CorVel NASDAQ: CRVL reported June-quarter revenue of $260 million, up 11% from $235 million in the June 2025 quarter, while earnings per share rose 22% to $0.63 from $0.52 a year earlier.
Executive Chairman Michael Combs said the results reflected the company’s business strength, employee execution and long-term strategy. The quarter also marked a leadership transition, with Sarah Scott taking over as president and chief executive officer following more than 18 months of succession planning by the board. Combs said he would support Scott and the executive team in his new role as executive chairman.
Financial Results and Sales Activity
Chief Financial Officer Brian Nichols said total net income increased 18% year over year in the June 2026 quarter. The company recorded certain one-time items within its CERIS payment-integrity business that increased earnings by approximately $0.07 per share, primarily due to a settlement involving legacy accounts receivable. Nichols added that increases in CorVel’s effective tax rate had a slight negative effect on net income.
Even excluding those items, Nichols said underlying business performance remained strong. Patient Management and Network Solutions each contributed approximately $12.5 million of revenue growth during the quarter.
- Patient Management growth was primarily driven by CorVel’s enterprise claims third-party administrator program.
- Network Solutions growth was led by the CERIS product.
- Claims volume increased 8% from the June 2025 quarter, representing the largest annual quarterly increase in claims volume since December 2024.
- Quarterly year-over-year new-customer sales increased more than 60%, with nearly half of that growth occurring in June.
- Over the past 12 months, new sales rose 40% compared with the prior 12-month period.
Nichols also said request-for-proposal volume and the average value of opportunities improved significantly from the same quarter a year earlier.
Workers’ Compensation Technology and Services
Scott said workers’ compensation markets continue to face more complex claims, medical-cost inflation, workforce demographic changes and evolving regulations. She said these conditions support demand for CorVel’s integrated model, which combines claims management, clinical services, pharmacy, bill review, provider networks and ancillary care through its CorVel Connected platform.
The company is expanding artificial intelligence and automation in selected claims and clinical workflows. Current uses include claims summarization, risk identification and clinical decision support. Scott said the tools are designed to support earlier intervention, consistency and productivity while augmenting professional judgment with transparency, governance and clinical oversight.
CorVel has seen encouraging results from individual deployments, Scott said, and is working to standardize measurements of adoption, operational impact and client value as the technology is deployed more broadly.
During the quarter, CorVel launched Executive Advisory Services, an offering intended to help clients assess the performance of their workers’ compensation and liability programs. The service combines operational expertise, benchmarking, analytics and technology to identify priorities and develop improvement roadmaps. Scott said the offering could provide standalone value while also helping CorVel identify opportunities to expand existing client relationships.
The company also introduced a data-driven medical bill repricing capability to complement its bill-review and Network Solutions businesses. Scott said the offering is designed to support reimbursement decisions, improve processing efficiency and increase consistency in cost-containment results, particularly as out-of-network services and limited state fee schedules contribute to medical costs.
CERIS and Group Health Opportunities
In group health, Scott said health plans are managing cost pressure, margin compression and increasing regulatory requirements, factors that reinforce the need for payment-integrity services. CERIS is expanding its capabilities, developing solutions for specialized claim segments and seeking to create additional value with current customers, she said.
Scott also pointed to consolidation and alliances among regional health plans, as well as evolving Medicare and Medicaid requirements, as forces reshaping the competitive environment. During the quarter, CERIS invested in its teams and payment-integrity capabilities while advancing several new payer implementations and expanding relationships with existing clients.
CorVel sees longer-term potential to apply CERIS’ commercial payment-integrity expertise to selected government healthcare programs, including possible line-item bill-review applications. Scott said the company will evaluate expansion based on demand, program requirements, investment needs and potential returns.
Cash Flow, Balance Sheet and Share Repurchases
CorVel repurchased 377,098 shares during the June quarter for $21.8 million. Since the repurchase program began, the company has bought back 115.6 million shares for a total of $910 million, representing 70% of total shares outstanding at an average price of $7.87 per share, Nichols said.
The company funded buybacks through operating cash flow. Days sales outstanding improved to 39 days, one day lower than the prior-year period. CorVel ended the quarter with $256 million in cash and generated free cash flow of $43.1 million, up $3.5 million from the June 2025 quarter, which Nichols attributed to lower net cash used in investing activities.
Nichols said CorVel’s liquidity and debt-free position provide flexibility to invest in future growth while maintaining what he described as a continued focus on fiscal responsibility.
About CorVel (NASDAQ:CRVL)
CorVel Corporation NASDAQ: CRVL is a technology-driven provider of workers' compensation, liability, and specialty risk management solutions. The company develops and deploys software and data analytics tools to streamline claims administration, medical cost containment, prescription drug management, and provider network access. CorVel's integrated platform connects employers, insurers, healthcare providers, and injured workers, aiming to improve outcomes and control costs through process automation and real-time decision support.
The company's product suite includes claims lifecycle management, bill review and negotiation, virtual care and telehealth services, pharmacy benefit management, and independent medical examinations (IMEs).
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