CareCloud Completes Full Redemption of Series B Preferred Stock, Capping a Decade of Transformational Growth and Profitability

CareCloud (Nasdaq: CCLD) fully redeemed 100% of its 8.75% Series B Preferred Stock, funded by a new $50 million credit facility led by Citizens Bank with Provident Bank participation.

Rhea-AI Summary

CareCloud (Nasdaq: CCLD) fully redeemed 100% of its 8.75% Series B Preferred Stock, funded by a new $50 million credit facility led by Citizens Bank with Provident Bank participation. The move replaces higher-cost preferred equity with lower-cost debt and simplifies the capital structure.

Since 2015, revenue grew from about $23 million to approximately $130 million expected in 2026, with over 20 acquisitions, more than 45,000 providers served, first full year of positive GAAP net income in 2025, and about $30 million expected 2026 annualized adjusted EBITDA.

CareCloud also maintains a $60 million ATM equity facility and plans to issue shares only at or above $5.00 per share.

Positive

• Full redemption of 100% of 8.75% Series B Preferred Stock
• $50 million credit facility replaces higher-cost preferred equity
• Revenue growth from ~$23 million to ~$130 million expected in 2026
• More than 20 acquisitions and over 45,000 providers served
• First full year of positive GAAP net income achieved in 2025
• Approximately $30 million annualized adjusted EBITDA expected in 2026
• $60 million ATM facility provides flexible access to growth capital

Negative

• $50 million credit facility increases reliance on debt financing
• ATM equity facility could dilute shareholders if shares are issued

Argus May 18 session

+0.47% close to close Open Argus

Details

News Market Reaction – CCLD

In the May 18 session, CCLD gained 0.47%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement confirms the full redemption of CareCloud’s 8.75% Series B Preferred Stock, funded...

Analysis

This announcement confirms the full redemption of CareCloud’s 8.75% Series B Preferred Stock, funded by a $50M credit facility and framed as the culmination of a decade-long shift toward a scaled, profitable AI-enabled platform. Management highlights growth from roughly $23M to $130M expected revenue and about $30M adjusted EBITDA in 2026, plus a $60M ATM facility to fund growth at or above $5.00 per share. Investors may watch future leverage metrics, AI-driven margin expansion, and disciplined capital deployment.

Key Figures

ATM facility size: $60 million Credit facility: $50 million Minimum ATM price: $5.00 per share +5 more

ATM facility size

$60 million

Existing At-The-Market equity facility with Citizens Bank

Credit facility

$50 million

Recently secured facility used to fund Series B redemption

Minimum ATM price

$5.00 per share

Management intends to tap ATM only at or above this level

Series B coupon

8.75%

Dividend rate on redeemed Series B Preferred Stock

Revenue 2015

$23 million (approx.)

Revenue level when first preferred shares were issued in 2015

Expected 2026 revenue

$130 million (approx.)

Management’s 2026 revenue expectation referenced in release

Expected 2026 EBITDA

$30 million (approx.)

Annualized adjusted EBITDA expected during 2026

Healthcare providers served

More than 45,000

Scale of CareCloud’s customer base

Historical Context

5 past events · Latest: May 11

5 events

1. May 11

   Analyst Day announcement

   24h Move

   -4.7%

   Announced Nasdaq Analyst Day and highlighted $50M facility and prefunded redemption.

2. May 07

   Q1 2026 earnings

   24h Move

   -17.4%

   Reported revenue growth, GAAP net income, and reaffirmed 2026 guidance with AI launches.

3. Apr 20

   Earnings date notice

   24h Move

   +4.2%

   Set date and access details for upcoming Q1 2026 earnings release and call.

4. Apr 16

   Guidance reaffirmation

   24h Move

   +0.7%

   Reaffirmed financial guidance after capital structure simplification and preferred redemption plan.

5. Apr 14

   Credit facility & redemption

   24h Move

   +2.5%

   Closed $50M credit facility and scheduled full redemption of Series B preferred stock.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

Series B Preferred Stock, credit facility, At-The-Market ("ATM") equity facility, GAAP net income, +1 more

5 terms

Series B Preferred Stock financial

"announced the full redemption of 100% of its outstanding 8.75% Series B Preferred Stock"

Series B preferred stock is a type of ownership share issued by a company that offers certain advantages over common stock, such as priority in receiving dividends or assets if the company is sold or liquidated. It is typically issued after an initial round of funding, making it a way for investors to support a company's growth while gaining some protections and benefits. This stock matters to investors because it often provides a more secure investment position with potential for future growth.

credit facility financial

"The redemption was funded through CareCloud’s recently secured $50 million credit facility"

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

At-The-Market ("ATM") equity facility financial

"it maintains a $60 million At-The-Market ("ATM") equity facility with Citizens Bank"

An at-the-market (ATM) equity facility is a program that lets a publicly traded company sell newly issued shares directly into the open market in small increments at the current market price, typically through a broker. For investors it matters because it provides the company a flexible, quick way to raise cash without a big one-time offering, but it can slowly dilute existing shareholders and may put downward pressure on the stock if large amounts are sold—think of it as tapping a company’s cash reservoir drop by drop rather than emptying it all at once.

GAAP net income financial

"Achieved its first full year of positive GAAP net income in 2025."

GAAP net income is a company’s profit calculated according to Generally Accepted Accounting Principles, the standardized rules accountants use to record revenue, costs, taxes and one-time items. Investors care because it provides a consistent, rule-bound measure of how much money a business earned or lost over a period—like comparing bank statements prepared the same way—so it helps with fair comparisons, earnings-per-share calculations and valuation.

adjusted EBITDA financial

"approximately $30 million in annualized adjusted EBITDA expected during 2026"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Company intends to access growth capital opportunistically only at or above $5.00 per share through its existing $60 million ATM facility

SOMERSET, N.J., May 18, 2026 (GLOBE NEWSWIRE) -- CareCloud, Inc. (Nasdaq: CCLD), (“CareCloud” or the “Company”), a leader in AI-powered healthcare technology and revenue cycle management solutions, today announced the full redemption of 100% of its outstanding 8.75% Series B Preferred Stock, marking a major milestone in the Company’s multi-year transformation and capital structure evolution.

The redemption was funded through CareCloud’s recently secured $50 million credit facility, led by Citizens Bank — one of the nation’s largest commercial banks with more than $220 billion in assets — with participation from Provident Bank. The new facility replaces higher-cost preferred equity with lower-cost institutional financing and represents a significant institutional validation of CareCloud’s operating performance, cash flow profile, and long-term growth strategy.

“This is a defining moment for CareCloud,” said Stephen Snyder, Chief Executive Officer of CareCloud. “Over the past decade, preferred equity helped fuel our transformation from a traditional medical billing company into a scaled, profitable, AI-enabled healthcare technology platform. Today, we are emerging with a cleaner capital structure, stronger cash flow, and a clear path toward long-term shareholder value creation.”

Since issuing its first preferred shares in 2015, CareCloud has:

• Grown revenue from approximately $23 million to approximately $130 million expected in 2026.
• Completed more than 20 acquisitions;
• Expanded to serve more than 45,000 healthcare providers; and
• Achieved its first full year of positive GAAP net income in 2025.

These results reflect a high-quality, recurring-revenue platform with approximately $30 million in annualized adjusted EBITDA expected during 2026, expanding margins driven by automation and AI, and a streamlined capital structure that no longer carries the dividend drag of preferred equity.

CareCloud also announced that it maintains a $60 million At-The-Market (“ATM”) equity facility with Citizens Bank, providing the Company with substantial strategic flexibility to pursue future growth opportunities. Management intends to utilize the ATM opportunistically only at or above $5.00 per share — the price at which CareCloud completed its initial public offering — as the Company continues to scale its profitable, cash-generative healthcare technology platform. The Company views the ATM as a capital-efficient tool to access growth capital when strategically advantageous, not as a source of required liquidity.

“With the full redemption of our Series B Preferred Stock now complete and our capital structure significantly simplified, CareCloud is entering its next chapter as a profitable, cash-generative healthcare technology company,” added Snyder. “We believe we are exceptionally well-positioned to accelerate growth, expand margins through AI and automation, and continue building long-term value for our shareholders.”

About CareCloud

CareCloud brings disciplined innovation to the business of healthcare. The Company’s suite of AI and technology-enabled solutions helps healthcare organizations increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 45,000 providers rely on CareCloud’s solutions and services across revenue cycle management, practice management, electronic health records, patient experience management, business intelligence and digital health.

Follow CareCloud on LinkedIn, X and Facebook.

For additional information, please visit our website at carecloud.com. To listen to video presentations by CareCloud’s management team, read recent press releases and view the latest investor presentation, please visit ir.carecloud.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future growth, profitability, acquisition opportunities, use of the ATM facility, AI initiatives, and future shareholder value creation. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Please refer to the Company’s filings with the Securities and Exchange Commission for additional information regarding these risks and uncertainties.

SOURCE: CareCloud

Company Contact:
Norman Roth
Interim Chief Financial Officer and Corporate Controller
CareCloud, Inc.
nroth@carecloud.com

Investor Contact:
Stephen Snyder
Chief Executive Officer
CareCloud, Inc.
ir@carecloud.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did CareCloud (NASDAQ: CCLD) announce about its Series B Preferred Stock on May 18, 2026?

CareCloud announced it has fully redeemed 100% of its 8.75% Series B Preferred Stock. According to CareCloud, the redemption was funded through a new $50 million credit facility, simplifying its capital structure and removing the dividend burden of preferred equity.

How does CareCloud's new $50 million credit facility affect its capital structure and costs?

The $50 million credit facility replaces higher-cost preferred equity with lower-cost institutional financing. According to CareCloud, the facility, led by Citizens Bank with Provident Bank participation, supports its cash flow profile while simplifying and modernizing the company’s overall capital structure.

How has CareCloud's revenue and profitability changed since issuing preferred shares in 2015 (CCLD)?

CareCloud reports revenue growth from about $23 million in 2015 to roughly $130 million expected in 2026. According to CareCloud, it also achieved its first full year of positive GAAP net income in 2025 and expects about $30 million in 2026 annualized adjusted EBITDA.

What does CareCloud's $60 million ATM equity facility mean for CCLD shareholders?

CareCloud maintains a $60 million At-The-Market equity facility to access growth capital when attractive. According to CareCloud, management plans to use the ATM opportunistically only at or above $5.00 per share, viewing it as a strategic tool rather than required liquidity.

How many healthcare providers does CareCloud serve after its decade of growth?

CareCloud now serves more than 45,000 healthcare providers across its platform. According to CareCloud, this expansion, alongside over 20 acquisitions, supports a high-quality, recurring-revenue model and underpins its AI-enabled healthcare technology and revenue cycle management offerings.

What growth and margin outlook did CareCloud provide following its Series B redemption?

CareCloud expects about $30 million in annualized adjusted EBITDA during 2026, with expanding margins. According to CareCloud, automation and AI are key drivers of margin expansion as the company scales its profitable, cash-generative healthcare technology and revenue cycle management platform.