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Claritev (CTEV) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 7, 2026

Source: earnings call transcript

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

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

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——

Deals & partnerships

MarPi Selected 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 client Signed 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 Center Large 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

Medical cost trends continue to rise ongoing

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 volume current

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 volume Q2 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

NSA Claims Volume Uptake

Q3 FY26 / Q4 FY26
Current significant increase in Q2 FY26
Target material 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.

Find out whether CTEV delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.