Claritev (CTEV) Q3 2026 Earnings Report

The call was strongly positive. Management reported revenue, adjusted EBITDA, bookings, pipeline, client additions, claims activity, and cash-flow expectations that exceeded or improved against prior expectations. The company also raised full-year guidance, projected at least $1.1 billion of revenue in 2027, and highlighted diversification, AI deployment, and product innovation. Offsetting concerns included lower adjusted EBITDA margin, declines in Network and Payment & Revenue Integrity revenue, third-quarter free cash flow usage, 7.7x net leverage, and continued uncertainty around NSA rule changes, but the positive developments significantly outweighed the challenges.

Claritev raised full year revenue guidance to $1.038 billion to $1.043 billion, implying full year revenue growth of 7.5% to 8% and Q4 revenues of $270 million at the midpoint, a low single-digit sequential increase and 9.5% growth over Q4 '25; adjusted EBITDA guidance is $625 million to $630 million, free cash flow guidance is $10 million to $20 million, and capital expenditure guidance is $165 million to $170 million. Q4 operating cash flow is expected to be $110 million to $120 million, with growth of 66% to 81% year-over-year, and free cash flow is expected to be $74 million to $84 million, with growth of 103% to 131%; full year '26 cash conversion is expected to be greater than 50%. ACV bookings are expected to be $115 million to $125 million for the full year, representing 70% to 90% growth over '25. For '27, Claritev expects to achieve at least $1.1 billion of revenue, expects Payment & Revenue Integrity to return to growth, expects Network to be up about 5% excluding the onetime revenue this year, and plans to provide more comprehensive adjusted EBITDA and free cash flow guidance in February while maintaining a high [ SAU ] ratio.