10-Q · May 7, 2026
Claritev Corporation's Q1 2026 report shows a revenue increase of 5.8% year-over-year, totaling $244.7 million, while EPS decreased to a loss of $4.41, missing analyst estimates. The company experienced challenges with…
Earnings analysis · 10-Q
CTEV earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Claritev delivered solid top-line growth, with Q2 revenue up 6.6% year over year to $257.478M, led by a 13.7% increase in Claims intelligence solutions. Gross and operating margins improved sharply from Q1 2026, but…
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Claritev delivered solid top-line growth, with Q2 revenue up 6.6% year over year to $257.478M, led by a 13.7% increase in Claims intelligence solutions. Gross and operating margins improved sharply from Q1 2026, but gross margin remained below the prior-year level and GAAP EPS was still negative at $3.49. Liquidity is constrained by $27.7M of cash and restricted cash against substantial debt and $100.253M of quarterly interest expense, while the DOJ civil investigation and unremediated IT control weaknesses remain significant overhangs.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $-3.49
What stood out
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Revenue Growth Accelerated
Revenue increased to $257.478M, up $15.908M or 6.6% year over year, and approximately 5.1% from $245M in Q1 2026. Six-month revenue rose 6.2% to $502.156M.
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Margins Rebounded Sequentially
Gross margin was 73.72%, versus 74.8% in Q2 2025 but up from 71.8% in Q1 2026. Operating margin improved to 9.09%, versus 6.9% year over year and 2.7% in Q1 2026.
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Claims Intelligence Drove Growth
Claims intelligence revenue grew $21.499M, or 13.7%, to $178.465M, driven primarily by Data iSight and Surprise Bill Services. The segment represented approximately 69.3% of quarterly revenue.
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GAAP Loss Narrowed
GAAP net loss improved to $59.226M from $62.640M year over year, while diluted EPS improved to negative $3.49 from negative $3.81 and negative $4.41 in Q1 2026.
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Operating Cash Flow Improved
Six-month operating cash flow increased to $46.892M from $31.181M. Management attributed the $15.7M improvement primarily to favorable deferred-income-tax changes, partially offset by working-capital effects.
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Adjusted EBITDA Increased
Adjusted EBITDA increased to $155.799M from $154.028M year over year, and adjusted EPS was $1.41 versus $1.44, despite $9.250M of quarterly transformation costs and $2.572M of antitrust-related legal expenses.
What to watch
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IT Control Weaknesses Persist
The company reported that disclosure controls were not effective as of June 30, 2026 because material weaknesses in IT general controls remained unremediated. The deficiencies involve program-change management and user-access controls; remediation is expected to be completed during fiscal 2026.
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DOJ Civil Investigation Continues
A DOJ civil investigative demand received on May 19, 2026 remains outstanding, and the company stated it cannot predict the investigation's outcome or potential consequences. The company incurred $2.572M of antitrust-related legal expenses in Q2 and $11.182M in the first six months; the separate criminal grand-jury proceeding was officially closed on July 6, 2026.
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High Client Concentration
One client accounted for 35.0% of revenue in the quarter, creating significant customer-concentration exposure. Management states that losing one or more large clients could materially adversely affect results.
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Heavy Interest Burden
Interest expense was $100.253M in Q2 and $199.795M for the first six months, with six-month expense up 4.4% year over year due primarily to higher average indebtedness from PIK interest charges.
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Limited Cash Cushion
Cash, including restricted cash, was only $27.7M at June 30, 2026, comprising $14.4M of cash and cash equivalents and $13.3M of restricted cash. The company had $70.0M drawn on its revolver and $6.4M of outstanding letters of credit.
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Transformation Raises Investment Needs
Investing cash use increased to $84.847M for the first six months from $63.489M, a $21.4M deterioration, primarily because of increased technology investment supporting transformation initiatives.
Management's outlook
The 10-Q provides no new quantitative revenue or EPS guidance. The last disclosed full-year revenue outlook was $985M-$1.0B in the July 6, 2026 8-K; no change to that outlook is stated in this filing.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.