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Claritev beat Q1 expectations with revenue of $244.7 million and adjusted EBITDA of $146.9 million, and management said sales momentum supports its full-year outlook. The company raised the low end of its 2026 revenue guidance to $985 million to $1 billion while keeping EBITDA guidance unchanged.
Bookings hit a record at $44.1 million in annual contract value, driven mostly by cross-sell and upsell activity. Claritev also said pipeline growth was up 70% year over year, with more large deals and improved win rates.
AI and expansion wins are driving growth and efficiency, including new public sector and provider deals such as GDIT and a top-five health system. Management said AI is improving productivity across coding, claims processing and finance, while also supporting new service offerings.
Claritev (NYSE:CTEV) reported first-quarter 2026 revenue and adjusted EBITDA ahead of internal expectations, while management said sales momentum and new-market expansion support its full-year outlook.
President and CEO Travis Dalton said the quarter reflected “not just performance, but progress,” pointing to strength in the company’s core offerings, new customer wins and increasing use of artificial intelligence across its operations and client solutions.
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Total revenue for the quarter was $244.7 million, up 5.8% from a year earlier, Chief Financial Officer Doug Garis said. Adjusted EBITDA was $146.9 million, up 3.4% year over year, with a 60% margin.
Garis said growth came from both the company’s core business and expansion areas. He highlighted performance in Data iSight, Claritev’s flagship reference-based pricing solution within its Claims Intelligence service line, which rose 8.4% in the quarter. Network and payment revenue integrity service lines performed at or slightly above internal expectations, he said.
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Claritev reported $44.1 million in annual contract value bookings in the first quarter, which management described as another record quarter. Dalton said the company remains confident in its full-year ACV sales target of $80 million to $100 million, representing 20% to 50% growth over last year’s sales results.
Garis said first-quarter bookings reflected the diversification strategy discussed at the company’s March Investor Day. Cross-sell and upsell activity represented 73% of bookings, while 27% came from net new clients. The company closed 19 deals with more than $100,000 in ACV and nine deals with more than $1 million in ACV, which Garis said represented a 350% increase in seven-figure deals in the quarter.
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Pipeline growth increased 70% year over year, Garis said, adding that average deal size has more than doubled, sales cycles have compressed and win rates continue to improve.
Dalton said Claritev signed six new logos in the first quarter after adding 30 new logos last year. He said the company has “significantly more coverage” in its pipeline than it did two years ago, giving management confidence in revenue conversion and investment decisions.
Dalton pointed to two recently announced wins as evidence of Claritev’s market expansion. The company signed an agreement with GDIT to provide a custom network for the World Trade Center Health Program, which Dalton said leverages a core solution in the public sector and demonstrates the company’s ability to form new partner relationships.
Claritev also signed what Dalton described as a top-five health system operating more than 700 facilities, including hospitals, ambulatory surgery centers, outpatient centers and other sites of care. He said the relationship came directly from Claritev’s acquisition of OPCG in the fourth quarter, which supports the company’s newly launched services offering.
In response to an analyst question, Garis said provider and public sector bookings contributed about 20% of first-quarter bookings. He said services bookings are expected to represent about 20% of the full-year bookings mix at the midpoint of the company’s $80 million to $100 million target, with margins roughly half those of the core business as the segment ramps and scales.
Dalton said the health system agreement is strategic because Claritev will provide managed services for the customer’s electronic medical record platform, a new service line for the company. He added that such relationships could provide recurring revenue and create opportunities to sell additional products, including transparency products such as CompleteVue.
Management emphasized artificial intelligence as both an operational efficiency tool and a competitive advantage. Dalton said engineering teams fully using AI coding tools nearly doubled coding capacity without adding headcount.
He also described several operational examples. Within Claims Intelligence, Claritev built a provider contact agent to address claims that arrive without a provider ID. Dalton said the tool achieves “research-level accuracy,” appends provider contact IDs, reduces processing time by more than half and saves more than 2,000 hours of processing time.
In the independent dispute resolution process, Dalton said Claritev automated invoice extraction and reconciliation for accounts payable IDR workflows. He said the company is now handling thousands of invoices each day, automating daily processing in less than one hour with nearly 100% accuracy and uptime.
Dalton said Claritev has AI teams working across its solutions and internal operations, including sales and finance, to build scale and efficiency.
Claritev raised the bottom end of its full-year revenue guidance by $5 million and now expects revenue of $985 million to $1 billion. Garis said the company is comfortable adding first-quarter revenue outperformance into existing models within that revised range.
The company maintained full-year adjusted EBITDA guidance of $605 million to $615 million, with margins of 61% to 62%. Garis said that, after normalizing for the impact of $18 million in one-time property and casualty revenue and EBITDA contribution last year, the guidance implies 3.5% to 5% adjusted EBITDA growth on a like-for-like basis.
Claritev also maintained its outlook for total capital spending of $160 million to $170 million and positive free cash flow for 2026. Garis said the company expects operating and unlevered free cash flow growth, with adjusted cash conversion normalizing to pre-2025 levels by year-end.
For the first quarter, Claritev generated $36.8 million of unlevered free cash flow, up $23.7 million, or 181%, from the year-earlier period. Free cash flow was a use of $92.5 million, which Garis said was lower by $23.6 million in the quarter. He noted that the company expects the first and third quarters to be cash consumption quarters and the second and fourth quarters to be cash generating quarters in the near to midterm.
Dalton said Claritev is focused on organic growth, investment in the core business, diversification into new verticals and deleveraging over time. He also highlighted opportunities in the third-party administrator market, saying the company added Dallas Scrip, an industry veteran, in late 2025 to lead that effort.
In the question-and-answer session, Garis said payment revenue integrity represents a meaningful portion of the company’s opportunity funnel, including demand tied to Medicare Advantage pressures. He said Claritev has a broad set of solutions across prepay, claims editing and post-pay functions.
Dalton closed the call by saying the company is “in a good place” and confident in its year, while reiterating that Claritev is operating with a long-term view.
Claritev is a healthcare technology, data and insights company focused on improving affordability, transparency and quality. Led by deeply experienced associates, data scientists, and innovators, Claritev provides tech-enabled solutions and services fueled by multiple data sources from over 40 years of claims repricing. Claritev utilizes world-class technology and AI solutions to power a robust enterprise platform that delivers meaningful insights to drive affordability in healthcare, brings price transparency and optimizes networks and benefits design.
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The article "Claritev Q1 Earnings Call Highlights" was originally published by MarketBeat.
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