Claritev (CTEV) Status update summary

Business performance and growth outlook

• Achieved 6.7% growth in Q4 and record bookings in 2025, forecasting strong double-digit bookings growth for the year.

• Secured 10 new client logos in Q4, with pipeline up 167%, indicating robust future prospects.

• ACV reached $67 million last year, with 70% from upsell/cross-sell and 30% from new clients; bookings typically convert to revenue in 2–4 quarters.

• Diversified client base, reducing reliance on top five clients by 12%-15%.

• Focused on organic growth and deleveraging, with clear priorities and consistent execution.

AI strategy and competitive positioning

• Seven years into AI integration, leveraging proprietary data, workflow, and client trust as key differentiators.

• AI-driven ProPricer engine delivered $20 million incremental revenue on flat claim volume.

• Competitive moat built on embedded workflow, 1.4 million provider contracts, and deep client relationships.

• AI models enhance negotiation, provider behavior prediction, and regulatory compliance.

• Continual vigilance for AI-driven disruption, with plans to discuss further at Investor Day.

Capital allocation and transformation investments

• Capital spend for 2026 guided at $160–$170 million, consistent with 2025, focused on tech modernization.

• CapEx as a percentage of revenue at 15%-16%, expected to decline to 10% as transformation winds down by 2028.

• Shift from CapEx to OpEx due to cloud migration, with no net cash flow impact.

• M&A remains a disciplined priority, with recent acquisition of OPCG to enhance advisory services.

• Primary focus remains on tech investment and deleveraging, with M&A and organic growth balanced.