CorVel (CRVL) Financials

CorVel’s latest results show accelerating growth in revenue, earnings and cash generation. In Q1 fiscal 2026, revenue increased to $259.9 million from $211.7 million in Q1 fiscal 2025, a gain of approximately 23%. Net income rose 49% to $32.2 million, while diluted EPS increased to $0.63 from $0.42. The figures indicate meaningful operating leverage, with net margin improving to roughly 12.4% from 10.2%.

Cash flow trends were also favorable. Operating cash flow increased to $55.0 million in Q1 fiscal 2026 from $40.4 million in the comparable quarter. CorVel continued investing in property and equipment, with capital expenditures rising to $15.5 million from $7.7 million. Even after capital spending and share repurchases, cash increased by $31.4 million during the quarter.

The balance sheet has expanded substantially. Total assets reached $689.7 million at June 30, 2026, compared with $486.2 million a year earlier. Cash and interest-bearing deposits totaled approximately $382.9 million, up from $225.9 million. Total equity increased to $408.9 million, although the company continues to hold a large treasury-stock balance as a result of ongoing repurchases.

• Strong top-line momentum: Q1 fiscal 2026 revenue grew approximately 23% year over year, extending the multi-year upward trend from roughly $179.4 million in Q3 fiscal 2022 to $259.9 million in the latest quarter.
• Improving profitability: Net income increased 49% year over year, and the pretax margin improved to approximately 16.7% from 13.4% in Q1 fiscal 2025.
• Healthy cash generation: Operating cash flow of $55.0 million exceeded net income by a wide margin and was more than sufficient to fund $15.5 million of capital expenditures and $9.6 million of share repurchases.
• Greater liquidity: Cash and interest-bearing deposits increased approximately 69% year over year to $382.9 million, providing flexibility for investment, repurchases and operating needs.
• Shareholder returns remain a priority: CorVel repurchased $9.6 million of common stock in Q1 fiscal 2026, continuing a pattern of regular repurchases seen across the provided quarters.
• Capital investment is rising: Capital expenditures nearly doubled year over year. This may support future growth and technology or infrastructure upgrades, but it also reduces near-term free cash flow.
• Reported share counts require caution: Weighted-average shares increased from approximately 17 million in older periods to more than 50 million in recent periods, suggesting a stock split or presentation change. EPS comparisons should rely on the company’s reported, appropriately adjusted figures.
• Operating expenses remain substantial: Operating expenses rose to $216.6 million in Q1 fiscal 2026 from $183.7 million a year earlier. Although revenue grew faster, continued expense growth could pressure margins if sales momentum slows.
• Liabilities are also increasing: Total liabilities rose to $280.8 million from $222.3 million year over year, including approximately $230.0 million of accrued interest payable. Investors should monitor whether liability growth continues to outpace internally generated capital.
• Cash flow can be volatile: While recent operating cash flow has been strong, the supplied history includes negative operating cash flow in Q4 fiscal 2023 and weaker results in Q4 fiscal 2024. Changes in operating assets and liabilities have been a significant source of quarter-to-quarter variability.

Overall, the statements point to a stronger financial profile for CorVel, supported by faster revenue growth, expanding margins, rising operating cash flow and a larger liquidity position. The principal risks are higher spending, growing liabilities and periodic working-capital volatility. Some older records are marked as calculated or restated and contain inconsistent period labels, so long-term comparisons should be treated as directional rather than perfectly comparable.