Claritev Q2 Earnings Call Highlights

Claritev NYSE: CTEV reported second-quarter revenue growth, record bookings and higher cash flow, prompting the healthcare technology company to raise its full-year revenue, adjusted EBITDA and free-cash-flow outlook. Revenue totaled $257.5 million in the second quarter, up 6.6% from a year earlier and representing the company’s highest quarterly revenue level in 15 quarters, dating to the third quarter of 2022. Adjusted EBITDA was $155.8 million, or 60.5% of revenue, while operating cash flow rose 51% year over year to $93 million. Unlevered free cash flow increased 24% to $89.5 million, and levered free cash flow rose 49% to $54.6 million. Growth was led by the company’s Claims Intelligence service line, particularly its No Surprises Act business. Claims Intelligence revenue increased nearly 14% during the quarter, while total PSAV revenue reached $220 million, its highest level in nearly four years. Network and Payment and Revenue Integrity revenue performed at or modestly above management’s internal expectations. Network revenue would have increased year over year excluding $5.4 million of one-time revenue recognized in the prior-year quarter. On that comparable basis, Claritev said total second-quarter growth was nearly 9%. Claims volume rose 11% sequentially and 3% from a year earlier. The change reflected product mix rather than pricing or margin pressure, adding that total PSAV revenue grew 8% sequentially and 10% year over year. Claritev booked $30 million in annual contract value, or ACV, during the second quarter and $74 million during the first half. The first-half total surpassed the $67 million booked for all of 2025. Management said it expects to exceed its $100 million bookings target for the full year. The company exited June with more than $300 million in active pipeline, up 50% on a comparable basis, with more than three times coverage. First-half bookings increased 150%, while average deal size rose more than 300% in absolute dollar terms. Claritev also closed 16 deals with more than $1 million in ACV through the first six months, up 25% from the prior year. About 75% of second-quarter bookings came from cross-selling and upselling to existing clients, while 25% came from five new client logos, including clients in provider and public-sector markets.