CorVel (CRVL) Q3 2025 earnings summary

Executive summary

• Revenue for the December quarter reached $228 million, a 13% increase year-over-year, with nine-month revenue up to $664.1 million.

• Diluted EPS for the quarter was $0.46, up 39% from $0.33, reflecting a three-for-one stock split; nine-month EPS was $1.32, up from $1.09.

• Net income for the quarter rose 39.1% year-over-year to $23.8 million; nine-month net income increased 21% to $68.7 million.

• Strategic focus on technology and innovation, including generative AI, continues to drive operational improvements and differentiation.

• The company completed a three-for-one stock split in December 2024, enhancing share accessibility and retroactively adjusting all share and per-share data.

Financial highlights

• Gross profit for the quarter grew 25% to $52.9 million, with gross margin improving to 23.2% from 20.8% year-over-year.

• Patient management revenue was $146 million, up 11% year-over-year, accounting for 64% of quarterly revenue.

• Network solutions revenue was $82 million, up 16% year-over-year, accounting for 36% of quarterly revenue.

• Quarter-ending cash balance stood at $163 million, up from $105.6 million at March 31, 2024.

• Net cash provided by operating activities for the nine months was $104.4 million, up from $84 million year-over-year.

Outlook and guidance

• Continued investment in AI and automation tools is expected to further enhance operational efficiency and customer outcomes.

• General and administrative expenses are expected to remain between 9% and 11% of revenues in future quarters.

• The company believes its cash position and operating cash flow are sufficient to meet obligations and fund operations for at least the next 12 months.

• The company is well-positioned to address medical inflation and cost management challenges in workers' compensation.