FORT WORTH, Texas, Aug. 26, 2025 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ: CRVL), a national provider of risk management solutions, congratulates its partner, The Save Mart Companies, one of the West Coast's largest regional, full-service grocery chains, for being named one of three recipients of the 2025 Workers’ Compensation Risk Management Award for Excellence, presented by PropertyCasualty360. The award was announced at this year’s Workers’ Compensation Institute (WCI) Conference in Orlando, Flori ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's Q2 2025 financial statements reflect 11% revenue growth, a 26% net income increase, and asset growth to $597.4 million, with all prior period share data retroactively adjusted for a stock split - On December 24, 2024, the company executed a **three-for-one forward stock split** of its common stock, with all share and per-share data for prior periods retroactively adjusted to reflect this split[22](index=22&type=chunk) [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$597.4 million** by June 30, 2025, driven by higher cash and cash equivalents, with corresponding increases in liabilities and stockholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $202,025 | $170,584 | | Total current assets | $421,624 | $386,689 | | TOTAL ASSETS | $597,448 | $545,976 | | **Liabilities & Equity** | | | | Total current liabilities | $235,221 | $204,036 | | Total liabilities | $254,916 | $223,989 | | Total stockholders' equity | $342,532 | $321,987 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $597,448 | $545,976 | [Consolidated Income Statements](index=4&type=section&id=Consolidated%20Income%20Statements) Revenues for the quarter ended June 30, 2025, grew 10.9% to **$234.7 million**, with net income increasing 26.2% to **$27.2 million** and diluted EPS reaching **$0.52** Quarterly Income Statement Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | REVENUES | $234,711 | $211,722 | | Gross profit | $56,761 | $48,155 | | Income before income tax | $35,283 | $28,035 | | NET INCOME | $27,235 | $21,577 | | Diluted EPS | $0.52 | $0.42 | [Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity increased to **$342.5 million** by June 30, 2025, primarily due to **$27.2 million** in net income, partially offset by **$9.6 million** in treasury stock purchases - During the three months ended June 30, 2025, the company's stockholders' equity was impacted by: - Net income of **$27.2 million** - Purchase of treasury stock for **$9.6 million** - Stock-based compensation expense of **$1.4 million**[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to **$55.0 million**, while investing activities used **$15.5 million** and financing activities used **$8.1 million**, primarily for treasury stock repurchases Quarterly Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $55,011 | $40,439 | | Net cash used in investing activities | ($15,463) | ($7,673) | | Net cash used in financing activities | ($8,107) | ($6,421) | | **Increase in cash and cash equivalents** | **$31,441** | **$26,345** | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail revenue recognition, disaggregated into **Patient Management ($146.8 million)** and **Network Solutions ($87.9 million)**, along with **$9.6 million** in stock repurchases and **$1.4 million** in stock-based compensation expense Revenue by Service Line (in thousands) | Service Line | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Patient management services | $146,767 | $139,172 | | Network solutions services | $87,944 | $72,550 | | **Total services** | **$234,711** | **$211,722** | - During the three months ended June 30, 2025, the company repurchased **87,105 shares** of common stock for approximately **$9.6 million** at an average price of **$110.01 per share**[52](index=52&type=chunk) - Stock-based compensation expense was **$1.4 million** for the three months ended June 30, 2025, compared to **$1.1 million** for the same period in 2024[45](index=45&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes 11% revenue growth to new customer activity, improving gross profit margin to **24.2%**, and notes a strong financial condition with **$202.0 million** in cash, sufficient to fund operations and repurchases for the next 12 months [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Quarterly revenues increased 10.9% to **$234.7 million**, primarily from a **21%** rise in Network Solutions services, leading to a **17.9%** gross profit increase and **26.2%** net income growth to **$27.2 million** Quarterly Performance Comparison (in thousands) | Metric | Q1 FY2026 (ended Jun 30, 2025) | Q1 FY2025 (ended Jun 30, 2024) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $234,711 | $211,722 | 10.9% | | Gross Profit | $56,761 | $48,155 | 17.9% | | Gross Margin | 24.2% | 22.7% | - | | Net Income | $27,235 | $21,577 | 26.2% | - The **11% increase** in total revenue was primarily driven by a **21% increase** in Network Solutions services revenues, which rose to **$87.9 million** from **$72.6 million**, attributed to new customers in managed care and growth with existing customers in enhanced bill review[87](index=87&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity strengthened with cash and cash equivalents increasing by **$31.4 million** to **$202.0 million**, driven by robust **$55.0 million** net cash from operations, deemed sufficient for the next 12 months - Cash and cash equivalents increased by **$31.4 million** to **$202.0 million** as of June 30, 2025, primarily due to an increase in net income[95](index=95&type=chunk) - Net cash provided by operating activities increased by **$14.6 million** to **$55.0 million** for the quarter, driven by higher net income and changes in accrued payroll[100](index=100&type=chunk) - The company believes its cash reserves and ongoing cash generation will be sufficient to satisfy cash requirements for the next 12 months, including funding operations, stock repurchases, and service development[98](index=98&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposures were reported for the three months ended June 30, 2025, consistent with prior annual disclosures - There have been no material changes in market risk during the three months ended June 30, 2025[108](index=108&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - As of June 30, 2025, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[109](index=109&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected or are likely to materially affect such controls[110](index=110&type=chunk) [PART II - OTHER INFORMATION](index=23&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various ordinary course legal proceedings but does not anticipate any probable material losses from current cases - The company states that while it is involved in various legal proceedings from time to time, it does not believe any current proceedings will result in a probable material loss[111](index=111&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including intense competition, potential revenue declines from workers' compensation claims, cybersecurity threats, litigation, regulatory changes, and stock price volatility [Risks Related to Business and Industry](index=28&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) Business risks include potential revenue declines, intense competition from various providers, and adverse impacts from declining workers' compensation claims or resistance to cost-containment techniques - Factors such as declining manufacturing employment, fewer workers' compensation claims, and intense price competition create an environment where revenue and margin growth is difficult to attain[114](index=114&type=chunk) - The markets for network and patient management services are fragmented and competitive, with rivals including national providers, smaller local vendors, and insurance carriers performing services in-house[118](index=118&type=chunk) [Risks Related to Cybersecurity and Information Systems](index=36&type=section&id=Risks%20Related%20to%20Cybersecurity%20and%20Our%20Information%20Systems) Significant cybersecurity risks, including sophisticated attacks, could lead to data loss, operational disruption, reputational damage, and potential litigation or regulatory action - A cybersecurity attack could result in the loss, theft, or unauthorized disclosure of sensitive information, potentially damaging customer relationships, exposing the company to litigation, and harming its reputation[139](index=139&type=chunk)[140](index=140&type=chunk) - The frequency and sophistication of cyber-attacks have increased, and despite security investments, there is no assurance that the company's measures will be effective in preventing all incidents[141](index=141&type=chunk) [Risks Related to Potential Litigation](index=40&type=section&id=Risks%20Related%20to%20Potential%20Litigation) Services involving medical treatment recommendations expose the company to litigation for adverse outcomes, while challenges to cost-containment programs could result in significant liabilities and impact profitability - The company could be exposed to claims for adverse medical consequences arising from its utilization management services, which make recommendations on the appropriateness of medical treatments[151](index=151&type=chunk) - Healthcare providers have brought individual and class action lawsuits challenging the company's managed care programs, which could lead to significant liabilities if successful[153](index=153&type=chunk) [Risks Related to Regulatory Environment](index=41&type=section&id=Risks%20Related%20to%20Our%20Regulatory%20Environment) Extensive state and federal regulations, including privacy laws and licensing, pose risks of increased operational costs or reduced demand, with growing scrutiny on 'big data' and AI usage - Changes in government regulations, including state licensing requirements for medical review services, could increase costs of operations or reduce demand for services[156](index=156&type=chunk) - Expanding privacy laws and increasing regulatory focus on how companies handle personal data could impact business models and expose the company to increased liability[159](index=159&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **87,105 shares** for **$9.6 million** under its stock repurchase program during the quarter, with **2,436,204 shares** remaining available Issuer Purchases of Equity Securities (Quarter ended June 30, 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Total Purchased as Part of Program | | :--- | :--- | :--- | :--- | | April 2025 | 27,985 | $112.51 | 27,985 | | May 2025 | 28,081 | $112.14 | 28,081 | | June 2025 | 31,039 | $105.83 | 31,039 | | **Total** | **87,105** | **$110.01** | **87,105** | - The Board of Directors has authorized the repurchase of up to **117 million shares** over the life of the program, which has no expiration date[168](index=168&type=chunk) [Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - No defaults upon senior securities were reported[170](index=170&type=chunk) [Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is not applicable to the company[171](index=171&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 trading arrangements, though an affiliated entity adopted a plan to sell up to **120,000 shares** - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[173](index=173&type=chunk) - On May 28, 2025, Corstar Holdings, Inc., an entity where director Jeffrey Michael is president and CEO, adopted a Rule 10b5-1 plan to sell up to **120,000 shares** of the company's stock[174](index=174&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO and CFO certifications required by Sarbanes-Oxley Act and interactive data files - The report includes required certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act[176](index=176&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) CorVel Corporation reported strong Q1 FY2026 financial results, demonstrating significant year-over-year growth and a robust financial position | Metric | Q1 FY2026 (ended June 30, 2025) | Q1 FY2025 (ended June 30, 2024) | % Change | | :--- | :--- | :--- | :--- | | Revenues | $235 million | $212 million | 11% ↑ | | Gross Profit | $56.8 million | $48.2 million | 18% ↑ | | Diluted EPS | $0.52 | $0.42 | 24% ↑ | - The company maintained a strong balance sheet, exiting the quarter with **$202 million** in cash and cash equivalents and no outstanding borrowings[6](index=6&type=chunk) - During the quarter, the company repurchased **$9.6 million** of its common stock[6](index=6&type=chunk) [Business & Strategic Developments](index=1&type=section&id=Business%20%26%20Strategic%20Developments) Strategic execution and innovation, including a key acquisition, drove the company's performance and enhanced its group health division - CorVel's teams are advancing innovation initiatives, with a specific focus on research and development in agentic AI to strengthen operational capabilities[3](index=3&type=chunk) - The company acquired assets and key talent from a privately held technology firm to enhance its CERIS group health division. The acquired assets include proprietary tools and intellectual property[4](index=4&type=chunk) - The recent acquisition is expected to enhance innovation, reduce time-to-market, and be accretive to growth over the medium term[4](index=4&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) Detailed financial statements provide a comprehensive view of CorVel's performance, highlighting growth in key financial metrics [Income Statement](index=3&type=section&id=Income%20Statement) The Income Statement details CorVel's financial performance for the quarter, showing key revenue and profit figures | (In thousands) | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenues** | **$234,711** | **$211,722** | | Cost of revenues | $177,950 | $163,567 | | **Gross profit** | **$56,761** | **$48,155** | | General and administrative | $21,478 | $20,120 | | **Income from operations** | **$35,283** | **$28,035** | | Income tax provision | $8,048 | $6,458 | | **Net income** | **$27,235** | **$21,577** | | **Diluted EPS** | **$0.52** | **$0.42** | [Condensed Balance Sheet](index=4&type=section&id=Condensed%20Balance%20Sheet) The Condensed Balance Sheet provides a snapshot of CorVel's financial position, detailing assets, liabilities, and equity | (In thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $202,025 | $170,584 | | Accounts receivable, net | $101,975 | $104,126 | | **Total Assets** | **$597,448** | **$545,976** | | **Liabilities & Equity** | | | | Accounts and taxes payable | $30,689 | $16,792 | | Accrued liabilities | $204,532 | $187,244 | | Retained earnings | $930,320 | $903,085 | | **Total Liabilities & Equity** | **$597,448** | **$545,976** | [Safe Harbor Statement](index=1&type=section&id=Safe%20Harbor%20Statement) This section outlines the forward-looking nature of statements, emphasizing inherent risks and directing readers to SEC filings - The press release contains forward-looking statements based on current expectations, which are not guarantees of future results and are subject to risks and uncertainties[5](index=5&type=chunk) - Investors are advised to consult the "Risk Factors" section in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for a comprehensive understanding of potential risks[5](index=5&type=chunk)[7](index=7&type=chunk)

Stock Repurchase and Financial Performance - The company spent $37.6 million to repurchase 377,154 shares of its common stock during fiscal 2025, with a total of approximately $832 million spent on repurchases since the program's inception in 1997[20] - The company has repurchased a total of 114,476,691 shares of its common stock since the start of its repurchase program, with 2,523,309 shares remaining authorized for repurchase as of March 31, 2025[20] - The company has authorized a stock repurchase program for up to 117,000,000 shares, with 114,476,691 shares repurchased to date[135] - As of March 31, 2025, the average price paid for repurchased shares was $111.50, with a total of 80,661 shares repurchased in the first quarter of 2025[156] - The company's common stock has shown significant growth, increasing from 100.00 in 2020 to 616.24 in 2025, outperforming both the Nasdaq Composite and the Nasdaq Healthcare Services Index[161] - The company has never paid cash dividends and intends to retain future earnings for business use and stock repurchases[154] Employee and Workplace Dynamics - As of March 31, 2025, CorVel had 5,075 employees, with 91% working from home or in a hybrid arrangement due to the COVID-19 pandemic[71][72] - The company has been recognized as a "Great Place to Work Company" for five consecutive years, reflecting its commitment to employee satisfaction and organizational culture[73] - Over one-third of CorVel's employees identified as racially or ethnically diverse, and over 79% of employees identify as women[76] - The company has assessed its lease obligations and expects a reduction in office space needs due to more employees working from home[149] Technology and Innovation - The company’s proprietary bill review technology includes over 100 million individual rules, significantly improving the efficiency of the claims management process[25] - CorVel's CareMC® platform enhances claims management by providing real-time access to claims information and streamlining healthcare transaction processing through artificial intelligence[58][61] - The company continues to modernize its claims system capabilities, aiming to provide real-time information and rapid feedback through the CareMC® online portal[62] - The introduction of new technologies and software products is essential for competitiveness, but development may take longer and cost more than anticipated[102] Claims and Case Management Services - The company’s virtual care platform allows injured workers to access 24/7 nurse triage and telehealth services, facilitating timely medical intervention[49] - The company’s case management services include telephonic and field case management, focusing on early intervention and rehabilitation to reduce disability duration[45] - CorVel's vocational rehabilitation program assists injured workers with services such as ergonomic assessments and job placement, tailored to individual case needs[51] - Patient management services include claims management, case management, and 24/7 nurse triage, designed to expedite return to work for injured employees[209] Financial Risks and Competition - The healthcare cost containment industry is competitive, with CorVel facing significant competition from larger firms and potential in-house capabilities developed by customers[64] - Increased competition from national managed care providers and insurance companies could adversely affect growth and profitability[89] - A decline in referrals for patient management services has previously led to decreased revenue, influenced by factors such as workplace injury rates and regional competition[90] - Declines in workers' compensation claims could materially harm the company's financial results, as fewer work-related injuries are reported[91] - The company faces inflation risks that could increase operational costs, impacting overall profitability[98] Regulatory and Compliance Issues - The company is subject to increased scrutiny regarding privacy and data security laws, which may lead to higher liabilities and operational challenges[131] - Regulatory changes in healthcare and workers' compensation could increase operational costs and reduce demand for services, impacting overall business performance[127] - There is a risk of litigation related to the company's recommendations on medical treatment plans, which could result in significant liabilities if claims are successful[124] Internal Controls and Governance - The management assessed the effectiveness of internal control over financial reporting and concluded it was effective as of March 31, 2025, providing reasonable assurance regarding the reliability of financial reporting[173] - The independent registered public accounting firm, Haskell & White LLP, audited the consolidated financial statements and issued an attestation report on the effectiveness of internal control over financial reporting as of March 31, 2025[174] - The company has established an insider trading policy applicable to all directors, officers, and employees to ensure compliance with securities laws[181] - The Board of Directors adopted a code of ethics and business conduct applicable to all employees, officers, and directors, promoting ethical behavior within the company[182] Operational Challenges - The company may face significant operational disruptions due to natural disasters, severe weather, or pandemics, which could materially impact its financial position and results[110] - Cybersecurity risks are increasing, with a notable rise in the frequency and sophistication of attacks, potentially leading to reputational harm and financial losses[113] - The company has invested significantly in information technology and data security measures to protect sensitive information, but these expenditures may adversely affect financial condition and operational focus[113] - The company relies on its information systems for efficient data processing, and any interruptions could lead to customer cancellations and competitive disadvantages[118] Market Position and Strategy - The company operates as an independent nationwide provider of medical cost containment and managed care services, focusing on workers' compensation, automobile insurance claims, and group health insurance benefits[207] - The company serves a diverse customer base, including insurers and government agencies, with no single customer accounting for 10% or more of revenue in fiscal years 2025, 2024, or 2023[63] - The company aims for internal growth and strategic acquisitions in the workers' compensation managed care industry, but faces risks related to personnel retention and resource acquisition[85] - Future growth is contingent on the ability to manage and process claims data effectively, with no assurance that current systems will meet future demands[119]

Financial Data and Key Metrics Changes - Revenues for the March quarter were $232 million, a 12% increase from $207 million in the same quarter last year [4][14] - Earnings per share (EPS) for the quarter were $0.51, a 38% increase from $0.37 in the same quarter of the prior year [4][14] - Revenues for the fiscal year 2025 were $896 million, up 13% from $795 million in the prior fiscal year [4][14] - EPS for the fiscal year was $1.83, a 24% increase compared to $1.47 for the fiscal year ended March 2024 [4][14] - Gross profit for the March quarter increased by 5% year-over-year [15] Business Line Data and Key Metrics Changes - Patient management revenue for the March quarter was $149 million, an increase of 6% [14] - Patient management revenue for the fiscal year was $581 million, an annual increase of 10% [15] - Network solutions revenue for the March quarter was $83 million, up 24% from the same quarter of the prior year [17] - Network solutions revenue for the fiscal year was $314 million, an annual increase of 19% [18] - Gross profit in the wholesale business was up 71% from the March quarter of the prior year [18] Market Data and Key Metrics Changes - The company noted ongoing shifts in trade dynamics that could present longer-term opportunities, particularly in reshoring manufacturing and supply chain operations [5] - Increased claims severity in workers' compensation programs is anticipated due to a growing workforce participation among Americans aged 75 and older [11][12] Company Strategy and Development Direction - The company is committed to fiscal conservatism, investment in technology, and delivering differentiated results to partners [5] - A strategic focus on deploying AI tools throughout the organization is emphasized, particularly in enhancing communication platforms [5][6] - The company is expanding its employer-focused enterprise comp offering to include new reporting services for better incident tracking and regulatory compliance [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that current macroeconomic policies are uncertain but have had minimal direct impact on the markets [4] - The company is well-positioned to navigate economic uncertainty and seize opportunities as they arise [5] - There is a growing demand from payers for solutions that reduce administrative costs and enhance medical loss ratios [12] Other Important Information - The company repurchased 80,661 shares at a total cost of $9 million during the quarter, with a total of 114.5 million shares repurchased to date [19] - The days sales outstanding (DSO) was 41 days, down two days from a year ago [20] - The quarter ending cash balance was $171 million, reflecting a strong and debt-free balance sheet [20] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have concluded without a Q&A segment [22]

Financial Data and Key Metrics Changes - Revenues for the March quarter were $232 million, a 12% increase from $207 million in the same quarter last year [4][13] - Earnings per share (EPS) for the quarter were $0.51, a 38% increase from $0.37 in the prior year [4][13] - Revenues for the fiscal year 2025 were $896 million, up 13% from $795 million in the previous fiscal year [4][13] - EPS for the fiscal year was $1.83, a 24% increase compared to $1.47 for the fiscal year ended March 2024 [4][13] - Gross profit for the fiscal year increased by 11% [14] Business Line Data and Key Metrics Changes - Patient management revenue for the March quarter was $149 million, a 6% increase [13] - Patient management revenue for the fiscal year was $581 million, an annual increase of 10% [14] - Network solutions revenue for the March quarter was $83 million, up 24% from the same quarter last year [16] - Network solutions revenue for the fiscal year was $314 million, an annual increase of 19% [17] - Gross profit in the wholesale business was up 71% from the March quarter of the previous year [17] Market Data and Key Metrics Changes - The company noted an increase in AI adoption among medical providers, particularly in billing platforms [6] - The company anticipates increased claims severity in workers' compensation programs due to rising workforce participation among older Americans [10] Company Strategy and Development Direction - The company is focusing on the deployment of AI tools to enhance communication platforms and streamline workflows [5][6] - Investments are being made in proprietary AI technologies and automated workflow solutions to improve patient management services [16] - The company aims to combine organic product development with external partnerships to enhance service offerings [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged current macroeconomic uncertainties but noted minimal direct impact on their markets [4] - The company remains committed to fiscal conservatism and leveraging technology to navigate economic challenges [5] - There is a focus on enhancing cost containment efforts and adapting to changes in billing practices [7][8] Other Important Information - The company repurchased 80,661 shares at a total cost of $9 million during the quarter [18] - The days sales outstanding (DSO) was 41 days, down two days from a year ago [19] - The quarter ending cash balance was $171 million, with a strong and debt-free balance sheet [19] Q&A Session Summary - No specific questions or answers were documented in the provided content.

Financial Performance - Revenues for Q4 FY 2025 were $232 million, a 12% increase from $207 million in Q4 FY 2024[6] - Earnings per share for Q4 FY 2025 were $0.51, up 38% from $0.37 in the same quarter of the prior year[6] - Fiscal year revenues reached $896 million, a 12.7% increase from $795 million in FY 2024[1] - Net income for FY 2025 was $95.2 million, compared to $76.3 million in FY 2024[8] Profitability and Margins - Gross profit for Q4 FY 2025 increased 34% to $58 million, with a gross margin of 25%[6] Cash and Assets - The company exited the quarter with $171 million in cash and cash equivalents, with no borrowings[6] - Total assets as of March 31, 2025, were $546 million, up from $455 million in the previous year[9] Strategic Initiatives - CorVel's AI integration is enhancing communication platforms and medical billing practices, improving efficiency and reducing costs[3] - The health market saw the successful launch of CERIS's first customer and a second partnership agreement, aligning with the company's long-term strategy[4] Shareholder Actions - The company repurchased $9 million of common stock during the quarter[6]

Core Points - CorVel Corporation has been recognized as a Great Place To Work for the fifth consecutive year, highlighting its commitment to employee experience and workplace culture [1][2][3] - The Great Place To Work Certification is based on real-time employee feedback, emphasizing the importance of a high-trust workplace [3][4] - CorVel utilizes advanced technologies such as artificial intelligence and machine learning to enhance healthcare management and reduce costs [6] Company Overview - CorVel Corporation partners with various entities, including employers and insurance companies, to manage workers' compensation and healthcare services [6] - The company offers a diverse suite of solutions that integrate technology with personalized service, supported by a national team [6] Industry Recognition - Great Place To Work Certification is a globally recognized benchmark for outstanding employee experience, with over 10,000 companies applying annually [4][5] - The organization has 30 years of research and data focused on improving workplace culture and employee satisfaction [5]

Core Insights - CorVel Corporation has promoted Sarah Scott to Executive Vice President of Product, where she will lead the product vision and strategy from ideation to launch and optimization [1][2][3] - Sarah Scott has 25 years of experience with CorVel, previously serving as Vice President of Network Solutions, where she oversaw key areas such as pharmacy management and network management, contributing to improved clinical outcomes and cost reductions [2][3] - The company's President and CEO, Michael Combs, expressed confidence in Sarah's ability to drive transformative growth and innovation within the organization [3] Company Overview - CorVel Corporation specializes in risk management solutions, utilizing technology such as artificial intelligence and machine learning to manage healthcare costs and episodes of care [4] - The company partners with various entities, including employers and insurance companies, to manage services related to workers' compensation, health, auto, and liability [4] - CorVel's approach combines integrated technologies with personalized services, supported by a national team to assist partners and their clients [4]

Revenue Growth - The Company's revenues increased to $228.0 million in the quarter ended December 31, 2024, from $202.3 million in the quarter ended December 31, 2023, an increase of $25.7 million, or 12.7%[73] - Patient management services revenues increased to $145.9 million from $131.8 million, an increase of $14.1 million, or 10.7%[83] - Network solutions services revenues increased to $82.1 million from $70.5 million, an increase of $11.6 million, or 16.4%[83] - Revenue for the nine months ended December 31, 2024, increased to $664.1 million, up from $588.1 million in the same period in 2023, representing a growth of $76.0 million, or 12.9%[92] Cost and Expenses - Cost of revenues increased to $175.1 million in the quarter ended December 31, 2024, from $160.1 million in the quarter ended December 31, 2023, an increase of $15.0 million, or 9.3%[74] - General and administrative expense increased to $22.1 million in the quarter ended December 31, 2024, from $19.8 million in the quarter ended December 31, 2023, an increase of $2.3 million, or 11.4%[75] - General and administrative expenses increased to $22.1 million for the three months ended December 31, 2024, from $19.8 million in the same period in 2023, an increase of $2.3 million, or 11.4%[87] - Cost of revenues increased to $512.5 million for the nine months ended December 31, 2024, from $459.8 million in the same period in 2023, an increase of $52.7 million, or 11.5%[93] - General and administrative expenses for the nine months ended December 31, 2024, were $64.0 million, up from $55.8 million in the same period in 2023, an increase of $8.3 million, or 14.8%[95] Income and Earnings - Income before income tax provision increased to $30.8 million in the quarter ended December 31, 2024, from $22.4 million in the quarter ended December 31, 2023, an increase of $8.4 million, or 37.7%[76] - Net income increased to $23.8 million in the quarter ended December 31, 2024, from $17.1 million in the quarter ended December 31, 2023, an increase of $6.7 million, or 39.1%[82] - Net income for the nine months ended December 31, 2024, was $68.7 million, compared to $56.8 million in the same period in 2023, an increase of $11.9 million, or 21.0%[91] - Diluted earnings per share increased to $0.46 per share in the quarter ended December 31, 2024, from $0.33 per share in the quarter ended December 31, 2023, an increase of $0.13 per share, or 39.4%[78] Tax Information - The effective tax rate was 22.8% for the quarter ended December 31, 2024, compared to 23.6% in the quarter ended December 31, 2023[76] - Income tax provision increased to $7.0 million for the three months ended December 31, 2024, from $5.3 million in the same period in 2023, an increase of $1.8 million, or 33.5%[88] - The effective tax rate was 22.8% for the three months ended December 31, 2024, compared to 23.6% in the same period in the prior year[88] Cash Flow - Cash and cash equivalents increased to $162.9 million as of December 31, 2024, from $105.6 million as of March 31, 2024, an increase of $57.4 million[97] - Net cash provided by operating activities increased to $104.4 million for the nine months ended December 31, 2024, from $84.0 million in the same period in 2023, an increase of $20.4 million[104] Claims and Market Risk - Total new claims increased by 10% during the three months ended December 31, 2024, compared to the three months ended December 31, 2023[83] - There have been no material changes in market risk from those addressed in the Annual Report during the three months ended December 31, 2024[111] - The Company expects future quarters of general and administrative expenses to remain at approximately 9% to 11% of revenues[87]