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    CTEV
    Earnings call· Jun 2026(Q2 FY26)

    Claritev Q2 FY26 earnings call CTEV

    Aug 7, 2026 Source

    Executive summary

    Claritev Corporation Q2 FY26 — Strong Bookings and Raised Full-Year Guidance

    Claritev reported a strong Q2 FY26, exceeding expectations across key financial metrics, driven by robust bookings momentum and effective execution of its vertical market strategy. The company raised its full-year revenue and adjusted EBITDA guidance, signaling confidence in its turnaround journey and sustained growth. Investments in technology modernization and AI are positioning Claritev for future operating leverage and market opportunities, particularly in the evolving healthcare landscape.

    Highlights

    5
    • Total revenue of $257.5 million, up 6.6% YoY, marking the fifth straight quarter of growth.

    • Adjusted EBITDA reached $155.8 million, representing 60.5% margin, the strongest in 13 quarters.

    • Operating cash flow generated $93 million, up 51% YoY, and unlevered free cash flow was $89.5 million, up 24% YoY.

    • Record bookings of $30 million ACV in Q2, contributing to $74 million ACV in H1 2026, surpassing $67 million for full-year 2025.

    • Full-year revenue guidance raised by two percentage points to $1 billion to $1.02 billion, reflecting 4% to 6% growth.

    Concerns

    3
    • Payment and Revenue Integrity segment missed consensus by $2.6 million due to timing, though still expected to grow YoY.

    • Network revenue would have been negative YoY if not for a $5.4 million one-time revenue in Q2 last year, and is expected to be down high single digits for the full year.

    • NSA claims volume increase led to lower sequential total charges per claim and revenue per claim, though net dollar contribution was accretive.

    Guidance & targets

    10
    CategoryTargetConfidence
    Full-year Revenue
    $1 billion to $1.02 billion
    high materiality
    High
    Full-year Revenue Growth
    4% to 6%
    high materiality
    High
    Full-year Adjusted EBITDA
    $610 million to $620 million
    high materiality
    High
    Full-year Adjusted EBITDA Margin
    approximately 61%
    medium materiality
    High
    Full-year Capital Expenditure
    $160 million to $170 million
    medium materiality
    High
    Full-year Free Cash Flow
    $5 million to $15 million
    high materiality
    High
    Full-year ACV Bookings Growth
    at least 50%
    high materiality
    High
    Full-year ACV Bookings
    $100 million
    high materiality
    High
    Q3 Revenue
    flat sequentially
    medium materiality
    Medium
    Adjusted Cash Conversion
    greater than 50%
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    P-SAVE
    Total P-SAVE revenue was at its highest level in nearly four years.
    $220 million
    Claims Intelligence
    Noted performance in the claims intelligence service line within our NSA business.
    up close to 14%
    Network
    Network revenues would have been positive year-over-year if you exclude the $5.4 million of one-time revenue from Q2 last year. Expected to be down high single digits for the full year.
    positive year-over-year if you exclude the $5.4 million of one-time revenue from Q2 last year

    Operational metrics

    36
    Total Revenue
    $257.5 millionup 6.6% year-over-year
    Q2 FY26

    Fifth straight quarter of year-over-year revenue growth and highest revenue quarter in 15 quarters.

    Adjusted EBITDA
    $155.8 million
    Q2 FY26

    Strongest performance in 13 quarters on an absolute dollar basis.

    Adjusted EBITDA Margin
    60.5%
    Q2 FY26

    Margin was in line with expectations for the quarter.

    Working Capital Improvement
    greater than five days
    Q2 FY26

    Improved pacing of working capital cash conversion metrics.

    ACV Bookings
    $30 million
    Q2 FY26

    Record bookings for the quarter.

    ACV Bookings
    $74 millionup 150% versus H1 2025
    H1 2026

    Already surpassed $67 million booked for the full year in 2025.

    Active Pipeline
    greater than $300 millionup 50% on a comparable basis
    as of June 2026

    Strong pipeline supporting future growth.

    TPA Vertical New Bookings Contribution
    roughly 30%
    FY26

    Expected contribution to total new bookings, second only to the payer segment.

    Bookings Mix
    approximately 75%
    Q2 FY26

    Reflects balanced mix of expansion.

    Bookings Mix
    25%
    Q2 FY26

    Included several from provider and public sector verticals.

    Deals with >$1M ACV
    16up 25% versus last year
    YTD 2026

    Reflects larger deal sizes.

    Average Deal Size Growth
    more than 300%
    H1 2026

    Significant growth on an absolute dollar basis.

    Claims Volume Growth
    11%sequentially
    Q2 FY26

    Reversing recent trends, driven by NSA claims.

    Claims Volume Growth
    3%versus prior year
    Q2 FY26

    Reversing recent trends, driven by NSA claims.

    Second Half Revenue (Base Case)
    $508 millionup 3% YoY, up 1% sequentially
    H2 2026

    Implied by the base case of $1.01 billion full-year revenue guidance.

    NSA Claim Resolution without IDR
    greater than 85% to 90%
    current

    Most NSA claims are resolved through network rates or financial negotiation before reaching the IDR process.

    Network Rate Coverage
    1.4 million
    current

    Number of network rates available to resolve claims.

    NSA Arbitration Outperformance
    approximately 8 percentage pointsvs industry
    current

    Claritev's arbitration outcomes outperform the industry.

    Ineligible IDR Submissions
    nearly half
    current

    Analysis indicates a significant portion of IDR submissions are ineligible, highlighting AI opportunity.

    Cost per IDR Dispute
    $115
    prior

    Cost per dispute before recent changes.

    Cost per IDR Dispute
    $15
    current

    Cost per dispute after recent changes.

    AI-generated Code
    more than half
    current

    Reflects the impact of AI on development efficiency.

    Productivity Improvement with AI
    four to eight times more work
    future

    Expected productivity gain for humans with AI as applications are modernized.

    ProPricer Identified Savings
    over $1 billion
    cumulative

    Savings identified by the AI-based ProPricer product.

    Capital Allocation to R&D
    12% to 14%
    historically

    Historical percentage of capital spent on R&D.

    Payment Revenue Integrity ACV Booked
    $25 million
    H1 2026

    Reflects strong performance in selling bundled offerings.

    One-time Revenue
    $5.4 million
    Q2 FY25

    Excluding this, Q2 FY26 Network revenue would have been positive YoY.

    Network Revenue Outlook
    down high single digitsYoY
    FY26

    Due to approximately $18.5 million of one-time revenue from last year.

    One-time Revenue
    $18.5 million
    FY25

    Impacts the full-year Network revenue comparison for FY26.

    Medical Cost Trends
    8% to 10%well above overall economic growth
    annually

    Medical inflation creating pressure on healthcare spending.

    Healthcare Spending as % of US GDP
    almost 20%
    current

    Significant portion of US GDP.

    Out-of-Network Claim Volumes
    mid-7% rangestable
    last five years

    Stable volumes creating durable demand for network and integrity solutions.

    NSA Claims Volume Increase
    significant increase
    Q2 FY26

    Driven by a recent client win, leading to product mix shift.

    Revenue Performance vs Consensus
    $2.7 million beatvs consensus
    Q2 FY26

    Analyst-stated beat for the Network segment.

    Revenue Performance vs Consensus
    $12.6 million beatvs consensus
    Q2 FY26

    Analyst-stated beat for the Analytics segment.

    Revenue Performance vs Consensus
    $2.6 million missedvs consensus
    Q2 FY26

    Analyst-stated miss for the Payments segment, attributed to timing by management.

    Industry KPIs

    5
    MetricValueDetails
    Free cash flow$5 million to $15 millionUSD
    Adjusted EBITDA$155.8 millionUSD
    Healthcare client count5logos
    Bookings billings growth$74 millionUSD
    Revenue adjusted EBITDA guidanceRevenue: $1 billion to $1.02 billion; Adjusted EBITDA: $610 million to $620 millionUSD

    Deals & partnerships

    3
    MarPiSelected Claritev's payment and revenue integrity solutions for both prepay and postpay claims.

    MarPi selected Claritev's payment and revenue integrity solutions for both prepay and postpay claims, underscoring growing momentum in this portfolio.

    New clientSigned a deal to build a Medicare Advantage network.high six-figure ACV

    A new logo signed a high six-figure ACV deal in the quarter to build an MA network, demonstrating diversification strategy.

    World Trade CenterLarge public sector win.

    A large public sector win in the federal space, which takes 3-4 quarters to turn into first dollar of revenue.

    Risks & headwinds

    4
    Medical cost trends continue to riseongoing

    8% to 10% annually

    Mitigation: Claritev's solutions (network, transparency, PRI, claims intelligence) make healthcare more affordable for consumers.

    Regulatory complexity persists with NSA IDR changes and reduced federal funding for several programs.ongoing

    NSA IDR changes, reduced federal funding

    Mitigation: Claritev's scale, technology, and expertise are valuable in managing these requirements; demonstrated ability to manage NSA claims at scale.

    IDR system being overwhelmed with volumecurrent

    nearly half all IDR submissions are ineligible

    Mitigation: Claritev uses AI-powered capabilities to automate provider data validation and ineligibility assessments, improving efficiency and accelerating client response.

    Product mix shift due to significant increase in NSA claims volumeQ2 FY26, potentially persisting in H2

    total charges per claim and revenue per claim moved lower sequentially

    Mitigation: This is a product mix shift, not pricing or margin pressure; net dollar contribution is clearly accretive. The company expects volumes to remain elevated and revenue per claim averages closer to Q2 exit rates.

    What to watch in Q3 FY26

    5

    NSA Claims Volume Uptake

    Q3 FY26 / Q4 FY26
    Currentsignificant increase in Q2 FY26
    Targetmaterial volume uptake

    Why it matters

    New IDR rules could drive further volume, impacting revenue and operational efficiency.

    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 two to see whether there's a material volume uptake.

    Q&A highlights

    7

    How much of the Q2 PSAB volume increase from NSA claims is structural versus a one-time system flush, and what are the volume expectations for H2?

    The company modeled low single-digit volume growth for the full year. While some Q2 volume was a slip from Q1, the volume environment for H2 is encouraging, especially with new NSA pronouncements. Q2 exit rates are a fair baseline, and structural changes in NSA position them well.

    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 by me taking a little bit more of a modest view of volumes and our base modeling for the second half. Some of the structural changes changes to NSA actually have us very well positioned.

    asked by Daniel Grosslight · answered by Doug Garis

    2 min read6 chapters

    Detailed Narrative

    01

    Turnaround Strategy and Growth Momentum

    Claritev's strategy of driving horizontal solutions into vertical markets is yielding results, with the first half of 2026 demonstrating a return to sustainable growth. The company's focus on core client solutions, attacking new markets, and building a growth-oriented culture has positioned it for forward momentum, validating the foundation laid over the past two years. This strategy is enabling financial flexibility to invest, drive down debt leverage, improve operating leverage, and unlock free cash flow.

    02

    Technology Modernization and AI Advantage

    Thoughtful investments in technology, platforms, data architecture, and talent over the last two years have modernized Claritev's infrastructure. This digital transformation, including moving most applications to cloud-based environments and focusing on data architecture, allows the company to quickly adapt and harness AI. Claritev views AI as a key accelerator for growth and operating leverage, leveraging its organized data, cloud-based workflows, and deep domain expertise to deploy AI responsibly and at scale across numerous models and production use cases.

    03

    TPA and Medicare Advantage Expansion

    The TPA vertical was the largest contributor to Q2 bookings, including several seven-figure deals like MarPi, which selected payment and revenue integrity solutions. The company also signed a high six-figure ACV deal for an MA network, seeing Medicare Advantage as a meaningful long-term growth opportunity. These expansions highlight Claritev's diversification strategy and its ability to translate core solutions into broader, more durable growth profiles in new markets.

    04

    Healthcare Macro Trends and Regulatory Complexity

    Rising medical cost trends (8-10% annually), stable self-funded plan enrollment, and a shift in utilization to higher-cost areas (emergency care, behavioral health, specialty facilities) create a durable demand environment for Claritev's solutions. Regulatory complexity, particularly with the No Surprises Act (NSA) and Independent Dispute Resolution (IDR) process, further drives demand for Claritev's scale, technology, and expertise, as evidenced by its arbitration outcomes outperforming the industry by 8 percentage points.

    05

    NSA and Payment Integrity Leadership

    Claritev has demonstrated a strong ability to manage NSA claims at scale, with existing clients consolidating more of their NSA workflow onto its platform. The company's analysis indicates nearly half of all IDR submissions are ineligible, presenting a significant opportunity for AI to improve efficiency. Claritev has launched AI-powered capabilities for provider data validation and ineligibility assessments, reducing operating costs and resolving disputes earlier. Everscrute recently recognized Claritev as a leader in payment integrity.

    06

    Sales Momentum and Pipeline Strength

    The company reported strong sales momentum with Q2 bookings of $30 million ACV, contributing to $74 million ACV in H1 2026, already surpassing the $67 million booked for full-year 2025. The active pipeline exceeds $300 million, up 50% on a comparable basis, with over three times coverage. Cross-sell and up-sell activities accounted for approximately 75% of bookings, while 25% came from five net new client logos, demonstrating balanced growth.

    AI-generated summary of the company’s earnings call. Not investment advice.