CorVel (CRVL) Q3 2026 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2025, was $710 million, up 7% year-over-year; quarterly revenue was $236 million, a 3% increase, driven by growth in network solutions with existing customers.

• Net income for the December 2025 quarter was $24.2 million, up from $23.8 million in the prior year; diluted EPS for the quarter was $0.47, up 2%.

• For the nine months, net income rose 15% to $79.3 million, and diluted EPS reached $1.53, up 16% year-over-year.

• AI and technology investments advanced, improving efficiency, outcomes, and driving operational gains.

• Operates as a single segment, encompassing managed care, patient management, and network solutions services.

Financial highlights

• Gross profit margin for the quarter was 23.3%, nearly flat year-over-year; gross profit was $54.9 million.

• General and administrative expenses as a percentage of revenue decreased to 9.6% year-over-year.

• Income before income tax for the quarter increased 4.6% to $32.2 million.

• Days Sales Outstanding improved to 39 days, down three days from the prior year.

• Quarter-ending cash balance was $230 million, with no borrowings.

Outlook and guidance

• Management expects continued growth, leveraging technology and AI to drive efficiency and outcomes.

• Cost efficiencies from AI are expected to offset future pricing pressures.

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

• The company is well-positioned for scaling in 2026 and beyond, with a strong technology roadmap.

• Current cash, cash flow from operations, and stock option proceeds are expected to meet obligations for at least the next 12 months.