Claritev (CTEV) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $231.3M, down 1.4% year-over-year, with net loss narrowing to $71.3M from $539.7M in Q1 2024, reflecting improved results after a major debt refinancing and rebranding to Claritev.

• Launched a multi-year transformation program focused on digital enablement, business realignment, and process optimization as part of Vision 2030.

• Expanded from one to seven market segments, including international, and formed strategic alliances with Oracle, J2 Health, Lantern, and Burjeel Holdings.

• Leadership expanded with new Chief Medical Officer, Chief AI Officer, and a new Board member.

• Closed $13.7M in annual contract value bookings, renewed major client contracts, and announced a five-year, $13M annual contract renewal with a top 20 client.

Financial highlights

• Q1 2025 revenue was $231.3M, down 1.4% year-over-year and 0.4% sequentially, but above internal expectations.

• Adjusted EBITDA was $142.1M, down 3.2% year-over-year, with a margin of 61.4%.

• Net loss per share improved to $(4.38) from $(33.40) year-over-year.

• Net cash from operating activities was a use of $30.1M; levered free cash flow was a use of $68.9M; unlevered free cash flow was $13.1M.

• Processed $42.9B in medical charges, identifying $6.2B in potential cost savings, up 8.6% year-over-year.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: revenue flat to 2% growth over FY 2024, Adjusted EBITDA margin 62.5%-63.5%.

• Capital expenditures expected at $155–$165M; free cash flow guidance for FY 2025 is $(65)M to $(75)M, including $20M–$30M in transformation investments and $55M–$65M in debt-refinancing costs.

• Effective tax rate anticipated at 25% to 28%.

• Revenue retention in the core business remains strong at approximately 98%.

• Management expects sufficient liquidity for the next twelve months, supported by internal cash flow and borrowing capacity.