Bilbel Capital Sold CareCloud (CCLD) for More Attractive Opportunities

Bilbel Capital, an investment firm, has divested its majority stake in CareCloud, Inc. (CCLD) to allocate capital towards more promising investment prospects in the second quarter of 2026. The company's Q2 2026 investment letter, available for download, details the rationale behind this decision. Despite CareCloud's one-month return of 5.93% in August 2026, the stock experienced a 32.07% decline over the past year.

Bilbel Capital's assessment is that CareCloud is undervalued, yet they identified other companies more undervalued, prompting the sale of most CareCloud shares. The firm's analysis highlights two primary factors affecting CareCloud's value: customer retention and the impact of AI on profitability. CareCloud's revenue from last year amounted to 4 companies purchased in 2025, resulting in a 15% revenue decrease compared to Q1 2025.

However, the company's total enterprise business segment (TEBS) revenue grew by 30%, although this was tempered by 5.6% due to normal structural churn caused by factors such as doctor retirements, practice closures, or hospital acquisitions.