Claritev (NYSE: CTEV) grows Q1 revenue and reaffirms EBITDA outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Claritev Corporation reported mixed first-quarter 2026 results with modest growth but continued losses and heavy leverage. Revenues reached $244.7 million, up 5.8% from $231.3 million a year earlier, while Adjusted EBITDA rose 3.4% to $146.9 million, implying a 60.0% margin versus 61.4% in 2025.
The company posted a net loss of $73.6 million, slightly larger than the $71.3 million loss a year earlier, and net loss per share was $4.41. Operating cash flow was negative at $45.8 million and Free Cash Flow was a negative $92.5 million, reflecting high capital expenditures and interest costs.
Claritev ended the quarter with $21.3 million of unrestricted cash and total assets of about $4.84 billion against total liabilities of about $5.07 billion, resulting in a shareholders’ deficit. Management nudged full-year 2026 revenue guidance up to a range of $985 million to $1.0 billion, while keeping Adjusted EBITDA, capital expenditure, tax rate, and Free Cash Flow guidance unchanged.
Positive
- None.
Negative
- None.
Insights
Claritev shows modest revenue and EBITDA growth, but remains loss-making with negative free cash flow and high leverage.
Claritev grew Q1 2026 revenue 5.8% to $244.7 million and increased Adjusted EBITDA 3.4% to $146.9 million. This indicates a stable core business, though the Adjusted EBITDA margin slipped to 60.0% from 61.4%, showing limited operating leverage.
The company still recorded a net loss of $73.6 million and negative Free Cash Flow of $(92.5) million, driven by high interest expense and capital spending. Total liabilities of about $5.07 billion exceed assets, leaving a shareholders’ deficit, so balance sheet risk remains a central consideration.
Management slightly raised 2026 revenue guidance to $985 million to $1.0 billion while maintaining Adjusted EBITDA guidance of $605–$615 million. That combination suggests confidence in top-line momentum but no change to the profitability outlook disclosed for the full year.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $244.7 million
Q1 2026 Net Loss: $73.6 million
Q1 2026 Adjusted EBITDA: $146.9 million
+5 more
8 metrics
Q1 2026 Revenue
$244.7 million
Three months ended March 31, 2026; up 5.8% vs Q1 2025
Q1 2026 Net Loss
$73.6 million
Three months ended March 31, 2026
Q1 2026 Adjusted EBITDA
$146.9 million
Three months ended March 31, 2026; up 3.4% vs Q1 2025
Adjusted EBITDA Margin
60.0%
Q1 2026 vs 61.4% in Q1 2025
Q1 2026 Free Cash Flow
$(92.5) million
Three months ended March 31, 2026
Cash and equivalents
$21.3 million
Unrestricted cash and cash equivalents as of March 31, 2026
2026 Revenue Guidance
$985 million–$1.0 billion
Updated full-year 2026 range as of May 7, 2026
2026 Adjusted EBITDA Guidance
$605 million–$615 million
Full-year 2026 outlook reaffirmed
Key Terms
Adjusted EBITDA, Free Cash Flow, unlevered free cash flow, adjusted cash conversion ratio, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA of $146.9 million increased 3.4% compared to Q1 2025"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"Free Cash Flow of $(92.5) million for Q1 2026, compared to Free Cash Flow of $(68.9) million for Q1 2025."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
unlevered free cash flow financial
"Unlevered free cash flow is defined as net cash provided by operating activities less capital expenditures, plus cash interest paid"
Unlevered free cash flow is the cash a company generates from its core business after paying operating costs and reinvesting in the business, but before any interest or debt repayments. It shows how much cash would be available to all providers of capital—owners and lenders alike—and helps investors compare underlying business performance and value companies without the distortion of different debt levels, like judging a car’s fuel efficiency before adding cargo weight.
adjusted cash conversion ratio financial
"Adjusted cash conversion ratio is defined as unlevered free cash flow divided by Adjusted EBITDA."
Vision 2030 financial
"our multi-year transformation program called Vision 2030 which includes internal personnel costs"
A "Vision 2030" is a publicly stated long-range roadmap that sets goals, reforms and priorities a government or company intends to achieve by the year 2030. For investors it signals the areas likely to receive funding, regulatory change or policy support—like new industries, infrastructure or cost cuts—so it helps spot potential opportunities and risks much like a route map shows which roads will be expanded or closed over the next decade.
non-GAAP financial measures financial
"this press release contains certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA, free cash flow"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Revenue: $244.7 million · Guidance included
Q1 2026
Revenue
$244.7 million
+5.8% YoY
Net loss
$73.6 million
Slightly larger loss vs Q1 2025
Adjusted EBITDA
$146.9 million
+3.4% YoY
Free Cash Flow
$(92.5) million
More negative vs Q1 2025
Guidance
For full-year 2026, Claritev guides revenue to $985 million–$1.0 billion, Adjusted EBITDA to $605 million–$615 million, capital expenditures to $160 million–$170 million, effective tax rate to 24%–28%, and Free Cash Flow to $0–$10 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 7, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||||||||
(212 ) 780-2000
(Address, including zip code, and telephone number,
including area code, of registrant’s principal executive offices)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Shares of Class A Common Stock, $0.0001 par value per share | ||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Unless the context otherwise requires, "we," "us," "our," "Claritev" and the "Company" refer to Claritev Corporation, a Delaware corporation, and its consolidated subsidiaries.
Item 2.02 Results of Operations and Financial Condition.
On May 7, 2026, the Company issued a press release announcing its financial results for the first quarter ended March 31, 2026.
A copy of the press release is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Item 2.02, including 99.1, is furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liabilities under that section, nor shall it be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are included in this Form 8-K:
| Exhibit No. | Description of Exhibit | |||||||
| 99.1 | Press Release, dated May 7, 2026, reporting the Company's financial results for the first quarter ended March 31, 2026. | |||||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: May 7, 2026
Claritev Corporation
By: /s/ Douglas M. Garis
Name: Douglas M. Garis
Title: Executive Vice President and Chief Financial Officer
E
Claritev Corporation Reports First Quarter 2026 Results
–Q1 2026 Revenues of $244.7 million grew 5.8% compared to Q1 2025
–Net Loss of $73.6 million
–Adjusted EBITDA of $146.9 million increased 3.4% compared to Q1 2025
(Adjusted EBITDA Margin of 60.0% versus 61.4% in Q1 2025)
McLean, VA — May 7, 2026 — Claritev Corporation (“Claritev” or the “Company”) (NYSE: CTEV), a technology, data and insights company focused on making healthcare more affordable, transparent and fair for all, today reported financial results for the first quarter ended March 31, 2026.
“Claritev kicked off 2026 the same way we closed 2025, outperforming on the top and bottom lines with focused execution in sales, operations and financials. We are operating with confidence — confidence in our team, confidence in our growth, and confidence in the durability of the foundation we are building,” said Travis Dalton, Chairman, CEO and President of Claritev.
Mr. Dalton added, “At our Investor Day in March, we laid out the path and key drivers behind Vision 2030. Simply put, we are matching our horizontal products with an expanding vertical market strategy that serves the entire healthcare lifecycle. It’s working and our first quarter performance underscores how the combination of that vision and our competitive position is leading to greater success and faster growth. We will continue to press that competitive advantage — one that is grounded in our long-standing trusted client relationships, scaled data ecosystem, deep domain expertise, and increasingly, our differentiated application of AI to accelerate progress.”
Doug Garis, Claritev Chief Financial Officer, commented, “Our first quarter results demonstrate the consistency and quality of Claritev’s core, and the growth opportunities created by our expansion into new markets and verticals. Our revenue and Adjusted EBITDA outperformance were driven by that consistency in our business, and the favorable market trends that helped drive our return to top line growth in 2025. Notably, the strong Q1 bookings performance comes from our core offerings and markets, alongside significant wins in the provider and government verticals, demonstrating the diversification of Claritev’s revenue streams and the foundation we are building to deliver sustainable, long term growth.”
Business and Financial Highlights
•Revenues of $244.7 million for Q1 2026, an increase of 5.8%, compared to revenues of $231.3 million for Q1 2025.
•Net loss of $73.6 million for Q1 2026, compared to net loss of $71.3 million for Q1 2025.
•Adjusted EBITDA of $146.9 million for Q1 2026, an increase of 3.4%, compared to Adjusted EBITDA of $142.1 million for Q1 2025.
•Net cash used in operating activities of $45.8 million for Q1 2026, compared to net cash used in operating activities of $30.1 million for Q1 2025.
•Free Cash Flow of $(92.5) million for Q1 2026, compared to Free Cash Flow of $(68.9) million for Q1 2025.
•The Company ended Q1 2026 with $21.3 million of unrestricted cash and cash equivalents on the balance sheet.
2026 Financial Guidance1
The Company is updating its full-year 2026 guidance, detailed in the table below:
| Financial Metric | Prior FY 2026 Guidance | Updated FY 2026 Guidance | ||||||||||||
| (as of 2/23/2026) | (as of 5/7/2026) | |||||||||||||
| Revenues | $980 million to $1 billion | $985 million to $1 billion | ||||||||||||
Adjusted EBITDA1 | $605 million to $615 million | $605 million to $615 million | ||||||||||||
| Capital expenditures | $160 million to $170 million | $160 million to $170 million | ||||||||||||
| Effective tax rate | 24% to 28% | 24% to 28% | ||||||||||||
| Free Cash Flow | $0 million to $10 million | $0 million to $10 million | ||||||||||||
Conference Call Information
The Company will host a conference call today, Thursday, May 7, 2026 at 8:00 a.m. U.S. Eastern Time (ET) to discuss its financial results. A live webcast of the conference call can be accessed through the Investor Relations section of the Company’s website at investors.claritev.com/events-and-presentations. Participants should join the webcast ten minutes prior to the start of the conference call. The earnings press release and supplemental slide deck will also be available on this section of the Company’s website.
Participants wishing to join the operator assisted call can dial 646-968-2525 and reference Conference ID 2181839.
A replay of the conference call will be available after the call through the webcast archived on the Investor Relations section of the Company’s website.
About Claritev
Claritev is a healthcare technology, data, and insights company focused on delivering affordability, transparency, and quality across the U.S. healthcare system. Led by deeply experienced associates, data scientists, and innovators, Claritev provides technology-enabled solutions fueled by decades of claims expertise. The company leverages advanced analytics and AI to power a robust enterprise platform that delivers clear, actionable insights to support affordability, price transparency, and optimized network and benefits design. By supporting key stakeholders — including payers, employers, patients, providers, and third parties — Claritev is dedicated to making healthcare more accessible and affordable for all. Claritev serves more than 750 healthcare payers, over 100,000 employers, 60 million consumers, and 1.4 million contracted providers. For more information, visit claritev.com.
1 We have not reconciled the forward-looking Adjusted EBITDA guidance included above to the most directly comparable GAAP (as defined below) measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are incentive compensation (including stock-based compensation), transaction-related expenses, and certain fair value measurements, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
Investor Relations Contacts
Todd Friedman
VP, Investor Relations
Claritev
investor@claritev.com
Media Relations Contact
Jen O’Connor
VP, Brand Marketing
Claritev
press@claritev.com
Forward Looking Statements
This press release contains forward-looking statements regarding our opinions, beliefs, projections, business plans and expectations. These forward-looking statements may differ materially from actual results due to a variety of factors and can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “seeks,” “projects,” “forecasts,” “intends,” “plans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. These statements include all matters that are not historical facts. They appear in a number of places throughout this press release, including, but not limited to, statements relating to our ability to deliver anticipated results; our ability to successfully implement our transformation plan; the anticipated growth of our business, including our expansion into new markets; our expectations regarding future revenue streams; our 2026 outlook and guidance; and the long-term prospects of the Company. Such forward-looking statements are based on available current market information and management’s expectations, beliefs and forecasts concerning future events impacting the business. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that these forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These factors include: loss of, or a significant reduction in the work we do for, our clients, particularly our largest clients; the ability to achieve the goals of our strategic plans and recognize the anticipated strategic, operational, growth and efficiency benefits when expected; our ability to enter new lines of business and broaden the scope of our solutions; trends in the U.S. healthcare system, including recent trends of unknown duration of reduced healthcare utilization and increased patient financial responsibility for services; effects of competition; effects of pricing pressure; the inability of our clients to pay for our solutions; changes in our industry and in industry standards and technology; adverse outcomes related to litigation or governmental proceedings; interruptions or security breaches of our information technology systems and other cybersecurity attacks; our ability to maintain the licenses or right of use for the software we use; our ability to protect proprietary information, processes and applications; our inability to expand our network infrastructure; inability to preserve or increase our existing market share or the size of our preferred provider organization networks; decreases in discounts from providers; pressure to limit access to preferred provider networks; changes in our regulatory environment, including healthcare law and regulations; the expansion of privacy and security laws; heightened enforcement activity by government agencies; our ability to obtain additional financing or capital to meet our objectives; our ability to pay interest and principal on our notes and other indebtedness; lowering or withdrawal of our credit ratings; changes in accounting principles or the incurrence of impairment charges; the possibility that we may be adversely affected by other political, economic, business, and/or competitive factors; other factors disclosed in our Securities and Exchange Commission (“SEC”) filings; and other factors beyond our control.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on our business. There can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and other documents filed or to be filed with the SEC by us. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.
We undertake no obligation to update these statements as a result of new information or future events or otherwise, except as may be required under applicable securities laws.
Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), this press release contains certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA, free cash flow, unlevered free cash flow and adjusted cash conversion ratio. A non-GAAP financial measure is generally defined as a numerical measure of a company’s financial or operating performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP.
EBITDA, Adjusted EBITDA, free cash flow, unlevered free cash flow and adjusted cash conversion ratio are supplemental measures of Claritev’s performance that are not required by or presented in accordance with GAAP. These measures are not measurements of our financial or operating performance under GAAP, have limitations as analytical tools and should not be considered in isolation or as an alternative to net (loss) income, cash flows or any other measures of performance prepared in accordance with GAAP.
EBITDA represents net (loss) income before interest expense, interest income, income tax provision (benefit), depreciation, amortization of intangible assets, and non-income taxes. Adjusted EBITDA is EBITDA as further adjusted by certain items as described in the table below.
In addition, in evaluating EBITDA and Adjusted EBITDA you should be aware that in the future, we may incur expenses similar to the adjustments in the presentation of EBITDA and Adjusted EBITDA. The presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. The calculations of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Based on our industry and debt financing experience, we believe that EBITDA and Adjusted EBITDA are customarily used by investors, analysts and other interested parties to provide useful information regarding a company’s ability to service and/or incur indebtedness.
We also believe that Adjusted EBITDA is useful to investors and analysts in assessing our operating performance during the periods these charges were incurred on a consistent basis with the periods during which these charges were not incurred. Both EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider either in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of the limitations are:
•EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;
•EBITDA and Adjusted EBITDA do not reflect interest expense, or the cash requirements necessary to service interest or principal payments on our debt;
•EBITDA and Adjusted EBITDA do not reflect our tax expense or the cash requirements to pay our taxes; and
•Although depreciation and amortization are non-cash charges, the tangible assets being depreciated will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements.
Claritev’s presentation of Adjusted EBITDA should not be construed as an inference that our future results and financial position will be unaffected by unusual items.
Free cash flow is defined as net cash provided by operating activities less capital expenditures, all as disclosed in the Consolidated Statements of Cash Flows. Unlevered free cash flow is defined as net cash provided by operating activities less capital expenditures, plus cash interest paid, all as disclosed in the condensed consolidated statements of cash flows. Free cash flow and unlevered free cash Flow are measures of our operational performance used by management to evaluate our business after purchases of property and equipment and, in the case of unlevered free cash flow, prior to the impact of our capital structure. Free cash flow and unlevered free cash Flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, Claritev’s definitions of free cash flow and unlevered free cash flow are limited, in that they do not represent residual cash flows available for discretionary expenditures, due to the fact that the measures do not deduct the payments required for debt service, in the case of unlevered free cash flow, and other contractual obligations or payments made for business acquisitions.
Adjusted cash conversion ratio is defined as unlevered free cash flow divided by Adjusted EBITDA. Claritev believes that the presentation of the adjusted cash conversion ratio provides useful information to investors because it is an financial performance measure that shows how much of its Adjusted EBITDA Claritev converts into unlevered free cash flow.
CLARITEV CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share data)
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 21,327 | $ | 16,814 | |||||||
| Restricted cash | 13,401 | 11,527 | |||||||||
| Trade accounts receivable, net | 140,917 | 127,615 | |||||||||
| Prepaid expenses | 35,349 | 31,992 | |||||||||
| Prepaid taxes | 4,101 | 11,526 | |||||||||
| Unbilled Independent Dispute Resolution fees, net | 13,304 | 10,563 | |||||||||
| Other current assets, net | 13,868 | 14,330 | |||||||||
| Total current assets | 242,267 | 224,367 | |||||||||
| Property and equipment, net | 343,599 | 326,326 | |||||||||
| Operating lease right-of-use assets | 13,549 | 13,966 | |||||||||
| Goodwill | 2,405,853 | 2,405,853 | |||||||||
| Other intangibles, net | 1,798,696 | 1,884,604 | |||||||||
| Other assets, net | 35,335 | 33,342 | |||||||||
| Total assets | $ | 4,839,299 | $ | 4,888,458 | |||||||
| Liabilities and Shareholders’ Deficit | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 59,176 | $ | 60,463 | |||||||
| Accrued interest | 52,277 | 100,009 | |||||||||
| Operating lease obligation, short-term | 4,907 | 4,705 | |||||||||
| Current portion of long-term debt | 14,690 | 14,690 | |||||||||
| Accrued compensation | 19,672 | 45,238 | |||||||||
| Other accrued expenses | 38,842 | 36,253 | |||||||||
| Total current liabilities | 189,564 | 261,358 | |||||||||
| Long-term debt | 4,574,253 | 4,560,440 | |||||||||
| 2025 Revolving Credit Facility | 125,000 | 20,000 | |||||||||
| Operating lease obligation, long-term | 15,060 | 16,236 | |||||||||
| Deferred income taxes | 169,836 | 197,599 | |||||||||
| Total liabilities | 5,073,713 | 5,055,633 | |||||||||
| Commitments and contingencies (Note 7) | |||||||||||
| Shareholders’ deficit: | |||||||||||
| Shareholder interests | |||||||||||
| Preferred stock, $0.0001 par value — 10,000,000 shares authorized; no shares issued | — | — | |||||||||
| Class A Common stock, $0.0001 par value — 1,500,000,000 shares authorized; 17,743,149 and 17,295,582 issued; 17,000,290 and 16,552,723 shares outstanding as of March 31, 2026 and December 31, 2025, respectively | 2 | 2 | |||||||||
| Additional paid-in capital | 2,402,923 | 2,398,423 | |||||||||
| Accumulated deficit | (2,502,980) | (2,429,420) | |||||||||
| Accumulated other comprehensive loss | (2,351) | (4,172) | |||||||||
| Treasury stock - 742,859 shares as of March 31, 2026 and December 31, 2025 | (138,733) | (138,733) | |||||||||
| Total shareholders’ (deficit)/equity attributable to Claritev Corporation | (241,139) | (173,900) | |||||||||
| Non-controlling interests | 6,725 | 6,725 | |||||||||
| Total shareholders' deficit | (234,414) | (167,175) | |||||||||
| Total liabilities and shareholders’ deficit | $ | 4,839,299 | $ | 4,888,458 | |||||||
CLARITEV CORPORATION
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
(in thousands, except share and per share data)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues | $ | 244,678 | $ | 231,330 | |||||||
| Costs of services (exclusive of depreciation and amortization of intangible assets shown below) | 69,080 | 60,436 | |||||||||
| General and administrative expenses | 57,830 | 46,968 | |||||||||
| Depreciation | 25,183 | 24,546 | |||||||||
| Amortization of intangible assets | 85,908 | 85,971 | |||||||||
| Loss on disposal of leases | 38 | 3,317 | |||||||||
| Loss on sale of assets | — | 350 | |||||||||
| Total expenses | 238,039 | 221,588 | |||||||||
| Operating income | 6,639 | 9,742 | |||||||||
| Interest expense | 99,542 | 91,636 | |||||||||
| Interest income | (182) | (488) | |||||||||
| Transaction costs related to refinancing transaction | — | 7,792 | |||||||||
| Loss on extinguishment of debt | — | 670 | |||||||||
| Net loss before taxes | (92,721) | (89,868) | |||||||||
| Benefit for income taxes | (19,161) | (18,549) | |||||||||
| Net loss | (73,560) | (71,319) | |||||||||
| Less: net loss attributable to non-controlling interests | — | — | |||||||||
| Net loss attributable to Claritev Corporation | $ | (73,560) | $ | (71,319) | |||||||
| Weighted average shares outstanding – Basic and Diluted | 16,692,340 | 16,273,439 | |||||||||
| Net loss per share – Basic and Diluted | $ | (4.41) | $ | (4.38) | |||||||
| Net loss attributable to Claritev Corporation | (73,560) | (71,319) | |||||||||
| Other comprehensive income (loss) | |||||||||||
| Change in unrealized gain (loss) on interest rate swaps, net of tax | 1,821 | (1,624) | |||||||||
| Comprehensive loss | $ | (71,739) | $ | (72,943) | |||||||
CLARITEV CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
(in thousands)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating activities: | |||||||||||
| Net loss | $ | (73,560) | $ | (71,319) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Depreciation | 25,183 | 24,546 | |||||||||
| Amortization of intangible assets | 85,908 | 85,971 | |||||||||
| Amortization of the right-of-use asset | 556 | 1,022 | |||||||||
| Stock-based compensation | 6,895 | 6,329 | |||||||||
| Deferred income taxes | (28,337) | (52,820) | |||||||||
| Amortization of debt discounts and issuance costs | 1,554 | 712 | |||||||||
| Non-cash interest expense | 15,952 | 10,907 | |||||||||
| Loss on extinguishment of debt | — | 670 | |||||||||
| Loss on disposal of property and equipment | — | 350 | |||||||||
| Loss on disposal of leases | 38 | 3,317 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Trade accounts receivable, net | (16,043) | (3,708) | |||||||||
| Prepaid taxes | 7,425 | 6,747 | |||||||||
| Prepaid expenses, other current and non-current assets | 600 | (4,912) | |||||||||
| Accounts payable | (1,287) | (51,821) | |||||||||
| Other accrued expenses, accrued interest and accrued liabilities | (69,512) | 15,074 | |||||||||
| Operating leases, net | (1,151) | (1,121) | |||||||||
| Net cash used in operating activities | (45,779) | (30,056) | |||||||||
| Investing activities: | |||||||||||
| Purchases of property and equipment | (46,767) | (38,866) | |||||||||
| Net cash used in investing activities | (46,767) | (38,866) | |||||||||
| Financing activities: | |||||||||||
| Repayments of Term Loan | (3,672) | — | |||||||||
| Taxes paid on settlement of vested share awards | (2,859) | (2,884) | |||||||||
| Borrowings on 2025 Revolving Credit Facility | 145,000 | 130,000 | |||||||||
| Repayment of 2025 Revolving Credit Facility | (40,000) | (50,000) | |||||||||
| Payment of debt issuance costs | — | (4,267) | |||||||||
| Proceeds from issuance of common stock under ESPP | 464 | 301 | |||||||||
| Net cash provided by financing activities | 98,933 | 73,150 | |||||||||
| Net increase in cash, cash equivalents and restricted cash | 6,387 | 4,228 | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 28,341 | 29,672 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 34,728 | $ | 33,900 | |||||||
| Cash and cash equivalents | $ | 21,327 | $ | 23,129 | |||||||
| Restricted cash | 13,401 | 10,771 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 34,728 | $ | 33,900 | |||||||
| Noncash investing and financing activities: | |||||||||||
| Purchases of property and equipment not yet paid | $ | 17,046 | $ | 9,694 | |||||||
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | — | $ | (10,411) | |||||||
| Supplemental disclosure of cash flow information: | |||||||||||
| Cash paid during the period for: | |||||||||||
| Interest | $ | (129,311) | $ | (82,003) | |||||||
| Income taxes, net of refunds | $ | (1,636) | $ | (2,532) | |||||||
CLARITEV CORPORATION
Calculation of EBITDA and Adjusted EBITDA
(in thousands)
(in thousands)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net loss | $ | (73,560) | $ | (71,319) | |||||||
| Adjustments: | |||||||||||
| Interest expense | 99,542 | 91,636 | |||||||||
| Interest income | (182) | (488) | |||||||||
| Benefit for income tax | (19,161) | (18,549) | |||||||||
| Depreciation | 25,183 | 24,546 | |||||||||
| Amortization of intangible assets | 85,908 | 85,971 | |||||||||
| Non-income taxes | — | 553 | |||||||||
| EBITDA | $ | 117,730 | $ | 112,350 | |||||||
| Adjustments: | |||||||||||
Other expenses, net(1) | 11,528 | 2,764 | |||||||||
| Loss on sale of assets, including right-of-use assets | 38 | 3,667 | |||||||||
Transformation costs(2) | 11,790 | 7,728 | |||||||||
| Integration expenses | — | 380 | |||||||||
| Transaction costs related to refinancing transaction | — | 7,792 | |||||||||
| Loss on extinguishment of debt | — | 670 | |||||||||
| Stock-based compensation, including cRSUs | 5,828 | 6,718 | |||||||||
| Adjusted EBITDA | $ | 146,914 | $ | 142,069 | |||||||
(1) "Other expenses, net" represents impairment of other assets, non-integration related severance costs, legal expenses associated with the antitrust matters, start-up costs related to international expansion and miscellaneous non-recurring expenses.
(2) "Transformation costs" represent costs directly associated with our multi-year transformation program called Vision 2030 which includes internal personnel costs for employees that have been either hired or redeployed and are fully dedicated to transformation activities, as well as other non-recurring and duplicative costs. At such time that internal personnel are redeployed to non-transformation activities, they will no longer be included as an adjustment herein.
CLARITEV CORPORATION
Calculation of Unlevered Free Cash Flow and Adjusted Cash Conversion Ratio
(in thousands)
(in thousands)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash used in operating activities | $ | (45,779) | $ | (30,056) | |||||||
| Purchases of property and equipment | (46,767) | (38,866) | |||||||||
| Free cash flow | (92,546) | (68,922) | |||||||||
| Interest paid | 129,311 | 82,003 | |||||||||
| Unlevered free cash flow | $ | 36,765 | $ | 13,081 | |||||||
| Adjusted EBITDA | $ | 146,914 | $ | 142,069 | |||||||
| Adjusted cash conversion ratio | 25 | % | 9 | % | |||||||
| Net cash used in investing activities | $ | (46,767) | $ | (38,866) | |||||||
| Net cash provided by financing activities | $ | 98,933 | $ | 73,150 | |||||||
FAQ
How did Claritev (CTEV) perform financially in Q1 2026?
Claritev delivered higher revenue but remained unprofitable in Q1 2026. Revenue rose 5.8% to $244.7 million, and Adjusted EBITDA increased 3.4% to $146.9 million. However, the company reported a net loss of $73.6 million and negative Free Cash Flow of $92.5 million.
What is Claritev’s updated full-year 2026 guidance?
Claritev now expects 2026 revenues of $985 million to $1.0 billion, slightly above the prior $980 million to $1.0 billion range. It reaffirmed Adjusted EBITDA guidance of $605 million to $615 million, capital expenditures of $160 million to $170 million, and Free Cash Flow between $0 and $10 million.
What were Claritev’s profitability and margins in Q1 2026?
Claritev reported a net loss of $73.6 million in Q1 2026, versus a $71.3 million loss a year earlier. Adjusted EBITDA was $146.9 million with a 60.0% margin, down from 61.4% in Q1 2025, indicating modest margin compression despite higher revenue.
What is Claritev’s cash flow profile and leverage as of Q1 2026?
In Q1 2026, Claritev had net cash used in operating activities of $45.8 million and Free Cash Flow of negative $92.5 million. Total liabilities were about $5.07 billion versus total assets of about $4.84 billion, resulting in a shareholders’ deficit on the balance sheet.
How did Claritev’s non-GAAP metrics perform in Q1 2026?
Claritev’s Q1 2026 Adjusted EBITDA rose to $146.9 million from $142.1 million in Q1 2025. Unlevered free cash flow improved to $36.8 million from $13.1 million, and the adjusted cash conversion ratio increased to 25% from 9%, reflecting stronger cash generation before interest.
How much cash did Claritev hold at the end of Q1 2026?
At March 31, 2026, Claritev held $21.3 million of unrestricted cash and cash equivalents and $13.4 million of restricted cash. Total cash, cash equivalents and restricted cash were $34.7 million, up from $33.9 million at the end of the prior-year quarter.