CareCloud, Inc.

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I—Item 1A. “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on March 12, 2026, which could materially affect our business, financial condition and/or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition, cash flows and/or future results.

The recent cybersecurity incident in our CareCloud Health division could result in material costs, regulatory action and reputational harm.

We recently experienced a cybersecurity incident involving unauthorized access to certain of our information systems. While we have taken steps to contain and remediate the incident, including engaging third-party cybersecurity experts, there can be no assurance that additional vulnerabilities will not be identified or that further unauthorized activity will not occur. The incident has resulted in, and may continue to result in, costs related to investigation, remediation, legal proceedings, regulatory inquiries, and customer notification. Additionally, this incident may harm our reputation, result in customer attrition, and expose us to litigation or regulatory penalties. Because the investigation is ongoing, we have not yet determined the full scope of data that may have been accessed, including the number of patients potentially affected and the categories of data involved, and the ultimate costs of responding to, remediating and resolving the incident could exceed our available cybersecurity insurance coverage. If our remediation efforts are not successful or timely, or if additional vulnerabilities are exploited, our business, financial condition, and results of operations could be materially adversely affected.

The financial markets recently have encountered volatility associated with concerns about the balance sheets of banks, especially small and regional banks who may have significant losses associated with investments that make it difficult to fund demands to withdraw deposits and other liquidity needs. Although the federal government has announced measures to assist these banks and protect depositors, some banks have already been impacted and others may be materially and adversely impacted. Our business is dependent on bank relationships and we are proactively monitoring the financial health of such bank relationships. Continued strain on the banking system may adversely impact our business, financial condition and results of operations.