UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (State or other jurisdiction of incorporation or organization) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to x Commission file number 000-19291 CORVEL CORPORATION (Exact Name of Registrant as Specif ...

Operations generated net income of $24.1 million for the December 2025 quarter, up from $23.8 million in the prior-year period, according to the CFO.Nichols noted that earnings-per-share comparisons were adjusted to account for a three-for-one stock split reported in December 2024. He also said that in comparing the December quarters, the allocation of general and administrative expenses declined to 9.6% from 9.7% , while margin improved to 23.3% from 23.2% . However, an increase in the company’s effective ...

Financial Data and Key Metrics Changes - CorVel's revenue for the nine months ending December 31, 2025, was $710 million, a 7% increase from $664 million in the same period of the previous fiscal year [5] - Earnings per share for the same period were $1.53, up 16% from $1.32 during the nine months ending December 31, 2024 [5] - For the December 2025 quarter, revenues were $236 million, a 3% increase from $228 million in the December 2024 quarter [5] - Earnings per share for the December 2025 quarter were $0.47, an increase of 2% over the same quarter of the prior year at $0.46 [5] - Overall net income for the December 2025 quarter was $24.1 million, up from $23.8 million in December 2024 [6] Business Line Data and Key Metrics Changes - Key growth drivers included Independent Medical Evaluations, CERIS, Ancillary Care Solutions, Medical Bill Re-review, and Claims Management [7] - The allocation of general and administrative expenses decreased from 9.7% to 9.6%, with a corresponding improvement in margin from 23.2% to 23.3% [6] Market Data and Key Metrics Changes - The U.S. Department of Labor reported a small decline in total work-related injuries from 2023 to 2024, consistent with a decade-long trend [7] - Average medical and lost time claim severity increased by 6% in 2024, leading to elevated medical costs and extended duration of injury claims [8] - Medical costs are rising due to inflation, with increases noted between 5%-12% across multiple states [9] Company Strategy and Development Direction - CorVel is focusing on product innovation, savings through clinical outcomes, and effective management to adapt to industry shifts and leverage growth opportunities [10] - The company is investing in AI initiatives to enhance operational efficiency and improve outcomes for partners [11] - A technology-centric acquisition was closed at the end of June, contributing to increased efficiency in health payment integrity services [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the December quarter results were modest relative to expectations, primarily due to short-term operational factors [11] - The net revenue retention for the business was 107%, with a 44% close rate on new business opportunities [11] - Management emphasized the importance of technology and reputation in maintaining growth momentum despite recent revenue growth deceleration [23] Other Important Information - CorVel repurchased 185,559 shares at a cost of $13.4 million during the quarter, totaling 114.9 million shares repurchased for $868 million since inception [19] - The quarter-ending cash balance was $230 million, with free cash flow of $90 million for the fiscal year to date [21] - The company maintains a strong and debt-free balance sheet, positioning it well for strategic product expansion and technological advancement [21] Q&A Session Summary Question: Can you provide more detail on the deceleration of year-over-year revenue growth for each segment? - Management indicated that revenue growth has not been a straight line historically and believes that investment in technology and reputation will support future growth [23] Question: Can you please provide more context around segment quarter three? - CorVel operates within a single segment, providing services in Patient Management and Network Solutions, and does not report products separately [24]

Financial Data and Key Metrics Changes - CorVel's revenue for the nine months ending December 31, 2025, was $710 million, a 7% increase from $664 million in the same period of the previous fiscal year [5] - Earnings per share for the same period were $1.53, up 16% from $1.32 during the nine months ending December 31, 2024 [5] - For the December 2025 quarter, revenues were $236 million, a 3% increase from $228 million in the December 2024 quarter [5] - Earnings per share for the December 2025 quarter were $0.47, an increase of 2% over the same quarter of the prior year at $0.46 [5] - Overall net income for the December 2025 quarter was $24.1 million, up from $23.8 million in December 2024 [6] Business Line Data and Key Metrics Changes - Key growth drivers included Independent Medical Evaluations, CERIS, Ancillary Care Solutions, Medical Bill Re-review, and Claims Management [7] - The allocation of general and administrative expenses decreased from 9.7% to 9.6%, with margin improvement from 23.2% to 23.3% [6] Market Data and Key Metrics Changes - The U.S. Department of Labor reported a small decline in total work-related injuries from 2023 to 2024, consistent with a decade-long trend [7] - Average medical and lost time claim severity increased by 6% in 2024, leading to elevated medical costs and extended duration of injury claims [8] - Medical costs are rising due to inflation, with increases noted between 5%-12% across multiple states [9] Company Strategy and Development Direction - CorVel is focusing on product innovation, savings through clinical outcomes, and effective management to adapt to industry shifts and leverage growth opportunities [10] - The company is investing in AI initiatives to enhance operational efficiency and improve outcomes for partners [11] - A technology-centric acquisition was closed at the end of June, contributing to increased efficiency in health payment integrity services [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the December quarter results were modest relative to expectations, primarily due to short-term operational factors [11] - The net revenue retention for the business was 107%, with a 44% close rate on new business opportunities [11] - Management emphasized the importance of technology and reputation in maintaining growth momentum despite recent revenue fluctuations [23] Other Important Information - CorVel repurchased 185,559 shares at a cost of $13.4 million during the quarter, totaling 69% of shares outstanding repurchased at an average price of $7.55 per share [19] - The quarter-ending cash balance was $230 million, with free cash flow of $90 million for the fiscal year to date [20][21] - The company maintains a strong and debt-free balance sheet, positioning it for continued strategic expansion and technological advancement [21] Q&A Session Summary Question: Can you provide more detail on the deceleration of year-over-year revenue growth for each segment? - Management indicated that revenue growth has not been a straight line historically and believes that investment in technology and reputation will support future growth [23] Question: Can you please provide more context around segment quarter three? - Management clarified that CorVel operates within a single segment, providing services under Patient Management and Network Solutions without breaking them out separately [24]

Financial Data and Key Metrics Changes - CorVel's revenue for the nine months ending December 31, 2025, was $710 million, a 7% increase from $664 million in the same period of the previous fiscal year [5] - Earnings per share for the same period were $1.53, up 16% compared to $1.32 during the nine months ending December 31, 2024 [5] - For the December 2025 quarter, revenues were $236 million, a 3% increase from $228 million in the December 2024 quarter [5] - Earnings per share for the December 2025 quarter were $0.47, an increase of 2% over the same quarter of the prior year [5] - Overall net income for the December 2025 quarter was $24.1 million, up from $23.8 million in December 2024 [6] Business Line Data and Key Metrics Changes - Key growth drivers included Independent Medical Evaluations, CERIS, Ancillary Care Solutions, Medical Bill Re-review, and Claims Management [7] - The allocation of general and administrative expenses decreased from 9.7% to 9.6%, with a corresponding improvement in margin from 23.2% to 23.3% [6] Market Data and Key Metrics Changes - The U.S. Department of Labor reported a small decline in total work-related injuries from 2023 to 2024, consistent with a decade-long trend [7] - Average medical and lost time claim severity increased by 6% in 2024, leading to higher medical costs and longer injury claim durations [9] - Medical costs are rising due to inflation, with increases reported between 5%-12% across multiple states [10] Company Strategy and Development Direction - CorVel is focusing on product innovation, savings through clinical outcomes, and effective management to adapt to industry shifts and leverage growth opportunities [11] - The company is investing in AI initiatives to enhance operational efficiency and improve outcomes for partners [12] - A technology-centric acquisition was closed at the end of June, contributing to increased efficiency in health payment integrity services [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the December quarter results were modest relative to expectations, primarily due to short-term operational factors [12] - The net revenue retention for the business was 107%, with a 44% close rate on new business opportunities [12] - Management emphasized that the historical revenue growth pattern is expected to continue despite recent deceleration [24] Other Important Information - CorVel repurchased 185,559 shares at a cost of $13.4 million during the quarter, totaling 69% of the shares outstanding repurchased at an average price of $7.55 per share [21] - The company reported a Day Sales Outstanding of 39 days, an improvement of three days compared to the same period a year ago [21] - Free cash flow for the fiscal year to date was $90 million, with increased capital expenditures due to proprietary software development [22] Q&A Session Summary Question: Can you provide more detail on the deceleration of year-over-year revenue growth for each segment? - Management indicated that revenue growth is not a straight line and believes that investment in technology and the company's reputation will support future growth [24] Question: Can you please provide more context around segment quarter three? - Management clarified that CorVel operates within a single segment, providing services in Patient Management and Network Solutions without breaking down products separately [25]

Financial Performance - Revenues for the nine months ended December 31, 2025, were $710 million, a 7% increase from $664 million in the same period of 2024[1] - Earnings per share for the nine months ended December 31, 2025, were $1.53, up 16% from $1.32 in the prior year[1] - Revenues for the quarter ended December 31, 2025, were $236 million, an increase from $228 million in the same quarter of 2024[1] - The company reported a net income of $79.3 million for the nine months ended December 31, 2025, compared to $68.7 million in the same period of 2024[8] Gross Profit and Cash Position - Gross profit for the quarter increased 4% to $54.9 million, with a gross margin of 23%[6] - The company exited the quarter with $230 million in cash and cash equivalents, with no borrowings[6] Shareholder Actions - CorVel repurchased $13.4 million of common stock during the quarter[6] Strategic Initiatives - The integration of a recent strategic acquisition is progressing ahead of plan, accelerating innovation and expanding technology capabilities[3] - AI initiatives are enhancing operational efficiency and improving outcomes for partners across products and services[3] Asset Growth - Total assets as of December 31, 2025, were $644.8 million, up from $546.0 million as of March 31, 2025[9]

Investor Relations 2026 In risk management, timing is everything. We act fast to provide the right support at the right moment - keeping claims on track and people on the path to recovery. We stand on experience Decades of delivering results have made us a proven partner for organizations nationwide. We bring consistency, care, and a deep understanding of what drives better outcomes. We Push Care Forward For us, innovation means more than technology. It's about combining powerful tools with the empathy and ...

Core Insights - CorVel Corporation's Executive Vice President Sarah Scott has been recognized in Business Insurance's "Women to Watch" list for 2025, celebrating her leadership and innovation in the insurance and risk management sectors [1][4]. Company Overview - CorVel Corporation has a 26-year history with Sarah Scott, who has significantly contributed to the company's product innovation, clinical integration, and digital transformation initiatives [2]. - The company utilizes technology such as artificial intelligence, machine learning, and natural language processing to manage healthcare costs and improve care episodes [5]. Leadership and Innovation - Sarah Scott's background as a registered nurse has informed her approach to enhancing patient outcomes and operational efficiency through a data-driven strategy [3]. - She is currently leading efforts to integrate generative AI into CorVel's product offerings, aiming to improve decision-making processes and outcomes for injured workers [3]. Team and Market Position - Scott's leadership style emphasizes value addition and performance, inspiring her teams to innovate and execute effectively, thereby strengthening CorVel's market position [4]. - The recognition of Scott is seen as a reflection of the collaborative efforts of her team in advancing the industry through technology that maintains the human connection in recovery [4].

Core Insights - CorVel Corporation has been recognized in TIME's America's Growth Leaders 2026 Ranking, highlighting its exceptional growth performance, financial stability, and stock performance [1][2] - The company is the only one in its industry to receive this recognition, emphasizing its leadership, innovation, and commitment to delivering value to partners and shareholders [2] Financial Performance - In the quarter ending September 2025, CorVel achieved a 7% revenue growth to $240 million and a 15% increase in gross profit to $58.2 million [3] - The company is focused on sustaining its growth momentum through investments in workforce development via CorVel University [3] Technological Advancements - CorVel is advancing its AI-driven platforms, such as Care Edge, which provides real-time insights and automates routine tasks to enhance operational efficiency [4] - The company is leveraging emerging technologies, including Agentic AI, to improve efficiency, speed, and scalability in its operations [5] Company Overview - CorVel applies technology, including artificial intelligence and machine learning, to manage episodes of care and related healthcare costs, partnering with various stakeholders in the industry [6]

Revenue Growth - The Company's revenues increased to $239.6 million in the quarter ended September 30, 2025, from $224.4 million in the quarter ended September 30, 2024, an increase of $15.3 million, or 7%[86] - Revenue increased to $474.4 million for the six months ended September 30, 2025, up by $38.3 million or 9% from $436.1 million in the same period in 2024[104] - Patient management services revenues rose to $297.6 million, an increase of $11.2 million or 4%, while network solutions services revenues increased to $176.8 million, up by $27.0 million or 18%[104] Cost and Expenses - Cost of revenues increased to $181.5 million in the quarter ended September 30, 2025, from $173.6 million in the quarter ended September 30, 2024, an increase of $7.8 million, or 5%[87] - General and administrative expense increased to $22.3 million in the quarter ended September 30, 2025, from $22.1 million in the quarter ended September 30, 2024, an increase of $0.2 million, or 1%[88] - General and administrative expenses increased to $43.6 million, up by $1.4 million or 3%, accounting for approximately 9% of revenues[107] Profitability - Income before income tax provision increased to $35.9 million in the quarter ended September 30, 2025, from $28.7 million in the quarter ended September 30, 2024, an increase of $7.2 million, or 25%[89] - Net income increased to $27.9 million in the quarter ended September 30, 2025, from $23.4 million in the quarter ended September 30, 2024, an increase of $4.5 million, or 19.3%[95] - Gross profit increased to $58.2 million in the quarter ended September 30, 2025, from $50.7 million in the quarter ended September 30, 2024, an increase of $7.4 million, or 14.6%[95] - Income before income tax provision increased to $71.2 million, a rise of $14.5 million or 26% compared to $56.7 million in the same period in 2024[108] - Net income for the six months ended September 30, 2025, was $55.1 million, reflecting a 22.6% increase from $45.0 million in the prior year[103] - Gross profit for the six months ended September 30, 2025, was $114.8 million, representing a 16.1% increase from $98.9 million in the prior year[103] Cash Flow - Cash and cash equivalents increased to $207.5 million as of September 30, 2025, up by $36.9 million from $170.6 million as of March 31, 2025[110] - Net cash provided by operating activities rose to $80.0 million, an increase of $17.3 million from $62.7 million in the same period in 2024[114] Taxation - The effective tax rate was 22% for the quarter ended September 30, 2025, compared to 18% for the quarter ended September 30, 2024[89] - The effective tax rate for the six months ended September 30, 2025, was 23%, compared to 21% for the same period in 2024[108] Acquisitions - The Company acquired a privately held technology firm during the quarter ended September 30, 2025, enhancing its bill review process[85] Future Expectations - The company expects general and administrative expenses to remain at approximately 9% to 11% of revenues in future quarters[1]