CorVel Corporation Q2 FY2026 earnings call

Market Trends

• Workers' Compensation Labor Market: Experiencing demographic shift with loss of experienced professionals; CorVel University is developing new talent.
• Commercial Health Segment: CERiS division faces pricing pressure; AI-driven enhancements improve savings identification and compliance.
• Agentic AI: Leveraged to simplify claims professionals' work, accelerate software development, and improve system interoperability.

Segment-Specific Updates

• CERiS: AI-driven enhancements improve savings identification and capacity; prioritizes transparency; adapts to regulatory changes.
• Property and Casualty: Implemented supervisory quality agents, enhanced claims workflow, and built a digital communication platform for injured workers.

Acquisition and Other Initiatives

• Completed acquisition of assets and talent from a technology firm in June; adding dedicated resources for M&A to expand offerings and enhance tech expertise; repurchased 143,774 shares at $12.8 million during the quarter.

September quarter revenues were $240 million, 7% above the prior year's $224 million. Revenue growth was driven by both the Patient Management and Network Solutions segments. Within patient management services, claims operations generated approximately $4 million in revenue growth. Network Solutions increased by $12 million, primarily reflecting higher utilization of CERiS, Ancillary Care and Bill Review Solutions.

Forward-Looking Statements

• Will add dedicated resources to focus on synergistic M&A opportunities to expand offerings for current partners.
• Continues to repurchase shares funded by strong operating cash flow.
• Strong and debt-free balance sheet positions CorVel well for product expansion and acquisitions.