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]

Core Viewpoint - Pacific Health Care Organization, Inc. reported positive financial results for the quarter ended September 30, 2025, showing growth in revenues and net income compared to the same quarter in 2024 [2][3]. Financial Performance - Total revenues for the quarter reached $1,586,984, an increase from $1,500,837 in the same quarter of 2024, reflecting a growth of approximately 5.8% [2]. - Income from operations was reported at $205,037 for the quarter, up from $151,577 in the prior year, indicating a growth of about 35.2% [2]. - Net income for the quarter was $223,002, or $0.02 per weighted average share, compared to $174,863, or $0.01 per share, in the same quarter of 2024, representing a year-over-year increase of approximately 27.4% [3]. Cash Flow Analysis - Net cash provided by operating activities for the nine months ended September 30, 2025, was $809,710, significantly higher than $107,110 for the same period in 2024, marking an increase of $702,600 [3]. - Net cash used in investing activities rose to $665,443 in the nine months ended September 30, 2025, compared to $183,644 in the same period of 2024, primarily due to increased investments in US Treasury Bills [4]. - Net cash used in financing activities was $36,055 for the nine months ended September 30, 2025, contrasting with net cash provided of $70,610 in the same period of 2024, attributed to the maturation of an insurance financing agreement [5]. Company Overview - Pacific Health Care Organization, Inc. specializes in workers' compensation cost containment, aiming to reduce medical claims expenses while ensuring high-quality healthcare for injured employees [7]. - The company offers a variety of services, including Health Care Organizations, Medical Provider Networks, medical case management, utilization review, medical bill review, and Medicare set-aside services, which can be provided as bundled solutions or standalone services [7].

Financial Data and Key Metrics Changes - Revenues for the September quarter were $240 million, a 7% increase from $224 million in the same quarter of the previous year [5] - Earnings per share (EPS) for the quarter were $0.54, a 20% increase from $0.45 in the same quarter of the prior year, adjusted for a 3-for-1 stock split [5] - The combined effect of one-time events in the September quarter softened the increase in EPS by approximately 9 percentage points [5] - Gross margin and net income reached $28 million, up from $23 million in the previous year [18] - The company repurchased 143,774 shares at a cost of $12.8 million during the quarter, totaling 114.7 million shares repurchased for $854 million since inception [19] Business Line Data and Key Metrics Changes - Patient management services generated approximately $4 million in revenue growth [18] - Network solutions increased by $12 million, primarily due to higher utilization of ancillary care and bill review solutions [18] - The service division is innovating under increasing pricing pressure, focusing on delivering savings and operational efficiencies [13] Market Data and Key Metrics Changes - The workers' compensation labor market is facing a demographic shift, losing experienced professionals faster than new ones are being attracted [9] - The commercial health segment is experiencing elevated pricing pressure, necessitating a focus on savings and operational efficiencies [8] Company Strategy and Development Direction - The company is investing in workforce development through CorVel University to address industry-wide labor challenges [10] - Leveraging agentic AI to enhance productivity, reduce costs, and accelerate decision-making across the enterprise [10][12] - Focus on expanding business with existing partners and enhancing technological expertise through mergers and acquisitions [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the labor market but sees opportunities in workforce development and technological innovation [9][10] - The commitment to responsible AI principles remains unchanged, emphasizing human expertise directing AI [12] - The company is positioned well for continued product expansion and acquisition opportunities due to a strong and debt-free balance sheet [20] Other Important Information - The company is enhancing claims accuracy and efficiency through new digital communication platforms and AI integration [14][15] - Ongoing product enhancements and strong operational management have generated lower direct costs, allowing revenue growth to outpace expenses [19] Q&A Session Summary - The Q&A session was not detailed in the provided content, and thus no specific questions and answers are available for summary.