $3.51. This surge reflects investors’ confidence in the company’s promising financial progress and operational achievements.
Return to Positive GAAP Income
With its greatest quarterly net income since Q4 2021, CareCloud (CCLD) posted positive GAAP net income for the second consecutive quarter. The firm reported considerable profitability increases despite a minor decline in sales from $29.3 million to $28.5 million, which was mostly caused by one-time professional services. GAAP net income for the third quarter of 2024 was $3.1 million, up from a $2.7 million loss at the same time prior year. Adjusted EBITDA also surged 111% year over year to $6.8 million, or 24 percent of total revenue.
Flexibility With Lesser Debt
CareCloud leveraged its positive cash flow to fully repay the outstanding balance on its Silicon Valley Bank line of credit, thereby eliminating associated interest costs and reducing the credit facility limit from $25 million to $10 million. This adjustment will yield future savings of approximately $140,000 in banking fees and enhance CCLD’s financial flexibility by minimizing dependency on bank covenants.
Dividend Resumption and Shareholder Protection
CareCloud plans to resume dividend payments on March 15, 2025, for its Series A and B Preferred Stock, a move aligned with shareholder interests. This plan was solidified with shareholder approval of a Special Proxy for Series A Preferred Stock, which offers added protections for these shareholders. Furthermore, this restructuring is anticipated to reduce annual cash requirements for future dividends by approximately $2.5 million.
Strategic AI Integration for Future Growth
As part of its long-term growth strategy, CareCloud (CCLD) continues integrating advanced AI technology to streamline clinical workflows, improve documentation accuracy, and reduce administrative workload. These efficiencies are expected to further support profitability in 2025, positioning CCLD well for sustained value creation.