CareCloud ($CCLD): The Back Office Nobody Talks About
Cheap offshore labor, broken trust, and a preferreds trade that still pays double-digits
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CareCloud’s business model is shipping American jobs to Pakistan.
That’s it. That’s the whole thing. Doctors hate paperwork, so CareCloud ships it to 3,600 workers in Pakistan and Sri Lanka for pennies on the dollar. Billing codes, claims processing, all the grunt work nobody wants to do.
It’s basic labor arbitrage dressed up as healthcare innovation. Nothing revolutionary about it, but it worked.
For years they went on an acquisition binge, buying up distressed billing shops and moving the work offshore. Revenue hit $140 million by 2021 and they thought they had it figured out. More than 80% of growth came from deals, not organic expansion.
Then reality hit in 2023. The math stopped working. They couldn’t cover their dividend payments and suspended them. Stock cratered. Trust evaporated. Their preferred shares collapsed to around 3.5 cents.
But here’s what’s interesting: they’ve actually stopped the bleeding. Dividends resumed in February 2025. Cash flow is now positive. Those busted preferred shares have rallied 6x from their lows and now trade around 80 cents on the dollar.
Now they’re pivoting hard to AI. They’re hiring 500 engineers to build automation tools while their core business model gets disrupted by the very technology they’re embracing. The irony is thick.
The question is whether AI kills their only advantage. When Epic and the giants can automate everything CareCloud does by hand, what’s left? That’s what investors betting on those 80-cent preferreds are trying to figure out.