CareCloud (MTBC) Q3 2026 earnings summary

Executive summary

• Q3 2026 delivered record GAAP net income of $4.727M, GAAP EPS of $0.10 and adjusted EBITDA of $9.880M; the 10th consecutive quarter of positive GAAP net income.

• Revenue rose 8.6% YoY to $33.725M; profitability grew faster than revenue as operating costs fell and higher-margin technology and compliance offerings expanded.

• AI automation, a higher-margin mix and a simpler capital structure supported margin expansion and lower preferred costs.

Financial highlights

• Q3 revenue was $33.725M vs. $31.067M; GAAP net income was $4.727M vs. $3.060M, up 54.5%.

• Q3 diluted EPS was $0.10 vs. $0.04; adjusted net income was $5.828M vs. $4.410M, and adjusted EBITDA was $9.880M vs. $7.733M.

• 9M revenue increased 13% to $96.875M; GAAP net income was $6.771M vs. $7.910M, while diluted EPS rose to $0.09 from $0.07.

• 9M adjusted EBITDA was $21.197M vs. $19.857M; free cash flow was $11.916M vs. $14.726M.

• Total operating expenses fell 2.5% YoY to $27.2M as revenue rose 8.6%; Q3 net interest expense included $934K of non-cash warrant expense.

Outlook and guidance

• FY2026 guidance reaffirmed: revenue $128M–$132M, adjusted EBITDA $29M–$31M and GAAP EPS $0.20–$0.23.

• Q4 priorities include recurring revenue, enterprise AI work including LailaCare, late-Q4 compliance software, cross-selling and continued term-loan paydown.

• Guidance depends on customer and vendor relationships, project timing and scope, and execution of integration and expense-management plans; seasonality may affect quarterly trends.

• Management expects sufficient liquidity to meet obligations over the next 12 months based on forecasts; next-year guidance was planned for the next earnings call.