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Image source: The Motley Fool. Friday, Aug. 7, 2026 at 8 a.m. ET Head of Investor Relations - Todd Friedman President and Chief Executive Officer - Travis Dalton Chief Financial Officer - Doug Garis Operator: Ladies and gentlemen, welcome to the Claritev Corporation Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Also, please note that this call is being recorded. I would now like to turn the call over to Todd Friedman, Head of Investor Relations. Todd, you may begin. Todd Friedman: Thank you, Mark. Good morning, everyone, and welcome to Claritev's Second Quarter 2026 Earnings Call. Joining me today are Travis Dalton, President and Chief Executive Officer; and Doug Garis, Chief Financial Officer. During our call, we will refer to the supplemental slide deck that is available on the Investors portion of our website along with the second quarter 2026 earnings press release that we issued earlier this morning. Our remarks and responses to questions today will include forward-looking statements. These forward-looking statements represent management's beliefs and expectations only as of the date of this call. Actual results may differ materially from these forward-looking statements due to a number of risks. A summary of these risks can be found on the second page of the supplemental slide deck and a more complete description in our annual report on Form 10-K and 10-Q and other documents that we file with the SEC. We'll also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of Claritev's underlying operating results. An explanation of these non-GAAP measures and the reconciliations to the comparable GAAP measures can be found in the earnings press release and in the supplemental slide deck. And with that, I would now like to turn the call over to Travis. Travis Dalton: Good morning. Thank you for joining us. We're pleased to announce another strong quarter for Claritev and continued progress on our turnaround journey. You are what your record says you are, and our results demonstrate that our strategy is working, our execution is strengthening, growth is returning, and we are building forward momentum across the business. The hard work and discipline over the last 2 years of laying the foundation of clarity, alignment, focus resulted in the turn last year, which has positioned us to take advantage of the opportunities in front of us. At our Investor Day in March, we introduced 2026 as the year of the way up, which is a return to sustainable growth in our multiyear transformation. The first half of the year has demonstrated that our strategy of driving horizontal solutions in vertical markets is working. In addition to focusing on our core client solutions and attacking new markets, we're building leaders in a culture of growth at the company. I'm most proud of the way our people have embraced change and new opportunities to impact health care. We also have made thoughtful and smart investments in our technology platforms, data architecture and talent over the last 2 years. Our technology modernization positions us to quickly adapt and harness the power of new tools and technology like AI to bring more value to clients much faster. The organizations that have the knowledge and aligned structurally to unleash the potential of AI will be winners going forward. Our greatest asset is the knowledge and industry acumen we possess versus the competition. On today's call, I'll cover our strong second quarter results, the macro health care environment that demonstrates the challenges we are so good at tackling for consumers of health care, the continued progress and potential we see in AI. Let me begin with our Q2 performance, which exceeded our expectations on nearly every key metric. Revenue and adjusted EBITDA both came in above plan. We had another great bookings quarter, exceeding $70 (sic) [ 74 ] million ACV for the first half of 2026 and well on our way to achieve our $100 million full year stretch target. Just as important, we are seeing larger deal sizes, broader contribution from our entire sales team, improving win rates and a healthy and growing pipeline. Doug will give some color on the conversion cycle from bookings to revenue, but this quarter's business performance validates the foundation against the multiyear financial goals that we outlined at our Investor Day. I do want to highlight one area that we stressed on our first quarter earnings call, where we have ramped up our focus and brought in new leadership and that's the third-party administrator or TPA business. The TPA vertical represented our largest contributor to second quarter bookings with several 7-figure deals. Among them was Marpai, which selected our payment and revenue integrity solutions for both prepaid and postpaid claims. We also expanded adoption of our network and advanced code editing solutions across the TPA market. Equally important is the breadth of our momentum with wins spanning large national TPAs, regional mid-market organizations and technology-focused players. Our new segment leader, Dallas Scrip, has provided immediate energy to the business, and we expect this segment to contribute roughly 30% of our total new bookings this year, second only to our payer segment. We also see an expanded opportunity in Medicare Advantage. We recently signed a high 6-figure ACV deal in new logo in the quarter to build an MA network. While not a significant revenue driver for us today, we believe it represents a meaningful long-term growth opportunity as plans increasingly seek solutions that improve payment accuracy, optimize networks, identify high-cost trends and enhance provider performance. This is an example of the diversification strategy we set in motion over the past 2 years, and we're beginning to see it translate into a broader, more durable growth profile. Taken together, our bookings momentum and revenue growth reinforce our confidence in the long-term strategy, focus on our core solutions and faster innovation with our existing clients, expand aggressively across new vertical markets with those solutions, create new capabilities for launch that the cost reduction and transparency demand of the market. This strategy is starting to yield sustainable growth momentum that will allow us the financial flexibility to invest, drive down our debt leverage over time, improve operating leverage and unlock free cash flow to maximize long-term value. Next, I'd like to highlight several macro trends that continue in health care and make our mission of affordability and transparency so important. First, medical cost trends continue to rise with medical inflation running between 8% and 10% annually, well above overall economic growth. Health care spending is almost 20% of U.S. GDP, creating significant pressure on employers, the government and consumers. Claritev exists to help solve that problem, whether it's our network providing access to predictable care, transparency solutions bringing insights, PRI solutions tapping waste, or Claims intelligence driving cost savings. Simply put, we make health care more affordable for consumers. Second, self-funded plan enrollment remains stable and out-of-network claim volumes have remained in the mid-7% range over the last 5 years. Utilization is stable, but mix is shifting to higher cost areas such as emergency care, behavioral health and specialty facilities, creating a durable demand environment for our network, payment and revenue integrity and No Surprises Act solutions. And third, the regulatory complexity persists with NSA IDR changes and reduced federal funding for several programs. These changes and challenges can only be met by nimble, scaled technology-enabled companies like Claritev. Affordability and transparency remains central priorities for the federal government, aligning closely with our core capabilities and strategies. Let me highlight a key area where government intervention is most measurable. 2022 introduction of the No Surprises Act and the independent dispute resolution process. The recently finalized IDR rules increased the operational and compliance requirements for both payers and providers. As those requirements grow, our scale, technology and expertise become even more valuable. No company has demonstrated a greater ability to manage NSA claims at scale than Claritev. Our arbitration outcomes continue to outperform the industry by approximately 8 percentage points, and we're seeing existing clients consolidate more of their NSA workflow onto our platform. The same dynamics are driving demand across our Payment and Revenue Integrity portfolio. As health care organizations face increasing pressure to reduce costs, identify fraud, waste and abuse and improve payment accuracy, our solutions become increasingly strategic. We're proud that Everest Group recently recognized Claritev as a leader in payment integrity and wins like the Marpai engagement underscore the growing momentum we continue to see across this portfolio. Finally, let me turn to AI. We view artificial intelligence as an accelerator of both growth and operating leverage in an area where Claritev has built a meaningful competitive advantage. AI is only as valuable as the quality of the data behind it, the harness engineering engage, the workflows it improves and the trust users place in its recommendations. Those are areas where Claritev stands apart. Our multiyear digital transformation positioned us well before AI became today's headline. We have organized data, modern cloud-based workflow and deep domain expertise that allows us to deploy AI responsibly and at scale. Today, we're already using AI across numerous models and production use cases to improve efficiency, accelerate decision-making and deliver better outcomes for our clients. We have AI initiatives across all solutions and business functions, but I'll focus today on a few IDR examples where the need and the impact can be seen immediately. If you listen to recent health care earnings calls or read any of the current articles related to NSA, you know that the system is being overwhelmed with volume that drives unnecessary administrative cost and delay. Payers on behalf of employers often have only a narrow window to validate claims, identify missing information and screen out ineligible submissions. Our analysis indicates that nearly half of all IDR submissions are ineligible, highlighting a significant opportunity to use AI to improve efficiency and accelerate our clients' ability to respond quickly. This is where Claritev's combination of scale, data and AI makes a meaningful difference. Over the past 6 months, we've launched AI-powered capabilities that automate provider data validation and ineligibility assessments, improving both speed and accuracy. We're also automating case creation for resubmission and enhancing predictive models that optimize pre arbitration strategy. Together, these types of innovations reduce operating costs, improve outcomes and resolve disputes earlier in the process, which is good for both parties. Finally, we operate in a highly competitive environment with large and growing challenges facing our clients. The need for more health care affordability and transparency has never been greater. Our strategy is delivering results, and we have the people, technology, data and client relationships to capitalize on the opportunities to deliver right now and in the future. With that, let me turn the call over to Doug. Doug Garis: Thank you, Travis, and good morning, everyone. In Q2, we outperformed virtually all of our internal financial metrics for revenue, adjusted EBITDA, cash flow and bookings or ACV. As Travis indicated in his opening remarks, we are executing against the key objectives necessary, and we are on track to deliver or exceed the multiyear financial targets we outlined at our March 26 Investor Day. We are encouraged by our first half results and the momentum we are carrying into the back half of the year. Total revenue in the quarter was $257.5 million, up 6.6% year-over-year. This marks the fifth straight quarter of year-over-year revenue growth and was our highest revenue quarter in 15 quarters back to Q3 of '22. Growth in Q2 came primarily from our largest business where we saw noted performance in the Claims Intelligence service line, especially within our NSA business. Claims Intelligence was up close to 14% in Q2, and our total PSAV revenue of $220 million was at its highest level in nearly 4 years. Additionally, our network and payment and revenue integrity service lines performed at or slightly above internal expectations in the quarter. Network revenues would have been positive year-over-year if you exclude the $5.4 million of onetime revenue from Q2 last year. On a comparable basis, excluding the onetime revenue from last year, our total growth in Q2 was nearly 9%. Q2 adjusted EBITDA was $155.8 million, our strongest performance in 13 quarters on an absolute dollar basis and represented 60.5% of revenue. Margin was in line with our expectations for the quarter. I'd like to take a moment to note the strength of our cash flow metrics this quarter because they were meaningful. We generated $93 million of operating cash flow, up 51% versus prior year, $89.5 million of unlevered free cash flow, up 24% versus prior year, and we generated $54.6 million of levered free cash flow, up 49% versus prior year. With respect to levered free cash flow, this was our highest quarterly performance in 15 quarters. We also did a great job of managing working capital and improved the pacing of our working capital cash conversion metrics, DPO and DSO by greater than 5 days. As a reminder, since the debt refinancing transaction concluded in January '25, we expect Q1 and Q3 to be cash consumption quarters and Q2 to Q4 to be cash generation quarters in the near to midterm. Our strong Q2 cash flow performance gives us confidence to invest with the elevated pace of investment required to fund our multiyear transformation and to support our growth initiatives. Our diversification strategy continues to be supported by strong sales momentum, highlighted by another record bookings quarter. Travis provided some stats about strong bookings. With $30 million of ACV booked in Q2, we have already surpassed the $67 million we booked for the full year in '25. We plan on achieving the $100 million bookings aspiration we announced earlier this year. Our first half '26 bookings were up 150%, and we exited June with greater than $300 million of active pipeline, up 50% on a comparable basis with greater than 3x coverage. As we have said before, bookings are not linear, but given improvements to our processes and insights into our pipeline, we feel highly confident in our ability to deliver at least 50% ACV bookings growth for the full year. In Q2, bookings reflected a balanced mix of expansion between existing clients and new client acquisition. Cross-sell and upsell activity accounted for approximately 75% of bookings, while 25% came from 5 net new client logos, which included several from the provider and public sector verticals. A few additional highlights on Q2 bookings performance. Pipeline growth remains exceptionally strong alongside continued improvements in lead qualification and sales execution. So far in '26, we've closed 16 deals with greater than $1 million of ACV, up 25% versus last year. Through the first half of the year, our average deal size has grown more than 300% on an absolute dollar basis. Beyond deal size, most of our other key sales metrics continue to trend favorably. Sales cycle times from lead gen to deal close continue to shorten and our win rates continue to improve. Our momentum is building. Our performance this quarter is reflective of the aggressive sales strategy and realignment to segments we announced at the end of last year. In our supplemental deck, you'll find on our website, you'll see a shift in some of our claims and charges trends. In Q2, claims volume grew 11% sequentially and 3% versus prior year, reversing recent trends. There are 2 primary drivers here that speak about the diversification of our business and why we balance these metrics instead of relying on just one. First, we have now largely lapped the residual impact of a single client issue from several years ago, whose volumes declined increasingly over the last few years. Future quarters starting in Q3 will make for a better comparison to the run rate of our core business as we go forward. Second and more notable, we saw a significant increase in the volume of NSA claims we process driven by a recent client win. Because NSA claims typically cover a broader set of services, gross NSA claims volumes stepped up meaningfully, while total charges per claim and revenue per claim moved lower sequentially. This is simply a product mix shift, not pricing or margin pressure. Total PSAV revenue dollars grew 8% sequentially and 10% in the quarter versus prior year, and the net dollar contribution is clearly accretive. While we do not give a guide to claims volumes, we note that this mix dynamic could persist in the second half, which could keep volumes elevated and revenue per claim averages closer to our Q2 exit rate in the near future. Turning to guidance. On the strength of Q2, we are raising our revenue guide 2 full percentage points to a new range of $1 billion to $1.02 billion, reflecting 4% to 6% growth and marking a return to greater than $1 billion of annual revenue, which we last eclipsed in 2022. As you review your second half model, I'll note, Q2 included a small amount of volume-based revenue that was originally modeled in Q1. Therefore, for the quarterly revenue cadence, we suggest modeling Q3 revenue flat sequentially, largely consistent with current analyst models. We are raising our full year adjusted EBITDA guide to $610 million to $620 million with margins of approximately 61%. As we stated last quarter, we will continue to invest increasingly in sales, marketing and operations to support the growth in ACV. New bookings take on average 2 to 4 quarters to convert to revenue and then another 4 quarters to achieve fully annualized revenue contribution, which means we will continue to invest now for new and expansion revenue drivers that largely begin contributing to our top and bottom line growth in '27 and '28. We are not changing our guidance for total capital spend at $160 million to $170 million in '26. We are raising our free cash flow guide by $5 million to a new range of $5 million to $15 million. In '26, we expect to deliver substantial operating unlevered and levered free cash flow growth with adjusted cash conversion normalizing to pre-'25 levels of greater than 50% by the end of this year. Finally, we remain committed to our capital allocation plan on a multiyear basis. We plan to primarily invest in our business to drive organic growth and drive absolute dollar earnings and free cash flow yield. All of this aligns with our guiding principles to diversify and accelerate expanding our solutions, verticals and channels to drive growth while also deleveraging and derisking our business to enhance cash flow and operating agility. With that, I'll turn the call back over to Travis for some final remarks before taking your questions. Travis Dalton: Thanks, Doug. I've got one quick closing comment, and then we'll open the line for questions. Our leadership team is fully formed and it's finding its rhythm. Transforming a 45-year-old business is not a small task, but the momentum at Claritev is real, and you can feel it every day. Change is a constant and continuous course, and we're building the organization to adapt. Our strategy is working. Our alignment internally has allowed us to focus on our clients, and we're executing with greater speed and discipline as we attack new areas to ensure long-term sustainable growth. I also want to give a quick shout-out to Ryan Fox on his recent victory at the Open Championship. When we relaunched our brand last year, we made a decision to align ourselves with brand ambassadors who do more than wear a logo and represent the value -- values we aspire to as a company. Ryan is not just an amazing golfer, but he's a tremendous human being and all of us at Claritev could not have been prouder to support him and cheer him along the way. It was a cool moment to watch him sink that last [ birdie ] putt and see the Claritev name. With that, I'll turn to the operator for questions. Operator: [Operator Instructions] And your first question comes from the line of Daniel Grosslight with Citi. Daniel Grosslight: Congrats on reaching what seems to be a nice inflection point. I know it was a lot of hard work to get here. I wanted to focus on the nice improvement in PSAV volume you saw this quarter. I know you noted it was largely driven by NSA claim growth. I'm wondering how much of that was due to maybe a bolus in 2Q just getting through the system? And how much is more structural? I'm trying to think through the volume dynamic in the back half of this year. Doug Garis: Yes. Thank you, Daniel. Thanks for the kudos and happy to take that one. So when you look at our first half volume, we modeled low single-digit volume on the full year. We think there was approximately maybe $45 million to $60 million of savings that kind of slipped into Q2, which is a few million of revenue. We're actually highly encouraged by the volume environment heading into the second half of the year. As the new pronouncements of NSA come about, it's going to be really hard to tell why we've taken a little bit more of a modest view of volumes in our base modeling for the second half. Some of the structural changes to NSA actually have us very well positioned. But we basically modeled a low single-digit volume decline on the full year. And if you look at the sequential progression of volume, we think the Q2 exit rate is a pretty fair baseline for us heading throughout the year. Daniel Grosslight: Got it. Okay. As a follow-up, more of a math question. If I hold 3Q revenue constant relative to 2Q and I plug in kind of the midpoint of guidance for the full year, that implies a step down from 3Q to 4Q of about $7-ish million. Is that just conservatism in the guide and you really expect to be kind of closer to the high end of the revenue guide or even above it? I'm just trying to square why should we see a sequential step down in 4Q implied by the guide? Doug Garis: Yes. No, that's a great question. So what I would say is we're managing between the base and the high end of the range. If you look at the base case, that implies a 2H about $508 million of total revenue, which year-over-year is up 3% sequentially is up 1%. So if you kind of take the base of $1.01 on the year, between the base and the high end of the range, you kind of have a sequential step-up of 1% to 3% and then a year-over-year progression of about 3% to 5%. Again, largely dependent on claims volume and kind of flow through of the PSAV business. But we tend to plan the business a little bit more conservatively so we can manage free cash flow. But that's how I would think about your model for Q3 and Q4 exit rate. Operator: Your next question comes from the line of Richard Close with Canaccord Genuity. Richard Close: Congratulations on the performance here. Doug, I think you mentioned this a little bit in your prepared remarks. But can you just remind us the -- on new booking wins, like just the time to implement and trigger revenue recognition. Has there been any changes there? Just trying to plan out when these new wins come online. Doug Garis: Yes. No, that's a great question, and thanks for the question. So our average booking, when we have a new booking, it takes anywhere from about 2 to 4 quarters to turn into the first dollar of revenue, and then it takes about 4 quarters for the revenue to annualize. And so our ACV bookings metric is not indifferent to like a software ARR metric. It operates in principle the same. Our -- we had a larger NSA win earlier in the year that took about 1.5 quarters to turn on, which is why we had a little bit of overperformance in Q2. But on the ground, when you look at our Claims Intelligence business and especially our Payment revenue integrity business, those tend to be closer to 2 to maybe 3 quarters, whereas, for instance, we had a large win, a large public sector win with the World Trade Center in the federal space, which takes anywhere from 3 to 4 quarters to turn into a first dollar of revenue. But 2 to 4 quarters is kind of our midpoint of how we plan for ACV to revenue conversion. And if you recall in the annual guide that we provided we had about a 6% to 7% step-up in revenue ACV to revenue conversion at the begin of the year. I think it's fair that we probably are seeing a point higher of revenue conversion this year, which is preempting our beat and raise heading into the second half of the year. Richard Close: Okay. That's helpful. And then just on the digital transformation, maybe an update there. Is it going as expected? Are you able to accelerate it at all? Just any thoughts in terms of how that's tracking? Travis Dalton: Yes, Richard, this is Travis. Yes, we're -- look, I think we -- as I said in my opening remarks, I think we made a smart decision 2 years ago to start that transformation program to start aggressively modernizing the company. The point I would make is that we had investments to make in core systems. We had investments to make in digital transformation, and we had investments to make for growth. And I think the team has done, frankly, a tremendous job of what I call threading the needle of bringing the company up to modern standards and then investing in our growth thesis by opening new markets, talent, people. Our digital transformation remains on track. It remains core and central to the company. We've been able to move most of our applications to cloud-based environments. And what was underpinning a lot of the digital work we were doing was really around data architecture and infrastructure. So I think it's positioned us really well, not just to run the company in its current form, but also to take full advantage of AI models and capability and forward progressing technology. So I would say we're very pleased with the progress. The team is executing, and we're starting to see real value from those models that are emerging. Doug Garis: And I would just say AI has been a focal point, obviously, for a lot of organizations. Our digital transformation enables us to be a winner in AI. We have dozens of use cases and models in place. And look, I mean, last quarter, I think we said it more than half of our code now is generated by AI. And I think the expectation is going forward, as we fully modernize our over 400 applications, we'll have approximately the same number of humans doing 4 to 8x more work. And so we're pretty well positioned in our digital transformation. I always joke around with our Chief Digital Officer, ask him to go faster. But I think we're well on track to our multiyear transformation in the last update that we gave at Investor Day in March. Operator: Your next question comes from the line of Stan Berenshteyn with Wells Fargo. Stanislav Berenshteyn: Maybe first on bookings. Obviously, you've year-to-date executed against most of the book that you anticipated. There's maybe $26 million remaining. Do you see a path to get to over $100 million here? And how have bookings been converting into revenue versus your expectations at the start of the year? Doug Garis: Yes. Thanks, Stan. So we are going to deliver in excess of $100 million of bookings this year. So we've delivered $74 million of bookings through the first half of the year. So we're already ahead of our pace from last year. And what I had said earlier, is I think we got about an additional point of ACV to revenue conversion on a larger win we had in the NSA space that has been progressing well, a very large payer win that we had earlier in the year that turned on at or maybe a little bit ahead of schedule. So I think part of the uptick in our guide is attributable to the ACV conversion. But on average, the 2 to 4 quarters for ACV ramp is still a very good paradigm. Stanislav Berenshteyn: Got it. And then maybe it's a little bit early to start talking about 2027. But as you look at your sales pipeline, do you see any differences in the mix of opportunities versus what you've executed against in 2026? Doug Garis: Yes. So I would -- so we felt comfortable coming out and giving a little bit more color into our actual funnel. So we have north of $300 million of active pipeline. And about 1/3 of that is within our new verticals. And so some of them, especially in the public sector are a little bit longer to lead time. But just like the World Trade Center, it business we would have never bid on before. And so our realignment under our Chief Growth Officer, 2 segments was really smart. And then our pipeline and funnel and our bookings progression has been pretty steady at 70% to 75% of upsell and cross-sell. And so this notion that there's not growth in our core business is simply not true. When you look at -- when you look at our payer space, about 80% of our revenue or our TPA space, a little less than 20%. There is significant white space left to go, and we're actively hitting the market, especially in the TPA space, thinking about pricing and packaging more strategically. We want to be the single vendor to a lot of large customers. We've seen great progress and momentum thinking about our sales motion differently. But we did close 5 new logos. We have 11 this year. We did 30 last year. And so it's goodness all around, but we're keeping the core business the focus because that's where most of our uplift in scale is going to come from over the next few years. I don't know if you have anything. Travis Dalton: Yes. I would just add a little -- a tiny bit of commentary to that. I mean I think Doug hit it, but our strategy we set out really a couple of years ago that we're executing is to put together vertical market strategies against products that could work across those without massive customization investment needed for each vertical market. So that's been something we've been focused on. We're now getting to it, and we're starting to execute against that. So it's not just calling on the same customers over and over. We expanded aggressively in the TPA market. We think MA represents a real advantage for us as opportunity as we build out our sales apparatus. This quarter was great. We had TPA deals. We had 2 public sector deals. We had 2 services deals. International continues to be a business that we think could yield results for us. So the totality of it is healthier. I think it will take time for us in those new markets to become a significant portion of our ongoing revenue performance, but I'm very, very happy with what looks like early returns and durability of the business. Operator: Your next question comes from the line of Jason Cassorla with Guggenheim. Jason Cassorla: Congrats on the quarter. Maybe just on the NSA revenue upside. Can you help a little bit in terms of the mix of drivers? It sounds like it was predominantly from the win earlier this year. But I'm just curious if you're seeing that funnel widen just given the backdrop? And then maybe following up on that, like can you help in terms of how to think about the puts and takes for NSA moving forward in that business? Like do you think that this year could be a tough comp for you? Or how sticky is this NSA revenue in your view? Just any thoughts there would be great. Doug Garis: Yes. Thanks for the question, Jason. So the uptick in NSA was primarily due to one client and it's not just NSA, it's Surprise Bill. Surprise Bill both includes the NSA as well as state Surprise Bill, which is there's 27 different versions of state Surprise Bill, which is yet another reason why we continue to be the market leader. We actually recently published a report on our performance on our website, and we can share those details and follow-ups. We're performing 8 points better than the next closest compare. And I think we're the fourth largest provider aside from folks who do it in-source. And so we really like our position in NSA. The recent final rulings and the rollout of those, it will be interesting to see how volume unfolds in the second half. I think we probably need a quarter or 2 to see whether there is a material volume uptake. But just as a point of clarification, the cost per dispute went from $115 to $15. We think that we're well positioned with our large clients who rely on us. And we think not just the Surprise Bill product, which is now our second largest category, our second largest offering. We have the full end-to-end set of solutions. And keep in mind, greater than 85% to 90% of the time, when we get a Surprise Bill claim, it doesn't go through the IDR process. So everything funnels in through our network. Oftentimes, we're able to get to an immediate clearing price that's acceptable. And then we go through a prepaid and postpaid negotiation process. All of these in total, I think, are a net positive for the business. But it's when kind of the final, I would say, implementation of the rules happen in Q3 and Q4, I think it probably bodes net positive for us from a volume perspective, but I think we're waiting to see some of that volume come through in the back half of the year. Jason Cassorla: Got it. Okay. Very helpful. And then maybe just wanted to ask about the AI initiatives that are identifying more savings per claim. I guess curious, is there a way to help sort of quantify how incremental those savings are developing against sort of like your normal blocking and tackling? And then maybe a way to frame what the remaining savings opportunity there looks like? Like are you in inning 2 or 3 of this kind of AI-related savings potential? Just any thoughts around that would be helpful. Doug Garis: Yes. So at our Investor Day, we had announced our ProPricer product, which has identified over $1 billion of additional savings. So that the uplift from us using AI to make our stuff work better is real. And it's baked into our -- the way the existing R&D we put into the business. With respect to kind of additional savings, some of the stuff that is competitive, we probably wouldn't give further insight. But I will tell you that historically, we spent about 12% to 14% of our capital on R&D and about half of that was historically devoted to making our stuff work better. And so we've been investing in AI for a very long time. But notable last year was ProPricer, which was an AI-based initiative to identify and deliver more savings, which I think we came out and said it's worth about $1 billion in our core business of savings. Operator: [Operator Instructions] And our next question comes from the line of Jessica Tassan with Piper Sandler. Jessica Tassan: Congrats on the results. I'm wondering if you can just help us understand the variance versus consensus across each of your 3 revenue segments. So just drivers and any comments. Network, it looks like was a $2.7 million beat, Analytics, $12.6 million beat and then Payments, $2.6 million missed. I appreciate the comments on flat sequential revenue in 3Q, but just helpful if you could provide detail on the performance versus consensus kind of across each of those 3 revenue lines. Doug Garis: Yes, sure. Thanks, Jess, and thanks for the question. So on payment and revenue integrity, the miss is timing, we still expect that business to be up versus prior year. The network, we mentioned in the prepared remarks, that network and payment and revenue integrity performed in line with our expectations. And if we need to go a little bit further in detail in the post call, we can. Network is going to be down high single digits this year because we have approximately $18.5 million of onetime revenue from last year. Our Claims Intelligence, obviously being up roughly 14% in the quarter was a highlight, and that's where our Data iSight financial negotiation and NSA products land. And part of the beat this quarter and the raise in the full year was due to the performance in NSA. I would expect the trend in Claims Intelligence to continue and just as a quick highlight for the first half of the year, we broke approximately $25 million of ACV in the Payment and Revenue Integrity space. So when we announced several of the large deals, including the Marpai deals, these are all in deals that a majority of the revenue is associated with Payment and Revenue Integrity. It was very nice to be included in the leader category in the recent Everest report. We're finding great success in selling our Payment and Revenue Integrity solutions, both pre and postpaid as a bundled offering. So the medium- to long-term prospects of the Payment and Revenue Integrity business, especially with payers focus on fraud waste and abuse is a specific area of investment and growth for us in the medium to long term. But we do expect the Payment and Revenue Integrity business to be a growth business this year when we snap the chalk on the full year. Jessica Tassan: That's so helpful. So just one quick clarification, $25 million of the $37 million ACV booked was Payment and Rev Integrity. And then my follow-up question is just can you maybe discuss of your top 3 customers, how many use Claritev for IDR help? And then just you mentioned eligibility determinations, but I guess, what is Claritev doing in that process from the time the out-of-network service is rendered? And I would appreciate just any color on kind of the suite of products that address the NSA and the IDR process. Doug Garis: Yes, great. So several of our top 10 customers use our services explicitly. And as I mentioned, we are the largest independent provider of Surprise Bill and NSA outside of the large payers and carriers who do the services themselves. We think we do it much better and the recent update from CMS confirms that. So -- most often, when we get an NSA claim and it comes through our NPI core database, we can resolve the claim with our hosted solutions, whether it's the network rate, which we have 1.4 million providers. We have a financial negotiation team with hundreds of folks who have decades of relationships with providers. And then we're often able to assign value through the QPA process so that the disputes do not go to the IDR process. When a dispute does go to the IDR process, which is a fraction of the time, that's where our win rates stand apart and they're exceptional. But this is the value of the service that several of our large customers rely on us. It's better, faster, cheaper, more economical and the most important point is it gives the best outcome for employers and consumers of health care, which is our core strategy with transparency and affordability. Operator: There is no further question at this time. I will now turn the call back over to the company for closing remarks. Travis Dalton: Yes. Thanks, everybody, for your time. We appreciate it. Like we said, we're pleased with our results and the positive momentum, and thanks for your time. Appreciate it. Operator: This concludes today's conference call. You may now disconnect. Before you buy stock in Claritev, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Claritev wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Claritev (CTEV) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Claritev? Here are five stocks we like better. Strong second-quarter performance: Revenue rose 6.6% year over year to $257.5 million, while adjusted EBITDA reached $155.8 million and operating cash flow increased 51% to $93 million. Claims Intelligence, particularly No Surprises Act services, led growth. Bookings and pipeline accelerated: First-half bookings reached $74 million, surpassing the $67 million booked in all of 2025, with more than $300 million in active pipeline. Management expects to exceed its $100 million full-year bookings target. Full-year outlook raised: Claritev increased its revenue guidance to $1 billion-$1.02 billion, adjusted EBITDA guidance to $610 million-$620 million, and free-cash-flow outlook to $5 million-$15 million, while maintaining capital-spending guidance of $160 million-$170 million. 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. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 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. 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. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 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. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 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. 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. 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. 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. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Claritev Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the strong Q2 performance to the 'year of the way up' strategy, focusing on horizontal solutions across vertical markets to drive sustainable growth. Revenue growth was primarily driven by the Claims Intelligence service line, which grew 14% year-over-year, bolstered by significant volume increases in No Surprises Act (NSA) claims. The company successfully diversified its revenue base, with the Third-Party Administrator (TPA) vertical becoming the largest contributor to Q2 bookings, including several seven-figure deals. Operational efficiency is being enhanced by a multiyear digital transformation that has modernized data architecture and moved most applications to cloud-based environments. Management highlighted that medical inflation running at 8% to 10% annually creates a durable demand environment for Claritev's affordability and transparency solutions. The company is leveraging its scale and expertise to navigate regulatory complexity, specifically outperforming the industry by 8 percentage points in NSA arbitration outcomes. AI is being deployed as a strategic accelerator, with initiatives across all business functions to improve efficiency, such as automating provider data validation and ineligibility assessments. Full-year revenue guidance was raised to a range of $1 billion to $1.02 billion, reflecting confidence in the return to growth and the conversion of a record sales pipeline. Management expects to achieve a stretch target of $100 million in annual contract value (ACV) bookings, supported by a $300 million active pipeline with 3x coverage. The company plans to maintain elevated investment levels in sales, marketing, and operations to support growth initiatives that are expected to contribute to revenue in 2027 and 2028. Guidance assumes a product mix shift toward NSA claims may persist, which could keep total claims volumes elevated while impacting average revenue per claim. Strategic focus remains on deleveraging the business and improving operating leverage to unlock free cash flow for long-term value maximization. The company has largely lapped the residual impact of a single client issue from previous years, allowing for cleaner year-over-year comparisons starting in Q3. A shift in product mix toward NSA claims resulted in lower revenue per claim despite higher total volumes, which management clarified is not a sign of pricing or margin pressure. Claritev generated its highest quarterly levered free cash flow in 15 quarters, providing the financial flexibility to fund its ongoing multiyear transformation. The TPA segment is expected to contribute approximately 30% of total new bookings this year, reflecting the success of new leadership and segment-specific sales strategies. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while $45 million to $60 million of savings slipped from Q1 into Q2, the Q2 exit rate is considered a fair baseline for the second half of the year. The company is taking a modest view of volumes in base modeling for the second half due to new NSA pronouncements, despite being well-positioned for structural changes. New bookings typically take 2 to 4 quarters to generate the first dollar of revenue and approximately 4 quarters to reach full annualization. Management observed a slightly faster conversion rate in the first half of the year, contributing to the upward revision of the full-year revenue guide. The AI-based 'ProPricer' product has already identified over $1 billion in additional savings within the core business by enhancing existing workflows. Management expects that as the company modernizes its 400+ applications, AI will allow the same number of employees to perform 4 to 8 times more work. The slight miss in Payment and Revenue Integrity was attributed to timing, but the segment remains a growth business for the full year with $25 million in ACV booked year-to-date. Management highlighted that 75% of bookings came from cross-selling and upselling, refuting the notion that there is no growth left in the core payer business.

Q2 2026 Revenues of $257.5 million grew 6.6% compared to Q2 2025 Net Loss of $59.2 million Adjusted EBITDA of $155.8 million increased 1.1% compared to Q2 2025(Adjusted EBITDA Margin of 60.5% versus 63.8% in Q2 2025) MCLEAN, Va., August 07, 2026--(BUSINESS WIRE)--Claritev Corporation ("Claritev" or the "Company") (NYSE: CTEV), a technology, data and insights company focused on making healthcare more affordable, transparent and fair for all, today reported financial results for the second quarter ended June 30, 2026. "Claritev once again demonstrated the strength of our vision and strategy in the second quarter of 2026, delivering financial results above expectations with solid execution across the company. We are one year into a transformation program that has seen our company operate with greater clarity, alignment, and focus. This transformation is most notably highlighted by a broader portfolio of solutions, expanded vertical sales markets, heightened focus on AI as both an operational and innovation lever, and a company-wide focus on execution that is building a foundation for long term, sustainable, and ultimately faster growth," said Travis Dalton, Chairman, CEO and President of Claritev. Mr. Dalton added, "This success is most clearly reflected in our bookings which were spread across solutions and verticals, with notable strength in the TPA market where we closed several seven-figure transactions. With more than $70 million in bookings through the first half of 2026, we are well on our way to achieving our full year target of $100 million which would represent 50% growth over 2025 and is a leading indicator of continued growth in 2027 and beyond." Doug Garis, Claritev Chief Financial Officer, commented, "Our second quarter results mark five straight quarters of year over year revenue growth, demonstrating the consistency and quality of Claritev’s core, and the growth opportunities created by our expansion into new markets and verticals. We have outperformed revenue and Adjusted EBITDA in the first half of the year for the simple reason that our company’s #1 focus is on client success. This is true of our sales, product, support and finance teams, augmented by the favorable market trends that helped drive our return to top line growth in 2025. We are particularly happy by the breadth of our bookings which is diversifying our business and serves as the true foundation for delivering against the financial objectives we presented at our Investor Day in March." Business and Financial Highlights Revenues of $257.5 million for Q2 2026, an increase of 6.6%, compared to revenues of $241.6 million for Q2 2025. Net loss of $59.2 million for Q2 2026, compared to net loss of $62.6 million for Q2 2025. Adjusted EBITDA of $155.8 million for Q2 2026, an increase of 1.1%, compared to Adjusted EBITDA of $154.0 million for Q2 2025. Net cash provided by operating activities of $92.7 million for Q2 2026, compared to net cash provided by operating activities of $61.2 million for Q2 2025. Free Cash Flow of $54.6 million for Q2 2026, compared to Free Cash Flow of $36.6 million for Q2 2025. The Company ended Q2 2026 with $14.4 million of unrestricted cash and cash equivalents on the balance sheet. 2026 Financial Guidance1 The Company is updating its full-year 2026 guidance, detailed in the table below: Conference Call Information The Company will host a conference call today, Friday, August 7, 2026 at 8:00 a.m. U.S. Eastern Time (ET) to discuss its financial results. A live webcast of the conference call can be accessed through the Investor Relations section of the Company’s website at https://investors.claritev.com/financial-information/quarterly-results. Participants should join the webcast ten minutes prior to the start of the conference call. The earnings press release and supplemental slide deck will also be available on this section of the Company’s website. Participants wishing to join the operator assisted call can dial 646-968-2525 and reference Conference ID 2181839. A replay of the conference call will be available after the call through the webcast archived on the Investor Relations section of the Company’s website. About Claritev Claritev is a healthcare technology, data, and insights company focused on delivering affordability, transparency, and quality across the healthcare system. Led by deeply experienced associates, data scientists, and innovators, Claritev provides technology-enabled solutions fueled by decades of claims expertise. The company leverages advanced analytics and AI to power a robust enterprise platform that delivers clear, actionable insights to support affordability, price transparency, and optimized network and benefits design. By supporting key stakeholders — including payers, employers, patients, providers, and third parties — Claritev is dedicated to making healthcare more accessible and affordable for all. Claritev serves more than 750 healthcare payers, over 100,000 employers, 60 million consumers, and 1.4 million contracted providers. For more information, visit claritev.com. Forward Looking Statements This press release contains forward-looking statements regarding our opinions, beliefs, projections, business plans and expectations. These forward-looking statements may differ materially from actual results due to a variety of factors and can generally be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "seeks," "projects," "forecasts," "intends," "plans," "may," "will" or "should" or, in each case, their negative or other variations or comparable terminology. These statements include all matters that are not historical facts. They appear in a number of places throughout this press release, including, but not limited to, statements relating to our ability to deliver anticipated results; our ability to successfully implement our transformation plan; the anticipated growth of our business, including our expansion into new markets and verticals; our 2026 outlook and guidance; and the long-term prospects of the Company. Such forward-looking statements are based on available current market information and management’s expectations, beliefs and forecasts concerning future events impacting the business. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that these forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These factors include: loss of, or a significant reduction in the work we do for, our clients, particularly our largest clients; the ability to achieve the goals of our strategic plans and recognize the anticipated strategic, operational, growth and efficiency benefits when expected; our ability to enter new lines of business and broaden the scope of our solutions; trends in the U.S. healthcare system, including recent trends of unknown duration of reduced healthcare utilization and increased patient financial responsibility for services; effects of competition; effects of pricing pressure; the inability of our clients to pay for our solutions; changes in our industry and in industry standards and technology; adverse outcomes related to litigation or governmental proceedings; interruptions or security breaches of our information technology systems and other cybersecurity attacks; our ability to maintain the licenses or right of use for the software we use; our ability to protect proprietary information, processes and applications; our inability to expand our network infrastructure; inability to preserve or increase our existing market share or the size of our preferred provider organization networks; decreases in discounts from providers; pressure to limit access to preferred provider networks; changes in our regulatory environment, including healthcare law and regulations; the expansion of privacy and security laws; heightened enforcement activity by government agencies; our ability to obtain additional financing or capital to meet our objectives; our ability to pay interest and principal on our notes and other indebtedness; lowering or withdrawal of our credit ratings; changes in accounting principles or the incurrence of impairment charges; the possibility that we may be adversely affected by other political, economic, business, and/or competitive factors; other factors disclosed in our Securities and Exchange Commission ("SEC") filings; and other factors beyond our control. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on our business. There can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and other documents filed or to be filed with the SEC by us. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update these statements as a result of new information or future events or otherwise, except as may be required under applicable securities laws. Non-GAAP Financial Measures In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), this press release contains certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA, free cash flow, unlevered free cash flow and adjusted cash conversion ratio. A non-GAAP financial measure is generally defined as a numerical measure of a company’s financial or operating performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP. EBITDA, Adjusted EBITDA, free cash flow, unlevered free cash flow and adjusted cash conversion ratio are supplemental measures of Claritev’s performance that are not required by or presented in accordance with GAAP. These measures are not measurements of our financial or operating performance under GAAP, have limitations as analytical tools and should not be considered in isolation or as an alternative to net (loss) income, cash flows or any other measures of performance prepared in accordance with GAAP. EBITDA represents net (loss) income before interest expense, interest income, income tax provision (benefit), depreciation, amortization of intangible assets, and non-income taxes. Adjusted EBITDA is EBITDA as further adjusted by certain items as described in the table below. In addition, in evaluating EBITDA and Adjusted EBITDA you should be aware that in the future, we may incur expenses similar to the adjustments in the presentation of EBITDA and Adjusted EBITDA. The presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. The calculations of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Based on our industry and debt financing experience, we believe that EBITDA and Adjusted EBITDA are customarily used by investors, analysts and other interested parties to provide useful information regarding a company’s ability to service and/or incur indebtedness. We also believe that Adjusted EBITDA is useful to investors and analysts in assessing our operating performance during the periods these charges were incurred on a consistent basis with the periods during which these charges were not incurred. Both EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider either in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of the limitations are: EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; EBITDA and Adjusted EBITDA do not reflect interest expense, or the cash requirements necessary to service interest or principal payments on our debt; EBITDA and Adjusted EBITDA do not reflect our tax expense or the cash requirements to pay our taxes; and Although depreciation and amortization are non-cash charges, the tangible assets being depreciated will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements. Claritev’s presentation of Adjusted EBITDA should not be construed as an inference that our future results and financial position will be unaffected by unusual items. Free cash flow is defined as net cash provided by operating activities less capital expenditures, all as disclosed in the Consolidated Statements of Cash Flows. Unlevered free cash flow is defined as net cash provided by operating activities less capital expenditures, plus cash interest paid, all as disclosed in the condensed consolidated statements of cash flows. Free cash flow and unlevered free cash Flow are measures of our operational performance used by management to evaluate our business after purchases of property and equipment and, in the case of unlevered free cash flow, prior to the impact of our capital structure. Free cash flow and unlevered free cash Flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, Claritev’s definitions of free cash flow and unlevered free cash flow are limited, in that they do not represent residual cash flows available for discretionary expenditures, due to the fact that the measures do not deduct the payments required for debt service, in the case of unlevered free cash flow, and other contractual obligations or payments made for business acquisitions. Adjusted cash conversion ratio is defined as unlevered free cash flow divided by Adjusted EBITDA. Claritev believes that the presentation of the adjusted cash conversion ratio provides useful information to investors because it is an financial performance measure that shows how much of its Adjusted EBITDA Claritev converts into unlevered free cash flow. View source version on businesswire.com: https://www.businesswire.com/news/home/20260807851894/en/ Contacts Investor Relations Contacts Todd FriedmanHead of Investor Relations and Strategic [email protected] Media Relations Contact Jen O’ConnorVP, Brand [email protected]

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Claritev Corp (NYSE:CTEV) reported strong Q2 2026 results, with revenue of $257.5 million, up 6.6% year-over-year, and adjusted EBITDA of $155.8 million, both exceeding expectations. The company achieved record bookings of $74 million ACV in the first half of 2026, surpassing the full-year 2025 total, and is on track to exceed its $100 million annual bookings target. Claritev Corp (NYSE:CTEV) saw significant growth in its claims intelligence service line, up nearly 14% in Q2, driven by strong performance in the No Surprises Act (NSA) business, with arbitration outcomes outperforming the industry by approximately 8 percentage points. The company generated strong cash flow, with operating cash flow of $93 million (up 51% year-over-year) and levered free cash flow of $54.6 million (up 49%), the highest quarterly performance in 15 quarters. Claritev Corp (NYSE:CTEV) is leveraging AI across its operations, with initiatives like the Pro Pricer product identifying over $1 billion in additional savings, and more than half of its code now generated by AI, positioning the company for future efficiency gains. Claritev Corp (NYSE:CTEV) faces ongoing revenue headwinds in its network segment, which is expected to decline high single-digits this year due to $18.5 million in one-time revenue from the prior year. The company's revenue growth is partly dependent on a single large NSA client, which drove the Q2 volume increase, creating concentration risk and uncertainty about the sustainability of this growth. Claritev Corp (NYSE:CTEV) expects Q3 revenue to be flat sequentially, and the company's guidance implies a potential step-down in Q4, reflecting conservative planning and uncertainty around claims volumes. The company continues to invest heavily in sales, marketing, and operations to support growth, with new bookings taking 2-4 quarters to convert to revenue, meaning near-term profitability may be pressured. Claritev Corp (NYSE:CTEV) faces regulatory complexity and potential volume volatility from NSA IDR rule changes, which could impact claims volumes and revenue per claim in the second half of the year. Warning! GuruFocus has detected 6 Warning Signs with CTEV. Is CTEV fairly valued? Test your thesis with our free DCF calculator. Q: Can you help us understand the variance versus consensus across each of your three revenue segments, and the drivers behind the network, analytics, and payments performance?A: Doug Garish, CFO: Payment revenue integrity is expected to be up versus prior year, while network will be down high single-digits due to approximately $18.5 million of one-time revenue from last year. Claims intelligence was the highlight, up roughly 14% in the quarter, driven by our data, financial negotiation, and NSA products. We booked approximately $25 million of ACV in the payment revenue integrity space in the first half, and we expect it to be a growth business this year. Q: On the NSA revenue upside, can you help with the mix of drivers and how to think about the puts and takes for NSA moving forward? Is this year a tough comp, and how sticky is this NSA revenue?A: Travis Dalton, CEO: The uptake in NSA was primarily due to one client, and it's not just NSA but surprise bill, which includes state surprise bill versions. We are the market leader, performing 8 points better than the next closest competitor. The recent final rulings and rollout will be interesting to see how volume unfolds in the second half. The cost per dispute went from $115 to $15, and we are well positioned with large clients. Greater than 85-90% of surprise bill claims don't go through the IDR process, as we resolve them through our network and negotiation processes. Q: On bookings, you've executed against most of the bulk anticipated with maybe $26 million remaining. Do you see a path to get to over $100 million, and how have bookings been converted into revenue versus expectations?A: Doug Garish, CFO: We are going to deliver in excess of $100 million of bookings this year, having delivered $74 million through the first half. We have about an additional point of ACV to revenue conversion on a larger NSA win that has been progressing well. The 2 to 4 quarters for ACV ramp is still a very good paradigm. We have north of $300 million of active pipeline, with about a third within new verticals like public sector, which have longer lead times but represent business we would have never been on before. Q: Can you remind us of the time to implement and trigger revenue recognition for new booking wins, and has there been any changes there? Also, can you provide an update on the digital transformation?A: Doug Garish, CFO: New bookings take anywhere from 2 to 4 quarters to turn into the first dollar of revenue, and then about 4 quarters for revenue to annualize. We had a larger NSA win earlier in the year that took about a quarter and a half to turn on, which drove Q2 overperformance. Claims intelligence and payment revenue integrity businesses tend to be closer to 2 to 3 quarters, while a large public sector win like the World Trade Center takes 3 to 4 quarters. Travis Dalton, CEO: Our digital transformation remains on track and central to the company. We've moved most applications to cloud-based environments, and it positions us well to take advantage of AI models. More than half of our code is now generated by AI, and as we modernize our over 400 applications, we expect the same number of humans doing 4 to 8 times more work. Q: How much of the improvement in claims volume was due to a bolus in Q2 versus more structural, and how should we think about the volume dynamic in the back half?A: Doug Garish, CFO: We modeled low single-digit volume on the whole year, and we think there was approximately $45 to $60 million of savings that slipped into Q2, which is a few million of revenue. We're highly encouraged by the volume environment heading into the second half as new NSA pronouncements come about. We've taken a more modest view of volumes in our base modeling for the second half, modeling a low single-digit volume decline on the full year. The Q2 exit rates are a pretty fair baseline for us heading throughout the year. Q: If I hold 3Q revenue constant relative to 2Q and plug in the midpoint of guidance, that implies a step down from 3Q to 4Q of about $7 million. Is that just conservatism in the guide?A: Doug Garish, CFO: We're managing between the base and the high end of the range. The base case implies a 2H of about $508 million of total revenue, which is up 3% year-over-year and up 1% sequentially. Between the base and high end of the range, you have a sequential step up of 1 to 3% and a year-over-year progression of about 3 to 5%. We tend to plan the business a little bit more conservatively so we can manage free cash flow. Q: Can you help quantify how incremental the AI initiatives are in identifying more savings per claim, and what the remaining savings opportunity looks like?A: Travis Dalton, CEO: At our investor day, we announced our ProPricer product, which has identified over $1 billion of additional savings. The uplift from using AI to make our stuff work better is real and baked into our existing R&D. Historically, we spend about 12 to 14% of our capital on R&D, and about half of that was devoted to making our stuff work better. We've been investing in AI for a very long time, and ProPricer was a notable AI-based initiative to identify and deliver more savings. Q: Of your top 3 customers, how many use Claritev for IDR help, and what is Claritev doing in that process from the time the out-of-network service is rendered?A: Travis Dalton, CEO: Several of our top 10 customers use our services explicitly, and we are the largest independent provider of surprise bill and NSA outside of the large carriers and payers. Most often when we get an NSA claim, we can resolve it with our host of solutions, whether it's the network rate with 1.4 million providers, our financial negotiation team, or assigning value to the QPA process. When a dispute does go to the IDR process, which is a fraction of the time, our win rates stand apart and are exceptional. This gives the best outcome for employers and consumers of healthcare. Q: As you look at your sales pipeline, do you see any differences in the mix of opportunities versus what you've executed against in 2026?A: Doug Garish For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Evolent Health (EVH) came out with quarterly earnings of $0.02 per share, beating the Zacks Consensus Estimate of a loss of $0.01 per share. This compares to a loss of $0.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +300.00%. A quarter ago, it was expected that this health care software and consulting services provider would post a loss of $0.05 per share when it actually produced a loss of $0.02, delivering a surprise of +60%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Evolent Health, which belongs to the Zacks Medical Info Systems industry, posted revenues of $652.52 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.77%. This compares to year-ago revenues of $444.33 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Evolent Health shares have lost about 23% since the beginning of the year versus the S&P 500's gain of 12.8%. While Evolent Health has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Evolent Health was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.07 on $669.73 million in revenues for the coming quarter and $0.20 on $2.48 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Info Systems is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Claritev Corporation (CTEV), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This company is expected to post quarterly loss of $4.10 per share in its upcoming report, which represents a year-over-year change of -1381.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Claritev Corporation's revenues are expected to be $246.15 million, up 1.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Evolent Health, Inc (EVH) : Free Stock Analysis Report Claritev Corporation (CTEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Claritev? Here are five stocks we like better. Claritev beat Q1 expectations with revenue of $244.7 million and adjusted EBITDA of $146.9 million, and management said sales momentum supports its full-year outlook. The company raised the low end of its 2026 revenue guidance to $985 million to $1 billion while keeping EBITDA guidance unchanged. Bookings hit a record at $44.1 million in annual contract value, driven mostly by cross-sell and upsell activity. Claritev also said pipeline growth was up 70% year over year, with more large deals and improved win rates. AI and expansion wins are driving growth and efficiency, including new public sector and provider deals such as GDIT and a top-five health system. Management said AI is improving productivity across coding, claims processing and finance, while also supporting new service offerings. Claritev (NYSE:CTEV) reported first-quarter 2026 revenue and adjusted EBITDA ahead of internal expectations, while management said sales momentum and new-market expansion support its full-year outlook. President and CEO Travis Dalton said the quarter reflected “not just performance, but progress,” pointing to strength in the company’s core offerings, new customer wins and increasing use of artificial intelligence across its operations and client solutions. → Wells Fargo’s Comeback Is Real—But Not Risk-Free Total revenue for the quarter was $244.7 million, up 5.8% from a year earlier, Chief Financial Officer Doug Garis said. Adjusted EBITDA was $146.9 million, up 3.4% year over year, with a 60% margin. Garis said growth came from both the company’s core business and expansion areas. He highlighted performance in Data iSight, Claritev’s flagship reference-based pricing solution within its Claims Intelligence service line, which rose 8.4% in the quarter. Network and payment revenue integrity service lines performed at or slightly above internal expectations, he said. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance Claritev reported $44.1 million in annual contract value bookings in the first quarter, which management described as another record quarter. Dalton said the company remains confident in its full-year ACV sales target of $80 million to $100 million, representing 20% to 50% growth over last year’s sales results. Garis said first-quarter bookings reflected the diversification strategy discussed at the company’s March Investor Day. Cross-sell and upsell activity represented 73% of bookings, while 27% came from net new clients. The company closed 19 deals with more than $100,000 in ACV and nine deals with more than $1 million in ACV, which Garis said represented a 350% increase in seven-figure deals in the quarter. → The Great Crypto Thaw: Regulation Ignites an Infrastructure Boom Pipeline growth increased 70% year over year, Garis said, adding that average deal size has more than doubled, sales cycles have compressed and win rates continue to improve. Dalton said Claritev signed six new logos in the first quarter after adding 30 new logos last year. He said the company has “significantly more coverage” in its pipeline than it did two years ago, giving management confidence in revenue conversion and investment decisions. Dalton pointed to two recently announced wins as evidence of Claritev’s market expansion. The company signed an agreement with GDIT to provide a custom network for the World Trade Center Health Program, which Dalton said leverages a core solution in the public sector and demonstrates the company’s ability to form new partner relationships. Claritev also signed what Dalton described as a top-five health system operating more than 700 facilities, including hospitals, ambulatory surgery centers, outpatient centers and other sites of care. He said the relationship came directly from Claritev’s acquisition of OPCG in the fourth quarter, which supports the company’s newly launched services offering. In response to an analyst question, Garis said provider and public sector bookings contributed about 20% of first-quarter bookings. He said services bookings are expected to represent about 20% of the full-year bookings mix at the midpoint of the company’s $80 million to $100 million target, with margins roughly half those of the core business as the segment ramps and scales. Dalton said the health system agreement is strategic because Claritev will provide managed services for the customer’s electronic medical record platform, a new service line for the company. He added that such relationships could provide recurring revenue and create opportunities to sell additional products, including transparency products such as CompleteVue. Management emphasized artificial intelligence as both an operational efficiency tool and a competitive advantage. Dalton said engineering teams fully using AI coding tools nearly doubled coding capacity without adding headcount. He also described several operational examples. Within Claims Intelligence, Claritev built a provider contact agent to address claims that arrive without a provider ID. Dalton said the tool achieves “research-level accuracy,” appends provider contact IDs, reduces processing time by more than half and saves more than 2,000 hours of processing time. In the independent dispute resolution process, Dalton said Claritev automated invoice extraction and reconciliation for accounts payable IDR workflows. He said the company is now handling thousands of invoices each day, automating daily processing in less than one hour with nearly 100% accuracy and uptime. Dalton said Claritev has AI teams working across its solutions and internal operations, including sales and finance, to build scale and efficiency. Claritev raised the bottom end of its full-year revenue guidance by $5 million and now expects revenue of $985 million to $1 billion. Garis said the company is comfortable adding first-quarter revenue outperformance into existing models within that revised range. The company maintained full-year adjusted EBITDA guidance of $605 million to $615 million, with margins of 61% to 62%. Garis said that, after normalizing for the impact of $18 million in one-time property and casualty revenue and EBITDA contribution last year, the guidance implies 3.5% to 5% adjusted EBITDA growth on a like-for-like basis. Claritev also maintained its outlook for total capital spending of $160 million to $170 million and positive free cash flow for 2026. Garis said the company expects operating and unlevered free cash flow growth, with adjusted cash conversion normalizing to pre-2025 levels by year-end. For the first quarter, Claritev generated $36.8 million of unlevered free cash flow, up $23.7 million, or 181%, from the year-earlier period. Free cash flow was a use of $92.5 million, which Garis said was lower by $23.6 million in the quarter. He noted that the company expects the first and third quarters to be cash consumption quarters and the second and fourth quarters to be cash generating quarters in the near to midterm. Dalton said Claritev is focused on organic growth, investment in the core business, diversification into new verticals and deleveraging over time. He also highlighted opportunities in the third-party administrator market, saying the company added Dallas Scrip, an industry veteran, in late 2025 to lead that effort. In the question-and-answer session, Garis said payment revenue integrity represents a meaningful portion of the company’s opportunity funnel, including demand tied to Medicare Advantage pressures. He said Claritev has a broad set of solutions across prepay, claims editing and post-pay functions. Dalton closed the call by saying the company is “in a good place” and confident in its year, while reiterating that Claritev is operating with a long-term view. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Claritev Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Image source: The Motley Fool. Thursday, May 7, 2026 at 8 a.m. ET Chief Executive Officer — Travis Dalton Chief Financial Officer — Doug Garis Need a quote from a Motley Fool analyst? Email [email protected] Travis Dalton: Good morning, and thank you for joining us. It was great to see so many of you at our Investor Day in March. We appreciate the feedback you provided and look forward to keeping that dialogue going throughout the year. There were a number of themes that we highlighted in New York, but I want to reiterate a few of those that we'll cover on the call today. First and foremost, we're entering this year with confidence, confidence in our business, in our strategy and the durability of the foundation that we built. This was a strong quarter that reflects not just performance but progress. Second, at the heart of that confidence is our competitive position, one that is grounded in our long-standing client relationships, scaled data ecosystem, deep domain expertise and increasingly, our differentiated application of AI. In a market where accuracy, trust and outcomes matter, those advantages are not easily replicated. And third, we've expanded our markets and our offerings to connect all phases of the health care life cycle. That expansion has been critical to diversifying our revenue streams and in doing so, building a foundation for quality earnings driven by sustainable long-term growth. At the heart of that effort is the reinvigorated growth and strengthening of our core, which is most evident in our outstanding Q1 results. We believe strongly that Claritev's growth originates from those core offerings and gives us the foundation and time to execute against our growth and expansion initiatives. I'm going to touch on each of these themes in my remarks and explain why they are driving record bookings, organic growth and expanding market presence. First, I'll touch on the financials and results. This marks another quarter of consistent growth with both revenue and EBITDA ahead of our expectations, demonstrating that our strategy is not only sound but executable with focus. Our growth team had a strong start to the year, closing more than $40 million in annual contract value bookings in Q1 and showing diversity and momentum across our portfolio. Doug will touch on the ACV later, but we saw strength across the portfolio with wins in our core, particularly in our MSA business with providers and in the public sector. Importantly, our pipeline continues to grow, and our close rates have remained strong, giving me great confidence in our $80 million to $100 million ACV sales target for this year, which will represent a 20% to 50% increase over last year's sales results. At our Investor Day in March, we announced that we had signed an agreement with GDIT to provide a custom network for the World Trade Center Health Program. This is an exciting moment for Claritev as it represents two important evolutions in the business. One, it is leveraging one of our core solutions to serve a new market, the public sector. We see a number of opportunities in this vertical and hope to share more good news as the year progresses. And two, it demonstrates our capacity to create new partner relationships with a shared goal of making health care more affordable and accessible to those who need it the most. Another bit of news we see at Investor Day was our signing of a top 5 health system, one that operates more than 700 total facilities, including hospitals, ambulatory surgery centers and outpatient centers and sites of care. This is an exciting addition for Claritev that fortifies our position in our provider vertical. We look forward to sharing more about this exciting relationship in the future. But I'd note that this relationship came about directly as a result of our acquisition of OPCG in the fourth quarter, which is the cornerstone of our newly launched services offering -- next, let me discuss our strong position in the market, bolstered by industry trends moving in our favor. There is a clear focus on driving affordability across the health care ecosystem. We know from our experience that the best way to achieve that objective is through transparency, where we have been a leader for many years with a long-tenured client relationships and results [indiscernible] We're seeing a clear industry shift. Platform consolidation is accelerating and clients are moving toward fewer, more integrated partners with scale data and end-to-end capability. This trend plays directly to our strengths. Our unified data architecture driven by our digital transformation and network strategy position us well to lead in this environment. AI is another powerful tailwind, but it's not a rising tide that lifts all boats equally. In regulated high-stakes industries like health care, AI disproportionately benefits incumbents with trusted data, compliance expertise and established relationships. That's where we operate, and that's where we deliver value. There's also a tremendous benefit to how we run our own business. Last quarter, when we reviewed the code output of the engineering teams that are fully leveraging AI coding tools, we have found that we are nearly doubling coding capacity of those teams without any increase in headcount. We are building a foundation for scalable, profitable, sustainable growth. The operating leverage we are seeing from the widespread adoption of AI tools is an important lever in achieving our long-term objectives. If you think about our formula for success, it's straightforward. Data rights combined with a scalable workflow embedded platform anchored in trust and amplified by AI. Let me give you a few concrete examples. Within our claims intelligence solutions, we get tens of thousands of claims every month that don't have a provider ID. When that happens, the claim can't be processed through the standard workflow because it's highly manual process. Our team built a provider contact agent that achieves research level accuracy, appends the provider contact ID, reduces process time by more than half and saved more than 2,000 hours of processing time at a fraction of cost. Another area that gets a lot of attention is the IDR process, the high-volume workload heavy process with which you are familiar. Using AI, we have automated the invoice extraction and reconciliation process for accounts payable IDR in workflows. We're now handling thousands of invoices each day, automating 100% of the daily processing in less than an hour, achieving nearly 100% accuracy and uptime. For our clients, this is a level of execution that builds trust. For Claritev, it freed up resources to higher-value work while eliminating late fees and accelerating collections. These are just a few examples with many more projects currently in progress, yielding growth potential and savings. Our investments in technology, data architecture and AI are deliberate and disciplined, strengthening our market position and are beginning to generate meaningful high-value -- high-impact value. We have AI teams working across all our solutions to deliver more value and performance to our clients and integrating deeply into our own operations, including sales and finance to build scale and efficiency. Our strategy is working. We're executing with a combination of horizontal capabilities like our network, payment and revenue integrity, data platform and analytics and deep vertical expertise across key health care markets. Our recent wins with the World Trade Center and the top 5 health system demonstrate our direction and allow us to scale efficiently while remaining highly relevant to our core clients. Furthermore, we see a significant opportunity to expand our presence widely within the TPA market. This is another strategic client base where our existing solutions can deliver immediate tangible value to improve the health care experience for millions of consumers. To this end, we added a key industry leader late in 2025 to drive our TPA market forward. Dallas Scrip is a highly regarded industry veteran joining Claritev after nearly 20 years in the industry, including his most recent role where he was President and COO of the TPA that was focused on using AI throughout the TPA client life cycle. We're already seeing faster pipeline growth under his leadership and are excited by his energy and vision for this market. Looking ahead, our priorities remain clear. We're focused on driving organic growth, continuing to invest in the business and scaling our platform to capture the opportunities in front of us. At the same time, we remain committed to deleveraging over time. I'll repeat what I said at our Investor Day. We are operating against Vision 2030, not Vision 20 minutes. Strength in our core business, key wins in our expansion areas, strategic operating investments and world-class team are the foundation for driving Claritev along the path we outlined at Investor Day for our short, mid- and long-term targets. This is a business built to last, built to grow and built to deliver the long-term cash flow and deleveraging that will ultimately drive major shareholder value. With that, I'll turn it over to Doug to walk through the financials in more detail. Doug Garis: Great. Thank you, Travis, and good morning, everyone. It was great to see many of you at the Investor Day in New York. The event we held in March at the NYSE is our first full Investor Day in nearly 2 years, and it was a great opportunity for everyone to hear from our talented leadership team, some of our key partners and importantly, some of our best clients. The story is getting simpler, sharper and is starting to resonate in the public markets. At the event, we spoke about the diversification of our business that is driving our momentum. We also tethered our presentation to the health care life cycle and how our comprehensive suite of solutions play an important role in helping us deliver affordability and transparency in health care, all the way from benefit plan design to a claims payment. We strongly feel that we have one of the most unique and impactful set of assets across the health care technology ecosystem, and we're excited to share our progress because our first quarter results were yet another reason to believe that our strategy is working. In Q1, we outperformed our internal expectations for revenue, adjusted EBITDA and ACV. As Travis indicated in his opening remarks, we are running our business with a multiyear view in mind, and we're very pleased with the early pace and progress to begin 2026. Total revenue in the quarter was $244.7 million, up 5.8% year-over-year. Growth in Q1 came from both our core business and expansion areas. In particular, we saw a solid outperformance in our flagship reference-based pricing solution Data iSight within claims intelligence service line, which in total was up 8.4% in the quarter. Additionally, our network and payment revenue integrity service lines performed at or slightly above internal expectations in the quarter. Our growth in Q1 was strong. And keep in mind, we had about $2 million of onetime revenue benefit in our P&C business last year, which falls into the network service line. Adjusted EBITDA was $146.9 million for the quarter, up 3.4% year-over-year at a 60% margin. We generated $36.8 million of unlevered free cash flow, up 181% or $23.7 million and had a use of $92.5 million of free cash flow lower by $23.6 million in the quarter. Recall, since the debt refinancing transaction concluded in January of last year, we expect Q1 and Q3 to be cash consumption quarters and Q2 and Q4 to be cash-generating quarters in the near to midterm. Q1 notably also included a more fulsome and now fully annualized Q1 cash interest payment schedule from the refinancing last year. Modest working capital increases and normalization of the cash interest payment schedule on our debt largely drove the increase in -- use in cash in the quarter versus last year. Our diversification strategy continues to be supported by strong sales momentum, highlighted by another record bookings quarter. We outlined an aggressive bookings growth target of $80 million to $100 million in ACV at Investor Day, representing 20% to 50% growth. With $44.1 million of bookings in Q1, we are well on track to achieve this aspiration. Importantly, Q1 bookings reflected the underlying strategy we presented at Investor Day with a balanced mix of expansion with existing clients and new client acquisition. Cross-sell and upsell activity accounted for 73% of bookings, while 27% came from net new clients. A few additional highlights on Q1 bookings performance. Pipeline growth remained strong, increasing 70% year-over-year alongside continuous improvements in lead qualification and sales execution. We closed 19 deals over $100,000 ACV and 9 deals over $1 million ACV, representing a 350% increase in 7-figure deals this past quarter. Beyond the large deals, virtually all of our key sales metrics were favorable. Our average deal size has more than doubled, sales cycle times from lead gen to deal close are materially compressing and our win rates continue to improve. We exited Q1 with a substantial pipeline, providing strong visibility into future bookings. We also noted significant ACV bookings from our new provider and public sector markets. We believe continued transparency into bookings and ACV to revenue conversion metrics will serve as an important leading indicator towards our 2028 top line revenue target exceeding $1.1 billion and broader Vision 2030 financial glide path. In our supplemental deck, you'll find on our website, you'll see the continuing trend in our PSAV revenue where modest volume declines in Q1 were more than offset by favorable trends in rate mix and augmented by our ability to leverage AI and innovation to identify and deliver more savings in the claims we analyze. The key takeaway is that our PSAV business is an increasingly mixed and acuity-driven model where growth is not necessarily driven by more claims, rather it's driven by more complex, higher cost claims, which is where our solutions perform exceedingly well. We will continue to provide additional details on a quarterly basis as we track rate mix and volume changes to our PSAV business. Turning to guidance. We are raising the bottom end of our guide range by -- revenue guide range by $5 million with a new range of $985 million to $1 billion. Reviewing the current analyst models, we are comfortable with adding Q1 revenue outperformance to your existing models within the revised guidance range. Remember when building your models that the second, third and fourth quarters of '25 each had approximately $5.4 million of onetime revenue that was recognized at 100% adjusted EBITDA margin, which will impact the year-over-year comparisons for the balance of the year. With a quarterly revenue cadence due to the revenue outperformance in Q1 and the $5 million headwind from last year, we expect Q2 revenue to be relatively flat sequentially, largely consistent with current analyst models. Then as revenue from new ACV ramps, we expect our growth rate to increase to between 3% to 5% for the second half of the year, adding up to the full year guide. We have included a summary in the supplemental deck to help bridge the major revenue drivers this year. It provides more color on how you should model gross revenue retention, expansion, ACV conversion to get to our full year revenue guide range. We are maintaining full year adjusted EBITDA guidance of $605 million to $615 million with margins of 61% to 62%. When normalizing for the impact of the $18 million in onetime P&C revenue and EBITDA contribution last year, our guidance implies 3.5% to 5% adjusted EBITDA growth -- dollar growth on a like-for-like basis. As we previously stated, we're going to continue to invest while running our business with prudence, balancing positive cash flow and earnings with investments required for future growth. This is especially true as it relates to ramping up sales and operations to support the growth in ACV. New bookings take on average 6 to 12 months to convert to revenue, which means we are investing in '26 for those new and expansion revenue drivers that are largely -- that largely begin contributing to our top line in '27. With our recent sales momentum, I would expect us to continue to seek attractive options to bolster our go-to-market posture. For example, Travis mentioned our increased focus on the TPA market. We see significant upside in this vertical. We have also demonstrated success with investments in AI and automation as detailed earlier. Finally, the launch of our services business has already helped us gain a foothold in both the provider and public sector markets. We left our '26 guidance for total capital and free cash flow unchanged with capital at $160 million to $170 million and positive free cash flow. In '26, we expect to deliver operating and unlevered free cash flow growth with adjusted cash conversion normalizing to pre-2025 levels by the end of the year. All of this aligns with our guiding principle to diversify and accelerate, expanding our solutions, verticals and channels to drive growth while also delevering and derisking our business to enhance cash flow and operating agility. With that, I'll turn it back over to Travis for some final remarks before taking your questions. Travis Dalton: Thanks, Doug. I'll just close with a few closing thoughts and reiterate some of my earlier points. We entered '26 with confidence in our business. The foundation is laid and our strategy is working. Our priorities for the business remain clear, continued growth and investment in our core, diversification of our revenue base with new market verticals and delevering the business over time. We are executing the way up with clarity alignment focus, continuing to improve how we operate, grow and deliver for our clients, which collectively will strengthen the durability of the business over time. Finally, I want to thank our 3,000 Claritev associates who have made this journey possible for their continued dedication and commitment to our clients. With that, I'll turn the call over to the operator for questions. Operator: [Operator Instructions] And your first question comes from the line of Jason Cassorla with Guggenheim. Jason Cassorla: Maybe just on the margin side, obviously, strong top line and EBITDA outperformance in the quarter. You've got investments that are earmarked as you ramp up your ACV. But maybe can you just help with the puts and takes in terms of margins in the quarter, how those investments balance against the stronger rate and mix falling to the bottom line? Maybe if you accelerated any of those investment spend early in the year that may have burdened margins near term, but maybe perhaps allowing for a better setup in the second half of the year as the ACV contribution ramps. Any help there on the margin side would be helpful. Doug Garis: Jason, thanks for your question. This is Doug. Yes. So I think we indicated in Q4, we had really started investing. And when you look at kind of the run rate and annualized OpEx of the business, it was adjusted EBITDA expenses were approximately $385 million. So part of the investment that we started delivering to help deliver the ACV growth. We really started making those investments in Q4. I think we were pleasantly surprised by the continued improvements to the mix. And I think with respect to our internal targets, we slightly outperformed both revenue and EBITDA. So we actually have a pretty tight guide range on EBITDA this year as we thread the needle. I would expect the rate of investment to be ratable quarter-to-quarter, maybe say for $1 million to $2 million here or there. And as our ACV starts to really convert to revenue and pick up in the second half of the year, I would expect us to keep stable, if not slightly improving margins in the back half. Jason Cassorla: Got it. Okay. That's helpful. And then maybe as my follow-up, obviously, encouraging to see the strong top line growth this quarter. Can you discuss what you're seeing in terms of utilization broadly? I know there's been a weaker respiratory system, some weather events impacted volumes across providers broadly, but I'm not sure if you're seeing that, but maybe if you could just -- any color on the utilization environment and then maybe a little bit deeper on some of the rate and mix benefits that you're seeing currently would be helpful. Doug Garis: Yes, sure. So I'll take that. So if you look at Slide 10 and 11 on our supplemental deck, it gives some color on kind of the rate mix and volume dynamics of our business. I think the continuous trend, and we covered this a little bit at Investor Day in the outpatient setting for the higher acuity claims. We saw, I would say, maybe a little bit less volume than we would have expected, but strong performance on a savings, identified savings and revenue and savings per claim. It was really some of the mix that I would say, has compounded over the last 5 quarters in the outpatient setting from an inpatient facility perspective, we saw a little bit higher ER in room and board. Don't know if that's impacted by weather per se. It was a little bit better than we had internally modeled. But really, when you look at kind of the last 5 quarters on Slide 11, that continuous pacing and trend of the higher acuity areas, especially in the outpatient setting is about where 80% of our identified savings and revenue play. We've seen consistent elevated trends in those higher acuity areas, including behavioral health. Nothing in the quarter kind of indicated that there was an aberration or disruption to underlying volumes due to events like weather. Operator: And your next question comes from the line of Jessica Tassan with Piper Sandler. Jessica Tassan: So I'm curious on a few things. If you could first maybe give us a sense of the mix of services bookings within your $80 million to $100 million bookings target? And then just how do the margins look on that -- on those services, bookings maybe contract launch and then over the course of the contract lifespan? And how would you expect the margins to progress? Doug Garis: Jess, I'll take a stab at that and maybe Travis wants to give any color he can. So when we look at Q1 of our $44 million, the provider and public sector contributed about 20% of the bookings. So these were kind of flagship wins that we announced at Investor Day. We had indicated too, and I think maybe you had asked the question at Investor Day what the margin profile of services is. We expect it to be roughly kind of half the core business as we ramp and scale. When I look at the full year, the $80 million to $100 million, we expect growth from these areas and especially services to be meaningful. But the total mix of bookings is still going to be around, I'd say, probably 20-ish percent of our total number at the midpoint. These investments are critically important to us, which is why we announced the additional $20 million to $25 million of investment this year. We see significant opportunity in the provider and public sector markets. The midpoint of those bookings will be about 20% of our total, and we expect margins to be roughly half of our core business. I don't know if you have anything. Travis Dalton: Yes. I'll just add a couple of things. So one is with the health system that we signed, we view that as very strategic. I mean we'll be providing managed services for their EMR, which is a new service line of business for us. So we've got the people, we've got the talent. We have acquired OPCG in order to create those relationships. So we'll also be deeply embedded in their workflow, complex problems trying to solve. And even more so, a few things are important. One is it's a high level of recurrence in some of these opportunities we have on recurring revenue services. You get some immediate revenue benefit and an opportunity like that and you start it quickly. So we're not having to constantly just wait for the revenue flow, which is so seasonal and cyclical in some of our core business. It also gives us the opportunity to pull through, again, horizontal vertical, stop talking about it and I won't, but we can pull through our horizontal products into those organizations we're working with on a services basis to help them with efficiency. So products like [ completely ] our transparency products. So it's not a pure services play. To me, it's advisory, strategic and thoughtful as it relates to the ability to pull through more products with high-margin profiles to manage the entirety of our margin view over time. Jessica Tassan: Got it. That's helpful. And then I guess just my follow-up. So we had one of our MAOs kind of talk about these changes to concurrent reviews in the 2026 MA final rule. And so I'm just curious, I think these are mostly in-network. But I guess, do you guys have exposure to like retrospective reviews in '25 that are essentially less frequent in 2026? And just any comments on whether changes to inpatient determinations within the 2026 MA final rule has any impact on your claims volume, the 8% year-over-year PSAV claims volume decline? Travis Dalton: Thanks, Jess. Limited impact. We think MA could be an opportunity kind of mid and long term for us. But as it relates to the kind of quarterly progression, limited if close to 0 volume impact from that -- quarter-to-quarter. Operator: [Operator Instructions] Our next question comes from the line of Stan Berenshteyn with Wells Fargo. Stanislav Berenshteyn: First, on ACV, you're already halfway there on your ACV goals for the year. Just wondering, how is your visibility into your remaining go get? Do you expect any changes in the mix of upsell versus new logos? Just any color you can add there would be helpful. Doug Garis: Great. Thanks for the question, Stan. So I'll take the first half. So I think the 70-30 approximate split, we actually covered that was our mix on upsell, cross-sell versus net new logos on the $67.3 million of bookings that we landed in '25. That trend has been pretty consistent. I think the most compelling piece of that is we have a ton of white space within the payer and TPA segment. And so we are expanding our products and solutions to new markets, including provider, public sector, international. We think these are great long-term areas for growth and diversification. But make no mistake, our core business is still most of where the bookings are occurring. And I think the Q1 bookings number was anchored by a lot of large deals actually. I think we had 9 deals over $1 million ACV. Last year, we had [ 108 ] deals over $100,000 ACV. The funnel we have in the funnel efficiency is multi9 figures. So we feel very confident with the $80 million to $100 million on the full year. Quarter-to-quarter, there might be some seasonality and trending, but I would expect us to continue to deliver strong bookings growth for the foreseeable future. Travis Dalton: I'll just add one comment, Stan. This is Travis. We had 30 new logos last year and 6 new logos in the first quarter. So we're focusing on the core and what we said we see significant white space, Doug just reiterated that. But we're also really focused on creating more diverse, sustainable growth over time, and that starts with new clients. We have a lot more telemetry into our business as it relates to our forecast, our processes, our win and close rates, the data of which we operate. And we have significantly more coverage -- pipeline coverage to quota than we had 2 years ago, almost 4.8x, which is a significant number, and I think it was closer to 1.5x. And so more pipeline, more coverage, better visibility. And the last thing I'll say is we have the confidence to invest in the business because we can see the top line. And so you're confident enough to make decisions like we made in Q4 this year, and we're confident in our margin profile for the year because we have good visibility to our top line growth and revenue conversion. So that's a great leading indicator for us, and we have clear visibility and confidence in our numbers for the year. Stanislav Berenshteyn: Appreciate that helpful. As my follow-up, just wanted to ask on Medicare Advantage. Obviously, there's some rate pressure forcing payers to be a bit more mindful with admin savings and things like that. Are you seeing that translate into increased demand for payment integrity solutions? Is that driving some more intensity with the payers? Just wanted to get some color on that as well. Doug Garis: Thanks, Stan. Yes, absolutely. When you look at our PRI business, had nice growth last year. We expect a similar growth rate this year. If you look at, I would say, maybe 25% to 1/3 of the opportunities are in payment revenue integrity. We have one of the most comprehensive set of solutions from prepaid payment revenue integrity and claims editing all the way through postpay. We feel very bullish on the prospects of that business medium to long term and a good portion of our funnel is in the payment revenue integrity space. Operator: Thank you. I'm not showing any further questions in the queue. I will now turn back over to management for closing remarks. Travis Dalton: Thank you. This is Travis. Let me just close by saying thank you for your time and attention today. Thanks for the questions and the interest in the company. And as noted, we feel like we're in a good place, and we're confident in our year. Look forward to talking to you again here soon. Thank you. 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