Claritev Corporation Reports Third Quarter 2025 Results

Core Insights - Claritev Corporation reported Q3 2025 revenues of $246.0 million, a 6.7% increase from Q3 2024, with a net loss of $69.8 million and an adjusted EBITDA of $155.1 million, reflecting a 9.5% increase compared to the previous year [1][6] - The company has raised its full-year 2025 revenue and adjusted EBITDA guidance, indicating confidence in its strategic plan and growth trajectory [1][5] Financial Performance - Q3 2025 revenues reached $246.0 million, up from $230.5 million in Q3 2024, marking a 6.7% growth [6] - The net loss for Q3 2025 was $69.8 million, significantly improved from a net loss of $391.5 million in Q3 2024 [6] - Adjusted EBITDA for Q3 2025 was $155.1 million, an increase of 9.5% from $141.6 million in Q3 2024, with an adjusted EBITDA margin of 63.1% compared to 61.5% in the prior year [1][6] - The company processed approximately $45.9 billion in claim charges during Q3 2025, identifying potential medical cost savings of around $6.1 billion [6] Strategic Direction - The CEO emphasized that 2025 is the "Year of the Turn" for Claritev, highlighting the company's focus on executing its strategic plan, "The Way Up," to drive growth in core solutions and expand market segments [2][3] - The company has renewed contracts with its top ten clients and is experiencing growth in its international business, which presents further opportunities [3] Updated Guidance - Claritev updated its full-year 2025 guidance, projecting revenue growth of 3.2% from FY 2024, up from a previous estimate of flat to 2% [5] - The adjusted EBITDA margin guidance remains between 62.5% to 63.0% [5] Cash Flow and Liquidity - The company reported net cash provided by operating activities of $19.9 million for Q3 2025, down from $72.8 million in Q3 2024 [6] - Free cash flow for Q3 2025 was $(16.3) million, compared to $41.1 million in Q3 2024 [6] - As of the end of Q3 2025, Claritev had $39.2 million in unrestricted cash and cash equivalents [6]