CorVel(CRVL) - 2025 Q4 - Earnings Call Transcript

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.