CorVel Corporation (CRVL) Earnings
CorVel Corporation is expected to report next earnings on August 4, 2026 (in NaN days).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 20, 2026 | — | $0.61 | — | $249M | — |
| Feb 3, 2026 | — | $0.47 | — | $236M | — |
| May 22, 2025 | — | $0.51 | — | $232M | — |
| May 22, 2024 | — | $0.37 | — | $207M | — |
| May 25, 2023 | — | $0.35 | — | $185M | — |
| Jan 31, 2023 | — | $0.32 | — | $179M | — |
| Nov 1, 2022 | — | $0.28 | — | $177M | — |
| Aug 2, 2022 | — | $0.31 | — | $176M | — |
| May 26, 2022 | — | $0.36 | — | $171M | — |
| Feb 1, 2022 | — | $0.25 | — | $165M | — |
| Nov 2, 2021 | — | $0.29 | — | $158M | — |
| Aug 3, 2021 | — | $0.31 | — | $153M | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q4 FY2026 · May 20, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Overall Financial Performance - Q1 (March quarter) 2026 revenues hit $249 million, a 7% year-over-year increase from $232 million in the prior year quarter. Earnings per share (EPS) rose to $0.61 from $0.51 year-over-year. - Full fiscal 2026 revenues reached $959 million, 7% higher than $896 million in fiscal 2025. Full-year EPS was $2.14, a 17% increase from $1.83 in the prior year, and full-year net income was $110 million, a 14% increase from $95 million in fiscal 2025. - Q4 2026 net income was $31 million, $5 million higher than the prior year quarter. General and administrative (G&A) expenses decreased by $1.3 million year-over-year in the quarter, falling from 10.6% to 9.4% of revenue. Full-year operating margin improved 1.4% to 15% for fiscal 2026. - Full-year free cash flow grew $7 million to $66 million, ending the year with a $233 million cash balance and no debt. Days sales outstanding improved 4 days year-over-year to 37 days in the March 2026 quarter. The company repurchased 872,744 shares for $56 million in fiscal 2026, 366,306 of which were repurchased in Q4 for $20 million. ### Demand & Sales Momentum - New bookings in the March 2026 quarter increased 56% year-over-year, reflecting broad high demand and accelerating commercial momentum. RFP activity rose 20% year-over-year, expanding the sales pipeline. Most new bookings are multiyear contracts, expected to drive revenue and profit growth in the second half of 2026 as implementations scale. ### Market Position & Strategic Product Development - Health care payers face rising administrative costs, growing claim complexity, and pressure to improve outcomes, driving a market shift from reactive correction to proactive payment accuracy and cost management. CorVel's CERIS platform is aligned with this shift, offering integrated prepay and postpay solutions to reduce administrative burden and strengthen provider partnerships, with growing customer demand. - In fiscal 2026, CorVel is launching 4 large enterprise payer programs, including 2 new multiyear partnerships with top 10 national payers, which will drive growth as they mature. The company is migrating more postpaid services to proactive prepay workflows, creating a more predictable revenue model with shorter realization cycles (1-2 months for prepay vs 6+ months for postpay) while retaining comparable margins. - The workers' compensation and risk management market is shifting from transactional cost management to integrated, outcome-focused claims management amid rising claim severity, medical cost inflation, and labor constraints. CorVel's strategy focuses on its unified CorVel Connected platform that integrates AI, real-time data, and clinical expertise across the entire claim lifecycle to improve outcomes and scalability. - AI and automation investments are focused on augmenting internal teams, automating manual workflows, and improving decision-making, enabling staff to focus on high-value complex work. The company is also investing in telemedicine, bundled care models, API connectivity, and compliance infrastructure to improve access, reduce friction, and meet regulatory requirements.
Guidance
- Existing large payer wins and the one-time timing benefit from accelerated post-payment recoveries in Network Solutions are expected to create ongoing revenue and profit tailwinds as new programs scale and mature. - After increasing personnel levels to support near-term implementation and service delivery priorities, headcount is expected to normalize as deployments mature. As automation and AI-enabled workflow enhancements are rolled out through the remainder of 2026 and into 2027, the company expects to realize sustained productivity gains, reduced manual work, and improved operating leverage. - CorVel expects its balanced business portfolio to deliver scalable growth from Network Solutions, while technology and AI investments will drive increased differentiation and future growth in Patient Management. - The company's debt-free balance sheet provides agility to accelerate strategic product expansion, technological advancement, and pursue acquisition opportunities.
Segment performance
1. Network Solutions: Delivered double-digit revenue and profit growth in fiscal 2026, driven by broad momentum across offerings, strength in property and casualty and commercial health segments. One-time timing-related accelerated post-payment recoveries from large payer engagement contributed an additional $0.02 to full-year earnings per share. This segment is the company's primary driver of scalable growth, with new large payer wins expected to deliver ongoing tailwinds. 2. Patient Management: Generated low single-digit revenue and profit growth in fiscal 2026, supported by a stable demand environment and focused operational efficiency improvements. Targeted investments in service quality and technology scaling are underway to support future growth and differentiation for this segment.
Risks & headwinds
- The increasing sophistication and speed of AI-facilitated cybersecurity vulnerability discovery and exploitation is reshaping industry-wide operational and cybersecurity risk dynamics. Heightened customer and regulatory scrutiny of cybersecurity resilience requires ongoing proactive investment. - The effective tax rate increased in fiscal 2026, after the prior year benefited from a non-recurring discrete tax benefit from stock option exercises, which tempered full-year earnings growth in the reporting period. - The industry faces persistent labor constraints, rising medical cost inflation, growing claim severity, and regulatory complexity, which create cost and operational pressures for the company and its customers.