CorVel Gross Margin Reaches 27% as Profit Growth Accelerates

The Tip Desk · November 3, 2026 · 2 min read

Gross profit rose 24% to $72.3 million in the September quarter, faster than the 19% gain in the June quarter, as revenue held at an 11% year-over-year increase.

CorVel Corporation (CRVL), the Fort Worth workers’ compensation and health-plan claims administrator, reported revenue of $267 million for the quarter ended September 30, 2026, up 11% from $240 million a year earlier.

The company’s margin expansion was the quarter’s defining turn. Gross profit rose 24% to $72.3 million, at a 27% gross margin, from $58.2 million in the year-ago quarter. That was a faster profit lift than the 19% increase in gross profit recorded in the June quarter, when the margin was 26%. Revenue growth had already matched the 11% pace of the prior quarter.

Diluted earnings per share increased 24% to $0.67, from $0.54 a year earlier. Net income was $34.1 million. Income from operations was $45.8 million. General and administrative expense was $26.5 million.

The company said it generated strong momentum in its workers’ compensation and liability businesses through new customer wins and deeper relationships with existing clients. It described an integrated claims management and managed care model combining clinical expertise, technology, and cost containment as employers and insurers face greater claim complexity, rising medical costs, and increasing administrative demands.

Technology work continued across the platform. CorVel said the integration of artificial intelligence into core claims workflows is reducing manual processes and giving adjusters more timely information. Recent developments within CareMC and MyCare, a digital self-service portal, were described as improving communication and access to claim information. Within Network Solutions, the introduction of Marketwise Repricing was said to provide a more sophisticated approach to out-of-network medical repricing, while investments in pharmacy benefits management were described as strengthening pricing, network access, and clinical oversight.

CERIS, the health division, gained further traction among the nation’s largest healthcare payers with the implementation of an additional Top 10 national health plan and a strategic partnership providing access to the Blue Cross Blue Shield market. Product development included new Hospital Bill Audit and Professional Claims solutions, extending the scope of CERIS’ prepayment services to address complex reimbursement challenges. The company said those initiatives position CERIS to deepen customer relationships, reach new markets, and deliver greater value to health plans seeking improved payment accuracy and control over healthcare expenditures.

Cash, cash equivalents stood at $270 million at quarter-end, with no borrowings. Cash on the balance sheet was $270.0 million. Customer deposits were $130.5 million. The company repurchased $18.1 million of common stock during the quarter. Treasury stock was a negative $928.3 million contra-equity balance. Weighted diluted shares were 50.7 million.

For the six months ended September 30, 2026, revenue was $527 million, compared with $474 million for the six months ended September 30, 2025. Diluted earnings for that six-month period were $1.31 a share.