CorVel (CRVL) Q1 2027 earnings summary

Executive summary

• Revenue for the quarter ended June 30, 2026, rose 11% year-over-year to $260 million, driven by growth in Patient Management and Network Solutions.

• Diluted EPS increased 21% to $0.63, reflecting higher profitability and share repurchases.

• Net income rose 18% to $32.2 million, with balanced contributions from Patient Management and Network Solutions.

• Leadership transition completed with Sarah Scott appointed President and CEO after 18 months of succession planning.

• Marked 35th anniversary of Nasdaq listing, highlighting long-term growth and innovation.

Financial highlights

• Gross profit increased 19% to $67.8 million, with gross margin improving to 26.1% from 24.2% year-over-year.

• Operating income reached $43.3 million, up from $35.3 million in the prior year.

• Free cash flow for the quarter was $43.1 million, up $3.5 million year-over-year.

• Cash and cash equivalents rose to $256 million at quarter end, with no borrowings.

• Working capital increased to $244.7 million.

Outlook and guidance

• Focus remains on disciplined execution, leveraging investments for measurable results, and expanding value to clients.

• Continued investment in people, processes, and technology to support growth and maintain service quality.

• Evaluating expansion of payment integrity expertise into government healthcare programs based on market demand and potential return.

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

• Management believes current cash and cash flow will cover obligations and strategic initiatives for at least the next 12 months.