Claritev (CTEV) Q4 2025 earnings summary

Executive summary

• Achieved a significant turnaround in 2025, returning to profitable growth ahead of expectations, with full-year revenue up 3.7% to $965.4M and Q4 revenue up 6.2% to $246.6M.

• Adjusted EBITDA for FY 2025 increased 4.5% to $602.6M, with Q4 Adjusted EBITDA at $151.3M (61.4% margin).

• Net revenue retention rates remained strong at 103.7% for FY 2025 and 106.2% for Q4 2025.

• Major modernization initiatives included migration to Oracle Cloud Infrastructure, digital transformation, and AI integration.

• Rebranded as Claritev, expanded executive leadership, and launched new solutions and partnerships.

Financial highlights

• Q4 2025 free cash flow was $36.4M, with FY 2025 free cash flow at $(12.3)M and unlevered free cash flow at $270.5M.

• Q4 2025 revenue was $246.6M, up 6.2% year-over-year; full-year revenue reached $965.4M, up 3.7%.

• Adjusted EBITDA margin for FY 2025 was 62.4%, with Q4 at 61.4%.

• Adjusted EPS for FY 2025 was $5.73; net loss for FY 2025 was $(284.3)M, reflecting significant non-recurring adjustments.

• Processed $179.8B in claim charges in FY 2025, identifying $25.0B in potential medical cost savings.

Outlook and guidance

• 2026 revenue guidance is $980M–$1B (2%–4% growth); excluding $18M in one-time 2025 revenue, growth is modeled at 4%–6%.

• Adjusted EBITDA guidance for 2026 is $605M–$615M (61%–62% margin), with normalized EBITDA growth of 3.5%–5%.

• Free cash flow for 2026 is forecasted between $0 and $10M; capital expenditures projected at $160M–$170M.

• Board approved a $75M, five-year share repurchase program, capped at $20M per year.

• Anticipates strong double-digit ACV bookings growth in 2026, with revenue conversion ramping into late 2026 and 2027.