CorVel (NASDAQ:CRVL) released fourth-quarter financial results and hosted an earnings call on Wednesday. Read the complete transcript below.
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View the webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=7c1X0Jk8
Summary
CorVel achieved a 7% revenue increase for the March quarter, reaching $249 million, and a 17% rise in earnings per share year-over-year to $0.61.
The company is experiencing strong growth in Network Solutions, with double-digit revenue and profit growth, bolstered by large payer engagements and post-payment recoveries.
CorVel is investing in technology and AI to enhance operational efficiency, focusing on automation and AI-enabled workflow enhancements to reduce manual processes.
New bookings increased by 56% year-over-year, with significant multi-year contracts expected to drive revenue and profit growth in the latter half of the year.
Strategically, the company is expanding its prepay solutions within the SARIS platform, aligning with market trends towards proactive payment accuracy and cost management.
CorVel’s fiscal year 2026 net income rose by 14% to $110 million, with operating margins improving to 15%, supported by reduced general administrative costs.
The company repurchased 872,744 shares during the fiscal year, reflecting strong operating cash flow and a robust, debt-free balance sheet.
Full Transcript
OPERATOR
Greetings and welcome to the CorVel Quarterly Earnings Report. At this time all participants are in listen only mode. A question and answer session will follow a formal presentation and you may be placed into question queue at any time by pressing star 1 on your telephone keypad. As a reminder, this conference is being recorded and if anyone should require operator assistance, please press Star zero. It’s now my pleasure to turn the call over to President and CEO Michael Combs. Please go ahead sir. Thank you.
Michael Combs (President and CEO)
Good morning. Thank you for joining us to review CorVel’s March quarter and fiscal year results. Brian Nichols,, CorVel’s Chief Financial Officer, is on the call with me today. Today I will review business performance, the current environment and market trends, and progress on product and service offerings. But let’s start with Brian providing an overview of the March quarter and fiscal year results.
Brian Nichols (Chief Financial Officer)
Thank you, Michael and good morning everyone. The March quarter revenues were $249 million, an increase of 7% compared to 232 million in the March 2025 quarter. Earnings per share for the quarter ended March 31, 2026, or $0.61, up from $0.51 in the same period of the previous year. For the fiscal year 2026, revenues were $959 million, up 7% from 896 million in the prior fiscal year, and earnings per share was $2.14, an increase of 17% compared to $1.83 for the fiscal year ended March 31, 2025. The effective tax rate increased compared to the prior year, which included a discrete benefit from stock option exercises that did not recur at similar levels for the fiscal year. Network Solutions delivered strong results with double digit revenue and profit growth driven by continued momentum across its offerings and solid execution in both property and casualty and commercial health. Results within Network Solutions included the impact of certain one time events primarily within Cirrus, which contributed in part to elevated revenue and profit during the period and added $0.02 of earnings per share. This performance was driven by accelerated post payment recoveries associated with large payer engagement reflecting a timing related benefit. Importantly, this engagement along with these additional large payer wins is expected to contribute to ongoing revenue and profit tailwinds as these programs scale and mature. Patient management generated low single digit revenue and profit growth reflecting a stable demand environment and consistent focus on operational efficiency. The company is making targeted investments to enhance service quality and consistency as a key differentiator while advancing systems and technology to support more scalable delivery. Personnel levels increased during the period to support service delivery and implementation activity reflecting near term execution priorities. These levels are expected to normalize as deployments mature and as automation and AI enabled workflow enhancements are deployed. Through the remainder of the year and into 2027, the company expects to realize sustained productivity gains, reduce reliance on manual processes and further improve operating leverage. Overall, the Company’s balanced portfolio positions it to deliver scalable growth through Network Solutions while driving increased differentiation and future growth in patient management through ongoing …
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