CareCloud, Inc. reported a net revenue of $31.3 million for the first quarter of 2026, reflecting a 13% increase from $27.6 million in the same period of 2025. The growth was primarily driven by the company's technology-enabled business solutions, which generated approximately $23.0 million, alongside $3.1 million from professional services and $3.8 million from medical practice management services. The revenue from the Medsphere acquisition contributed approximately $6.8 million during this quarter, although project-based revenue from medSR decreased by about $2.9 million compared to the previous year.
Operating expenses for the quarter totaled $30.3 million, an increase of 18% from $25.6 million in the prior year. Direct operating costs rose by 9% to $16.9 million, while selling and marketing expenses increased by 25% to $1.4 million, attributed to additional headcount. General and administrative expenses also saw a significant rise of 27% to $5.5 million, driven by higher salary costs and legal fees. Research and development expenses surged by 96% to $2.4 million, reflecting a shift in development activities that resulted in fewer costs qualifying for capitalization.
The company reported a net income of $922,000 for the quarter, down from $1.9 million in the previous year. This decline was influenced by increased operating expenses and a decrease in interest income, which fell by 76% to $10,000. The net loss attributable to common shareholders was $443,000, compared to a loss of $863,000 in the same quarter of 2025. The weighted average shares used to compute the loss per share increased significantly, reflecting the conversion of preferred stock to common stock.
In terms of strategic developments, CareCloud has been active in expanding its service offerings through acquisitions. The company completed the acquisition of MAP App, Medsphere Systems Corporation, and RevNu Medical Management, which are expected to enhance its technology-enabled services and revenue cycle management capabilities. The integration of these acquisitions is anticipated to contribute positively to future revenue streams. Additionally, CareCloud has been focusing on improving its operational efficiency and managing costs, which is reflected in its restructuring efforts.
Looking ahead, CareCloud's management expressed optimism about the company's growth trajectory, emphasizing the importance of maintaining operational efficiency and enhancing revenue generation. The company plans to continue leveraging its technology-driven solutions to meet the evolving needs of healthcare providers. With a strong focus on integrating AI into its offerings and expanding its market presence, CareCloud aims to strengthen its competitive position in the healthcare technology sector.
About CareCloud, Inc.
CareCloud, Inc. provides cloud-based healthcare technology solutions, including revenue cycle management, electronic health records, practice management, and AI-driven tools. Serving medical practices, hospitals, and health systems nationwide, it enhances operational efficiency, financial performance, and patient experience. The company leverages proprietary software, offshore staffing, and strategic partnerships to deliver integrated services that support healthcare providers through industry shifts toward value-based care and digital health innovation.
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