Claritev NYSE: CTEV reported second-quarter revenue growth, record bookings and higher cash flow, prompting the healthcare technology company to raise its full-year revenue, adjusted EBITDA and free-cash-flow outlook.
Revenue totaled $257.5 million in the second quarter, up 6.6% from a year earlier and representing the company’s fifth consecutive quarter of year-over-year growth. Chief Financial Officer Doug Garis said it was Claritev’s highest quarterly revenue level in 15 quarters, dating to the third quarter of 2022.
Adjusted EBITDA was $155.8 million, or 60.5% of revenue, while operating cash flow rose 51% year over year to $93 million. Unlevered free cash flow increased 24% to $89.5 million, and levered free cash flow rose 49% to $54.6 million.
Claims Intelligence Leads Revenue Growth
Garis said growth was led by the company’s Claims Intelligence service line, particularly its No Surprises Act business. Claims Intelligence revenue increased nearly 14% during the quarter, while total PSAV revenue reached $220 million, its highest level in nearly four years.
Network and Payment and Revenue Integrity revenue performed at or modestly above management’s internal expectations, according to Garis. Network revenue would have increased year over year excluding $5.4 million of one-time revenue recognized in the prior-year quarter. On that comparable basis, Claritev said total second-quarter growth was nearly 9%.
Claims volume rose 11% sequentially and 3% from a year earlier. Garis attributed the change partly to lapping the effects of declining volumes from a single client issue in prior years and, more significantly, to higher No Surprises Act claim volumes from a recent client win.
Because No Surprises Act claims generally span a broader range of services, the greater volume lowered charges per claim and revenue per claim sequentially. Garis said the change reflected product mix rather than pricing or margin pressure, adding that total PSAV revenue grew 8% sequentially and 10% year over year.
Bookings Surpass Prior-Year Total
Claritev booked $30 million in annual contract value, or ACV, during the second quarter and $74 million during the first half. The first-half total surpassed the $67 million booked for all of 2025. Management said it expects to exceed its $100 million bookings target for the full year.
The company exited June with more than $300 million in active pipeline, up 50% on a comparable basis, with more than three times coverage. First-half bookings increased 150%, while average deal size rose more than 300% in absolute dollar terms, Garis said. Claritev also closed 16 deals with more than $1 million in ACV through the first six months, up 25% from the prior year.
About 75% of second-quarter bookings came from cross-selling and upselling to existing clients, while 25% came from five new client logos, including clients in provider and public-sector markets.
The third-party administrator, or TPA, vertical was the largest contributor to second-quarter bookings. Chief Executive Officer Travis Dalton highlighted several seven-figure contracts, including an agreement with Marpai for prepay and post-pay Payment and Revenue Integrity services. Claritev expects the TPA segment to account for roughly 30% of new bookings this year, behind only its payer segment.
The company also signed a high-six-figure ACV deal with a new Medicare Advantage client to build a network. Dalton said Medicare Advantage is not currently a significant revenue contributor but could become a long-term growth opportunity.
No Surprises Act and AI Strategy
Management said regulatory complexity surrounding the No Surprises Act and independent dispute resolution, or IDR, process is supporting demand for its network, payment integrity and related solutions. Dalton said Claritev’s arbitration outcomes outperform the industry by approximately eight percentage points and that existing clients are consolidating more No Surprises Act workflows onto its platform.
Garis said the company’s No Surprises Act revenue increase in the quarter was primarily tied to one client. He said the business also covers state-level surprise-billing requirements, with 27 different state versions, and that Claritev’s broader network, financial negotiation and payment solutions can resolve many claims before they proceed to IDR.
Dalton also outlined several artificial-intelligence initiatives, including provider data validation, ineligibility assessments, resubmission case creation and predictive models for pre-arbitration strategies. He said Claritev’s analysis indicates that nearly half of IDR submissions are ineligible, creating an opportunity to reduce administrative costs and accelerate responses.
Garis said Claritev’s ProPricer AI product has identified more than $1 billion in additional savings. The company has also moved most applications to cloud-based environments as part of its digital transformation, according to Dalton.
Guidance Raised
On the strength of second-quarter performance, Claritev raised its full-year revenue outlook by two percentage points to a range of $1 billion to $1.02 billion, representing growth of 4% to 6%. The forecast would mark a return to more than $1 billion in annual revenue, a threshold Claritev last exceeded in 2022.
The company raised its adjusted EBITDA guidance to $610 million to $620 million, with a margin of about 61%, and increased its free-cash-flow outlook by $5 million to a range of $5 million to $15 million. Its capital-spending forecast remains $160 million to $170 million.
Garis said Claritev expects third-quarter revenue to be approximately flat sequentially, noting that the second quarter included a small amount of volume-based revenue originally expected in the first quarter. Management said it is continuing to invest in sales, marketing and operations, as new bookings generally require two to four quarters to begin producing revenue and roughly four additional quarters to reach a fully annualized contribution.
About Claritev (NYSE:CTEV)
Claritev is a healthcare technology, data and insights company focused on improving affordability, transparency and quality. Led by deeply experienced associates, data scientists, and innovators, Claritev provides tech-enabled solutions and services fueled by multiple data sources from over 40 years of claims repricing. Claritev utilizes world-class technology and AI solutions to power a robust enterprise platform that delivers meaningful insights to drive affordability in healthcare, brings price transparency and optimizes networks and benefits design.
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