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 higher R&D, integration costs, and increased interest expense, despite ongoing GAAP profitability.

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

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

• Advanced AI strategy across products, including new AI-powered compliance solutions and enhancements to existing platforms.

Financial highlights

• Q2 2026 GAAP net income was $1.1 million, down from $2.9 million in Q2 2025; adjusted EBITDA for Q2 was $5.9 million, and adjusted net income was $2.4 million ($0.06 per share).

• Year-to-date adjusted EBITDA was $11.3 million, compared to $12.1 million in the prior year.

• Free cash flow for Q2 was $5.7 million; cash at quarter-end was $13.4 million; net working capital at quarter-end 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.

• Second half expected to be stronger, driven by recurring revenue growth, client expansion, cost management, and elimination of Series B preferred dividends.

• Guidance assumes successful client and vendor relationships, timely integration, and expense management.

• Management expects sufficient liquidity for the next twelve months, with continued focus on profitability and expense management.