CareCloud, Inc. reported a net revenue of $27.6 million for the first quarter of 2025, reflecting a 6% increase from $26.0 million in the same period of 2024. The growth was primarily driven by a $1.5 million rise in project-based professional services revenue and a $422,000 increase in technology-enabled business solutions. However, revenue from medical practice management services decreased by $252,000. The company achieved an operating income of $2.0 million, compared to an operating income of $129,000 in the prior year, indicating improved profitability.
In terms of expenses, CareCloud's total operating expenses slightly decreased to $25.6 million from $25.8 million year-over-year. Direct operating costs rose by 2% to $15.5 million, while selling and marketing expenses saw a significant decline of 36% to $1.1 million, attributed to reduced headcount and lower marketing activities. General and administrative expenses increased by 16% to $4.3 million, driven by higher salary costs. Research and development expenses also rose by 35% to $1.2 million, reflecting a shift in development activities.
Operationally, CareCloud served approximately 40,000 providers across 2,600 independent medical practices and hospitals as of March 31, 2025. The company continues to leverage its offshore operations in Pakistan and Sri Lanka, which accounted for about 17% of total expenses in the quarter. The workforce included approximately 290 U.S.-based employees and 3,400 offshore team members, contributing to a competitive cost structure.
Strategically, CareCloud completed an acquisition of an audiology-focused revenue cycle management company in April 2025, with no upfront payment required. The company also resumed dividends on its preferred stock in February 2025 after a suspension that began in December 2023. As of March 31, 2025, CareCloud had approximately $7.3 million in dividends in arrears, reflecting the ongoing financial adjustments following the restructuring of its preferred stock.
Looking ahead, CareCloud's management remains focused on enhancing profitability and managing expenses while aiming for revenue growth. The company anticipates sufficient liquidity to meet its obligations over the next twelve months, supported by its operational improvements and strategic initiatives.
About CareCloud, Inc.
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