CareCloud (MTBC) investor relations material

Executive summary

• Revenue grew 16% year-over-year to $31.9 million in Q2 2026, with year-to-date revenue at $63.2 million, and marked the ninth consecutive quarter of positive GAAP net income.

• Profitability was impacted by increased R&D, AI investments, integration costs, and higher interest expense, with Q2 GAAP net income at $1.1 million, down from $2.9 million in Q2 2025.

• Completed full redemption of Series B preferred stock in May 2026, simplifying the capital structure and eliminating $3.3 million in annual preferred dividends.

• Entered the compliance and audit-defense market through the acquisition of Empower Healthcare & Compliance Partners, expanding recurring revenue streams.

• A major cybersecurity incident in March 2026 was contained, with legal actions ongoing and insurance expected to cover most costs.

Financial highlights

• Q2 2026 revenue was $31.9 million, up from $27.4 million in Q2 2025; year-to-date revenue was $63.2 million, up from $55.0 million.

• Q2 2026 GAAP net income was $1.1 million; adjusted EBITDA was $5.9 million; adjusted net income was $2.4 million ($0.06/share).

• Free cash flow for Q2 2026 was $5.7 million; cash balance at June 30, 2026 was $13.4 million; net working capital was $695,000.

• Direct operating costs rose 21% year-over-year in Q2 2026 to $17.5 million; R&D expense more than doubled to $2.2 million.

• Interest expense increased sharply to $815,000 in Q2 2026 due to new term loan and credit facility borrowings.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: revenue of $128–$132 million, adjusted EBITDA of $29–$31 million, and GAAP EPS of $0.20–$0.23.

• Management expects investments in AI and integration to drive long-term margin expansion and operational efficiency.

• Guidance depends on client/vendor relationships, project timing, integration execution, and cost alignment.