CorVel Q1 2027 Earnings Report

CorVel EPS Results

• Actual EPS: $0.63
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

CorVel Revenue Results

• Actual Revenue: $259.93 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

CorVel Announcement Details

• Quarter: Q1 2027
• Date: 8/4/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, August 5, 2026
• Conference Call Time: 11:30AM ET

CorVel (NASDAQ:CRVL) Corporation is a provider of workers’ compensation and liability claims management services. The company supports employers, insurance carriers, government entities and other organizations with technology-enabled solutions designed to manage claims, control costs and coordinate medical care.

Its services include third-party claims administration, medical bill review, utilization review, case management, pharmacy benefit management, provider-network services and claims-related analytics. CorVel combines software platforms with clinical and claims professionals to support the administration of workers’ compensation, auto and general liability claims.

Founded in 1987, CorVel serves customers across the United States through a network of offices, service teams and affiliated providers. The company is headquartered in Irvine, California, and is led by President and Chief Executive Officer Michael G. Combs.

CorVel Q1 2027 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Strong quarterly growth: Revenue rose 11% year over year to $260 million, while EPS increased 22% to $0.63 and net income grew 18%. Management said underlying performance remained strong across Patient Management and Network Solutions.
• Positive Sentiment: Improving demand and sales momentum: Claims volume increased 8%, quarterly new-customer sales rose more than 60%, and trailing 12-month new sales grew 40%. RFP volume and average opportunity values also improved year over year.
• Neutral Sentiment: Results included approximately $0.07 per share of benefit from a CERIS legacy receivables settlement, while a higher effective tax rate modestly reduced net income. Management characterized these as normal one-time operating items.
• Positive Sentiment: Healthy cash generation and capital returns: Free cash flow increased to $43.1 million, the company ended the quarter with $256 million in cash and no debt, and it repurchased 377,098 shares for $21.8 million.
• Positive Sentiment: CorVel is expanding artificial intelligence and automation in claims and clinical workflows, launching Executive Advisory Services and new medical bill repricing capabilities, while pursuing additional CERIS opportunities in government healthcare programs.

Presentation

[Operator]

Thank you for standing by. Welcome to the CorVel Corporation's quarterly earnings release webcast. During the course of this webcast, CorVel Corporation may make projections or other forward-looking statements regarding future events or the future financial performances of the company. CorVel wishes to caution you that these statements are only predictions that actual events or results may differ materially.

[Operator]

CorVel refers you to the documents that the company files from time to time with the Securities and Exchange Commission, specifically the company's Form 10-K and 10-Q files for the most recent fiscal year and quarter. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. I would now like to turn it over to Michael Combs, CorVel's Executive Chairman. Mike?

[Michael Combs, Executive Chairman at CorVel Corporation]

Thank you. Good morning, and thank you for joining us to review CorVel's June quarter results. Today, in my new role as Executive Chairman, I am joined by CorVel's President and CEO, Sarah Scott, and our Chief Financial Officer, Brian Nichols. Before we begin, I would like to acknowledge that this quarter marks an important milestone in CorVel's leadership.

[Michael Combs, Executive Chairman at CorVel Corporation]

Sarah's appointment as President and CEO is the culmination of more than 18 months of deliberate succession planning by our Board. Throughout that process, we evaluated the leadership capabilities needed to guide CorVel through its next phase of growth, and we are confident Sarah is the right person to lead the company. Her deep understanding of our business, our customers, and our culture, combined with the strength of our executive leadership team, provides both continuity and a strong foundation for the future.

[Michael Combs, Executive Chairman at CorVel Corporation]

Turning to today's agenda, I'll provide a high-level review of our financial performance. Brian will discuss the quarter's financial results in greater detail, Sarah will review business performance, the current operating environment, key market trends, and progress across our product and service offerings. The June quarter revenues were $260 million, 11% over the $235 million in revenue for the June 2025 quarter. The earnings per share for the quarter ended June 30, 2026, were $0.63.

[Michael Combs, Executive Chairman at CorVel Corporation]

That's an increase of 22% over the same quarter of the prior year's EPS of $0.52. These results reflect the strength of our business, the dedication of our associates, and the successful execution of our long-term strategy. As Executive Chairman, I look forward to supporting Sarah and our leadership team as they continue building on that momentum and creating long-term value for our customers and our shareholders. Brian will now provide additional information regarding the quarter. Brian?

[Brian Nichols, CFO at CorVel Corporation]

Thank you, Michael. Good morning, everyone. Results for the quarter included some one-time items, which can be a normal part of operating our business. Within CERIS, these items increased earnings by approximately $0.07 per share, primarily reflecting a settlement of legacy accounts receivable. In the quarter, increases to our effective tax rate did have a slight impact on net income. Even excluding these items, underlying performance of the business remained strong.

[Brian Nichols, CFO at CorVel Corporation]

Total net income increased 18% in the June 2026 quarter compared to the year prior, with the impact of that result balanced by both our Patient Management and Network Solutions services. Patient Management and Network Solutions were both equal contributors to the increases in total revenue, each growing by approximately $12.5 million. Our CERIS product was the top driver for the Network Solutions increase.

[Brian Nichols, CFO at CorVel Corporation]

Patient Management growth was primarily driven by our enterprise claims TPA program. Claims volume grew by 8% comparing the June 2026 quarter to the June 2025 quarter. This improvement marked the largest annual quarter-over-quarter increase in claims volume since December 2024. Quarterly year-over-year new customer sales improved by over 60%, with nearly half of the growth occurring in the month of June.

[Brian Nichols, CFO at CorVel Corporation]

Over the last 12 months, new sales posted a 40% increase compared to the prior 12-month period, demonstrating the strength of our sales organization and growing demand for our solutions. RFP volume and average opportunity value were significantly improved in this quarter compared to the same quarter of last year. Sarah will discuss the market environment and industry trends shaping our business.

[Sarah Scott, President and CEO at CorVel Corporation]

Thank you, Brian. Good morning. Having spent my career at CorVel, I'm pleased to be speaking with you for the first time as President and CEO. I have great confidence in our people, our strategy, and the opportunities ahead. CorVel has a strong foundation from which to build for the future. Our direction remains clear. My focus will be on disciplined execution, turning our investments into measurable results, applying what works across the enterprise to create long-term value.

[Sarah Scott, President and CEO at CorVel Corporation]

We see meaningful opportunities to strengthen our existing business, expand the value we provide to clients, pursue new areas of growth with the financial discipline that has long defined CorVel. In June, we marked the 35th anniversary of CorVel's Nasdaq listing by ringing the opening bell with members of our executive leadership team.

[Sarah Scott, President and CEO at CorVel Corporation]

This milestone reflects the dedication of our employees, the confidence of our clients and shareholders, long-standing commitment to innovation and disciplined growth. Turning to our markets, workers' compensation continues to be shaped by increasing claim complexity, medical cost inflation, changing workforce demographics, evolving regulatory environments. These conditions reinforce the value of an integrated operating model that combines claims management, clinical expertise, data, technology.

[Sarah Scott, President and CEO at CorVel Corporation]

This is an important area of differentiation for CorVel. Through CorVel Connected, we bring together workflow and data across claims management, clinical services, pharmacy, bill review, provider networks, ancillary care. This allows us to apply intelligence across the broader claim lifecycle rather than to isolated tasks. Remains an important source of differentiation for CorVel. We continue expanding artificial intelligence and automation across selected claims and clinical workflows. Capabilities currently in use include claims summarization, risk identification, and clinical decision support.

[Sarah Scott, President and CEO at CorVel Corporation]

These tools are intended to promote earlier intervention, greater consistency, and improved productivity. Our approach is practical, use technology to augment professional judgment while maintaining appropriate transparency, governance, and clinical oversight. We have seen encouraging results from individual deployments. As use expands, we are standardizing how we measure adoption, operational impact, and client value across the enterprise to guide continued development and investment.

[Sarah Scott, President and CEO at CorVel Corporation]

This quarter, we also launched Executive Advisory Services, which helps clients evaluate the overall performance of their workers' compensation and liability programs. The offering combines operational expertise, benchmarking, analytics, and technology to help clients identify priorities and develop a practical roadmap for improving outcomes and managing costs. In addition to its potential to provide value as a standalone service, it can deepen our understanding of client needs and identify opportunities to expand existing relationships.

[Sarah Scott, President and CEO at CorVel Corporation]

As Brian noted, claims volume increased 8% during the quarter, reflecting both new client implementation and tail claim activity. We continue investing in our people, processes, and technology to support the growth while maintaining service quality and operational consistency. Medical costs remain a significant component of workers' compensation expense, particularly for out-of-network services and in states with limited fee schedules.

[Sarah Scott, President and CEO at CorVel Corporation]

We recently introduced a new data-driven medical bill repricing capability that complements our existing bill review and Network Solutions. The capability is designed to support more informed reimbursement decisions, improve processing efficiency, and promote greater consistency in cost containment results. Turning to the group health market.

[Sarah Scott, President and CEO at CorVel Corporation]

Health plans continue to face cost pressure, margin compression, and increasing regulatory requirements, reinforcing the need for effective payment integrity solutions. CERIS is responding by expanding its capabilities, developing solutions tailored to specialized claim segments, and creating additional value with existing client relationships.

[Sarah Scott, President and CEO at CorVel Corporation]

Industry consolidation and alliances amongst regional health plans are also changing the competitive landscape as organizations seek greater scale and efficiency. At the same time, evolving Medicare and Medicaid requirements are driving focus on sophisticated payment integrity solutions across both commercial and government healthcare programs.

[Sarah Scott, President and CEO at CorVel Corporation]

During the quarter, CERIS continued investing in its teams and expanding its payment integrity capabilities while advancing the implementation of several new payer engagements and deepening relationships with existing clients.

[Sarah Scott, President and CEO at CorVel Corporation]

We also see meaningful longer-term opportunity to apply CERIS' commercial payment integrity expertise within selected government healthcare programs. Capabilities such as line-item bill review may be relevant as these programs seek additional ways to improve payment accuracy and manage healthcare costs. We will evaluate expansion based on market demand, program requirements, the investment required, and potential return.

[Sarah Scott, President and CEO at CorVel Corporation]

Across workers' compensation and group health, our focus remains consistent, applying our operational expertise, integrated technology, and data to strengthen client value and position CorVel for sustainable long-term performance. Brian, would you provide some additional context around our cash flow, balance sheet, and capital allocation?

[Brian Nichols, CFO at CorVel Corporation]

Certainly, Sarah. During the June quarter, CorVel repurchased 377,098 shares at a cost of $21.8 million. From inception to date, the company has repurchased 115.6 million shares for an aggregated total of $910 million. Through this program, the company has now repurchased 70% of the total shares outstanding at an average price of $7.87 per share.

[Brian Nichols, CFO at CorVel Corporation]

The repurchasing of shares continues to be funded from the company's strong operating cash flow. The company's management of receivables continues to improve and perform well. CorVel's day sales outstanding was 39 days in the June quarter, which is one day fewer than the same period of the previous year. At quarter end, the cash balance was $256 million.

[Brian Nichols, CFO at CorVel Corporation]

Free cash flow for the June 2026 quarter was $43.1 million, a $3.5 million increase compared to the June 2025 quarter, which was driven by quarterly year-over-year reduction in net cash flow used in investing activities. In conclusion, fiscal responsibility remains a central focus of CorVel's financial strategy.

[Brian Nichols, CFO at CorVel Corporation]

As we survey the market spaces in which we compete, it is clear that technological and managerial agility are vital for long-term meaningful growth. To this end, CorVel's strong liquidity and debt-free position assures that we are in the best possible position to invest in our future. Thank you for your time this morning. I will now invite the operator to open the session for questions.

[Operator]

Thank you. To enter questions via the web, please type your question in the chat box on the web platform and click enter to submit.

[Sarah Scott, President and CEO at CorVel Corporation]

Are there, any questions?

[Operator]

There are not. With that, this concludes today's webcast. You may disconnect your lines at this time.

Participants

Executives

• Brian Nichols, CFO
• Sarah Scott, President and CEO

Analysts

• Michael Combs, Executive Chairman at CorVel Corporation