CorVel (CRVL) Q2 2027 earnings summary

Executive summary

• Q2 FY2027 revenue rose 11.5% YoY to $267.1M; gross profit rose 24.3% to $72.3M, net income 22.1% to $34.1M, and diluted EPS 24.1% to $0.67.

• H1 revenue rose 11.1% to $527.1M; net income rose 20.3% to $66.3M, and diluted EPS was $1.31 versus $1.06.

Financial highlights

• Q2 cost of revenues increased 7.4% to $194.8M, below revenue growth; G&A rose 18.8% to $26.5M on higher software development, marketing, and insurance costs.

• Q2 gross profit rose 24.3% to $72.3M; net income increased to $34.1M from $27.9M, and diluted EPS to $0.67 from $0.54.

• Income tax provision rose 47.1% to $11.8M; the effective tax rate was 26% versus 22% YoY.

• H1 operating income was $89.2M versus $71.2M; operating cash flow rose to $89.5M from $80.0M.

Outlook and guidance

• G&A is expected to remain 9%–11% of revenue in future quarters; $34.8M of remaining performance obligations at September 30, with ~95% expected to be recognized in FY2027.

• Cash, operating cash generation, and employee stock-option proceeds are expected to cover cash needs for the next 12 months and beyond; buybacks may be reduced or halted if earnings or cash flow weaken.

• AI integration in claims workflows is reducing manual processes; CareMC and MyCare developments target better communication and claim-information access.

• Pharmacy-benefit investments target stronger pricing, network access, and clinical oversight; CERIS product development extends prepayment services through Hospital Bill Audit and Professional Claims.