CorVel Reverses Two-Quarter Slowdown in Revenue Growth

The Tip Desk · August 5, 2026 · 3 min read

Gross profit rose 19% to $67.8 million, lifting the gross margin to 26% in the quarter ended June 30, 2026.

CorVel Corporation (CRVL), the Fort Worth-based workers’ compensation and health-plan services company, posted first-quarter fiscal 2027 revenue of $260 million, up 11% from $235 million a year earlier, after two consecutive quarters of slower year-over-year growth.

The pace of the top line had been easing. In the quarter ended December 31, 2025, revenue rose 3% to $236 million. In the March quarter, it rose 7% to $249 million. The June quarter’s 11% increase marked a reversal of that deceleration.

Gross profit increased 19% to $67.8 million, at a 26% gross margin, from $56.8 million in the year-ago quarter. Gross margin had been 23% in the December quarter and 25% in the March quarter. Diluted earnings per share rose 21% to $0.63 from $0.52.

Income from operations was $43.3 million. Net income was $32.2 million. General and administrative expense was $24.5 million. Weighted diluted shares were 50.9 million.

The company introduced Executive Advisory Services for workers’ compensation and liability clients, combining operational expertise, analytics, benchmarking, and technology. CERIS, the health division, broadened payment-integrity capabilities through new client implementations and targeted investments aimed at payment accuracy. CorVel remains focused on Patient Management and Network Solutions.

Cash, cash equivalents, and no borrowings stood at $256 million at June 30, 2026. The company repurchased $21.8 million of common stock during the quarter. Customer deposits were $127.1 million. Accounts receivable, net, were $111.0 million. Property, net, was $121.8 million. Accrued liabilities were $230.0 million. Treasury stock was $909.7 million. Retained earnings were $1.05 billion.

In the March quarter, CERIS was benefiting from a healthcare shift toward proactive payment accuracy, with multiple large payer sales and enterprise-scale implementations. P&C services were advancing a technology-enabled, clinically integrated model through CorVel Connected within the CareMC platform, with investments in automation, telemedicine, cybersecurity, and API-driven connectivity.

In the December quarter, AI initiatives had advanced across products, services, and internal development, including agentic AI in the software development lifecycle, and integration of a recent strategic acquisition was progressing ahead of plan.

CorVel marked the 35th anniversary of its Nasdaq listing by ringing the opening bell with members of its executive leadership team.

The June quarter’s mix of a faster revenue increase and a wider gross margin is the operating turn the prior two quarters had not shown. Commentary in the March and December releases had already pointed to CERIS payer implementations, P&C clinical technology, and AI-driven development as the work in flight; the June print is the first quarter in which those threads showed up as an 11% revenue increase and a 26% gross margin. Cash of $256 million with no borrowings and a $21.8 million buyback left the balance sheet still large relative to the quarter’s $260 million of revenue. Customer deposits of $127.1 million and accrued liabilities of $230.0 million sit alongside $111.0 million of net receivables. Weighted diluted shares of 50.9 million sat below the 51.9 million a year earlier, consistent with the buyback. The company did not issue new guidance in the June release. The next test is whether the 11% revenue increase and 26% gross margin hold as CERIS implementations scale and P&C clinical technology continues to roll out.