Claritev (CTEV) 44th Annual J.P. Morgan Healthcare Conference summary

Strategic Vision and Transformation

• Focused on transparency, affordability, and innovation in healthcare, leveraging nearly 40 years of expertise and aiming to make healthcare more efficient and fair.

• Undertook a major transformation with leadership changes, management upgrades, and a shift to a technology-driven, growth-oriented culture, supported by a diversified business model.

• Launched 'The Turn' in 2024, returning to sequential growth, building a robust sales function, and executing a strategic roadmap with brand launches and new products.

• Expanded into new market verticals and international markets using existing products, targeting to double the addressable market.

• Renewed top 10 client contracts for multi-year terms, strengthening long-term relationships.

Technology and Product Innovation

• Invested heavily in technology, moving products to Oracle Cloud, unifying data architecture for scalability and AI integration, and supporting compliance with data sovereignty requirements.

• Launched Network Builder, enabling rapid, customized network solutions for clients, reducing build time from months to minutes.

• Integrated acquired products (BST, BenInsights), enhancing data analytics and employee benefit solutions.

• Announced over 30 solution enhancements and 10 new products for the year, with published roadmaps and client-driven innovation.

• Integrated platform includes claims intelligence, network solutions, payment and revenue integrity, and data & analytics solutions, distributed across multiple market segments.

Financial Performance and Outlook

• Achieved 7% revenue growth in Q3, with record EBITDA and sequential growth over multiple quarters; quarterly revenue and adjusted EBITDA have shown consistent growth from Q1 2023 to Q3 2025.

• Invested $500 million in technology over five years, with ongoing annual spend of $160–$170 million and $100 million earmarked for digital transformation.

• Revenue model is ROI-based, with 60% from out-of-network repricing and 90% from percentage-of-savings contracts; identified $24.7B in potential savings as of November 2025.

• Savings and revenue per claim up nearly 30% over 12 quarters, driven by healthcare inflation and higher-value claims; PSAV claim volume declined 13% year-over-year, but identified potential savings rose 10% and revenue increased 19%.

• Plans to reduce leverage organically, targeting a half-turn reduction starting in 2026, and to pursue value-creating M&A aligned with core focus; strategic capital allocation prioritizes organic investment, debt paydown, and M&A.