Claritev Q1 Earnings Name Highlights

Key Factors

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• Claritev beat Q1 expectations with income of $244.7 million and adjusted EBITDA of $146.9 million, and administration stated gross sales momentum helps its full-year outlook. The corporate raised the low finish of its 2026 income steerage to $985 million to $1 billion whereas maintaining EBITDA steerage unchanged.

• Bookings hit a document at $44.1 million in annual contract worth, pushed principally by cross-sell and upsell exercise. Claritev additionally stated pipeline development was up 70% yr over yr, with extra giant offers and improved win charges.

• AI and growth wins are driving development and effectivitytogether with new public sector and supplier offers corresponding to GDIT and a top-five well being system. Administration stated AI is enhancing productiveness throughout coding, claims processing and finance, whereas additionally supporting new service choices.

Claritev (NYSE:CTEV) reported first-quarter 2026 income and adjusted EBITDA forward of inner expectations, whereas administration stated gross sales momentum and new-market growth assist its full-year outlook.

President and CEO Travis Dalton stated the quarter mirrored “not simply efficiency, however progress,” pointing to energy within the firm’s core choices, new buyer wins and growing use of synthetic intelligence throughout its operations and shopper options.

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Whole income for the quarter was $244.7 million, up 5.8% from a yr earlier, Chief Monetary Officer Doug Garis stated. Adjusted EBITDA was $146.9 million, up 3.4% yr over yr, with a 60% margin.

Garis stated development got here from each the corporate’s core enterprise and growth areas. He highlighted efficiency in Information iSight, Claritev’s flagship reference-based pricing resolution inside its Claims Intelligence service line, which rose 8.4% within the quarter. Community and cost income integrity service strains carried out at or barely above inner expectations, he stated.

Bookings Attain Report Degree

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Claritev reported $44.1 million in annual contract worth bookings within the first quarter, which administration described as one other document quarter. Dalton stated the corporate stays assured in its full-year ACV gross sales goal of $80 million to $100 million, representing 20% to 50% development over final yr’s gross sales outcomes.

Garis stated first-quarter bookings mirrored the diversification technique mentioned on the firm’s March Investor Day. Cross-sell and upsell exercise represented 73% of bookings, whereas 27% got here from web new purchasers. The corporate closed 19 offers with greater than $100,000 in ACV and 9 offers with greater than $1 million in ACV, which Garis stated represented a 350% improve in seven-figure offers within the quarter.

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Pipeline development elevated 70% yr over yr, Garis stated, including that common deal measurement has greater than doubled, gross sales cycles have compressed and win charges proceed to enhance.

Dalton stated Claritev signed six new logos within the first quarter after including 30 new logos final yr. He stated the corporate has “considerably extra protection” in its pipeline than it did two years in the past, giving administration confidence in income conversion and funding choices.

Public Sector and Supplier Wins Spotlight Enlargement

Dalton pointed to 2 lately introduced wins as proof of Claritev’s market growth. The corporate signed an settlement with GDIT to offer a customized community for the World Commerce Heart Well being Program, which Dalton stated leverages a core resolution within the public sector and demonstrates the corporate’s capability to type new companion relationships.

Claritev additionally signed what Dalton described as a top-five well being system working greater than 700 services, together with hospitals, ambulatory surgical procedure facilities, outpatient facilities and different websites of care. He stated the connection got here immediately from Claritev’s acquisition of OPCG within the fourth quarter, which helps the corporate’s newly launched companies providing.

In response to an analyst query, Garis stated supplier and public sector bookings contributed about 20% of first-quarter bookings. He stated companies bookings are anticipated to symbolize about 20% of the full-year bookings combine on the midpoint of the corporate’s $80 million to $100 million goal, with margins roughly half these of the core enterprise because the section ramps and scales.

Dalton stated the well being system settlement is strategic as a result of Claritev will present managed companies for the client’s digital medical document platform, a brand new service line for the corporate. He added that such relationships might present recurring income and create alternatives to promote further merchandise, together with transparency merchandise corresponding to CompleteVue.

AI Drives Effectivity and Product Efficiency

Administration emphasised synthetic intelligence as each an operational effectivity instrument and a aggressive benefit. Dalton stated engineering groups totally utilizing AI coding instruments almost doubled coding capability with out including headcount.

He additionally described a number of operational examples. Inside Claims Intelligence, Claritev constructed a supplier contact agent to deal with claims that arrive with no supplier ID. Dalton stated the instrument achieves “research-level accuracy,” appends supplier contact IDs, reduces processing time by greater than half and saves greater than 2,000 hours of processing time.

Within the unbiased dispute decision course of, Dalton stated Claritev automated bill extraction and reconciliation for accounts payable IDR workflows. He stated the corporate is now dealing with 1000’s of invoices every day, automating day by day processing in lower than one hour with almost 100% accuracy and uptime.

Dalton stated Claritev has AI groups working throughout its options and inner operations, together with gross sales and finance, to construct scale and effectivity.

Steerage Raised at Low Finish of Income Vary

Claritev raised the underside finish of its full-year income steerage by $5 million and now expects income of $985 million to $1 billion. Garis stated the corporate is snug including first-quarter income outperformance into present fashions inside that revised vary.

The corporate maintained full-year adjusted EBITDA steerage of $605 million to $615 million, with margins of 61% to 62%. Garis stated that, after normalizing for the influence of $18 million in one-time property and casualty income and EBITDA contribution final yr, the steerage implies 3.5% to five% adjusted EBITDA development on a like-for-like foundation.

Claritev additionally maintained its outlook for complete capital spending of $160 million to $170 million and constructive free money circulate for 2026. Garis stated the corporate expects working and unlevered free money circulate development, with adjusted money conversion normalizing to pre-2025 ranges by year-end.

For the primary quarter, Claritev generated $36.8 million of unlevered free money circulate, up $23.7 million, or 181%, from the year-earlier interval. Free money circulate was a use of $92.5 million, which Garis stated was decrease by $23.6 million within the quarter. He famous that the corporate expects the primary and third quarters to be money consumption quarters and the second and fourth quarters to be money producing quarters within the close to to midterm.

Administration Cites Core Progress and Deleveraging Priorities

Dalton stated Claritev is targeted on natural development, funding within the core enterprise, diversification into new verticals and deleveraging over time. He additionally highlighted alternatives within the third-party administrator market, saying the corporate added Dallas Scrip, an trade veteran, in late 2025 to steer that effort.

Within the question-and-answer session, Garis stated cost income integrity represents a significant portion of the corporate’s alternative funnel, together with demand tied to Medicare Benefit pressures. He stated Claritev has a broad set of options throughout prepay, claims modifying and post-pay features.

Dalton closed the decision by saying the corporate is “in a great place” and assured in its yr, whereas reiterating that Claritev is working with a long-term view.

About Claritev (NYSE:CTEV)

Claritev is a healthcare expertise, knowledge and insights firm centered on enhancing affordability,  transparency and high quality. Led by deeply skilled associates, knowledge scientists, and innovators, Claritev offers tech-enabled options and companies fueled by a number of knowledge sources from over 40 years of claims repricing. Claritev makes use of world-class expertise and AI options to energy a sturdy enterprise platform that delivers significant insights to drive affordability in healthcare, brings worth transparency and optimizes networks and advantages design.

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