CorVel (CRVL) Q4 2026 earnings summary

Executive summary

• Fiscal year 2026 revenue rose 7% to $959 million, with quarterly revenue up 7% to $249 million year-over-year.

• EPS for the year increased 17% to $2.14, and quarterly EPS rose to $0.61 from $0.51 year-over-year.

• Net income for fiscal 2026 was $110.3 million, up from $95.2 million in the prior year.

• Strong performance in Network Solutions and CERIS health division, aided by one-time post-payment recoveries and increased adoption of prepay/post-pay platforms.

• New bookings surged 56% year-over-year, with RFP activity up 20%, supporting future growth.

Financial highlights

• Operating margin improved to 15%, up 1.4 percentage points from fiscal 2025.

• Gross profit for the quarter increased 9% to $63.0 million, with a 25% gross margin.

• General administrative expenses fell by $1.3 million in Q4, reducing G&A as a percentage of revenue from 10.6% to 9.4%.

• Free cash flow reached $66 million, a $7 million increase year-over-year.

• Cash balance at year-end was $233 million, with no debt.

Outlook and guidance

• Multi-year bookings and large payer wins expected to drive revenue and profit growth in the second half of the year.

• Ongoing investments in AI, automation, and technology-enabled services to enhance scalability and operational efficiency.

• Personnel levels to normalize as automation and AI are deployed, supporting productivity gains.

• Strong demand for healthcare payment accuracy and cost management solutions is expected to drive future growth.