Claritev Corp Q1 FY2026 earnings call

Travis emphasized confidence in the business, strategy, and competitive position. Core offerings driving growth, with wins in NSA business and public sector. AI application enhancing operations, like in claims intelligence and IDR processes. Addition of Dallas Scripps to drive TPA market forward. Investor Day highlights including agreements with GDIT and a top five health system.

Total revenue in the quarter was $244.7 million, up 5.8% year-over-year. Adjusted EBITDA was $146.9 million for the quarter, up 3.4% year-over-year at a 60% margin. Q1 bookings were $44.1 million, with cross-sell and up-sell activity accounting for 73% of bookings, while 27% came from net new clients. Pipeline growth remained strong, increasing 70% year-over-year.

Raising the bottom end of revenue guide range by $5 million to $985 to a billion. Maintaining full-year adjusted EBITDA guidance of $605 to $615 million with margins of 61% to 62%. Q2 revenue expected to be relatively flat sequentially, with growth rate increasing to between 3% to 5% for the second half of the year.

Remarks on four looking statements representing management's beliefs and expectations only as of the date of this call. Actual results may differ materially due to a number of risks. Summary of risks can be found on the second page of the supplemental slide deck and a more complete description in annual report on Form 10-K and other documents filed with the FCC.

Q: On margin side, how do investments balance with rate and mix?

A: Doug said adjusted EBITDA expenses were approx $385 million, started investing in Q4, expect rate of investment to be rateable quarter to quarter.

Q: Mix of services bookings and margins?

A: Provider and public sector contributed about 20% of Q1 bookings, expect services margins to be roughly half core business.

Q: Medicare Advantage impact on payment integrity?

A: Yes, PRI business expected to grow, good portion of funnel in payment revenue integrity space.