CCLD

CCLD is a healthcare RCM/medical-billing operator (the MD&A is explicit that 'the SaaS component is not material to the overall contract compared to the stand-alone value of RCM') that runs on Pakistan-based labor at ~15-17% of comparable U.S. cost. After a multi-year revenue slide from $140M (FY2021) to $111M (FY2024) and a brutal -$48.7M loss in FY2023, FY2025 shows a genuine inflection: revenue $120M (+8.7%), operating income $11.3M (+24.4%), net income $10.8M (+37.5%), ROE 18.1%, and liabilities/equity a clean 0.47x. The standout is cash generation — operating cash flow of $28.6M (+38.4%) against $4.78M capex is ~$24M of free cash flow on a $91.8M market cap, a high-20s% FCF yield, and the gap between OCF and net income is largely the $15.0M of D&A from prior acquisitions. P/S of 0.8 and P/E of 21.6 frame a business priced for stagnation that is instead re-accelerating earnings.

The valuation, not the quality, is the reason to own it. This is labor-arbitrage RCM, not premium software, so it deserves a low multiple — but ~3x operating cash flow is too cheap for a business now growing the top line, expanding margins, and self-funding ($6.38M R&D, +68.8%). The 135.7% jump in diluted EPS to $0.10 signals operating leverage as the post-2023 cost base normalizes.