CorVel Corporation Q3 FY2026 earnings call

• Financial Results: Revenue growth over periods, EPS growth, December quarter details.
• 2025 Highlights: Net revenue retention for business was 100%, 44% close rate on new business opportunities, strong incremental growth with existing partners.
• AI Initiatives: Increased traction with AI initiatives, augmenting development process, enhancing operational efficiency, elevating team member work, improving outcomes for partners.
• Technology Acquisition: Closed a technology-centric acquisition in June, realizing efficiency and effectiveness in health payment integrity services for the commercial health segment.
• AI Impact: Automation of lower-value activities to reduce service delivery costs and improve client outcomes; specific examples in commercial health, claims management, case management, and software development.
• CERES Division: Market evolution with rising medical costs and regulatory scrutiny, AI and automation use, strategic acquisition integration, DOJ False Claims Act stats, role in payment integrity to reduce risk and impact medical costs.

CorVel's revenue for the nine months ending 12/31/2025 was $710 million, a 7% increase from $664 million in the prior year period. Fiscal year-to-date earnings per share were $1.53, up 16% from $1.32 in the prior year's nine months. The December 2025 quarter had revenues of $236 million, 3% above the $228 million in December of the prior year. Earnings per share for the December 2025 quarter were $0.47, a 2% increase from the prior year's $0.46. General and administrative expenses allocation decreased from 9.7% to 9.6%, and margin improved from 23.2% to 23.3%, but an increase in the effective tax rate tempered earnings. CorVel operates within a single segment: patient management and network solutions, with no separate product-level revenue contribution reporting provided.

• Net revenue retention for business is 100%.
• 44% close rate on new business opportunities.
• Strong incremental growth with existing partners.
• Accelerated technology roadmap, including from the acquired technology.

• CorVel cautions that forward-looking statements are predictions and actual results may differ materially from projections, referring to SEC filings for factors that could cause differences.

Q: Can you provide more detail on the deceleration of year-over-year revenue growth?

A: Michael Combs states it's short-term operational factors, not a change in fundamentals, and the historical pattern of growth will continue.

Q: Provide more context around segment quarter three?

A: Michael Combs indicates CorVel operates in a single segment: patient management and network solutions, with no separate product-level reporting of segments