Claritev Raises Outlook as Revenue Growth Accelerates
Second-quarter revenue reached $257.5 million, up 5.2% from the preceding period.
Claritev (CTEV), the health-care technology company, raised its full-year outlook after recording a fifth consecutive quarter of year-over-year revenue growth.
Revenue rose 6.6% from a year earlier, accelerating from 5.8% growth in the first quarter. The pace has remained above 6% in three of the past four quarters, extending a recovery that began with 3.5% growth in the second quarter of 2024.
The net loss narrowed to $59.2 million from $62.6 million a year earlier and $73.6 million in the first quarter. Operating income increased 41.2% to $23.4 million, lifting the operating margin to about 9.1% from 6.9%.
Adjusted EBITDA increased 1.1% to $155.8 million, slowing from 3.4% growth in the preceding quarter. Its margin contracted 3.3 percentage points from a year earlier to 60.5%, though it recovered half a percentage point sequentially after four consecutive quarterly declines.
Cash generation strengthened as operating cash flow rose 51.3% to $92.7 million and free cash flow increased 49.1% to $54.6 million. Free cash flow had been negative $92.5 million in the first quarter. Adjusted cash conversion improved to 57% from 47% a year earlier.
Claritev now expects 2026 revenue of $1.00 billion to $1.02 billion, up from its previous range of $985 million to $1.00 billion. Its adjusted EBITDA forecast rises to $610 million to $620 million, while free-cash-flow guidance increases to $5 million to $15 million.
The company reported more than $70 million of first-half bookings, exceeding 70% of its $100 million annual target, with several seven-figure wins among third-party administrators. Capital spending rose 54.7% to $38.1 million, and transformation costs increased 16.7% to $9.25 million, leaving the margin recovery dependent on converting those bookings while absorbing elevated investment.