CareCloud Highlights Successful Preferred A Conversion, Progress Toward Capital Structure Simplification, and Reaffirms Growth Outlook

Rhea-AI Summary

CareCloud (Nasdaq: CCLD) highlighted the completed Preferred A conversion and progress toward simplifying capital structure. The March 6, 2025 conversion issued ~26 million common shares, raising total common shares from ~16 million to ~42 million. The company reaffirmed prior financial guidance and cited recurring revenue and strong cash flow.

CareCloud noted a recent closing price of $3.49 (March 27, 2026) and said ~3 substantial Preferred A holders remain outstanding; ~ $40 million of Series B preferred remains non-convertible.

Positive

• Orderly market absorption of Preferred A conversion with trading near pre-conversion levels
• Reaffirmed financial guidance and continued confidence in growth outlook
• Recurring revenue and strong cash flow supporting capital structure initiatives
• Series B ($40M) is non-convertible, reducing risk of future dilution from that tranche

Negative

• Common shares outstanding increased ~162% from ~16M to ~42M, causing significant dilution

News Market Reaction – CCLD

+0.86%

5 alerts

+0.86% News Effect

+$1M Valuation Impact

$155.95M Market Cap

0.2x Rel. Volume

On the day this news was published, CCLD gained 0.86%, reflecting a mild positive market reaction. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $1M to the company's valuation, bringing the market cap to $155.95M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

New shares issued: 26 million shares Pre-conversion shares: 16 million shares Post-conversion shares: 42 million shares +3 more

6 metrics

New shares issued 26 million shares Common stock issued upon Preferred A conversion completed March 6, 2025

Pre-conversion shares 16 million shares Common shares outstanding before Preferred A conversion

Post-conversion shares 42 million shares Common shares outstanding after Preferred A conversion

Recent closing price $3.49 Closing price on March 27, 2026 mentioned in the release

Series B Preferred outstanding $40 million Approximate amount of Series B Preferred Stock outstanding

EHR environments 6 environments Cybersecurity incident limited to one of six EHR environments

Market Reality Check

Price: $3.35 Vol: Volume 910,681 is 1.31x t...

normal vol

$3.35 Last Close

Volume Volume 910,681 is 1.31x the 20-day average of 693,524, indicating elevated trading interest before this update. normal

Technical Shares traded above the 200-day MA of 2.93 with a pre-news price of 3.495, keeping the longer-term trend constructive despite short-term weakness.

Peers on Argus

Pre-news, CCLD was down 8.4% while key peers were mixed: HCAT up 1.85%, AMWL dow...

1 Up

Pre-news, CCLD was down 8.4% while key peers were mixed: HCAT up 1.85%, AMWL down 3.38%, LFMD down 4.12%, SOPH slightly down 0.63%, MNDR down 13.27%. Momentum scans flagged only MNDR on the upside, supporting this as a stock-specific move.

Historical Context

5 past events · Latest: Mar 18 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 18	Product conference update	Neutral	-1.1%	Showcased enhanced MAP App at HFMA revenue cycle conference and webinar plans.
Mar 17	Conference participation	Positive	+8.1%	Participation in KeyBanc healthcare forum and highlighting strong 2025 results and cash flow.
Mar 16	Analyst Day announcement	Positive	-0.5%	Planned Nasdaq bell ringing and Analyst Day showcasing AI products and strategy.
Mar 12	Earnings and guidance	Positive	+9.4%	Reported record 2025 net income, first full-year positive EPS, and 2026 growth guidance.
Feb 19	Earnings date notice	Neutral	+2.5%	Announced date and details for Q4 and full-year 2025 earnings release and call.

Pattern Detected

Recent fundamentally positive updates, especially earnings and guidance, have more often been followed by favorable price reactions, with occasional divergences on event-heavy but less financial-specific news.

Recent Company History

Over the past several months, CareCloud has highlighted improving fundamentals and growing visibility. On March 12, 2026, it reported 2025 revenue of $120.5M, GAAP net income of $10.8M, and first full‑year GAAP EPS of $0.10, alongside 2026 guidance for $128–$132M revenue and higher EPS, which drew a 9.4% positive reaction. Subsequent conference participation and product updates saw more mixed, sometimes negative, trading. Today’s capital-structure-focused news follows a period where earnings-related headlines have generally been rewarded more than promotional or event-driven items.

Market Pulse Summary

This announcement underscores CareCloud’s progress in absorbing its Preferred A conversion, which ad...

Analysis

This announcement underscores CareCloud’s progress in absorbing its Preferred A conversion, which added about 26 million common shares and lifted the total to roughly 42 million. Management reiterates that approximately $40 million of Series B Preferred lacks a conversion feature, framing it as not dilutive to common holders. The reaffirmed growth outlook and limited impact of a cybersecurity incident suggest investors may focus on upcoming execution relative to prior 2026 guidance.

Key Terms

series a preferred stock, series b preferred stock, capital structure, ehr, +1 more

5 terms

series a preferred stock financial

"conversion of its Series A Preferred Stock (“Preferred A”, formerly traded as CCLDP)"

Series A preferred stock is a type of ownership share in a company that gives investors certain advantages, such as priority in receiving profits or getting their money back if the company is sold or goes bankrupt. It is often issued during early funding stages to attract investors by offering more security than common shares. This stock matters to investors because it provides a safer way to invest while still holding potential for future gains.

series b preferred stock financial

"approximately $40 million of Series B Preferred Stock outstanding, which, unlike Preferred A"

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.

capital structure financial

"intends to further simplify its capital structure over time"

Capital structure is the way a company finances its operations and growth by using different sources of money, such as borrowed funds (loans or bonds) and owner’s equity (investments from owners or shareholders). It’s like a recipe for baking a cake, where the balance of ingredients affects the final product's strength and taste; similarly, the mix of debt and equity influences a company's stability and risk. For investors, understanding a company's capital structure helps gauge how risky it might be to invest or lend money.

ehr medical

"limited to one of the Company’s six EHR environments, and believed to have no material impact"

EHR stands for electronic health record, a digital version of a patient’s complete medical file that replaces paper charts and collects diagnoses, medications, test results and treatment history in one place. For investors, EHR systems matter because they drive recurring revenue for software and services, affect healthcare providers’ costs and efficiency, and create data assets and integration opportunities that can influence a company’s growth and regulatory risk.

revenue cycle management medical

"provider of healthcare technology and revenue cycle management solutions, today highlighted"

Revenue cycle management is the set of processes a healthcare provider or medical business uses to turn patient care into cash, including registering patients, billing insurers, submitting claims, collecting payments and handling denials. Think of it as the organization’s checkout system and follow-up team; efficient management shortens the time to get paid, reduces lost revenue and lowers financial risk, which directly affects cash flow and profitability that investors watch closely.

AI-generated analysis. Not financial advice.

SOMERSET, N.J., March 30, 2026 (GLOBE NEWSWIRE) -- CareCloud, Inc. (Nasdaq: CCLD, CCLDO) (“CareCloud” or the “Company”), a leading provider of healthcare technology and revenue cycle management solutions, today highlighted the successful continued market absorption of the Q1 2025 conversion of its Series A Preferred Stock (“Preferred A”, formerly traded as CCLDP) into common equity, while reaffirming its previously issued financial guidance and continued confidence in its growth outlook.

The Preferred A conversion, completed on March 6, 2025, resulted in the issuance of approximately 26 million shares of common stock, increasing CareCloud’s total common shares outstanding from approximately 16 million shares to approximately 42 million shares. Since the completion of the conversion, the Company’s stock has demonstrated resilience and continues to trade in line with levels observed prior to and during the conversion period, with a recent closing price of $3.49 on March 27, 2026. The conversion of Preferred A has been substantially completed, with only three substantial shareholders remaining. The Company believes this orderly market transition reflects the underlying strength of its business fundamentals and recurring revenue model.

“Supported by its strong operating model, including significant recurring revenue and robust cash flow generation, CareCloud intends to further simplify its capital structure over time,” said Stephen Snyder, Chief Executive Officer of CareCloud. “The Company currently has approximately $40 million of Series B Preferred Stock outstanding, which, unlike Preferred A, does not have a conversion feature into common equity and therefore does not represent a source of future dilution to CCLD shareholders.”

The Company also reaffirms its previously issued financial guidance and remains confident in its outlook for continued growth, with the previously disclosed cybersecurity incident, which was promptly contained and limited to one of the Company’s six EHR environments, and believed to have no material impact on operations. The Company appreciates the continued support of its shareholders as it advances its capital structure initiatives.

About CareCloud

CareCloud brings disciplined innovation to the business of healthcare. Our suite of AI and technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows, and improve the patient experience. More than 45,000 providers count on CareCloud to help them improve patient care, while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health, at carecloud.com.

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.

Disclaimer

This press release is for informational purposes only, and does not constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.

Forward-Looking Statements

This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology.

Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, and the expected results from the integration of our acquisitions. Past operational or stock price performance is not an indication of future performance.

These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.

The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

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

What did CareCloud (CCLD) announce about the Preferred A conversion on March 30, 2026?

CareCloud announced the Preferred A conversion was substantially completed, issuing approximately 26 million common shares. According to the company, total common shares rose from ~16 million to ~42 million following the March 6, 2025 conversion, with only three significant Preferred A holders remaining.

How does the Preferred A conversion affect existing CCLD shareholders and share count?

The conversion materially increased common shares, diluting prior holders and changing float. According to the company, common shares outstanding rose to ~42 million from ~16 million, an issuance of roughly 26 million shares, which is a significant increase in shares outstanding.

What is the impact of the outstanding Series B preferred on CCLD dilution risk?

Series B preferred does not convert and therefore is not expected to cause future equity dilution. According to the company, approximately $40 million of Series B preferred remains outstanding and lacks a conversion feature into common equity.

Did CareCloud change its financial guidance after the Preferred A conversion for CCLD?

No — the company reaffirmed its previously issued financial guidance and remains confident in growth. According to the company, it continues to expect its prior outlook to hold, citing recurring revenue and robust cash flow as supporting factors.

What does the March 27, 2026 closing price of $3.49 indicate for CCLD after the conversion?

The recent close suggests market resilience after the conversion, trading near pre-conversion levels. According to the company, the $3.49 close on March 27, 2026 reflects orderly market absorption and ongoing investor support amid capital structure changes.