Q1 2026 Claritev Corp Earnings Call

May 7, 2026

Operator: Good morning. Welcome to the Claritev Corporation Q1 2026 Earnings Conference Call. I am France. I'll be the operator assisting you today. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star one on your telephone keypad. If you would like to withdraw your question, simply press star one again. Thank you. I would now like to turn the call over to Todd Friedman, Vice President of Investor Relations. Please go ahead.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press *1 on your telephone keypad.

Speaker #1: If you would like to withdraw your question, simply press *1 again. Thank you. I would now like to turn the call over to Todd Friedman, Vice President of Investor Relations.

Speaker #1: Please go ahead. Thank you, operator. Good morning, everyone, and welcome to Claritab's First Quarter 2026 Earnings Call. Joining me today are Travis Dalton, President and Chief Executive Officer, and Doug Garis, our Chief Financial Officer.

Todd Friedman: Thank you, operator. Good morning, everyone, welcome to Claritev's Q1 2026 Earnings Call. Joining me today are Travis Dalton, President and Chief Executive Officer, and Doug Garis, our Chief Financial Officer. During our call, we will refer to the supplemental slide deck that's available in the investors portion of our website, along with the Q1 2026 earnings press release issued earlier this morning. Our remarks and responses to questions today include forward-looking statements. These forward-looking statements represent management's beliefs and expectations only as of the date of this call. Actual results may differ materially from these forward-looking statements due to a number of risks. A summary of these risks can be found on the second page of the supplemental slide deck and a more complete description in our annual report on Form 10-K and other documents we file with the SEC.

Speaker #1: During our call, we will refer to the supplemental slide deck that's available in the Investors portion of our website, along with the First Quarter 2026 Earnings Press Release issued earlier this morning.

Speaker #1: Our remarks and responses to questions today include further from statements, these forward-looking statements represent management's beliefs and expectations only as of the date of this call.

Todd Friedman: These forward-looking statements represent management's beliefs and expectations only as of the date of this call. Actual results may differ materially from these forward-looking statements due to a number of risks. A summary of these risks can be found on the second page of the supplemental slide deck and a more complete description in our annual report on Form 10-K and other documents we file with the SEC.

Speaker #1: Actual results may differ materially from these forward-looking statements due to a number of risks. A summary of these risks can be found in the second page of the supplemental slide deck, and a more complete description in our annual report on Form 10-K and other documents we file with the SEC.

Speaker #1: We will also be referring to several non-GAAP measures which we believe provide investors with a more complete understanding of Claritab's underlying operating results. An explanation of these non-GAAP measures and reconciliations to their comparable GAAP measures can be found in the Earnings Press Release and in the supplemental slide deck.

Todd Friedman: We will also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of Claritev's underlying operating results. An explanation of these non-GAAP measures and reconciliations to their comparable GAAP measures can be found in the earnings press release and in the supplemental slide deck. With that, I would now like to turn the call over to Travis.

Speaker #1: With that, I would now like to turn the call over to Travis. Good morning, and thank you for joining us. It was great to see so many of you in our Investor Day in March.

Travis Dalton: Good morning, and thank you for joining us. It was great to see so many of you at our Investor Day in March. We appreciate the feedback you provided and look forward to keeping that dialogue going throughout the year. There were a number of themes that we highlighted in New York, but I want to reiterate a few of those that we'll cover on the call today. First and foremost, we're entering this year with confidence. Confidence in our business, in our strategy, and in the durability of the foundation that we built. This was a strong quarter that reflects not just performance, but progress. Second, at the heart of that confidence is our competitive position, one that is grounded in our long-standing client relationships, scaled data ecosystem, deep domain expertise, and increasingly, our differentiated application of AI.

Speaker #1: We appreciate the feedback you provided and look forward to keeping that dialogue going throughout the year. There were a number of themes that we highlighted in New York, but I want to reiterate a few of those that we'll cover on the call today.

Speaker #1: First and foremost, we're entering this year with confidence—confidence in our business, in our strategy, and in the durability of the foundation that we built.

Travis Dalton: Confidence in our business, in our strategy, and in the durability of the foundation that we built. This was a strong quarter that reflects not just performance, but progress. Second, at the heart of that confidence is our competitive position, one that is grounded in our long-standing client relationships, scaled data ecosystem, deep domain expertise, and increasingly, our differentiated application of AI.

Speaker #1: This was a strong quarter that reflects not just performance but progress. Second, at the heart of that confidence is our competitive position. One that is grounded in our longstanding client relationships, scaled data ecosystem, deep domain expertise, and increasingly, our differentiated application of AI.

Speaker #1: In a market where accuracy, trust, and outcomes matter, those advantages are not easily replicated. And third, we've expanded our markets and our offerings to connect all phases of the healthcare lifecycle.

Travis Dalton: In a market where accuracy, trust, and outcomes matter, those advantages are not easily replicated. Third, we've expanded our markets and our offerings to connect all phases of the healthcare life cycle. That expansion has been critical to diversifying our revenue streams, and in doing so, building a foundation for quality earnings driven by sustainable long-term growth. At the heart of that effort is the reinvigorated growth and strengthening of our core, which is most evident in our outstanding Q1 results. We believe strongly that Claritev's growth originates from those core offerings and gives us the foundation and time to execute against our growth and expansion initiatives. I'm going to touch on each of these themes in my remarks and explain why they are driving record bookings, organic growth, and expanding market presence. First, I'll touch on the financials and results.

Speaker #1: That expansion has been critical to diversifying our revenue streams and, in doing so, building a foundation for quality earnings driven by sustainable, long-term growth.

Speaker #1: At the heart of that effort is the reinvigorated growth and strengthening of our core. Which is most evident in our outstanding Q1 results. We believe strongly that Claritab's growth originates from those core offerings, and gives us the foundation and time to execute against our growth and expansion initiatives.

Travis Dalton: At the heart of that effort is the reinvigorated growth and strengthening of our core, which is most evident in our outstanding Q1 results. We believe strongly that Claritev's growth originates from those core offerings and gives us the foundation and time to execute against our growth and expansion initiatives. I'm going to touch on each of these themes in my remarks and explain why they are driving record bookings, organic growth, and expanding market presence. First, I'll touch on the financials and results.

Speaker #1: I'm going to touch on each of these themes in my remarks and explain why they are driving record bookings, organic growth, and expanding market presence.

Speaker #1: First, I'll touch on the financials and results. This marks another quarter of consistent growth. With both revenue and EBITDA ahead of our expectations. Demonstrating that our strategy is not only sound, but executable with focus.

Travis Dalton: This marks another quarter of consistent growth, with both revenue and EBITDA ahead of our expectations, demonstrating that our strategy is not only sound, but executable with focus. Our growth team had a strong start to the year, closing more than $40 million in annual contract value bookings in Q1, showing diversity and momentum across our portfolio. Doug will touch on the ACV later, but we saw strength across the portfolio with wins in our core, particularly in our NSA business, with providers and in the public sector. Importantly, our pipeline continues to grow and our close rates have remained strong, giving me great confidence in our $80 to 100 million ACV sales target for this year, which will represent a 20% to 50% increase over last year's sales results.

Speaker #1: Our growth team had a strong start to the year, closing more than $40 million in annual contract value bookings in Q1, and showing diversity and momentum across our portfolio.

Speaker #1: Doug will touch on the ACV later, but we saw strength across the portfolio with wins in our core, particularly in our NSA business, with providers and in the public sector.

Travis Dalton: Doug will touch on the ACV later, but we saw strength across the portfolio with wins in our core, particularly in our NSA business, with providers and in the public sector. Importantly, our pipeline continues to grow and our close rates have remained strong, giving me great confidence in our $80 to 100 million ACV sales target for this year, which will represent a 20% to 50% increase over last year's sales results.

Speaker #1: Importantly, our pipeline continues to grow, and our close rates have remained strong, giving me great confidence in our 80 to 100 million ACV sales target for this year.

Speaker #1: Which would represent a 20 to 50 percent increase over last year's sales results. At our Investor Day in March, we announced that we had signed an agreement with GDIT to provide a custom network for the World Trade Center Health Program.

Travis Dalton: At our Investor Day in March, we announced that we had signed an agreement with GDIT to provide a custom network for the World Trade Center Health Program. This is an exciting moment for Claritev as it represents two important evolutions in the business. One, it is leveraging one of our core solutions to serve a new market, the public sector. We see a number of opportunities in this vertical and hope to share more good news as the year progresses. Two, it demonstrates our capacity to create new partner relationships with a shared goal of making healthcare more affordable and accessible to those who need it the most. Another bit of news we teased at Investor Day was our signing of a top five health system, one that operates more than 700 total facilities, including hospitals, ambulatory surgery centers, and outpatient centers, and psych care.

Speaker #1: This is an exciting moment for Claritab as it represents two important evolutions in the business. One, it is leveraging one of our core solutions to serve a new market, the public sector.

Speaker #1: We see a number of opportunities in this vertical and hope to share more good news as the year progresses. And two, it demonstrates our capacity to create new partner relationships with a shared goal of making healthcare more affordable and accessible to those who need it the most.

Travis Dalton: Two, it demonstrates our capacity to create new partner relationships with a shared goal of making healthcare more affordable and accessible to those who need it the most. Another bit of news we teased at Investor Day was our signing of a top five health system, one that operates more than 700 total facilities, including hospitals, ambulatory surgery centers, and outpatient centers, and psych care.

Speaker #1: Another bit of news we teased on Investor Day was our signing of a top-five health system. One that operates more than 700 total facilities.

Speaker #1: Including hospitals, ambulatory surgery centers, and outpatient centers and sites of care. This is an exciting addition for Claritab that fortifies our position in our provider vertical.

Travis Dalton: This is an exciting addition for Claritev that fortifies our position in our provider vertical. We look forward to sharing more about this exciting relationship in the future. I'd note that this relationship came about directly as a result of our acquisition of OPCG in Q4, which is the cornerstone of our newly launched services offering. Next, let me discuss our strong position in the market, bolstered by industry trends moving in our favor. There's a clear focus on driving affordability across the healthcare ecosystem. We know from our experience that the best way to achieve that objective is through transparency, where we have been a leader for many years with the long-tenured client relationships and results to back it up. We're seeing a clear industry shift. Platform consolidation is accelerating, and clients are moving toward fewer, more integrated partners with scaled data and end-to-end capability.

Speaker #1: We look forward to sharing more about this exciting relationship in the future. But I'd note that this relationship came about directly as a result of our acquisition of OPCG in the fourth quarter.

Speaker #1: Which is the cornerstone of our newly launched services offering. Next, let me discuss our strong position in the market, bolstered by industry trends moving in our favor.

Speaker #1: There's a clear focus on driving affordability across the healthcare ecosystem. We know from our experience that the best way to achieve that objective is through transparency.

Travis Dalton: There's a clear focus on driving affordability across the healthcare ecosystem. We know from our experience that the best way to achieve that objective is through transparency, where we have been a leader for many years with the long-tenured client relationships and results to back it up. We're seeing a clear industry shift. Platform consolidation is accelerating, and clients are moving toward fewer, more integrated partners with scaled data and end-to-end capability.

Speaker #1: Where we have been a leader for many years with a long-tenured client relationship and results to back it up. We're seeing a clear industry shift.

Speaker #1: Platform consolidation is accelerating and clients are moving toward fewer more integrated partners with scaled data and end-to-end capability. This trend plays directly to our strengths.

Travis Dalton: This trend plays directly to our strengths. Our unified data architecture, driven by our digital transformation and network strategy, position us well to lead in this environment. AI is another powerful tailwind, but it's not a rising tide that lifts all boats equally. In regulated, high-stakes industries like healthcare, AI disproportionately benefits incumbents with trusted data, compliance expertise, and established relationships. That's where we operate, and that's where we deliver value. There's also a tremendous benefit to how we run our own business. Last quarter, when we reviewed the code output of the engineering teams that are fully leveraging AI coding tools, we have found that we are nearly doubling coding capacity of those teams without any increase in headcount. We're building a foundation for scalable, profitable, sustainable growth.

Speaker #1: Our unified data architecture, driven by our digital transformation, and network strategy position us well to lead. In this environment. AI is another powerful tailwind.

Speaker #1: But it's not a rising tide that lifts all boats equally. In regulated, high-stakes industries like healthcare, AI disproportionately benefits incumbents with trusted data, compliance expertise, and established relationships.

Speaker #1: That's where we operate and that's where we deliver value. It is also a tremendous benefit to how we run our own business. Last quarter, when we reviewed the code output of the engineering teams that are fully leveraging AI coding tools, we have found that we are nearly doubling coding capacity of those teams without any increase in headcount.

Travis Dalton: That's where we operate, and that's where we deliver value. There's also a tremendous benefit to how we run our own business. Last quarter, when we reviewed the code output of the engineering teams that are fully leveraging AI coding tools, we have found that we are nearly doubling coding capacity of those teams without any increase in headcount. We're building a foundation for scalable, profitable, sustainable growth.

Speaker #1: We're building a foundation for scalable, profitable, sustainable growth. The operating leverage we are seeing from the widespread adoption of AI tools is an important lever in achieving our long-term objectives.

Travis Dalton: The operating leverage we are seeing from the widespread adoption of AI tools is an important lever in achieving our long-term objectives. If you think about our formula for success, it's straightforward. Data rights combined with a scalable workflow and vetted platform, anchored in trust and amplified by AI. Let me give you a few concrete examples. Within our Claims Intelligence solutions, we get tens of thousands of claims every month that don't have a provider ID. When that happens, the claim can't be processed through the standard workflow and becomes a highly manual process. Our team built a provider contact agent that achieves research-level accuracy, appends the provider contact ID, reduces process time by more than half, and saves more than 2,000 hours of processing time at a fraction of the cost. Another area that gets a lot of attention is the IDR process.

Speaker #1: If you think about our formula for success, it's straightforward. Data rights combined with a scalable workflow embedded platform, anchored in trust and amplified by AI.

Speaker #1: Let me give you a few concrete examples. Within our claims intelligence solutions, we get tens of thousands of claims every month that don't have a provider ID.

Speaker #1: When that happens, the claim can't be processed through the standard workflow and becomes a highly manual process. Our team built a provider contact agent that achieves research-level accuracy appends the provider contact ID, reduces process time by more than half, and saves more than $2,000 hours of processing time at a fraction of the cost.

Travis Dalton: When that happens, the claim can't be processed through the standard workflow and becomes a highly manual process. Our team built a provider contact agent that achieves research-level accuracy, appends the provider contact ID, reduces process time by more than half, and saves more than 2,000 hours of processing time at a fraction of the cost. Another area that gets a lot of attention is the IDR process.

Speaker #1: Another area that gets a lot of attention is the IDR process. The high volume workload-heavy process with which you are familiar. Using AI, we have automated the invoice extraction and reconciliation process for our accounts, payable, IDRE workflows.

Travis Dalton: It's a high volume, workload-heavy process with which you are familiar. Using AI, we have automated the invoice extraction and reconciliation process for our accounts payable IDR workflows. We're now handling thousands of invoices each day, automating 100% of the daily processing in less than an hour, achieving nearly 100% accuracy and uptime. For our clients, this is a level of execution that builds trust. For Claritev, it freed up resources to do higher value work while eliminating late fees and accelerating collections. These are just a few examples, with many more projects currently in progress yielding growth potential and savings.

Speaker #1: We're now handling thousands of invoices each day. Automating 100% of the daily processing in less than an hour. Achieving nearly 100% accuracy and uptime.

Speaker #1: For our clients, this is a level of execution that builds trust. For Claritab, it freed up resources to do higher-value work. While eliminating late fees and accelerating collections.

Travis Dalton: For our clients, this is a level of execution that builds trust. For Claritev, it freed up resources to do higher value work while eliminating late fees and accelerating collections. These are just a few examples, with many more projects currently in progress yielding growth potential and savings.

Speaker #1: These are just a few examples. With many more projects currently in progress yielding growth potential and savings. Our investments in technology data architecture and AI are deliberate and disciplined.

Travis Dalton: Our investments in technology, data architecture, and AI are deliberate and disciplined, strengthening our market position and are beginning to generate meaningful, high value, high impact value. We have AI teams working across all our solutions to deliver more value and performance to our clients, and integrating deeply into our own operations, including sales and finance, to build scale and efficiency. Our strategy is working. We're executing with a combination of horizontal capabilities like our network, payment and revenue integrity, data platform and analytics, and deep vertical expertise across key healthcare markets. Our recent wins with the World Trade Center and a top 5 health system demonstrate our direction and allow us to scale efficiently while remaining highly relevant to our core clients. Furthermore, we see a significant opportunity to expand our presence widely within the TPA market.

Speaker #1: Strengthening our market position and are beginning to generate meaningful high-value high-impact value. We have AI teams working across all our solutions. To deliver more value and performance to our clients.

Speaker #1: And integrating deeply into our own operations, including sales and finance to build scale and efficiency. Our strategy is working. We're executing with a combination of horizontal capabilities, like our network, payment and revenue integrity, data platform, and analytics.

Travis Dalton: We're executing with a combination of horizontal capabilities like our network, payment and revenue integrity, data platform and analytics, and deep vertical expertise across key healthcare markets. Our recent wins with the World Trade Center and a top 5 health system demonstrate our direction and allow us to scale efficiently while remaining highly relevant to our core clients. Furthermore, we see a significant opportunity to expand our presence widely within the TPA market.

Speaker #1: And deep vertical expertise across key healthcare markets. Our recent wins with the World Trade Center and a top-five health system demonstrate our direction that allow us to scale efficiently while remaining highly relevant to our core clients.

Speaker #1: Furthermore, we see a significant opportunity to expand our presence widely within the TPA market. This is another strategic client base where our existing solutions can deliver immediate, tangible value to improve the healthcare experience for millions of consumers.

Travis Dalton: This is another strategic client base where our existing solutions can deliver immediate, tangible value to improve the healthcare experience for millions of consumers. To this end, we added a key industry leader late in 2025 to drive our TPA market forward. Douglas Script is a highly regarded industry veteran, joining Claritev after nearly 20 years in the industry, including his most recent role where he was President and COO of a TPA that was focused on using AI throughout the TPA client lifecycle. We're already seeing faster pipeline growth under his leadership and are excited by his energy and vision for this market. Looking ahead, our priorities remain clear. We're focused on driving organic growth, continuing to invest in the business, and scaling our platform to capture the opportunities in front of us. At the same time, we remain committed to deleveraging over time.

Speaker #1: To this end, we added a key industry leader late in 2025 to drive our TPA market forward. Dallas Script is a highly regarded industry veteran joining Claritab after nearly 20 years in the industry including his most recent role where he was president and COO of a TPA that was focused on using AI throughout the TPA client lifecycle.

Speaker #1: We're already seeing faster pipeline growth under his leadership. And are excited by his energy and vision for this market. Looking ahead, our priorities remain clear.

Travis Dalton: We're already seeing faster pipeline growth under his leadership and are excited by his energy and vision for this market. Looking ahead, our priorities remain clear. We're focused on driving organic growth, continuing to invest in the business, and scaling our platform to capture the opportunities in front of us. At the same time, we remain committed to deleveraging over time.

Speaker #1: We're focused on driving organic growth, continuing to invest in the business, and scaling our platform to capture the opportunities in front of us. At the same time, we remain committed to de-leveraging over time.

Speaker #1: I'll repeat what I said at our investor day. We are operating against Vision 2030, not Vision 20 Minutes. Strengthen our core business. Key wins in our expansion areas.

Travis Dalton: I'll repeat what I said at our Investor Day. We are operating against Vision 2030, not vision 20 minutes. Strength in our core business, key wins in our expansion areas, strategic operating investments, and world-class team are the foundation for driving Claritev along the path we outlined at Investor Day for our short, mid, and long-term targets. This is a business built to last, built to grow, and built to deliver the long-term cash flow and deleveraging that will ultimately drive major shareholder value. With that, I'll turn it over to Doug to walk through the financials in more detail.

Speaker #1: Strategic operating investments. And world-class team of the foundation for driving Claritab along the path we outlined in the investor day toward our short, mid, and long-term targets.

Speaker #1: This is a business built to last, built to grow, and built to deliver the long-term cash flow and de-leveraging that will ultimately drive major shareholder value.

Speaker #1: With that, I'll turn it over to Doug to walk through the financials in more detail.

Speaker #2: Great. Thank you, Travis, and good morning, everyone. It was great to see many of you at the investor day in New York. The event we held in March at the NYSE was our first full investor day in nearly two years, and it was a great opportunity for everyone to hear from our talented leadership team some of our key partners and, importantly, some of our best clients.

Doug Garis: Great. Thank you, Travis, and good morning, everyone. It was great to see many of you at the Investor Day in New York. The event we held in March at the NYSE was our first full Investor Day in nearly 2 years, and it was a great opportunity for everyone to hear from our talented leadership team, some of our key partners, and importantly, some of our best clients. Our story is getting simpler, sharper, and is starting to resonate in the public markets. At the event, we spoke about the diversification of our business that is driving our momentum. We also tethered our presentation to the healthcare lifecycle and how our comprehensive suite of solutions play an important role in helping us deliver affordability and transparency in healthcare, all the way from benefit plan design to a claims payment.

Speaker #2: Our story is getting simpler, sharper, and is starting to resonate in the public markets. At the event, we spoke about the diversification of our business that is driving our momentum.

Doug Garis: At the event, we spoke about the diversification of our business that is driving our momentum. We also tethered our presentation to the healthcare lifecycle and how our comprehensive suite of solutions play an important role in helping us deliver affordability and transparency in healthcare, all the way from benefit plan design to a claims payment.

Speaker #2: We also tethered our presentation to the healthcare lifecycle and how our comprehensive suite of solutions play an important role in helping us deliver affordability and transparency in healthcare.

Speaker #2: All the way from benefit plan design to a claims payment. We strongly feel that we have one of the most unique and impactful sets of assets across the healthcare technology ecosystem and we're excited to share our progress because our first quarter results were yet another reason to believe that our strategy is working.

Doug Garis: We strongly feel that we have one of the most unique and impactful set of assets across the healthcare technology ecosystem. We're excited to share our progress because our Q1 results were yet another reason to believe that our strategy is working. In Q1, we outperformed our internal expectations for revenue, adjusted EBITDA, and ACV. As Travis indicated in his opening remarks, we are running our business with a multi-year view in mind. We're very pleased with the early pace and progress to begin 2026. Total revenue in the quarter was $244.7 million, up 5.8% year-over-year. Growth in Q1 came from both our core business and expansion areas.

Speaker #2: In Q1, we outperformed our internal expectations for revenue adjusted EBITDA on ACV. As Travis indicated in his opening remarks, we are running our business with a multi-year view in mind and we're very pleased with the early pace and progress to begin 2026.

Doug Garis: As Travis indicated in his opening remarks, we are running our business with a multi-year view in mind. We're very pleased with the early pace and progress to begin 2026. Total revenue in the quarter was $244.7 million, up 5.8% year-over-year. Growth in Q1 came from both our core business and expansion areas.

Speaker #2: Total revenue in the quarter was $244.7 million up 5.8% year over year. Growth in Q1 came from both our core business and expansion areas.

Speaker #2: In particular, we saw solid outperformance in our flagship reference-based pricing solution data eyesight within claims intelligence service line. Which in total is up 8.4% in the quarter.

Doug Garis: In particular, we saw a solid outperformance in our flagship reference-based pricing solution, Data iSight, within Claims Intelligence service line, which in total is up 8.4% in the quarter. Additionally, our Network and Payment Revenue Integrity service lines performed at or slightly above internal expectations in the quarter. Our growth in Q1 was strong, and keep in mind, we had about $2 million of one-time revenue benefit in our P&C business last year, which falls under the Network service line. Adjusted EBITDA was $146.9 million for the quarter, up 3.4% year over year at a 60% margin.

Speaker #2: Additionally, our network and payment revenue integrity service lines performed at or slightly above internal expectations in the quarter. Our growth in Q1 was strong, and keep in mind we had about 2 million of one-time revenue benefit in our P&C business last year, which falls under the network service line.

Speaker #2: Adjusted EBITDA was $146.9 million for the quarter, up 3.4% year over year at a 60% margin. We generated $36.8 million of unlevered free cash flow, up 181% or $23.7 million, and had a use of $92.5 million of free cash flow, lower by $23.6 million in the quarter.

Doug Garis: We generated $36.8 million of unlevered free cash flow, up 181%, or $23.7 million, and had a use of $92.5 million of free cash flow, lower by $23.6 million in the quarter. Recall since the debt refinancing transaction concluded in January of last year, we expect Q1 and Q3 to be cash consumption quarters, and Q2 and Q4 to be cash generating quarters in the near to midterm. Q1 notably also included a more fulsome and now fully annualized Q1 cash interest payment schedule from the refinancing last year. Modest working capital increases and normalization of the cash interest payment schedule on our debt largely drove the increase in use in cash in the quarter versus last year.

Speaker #2: Recall since the debt refinancing transaction concluded in January of last year, we expect Q1 and Q3 to be cash consumption quarters and Q2 and Q4 to be cash-generating quarters.

Speaker #2: In the near to mid-term. Q1 notably also included a more fulsome, and now fully annualized, Q1 cash interest payment schedule from the refinancing last year.

Doug Garis: Q1 notably also included a more fulsome and now fully annualized Q1 cash interest payment schedule from the refinancing last year. Modest working capital increases and normalization of the cash interest payment schedule on our debt largely drove the increase in use in cash in the quarter versus last year.

Speaker #2: Modest working capital increases and normalization of the cash interest payment schedule on our debt largely drove the increase in use and cash in the quarter versus last year.

Speaker #2: Our diversification strategy continues to be supported by strong sales momentum, highlighted by another record bookings quarter. We outlined an aggressive bookings growth target of 80 to 100 million in ACV at investor day, representing 20 to 50% growth.

Doug Garis: Our diversification strategy continues to be supported by strong sales momentum, highlighted by another record bookings quarter. We outlined an aggressive bookings growth target of 80 to 100 million in ACV at Investor Day, representing 20% to 50% growth. With $44.1 million of bookings in Q1, we are well on track to achieve this aspiration. Importantly, Q1 bookings reflected the underlying strategy we presented at Investor Day with a balanced mix of expansion with existing clients and new client acquisition. Cross-sell and up-sell activity accounted for 73% of bookings, while 27% came from net new clients. A few additional highlights on Q1 bookings performance.

Speaker #2: With 44.1 million of bookings in Q1, we are well on track to achieve this aspiration. Importantly, Q1 bookings reflected the underlying strategy we presented at investor day with a balanced mix of expansion, with existing clients and new client acquisition.

Doug Garis: Importantly, Q1 bookings reflected the underlying strategy we presented at Investor Day with a balanced mix of expansion with existing clients and new client acquisition. Cross-sell and up-sell activity accounted for 73% of bookings, while 27% came from net new clients. A few additional highlights on Q1 bookings performance.

Speaker #2: Cross-sell and upsell activity accounted for 73% of bookings, while 27% came from net new clients. A few additional highlights on Q1 bookings performance. Pipeline growth remained strong increasing 70% year over year, alongside continuous improvements in lead qualification and sales execution.

Doug Garis: Pipeline growth remains strong, increasing 70% year over year, alongside continuous improvements in lead qualification and sales execution. We closed 19 deals over $100,000 ACV and 9 deals over $1 million ACV, representing a 350% increase in 7-figure deals this past quarter. Beyond the large deals, virtually all of our key sales metrics were favorable. Our average deal size has more than doubled. Sales cycle times from lead gen to deal close are materially compressing, and our win rates continue to improve. We exited Q1 with a substantial pipeline, providing strong visibility into future bookings. We also noted significant ACV bookings from our new provider and public sector markets.

Speaker #2: We closed 19 deals over 100,000 ACV and 9 deals over a million ACV. Representing a 350% increase in seven-figure deals this past quarter. Beyond the large deals, virtually all of our key sales metrics were favorable.

Speaker #2: Our average deal size is more than doubled, sales cycle times from lead gen to deal close are materially compressing, and our win rates continue to improve.

Doug Garis: Our average deal size has more than doubled. Sales cycle times from lead gen to deal close are materially compressing, and our win rates continue to improve. We exited Q1 with a substantial pipeline, providing strong visibility into future bookings. We also noted significant ACV bookings from our new provider and public sector markets.

Speaker #2: We exited Q1 with a substantial pipeline providing strong visibility into future bookings. We also noted significant ACV bookings from our new provider and public sector markets.

Speaker #2: We believe continued transparency into bookings and ACV-to-revenue conversion metrics will serve as an important leading indicator toward our 2028 top-line revenue target exceeding $1.1 billion, and the broader Vision 2030 financial glide path.

Doug Garis: We believe continued transparency into bookings and ACV-to-revenue conversion metrics will serve as an important leading indicator towards our 2028 top-line revenue target exceeding $1.1 billion and broader Vision 2030 financial glide path. In our supplemental deck you'll find on our website, you'll see the continuing trend in our PSAV revenue, where modest volume declines in Q1 were more than offset by favorable trends in rate mix and augmented by our ability to leverage AI and innovation to de-identify and deliver more savings in the claims we analyze. The key takeaway is that our PSAV business is an increasingly mixed and acuity-driven model where growth is not necessarily driven by more claims. Rather, it's driven by more complex, higher-cost claims, which is where our solutions perform exceedingly well.

Speaker #2: In our supplemental deck, you'll find on our website, you'll see the continuing trend in our PSAVE revenue where modest volume declines in Q1, where more than offset by favorable trends in rate mix and augmented by our ability to leverage AI and innovation to identify and deliver more savings in the claims we analyze.

Speaker #2: The key takeaway is that our PSAVE business is an increasingly mixed and acuity-driven model where growth is not necessarily driven by more claims; rather, it's driven by more complex, higher-cost claims, which is where our solutions perform exceedingly well.

Doug Garis: The key takeaway is that our PSAV business is an increasingly mixed and acuity-driven model where growth is not necessarily driven by more claims. Rather, it's driven by more complex, higher-cost claims, which is where our solutions perform exceedingly well. We will continue to provide additional details on a quarterly basis as we track rate mix and volume changes to our PSAV business.

Speaker #2: We will continue to provide additional details on a quarterly basis as we track rate mix and volume changes to our PSAVE business. Turning to guidance, we are raising the bottom end of our revenue guide range by $5 million, with a new range of $985 million to $1 billion.

Doug Garis: We will continue to provide additional details on a quarterly basis as we track rate mix and volume changes to our PSAV business. Turning to guidance, we are raising the bottom end of our guide range by revenue guide range by $5 million, with a new range of $985 million to $1 billion. Reviewing the current analyst models, we are comfortable with adding Q1 revenue outperformance to your existing models within the revised guidance range. Remember when building your models that the Q2, Q3, and Q4 of 2025 each had approximately $5.4 million of one-time revenue that was recognized at a 100% adjusted EBITDA margin, which will impact the year-over-year comparisons for the balance of the year.

Doug Garis: Turning to guidance, we are raising the bottom end of our guide range by revenue guide range by $5 million, with a new range of $985 million to $1 billion. Reviewing the current analyst models, we are comfortable with adding Q1 revenue outperformance to your existing models within the revised guidance range. Remember when building your models that the Q2, Q3, and Q4 of 2025 each had approximately $5.4 million of one-time revenue that was recognized at a 100% adjusted EBITDA margin, which will impact the year-over-year comparisons for the balance of the year.

Speaker #2: Reviewing the current analyst models, we are comfortable with adding Q1 revenue outperformance to your existing models within the revised guidance range. Remember when building your models that the second, third, and fourth quarters of '25 each had approximately 5.4 million of one-time revenue that was recognized at 100% adjusted EBITDA margin, which will impact the year-over-year comparisons for the balance of year.

Speaker #2: For the quarterly revenue cadence due to the revenue outperformance in Q1 and the $5 million headwind from last year, we expect Q2 revenue to be relatively flat sequentially, largely consistent with current analyst models.

Doug Garis: For the quarterly revenue cadence due to the revenue outperformance in Q1 and the $5 million headwind from last year, we expect Q2 revenue to be relatively flat sequentially, largely consistent with current analyst models. As revenue from new ACV ramps, we expect our growth rate to increase to between 3% to 5% for the H2 of the year, adding up to the full-year guide. We have included a summary in the supplemental deck to help bridge the major revenue drivers this year. It provides more color on how you should model gross revenue retention, expansion, and ACV conversion to get to our full-year revenue guide range. We are maintaining full-year adjusted EBITDA guidance of $605 to 615 million, with margins of 61% to 62%.

Speaker #2: Then as revenue from new ACV ramps, we expect our growth rate to increase to between 3 to 5 percent for the second half of the year, adding up to the full year guide.

Speaker #2: We have included a summary in the supplemental deck to help bridge the major revenue drivers this year. It provides more color on how you should model gross revenue retention, expansion, ACV conversion to get to our full year revenue guide range.

Doug Garis: We have included a summary in the supplemental deck to help bridge the major revenue drivers this year. It provides more color on how you should model gross revenue retention, expansion, and ACV conversion to get to our full-year revenue guide range. We are maintaining full-year adjusted EBITDA guidance of $605 to 615 million, with margins of 61% to 62%.

Speaker #2: We are maintaining full-year adjusted EBITDA guidance of $605 to $615 million, with margins of 61 to 62 percent. When normalizing for the impact of the $18 million in one-time P&C revenue and EBITDA contribution last year, our guidance implies 3.5 to 5 percent adjusted EBITDA dollar growth on a like-for-like basis.

Doug Garis: When normalizing for the impact of the $18 million in one-time P&C revenue and EBITDA contribution last year, our guidance implies 3.5% to 5% adjusted EBITDA growth, dollar growth on a like-to-like basis. As we've previously stated, we're gonna continue to invest while running our business with prudence, balancing positive cash flow and earnings with investments required for future growth. This is especially true as it relates to ramping up sales and operations to support the growth in ACV. New bookings take on average 6 to 12 months to convert to revenue, which means we are investing in 2026 for those new and expansion revenue drivers that largely begin to contributing to our top line in 2027. With our recent sales momentum, I would expect us to continue to seek attractive options to bolster our go-to-market posture.

Speaker #2: As we've previously stated, we're going to continue to invest while running our business with prudence—balancing positive cash flow and earnings with investments required for future growth.

Speaker #2: This is especially true as it relates to ramping up sales and operations to support the growth in ACV. New bookings take on average 6 to 12 months to convert to revenue, which means we are investing in '26 for those new and expansion revenue drivers that are largely begin to contribute to our top line in '27.

Doug Garis: This is especially true as it relates to ramping up sales and operations to support the growth in ACV. New bookings take on average 6 to 12 months to convert to revenue, which means we are investing in 2026 for those new and expansion revenue drivers that largely begin to contributing to our top line in 2027. With our recent sales momentum, I would expect us to continue to seek attractive options to bolster our go-to-market posture.

Speaker #2: With our recent sales momentum, I would expect us to continue to seek attractive options to bolster our go-to-market posture. For example, Travis mentioned our increased focus on the TPA market.

Doug Garis: For example, Travis mentioned our increased focus on the TPA market. We see significant upside in this vertical. We have also demonstrated success with investments in AI and automations, as detailed earlier. The launch of our services business has already helped us gain a foothold in both the provider and public sector markets. We left our 2026 guidance for total capital and free cash flow unchanged, with capital at $160 to 170 million and +free cash flow. In 2026, we expect to deliver operating and unlevered free cash flow growth, with adjusted cash conversion normalizing to pre-2025 levels by the end of the year. All of this aligns with our guiding principles to diversify and accelerate, expanding our solutions, verticals, and channels to drive growth, while also de-levering and de-risking our business to enhance cash flow and operating agility.

Speaker #2: We see significant upside in this vertical. We have also demonstrated success with investments in AI and automations as detailed earlier. Finally, the launch of our services business has already helped us gain a foothold in both the provider and public sector markets.

Speaker #2: We left our '26 guidance for total capital and free cash flow unchanged with capital at $160 to $170 million, and positive free cash flow.

Speaker #2: In '26, we expect to deliver operating and unlevered free cash flow growth with adjusted cash conversion normalizing to pre-2025 levels by the end of the year.

Doug Garis: In 2026, we expect to deliver operating and unlevered free cash flow growth, with adjusted cash conversion normalizing to pre-2025 levels by the end of the year. All of this aligns with our guiding principles to diversify and accelerate, expanding our solutions, verticals, and channels to drive growth, while also de-levering and de-risking our business to enhance cash flow and operating agility. With that, I'll turn it back over to Travis for some final remarks before taking your questions.

Speaker #2: All of this aligns with our guiding principles to diversify and accelerate expanding our solutions, verticals, and channels to drive growth, while also de-levering and de-risking our business to enhance cash flow and operating agility.

Speaker #2: With that, I'll turn it back over to Travis for some final remarks before taking your questions.

Doug Garis: With that, I'll turn it back over to Travis for some final remarks before taking your questions.

Speaker #1: Thanks, Doug. I'll just close with a few closing thoughts and reiterate some of my earlier points. We entered '26 with confidence in our business, the foundation is laid, and our strategy is working.

Travis Dalton: Thanks, Doug. I'll just close with a few closing thoughts and reiterate some of my earlier points. We enter 2026 with confidence in our business. The foundation is laid, our strategy is working. Our priorities for the business remain clear: continued growth and investment in our core, diversification of our revenue base with new market verticals, and de-levering the business over time. We are executing the way up with clarity, alignment, focus, continuing to improve how we operate, grow, and deliver for our clients, which collectively will strengthen the durability of the business over time. Finally, I wanna thank our 3,000 Claritev associates who have made this journey possible for their continued dedication and commitment to our clients. With that, I'll turn the call over to the operator for questions. Thanks.

Speaker #1: Our priorities for the business remain clear. Continued growth and investment in our core, diversification of our revenue base with new market verticals, and de-levering the business over time.

Speaker #1: We are executing the way up with clarity, alignment, focus, continuing to improve how we operate, grow and deliver for our clients, which collectively will strengthen the durability of the business over time.

Travis Dalton: We are executing the way up with clarity, alignment, focus, continuing to improve how we operate, grow, and deliver for our clients, which collectively will strengthen the durability of the business over time. Finally, I wanna thank our 3,000 Claritev associates who have made this journey possible for their continued dedication and commitment to our clients. With that, I'll turn the call over to the operator for questions. Thanks.

Speaker #1: Finally, I want to thank our 3,000 Claritive associates who have made this journey possible. With their continued dedication and commitment to our clients. With that, I'll turn the call over to the operator for questions.

Speaker #3: Thanks.

Speaker #4: Thank you. At this time, I would like to remind everyone in order to ask a question, press star, then the number one on your telephone keypad.

Doug Garis: Thank you. At this time, I would like to remind everyone, in order to ask a question, press star then the 1 on your telephone keypad. We ask to please limit to 1 question and 1 follow-up. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Jason Korzena with Guggenheim. Your line is open.

Operator: Thank you. At this time, I would like to remind everyone, in order to ask a question, press star then the 1 on your telephone keypad. We ask to please limit to 1 question and 1 follow-up. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Jason Korzena with Guggenheim. Your line is open.

Speaker #4: We ask to please limit to one question and one follow-up. We will pause for just a moment to compile the Q&A roster. And your first question comes from the line of Jason Kasorla with Guggenheim.

Speaker #4: Your line is open.

Speaker #5: Great. Thanks, good morning. Maybe just on the margin side, obviously strong top line and EBITDA outperformance in the quarter. You've got investments that you're earmarked as you ramp up your ACV, but maybe can you just help with the puts and takes in terms of margins in the quarter?

Jason Korzena: Great. Thanks. Good morning. Maybe just on the margin side, obviously strong top line and EBITDA outperformance in the quarter. You've got investments that you earmarked as you ramp up your ACV. Maybe can you just help with the puts and takes in terms of margins in the quarter? You know, how those investments balance against the stronger rate and mix falling to the bottom line. Maybe if you've accelerated any of those investments spent early in the year that may have burdened margins near term, perhaps allowing for a better set up in H2 of the year as the ACV contribution ramps. You know, any help there on the margin side would be helpful.

Speaker #5: How those investments balance against the stronger rate and mix falling to the bottom line? Maybe if you accelerated any of those investments, spend early in the year that may have burdened margins near term, but maybe perhaps allowing for a better setup in the second half of the year as the ACV contribution ramps.

Jason Korzena: You know, how those investments balance against the stronger rate and mix falling to the bottom line. Maybe if you've accelerated any of those investments spent early in the year that may have burdened margins near term, perhaps allowing for a better set up in H2 of the year as the ACV contribution ramps. You know, any help there on the margin side would be helpful.

Speaker #5: Any help there on the margin side would be helpful.

Speaker #3: Yeah. Hey, Jason. Thanks for your question. This is Doug, and good morning. Yeah. So I think we indicated in Q4, we had really started investing, and when you look at kind of the run rate and annualized OPEX of the business, it was adjusted EBITDA expenses were approximately $385 million.

Doug Garis: Yeah. Hey, Jason. Thanks for your question. This is Doug, and good morning. Yeah. I think we indicated in Q4, we had really started investing. When you look at kind of the run rate and annualized OpEx of the business, it was adjusted. EBITDA expenses were approximately $385 million. Part of the investment that we started delivering to help deliver the ACV growth, we really started making those investments in Q4. I think we were pleasantly surprised by the continued improvements to mix. I think, with respect to our internal targets, we slightly outperformed both revenue and EBITDA. We actually have a pretty tight guide range on EBITDA this year as we thread the needle.

Speaker #3: So part of the investment that we'd started delivering to help deliver the ACV growth, we really started making those investments in Q4. I think we were pleasantly surprised by the continued improvements to mix.

Doug Garis: Part of the investment that we started delivering to help deliver the ACV growth, we really started making those investments in Q4. I think we were pleasantly surprised by the continued improvements to mix. I think, with respect to our internal targets, we slightly outperformed both revenue and EBITDA. We actually have a pretty tight guide range on EBITDA this year as we thread the needle.

Speaker #3: And I think with respect to our internal targets, we slightly outperformed both revenue and EBITDA. So we actually have a pretty tight guide range on EBITDA this year as we thread the needle.

Speaker #3: I would expect the rate of investment to be rateable quarter to quarter, maybe, say, for a million to two million here or there. And as our ACV starts to really convert to revenue and pick up in the second half of the year, I would expect us to keep stable, if not slightly improving margins in the back half.

Doug Garis: I would expect the rate of investment to be ratable quarter to quarter, maybe say for $1 million to 2 million here or there. As our ACV starts to really convert to revenue and pick up in H2 of the year, I would expect us to keep stable, if not slightly improving margins in H2.

Speaker #5: Got it. Okay. It's helpful. And then maybe as my follow-up, obviously encouraging to see the strong top line growth this quarter, can you discuss what you're seeing in terms of utilization broadly?

Jason Korzena: Got it. Okay. It's helpful. Maybe as my follow-up, obviously encouraging to see the strong top line growth this quarter. Can you discuss what you're seeing in terms of utilization broadly? I know that there's been a weaker respiratory system, some weather events impacted volumes across providers, you know, broadly. I'm not sure if you're seeing that, but maybe if you could just, you know, any color on the utilization environment, and then maybe a little bit deeper on some of the rate and mix benefits that you're seeing currently would be helpful. Thanks.

Speaker #5: I know there's been a weaker respiratory system, some weather events impacted, volumes across providers, broadly. But I'm not sure if you're seeing that, but maybe if you could just any color on the utilization environment and then maybe a little bit deeper on some of the rate and mix benefits that you're seeing currently would be helpful.

Speaker #5: Thanks.

Speaker #3: Yeah. Sure. So I'll take that. So if you look at slide 10 and 11 on our supplemental deck, it gives some color on kind of the rate mix and volume dynamics of our business.

Doug Garis: Yeah, sure. I'll take that. If you look at slide 10 and 11 on our supplemental deck, it gives some color on kind of the rate mix and volume dynamics of our business. I think the continuous trend, and we covered this a little bit at Investor Day, in the outpatient setting for the higher acuity claims. We saw, you know, I would say maybe a little bit less volume than we would have expected, but strong performance on a savings, identified savings, in revenue and savings per claim. It was really some of the mix that I would say has compounded over the last 5 quarters in the outpatient setting. From an inpatient facility perspective, we saw a little bit higher, ER and room and board.

Speaker #3: I think the continuous trend, and we covered this a little bit at Investor Day, and the outpatients setting for the higher acuity claims, we saw, I would say, maybe a little bit less volume than we would have expected.

Doug Garis: We saw, you know, I would say maybe a little bit less volume than we would have expected, but strong performance on a savings, identified savings, in revenue and savings per claim. It was really some of the mix that I would say has compounded over the last 5 quarters in the outpatient setting. From an inpatient facility perspective, we saw a little bit higher, ER and room and board.

Speaker #3: But strong performance on savings identified savings and revenue, and savings per claim. It was really some of the mix that I would say has compounded over the last five quarters.

Speaker #3: And the outpatient setting from an inpatient facility perspective, we saw a little bit higher and room and board. Don't know if that's don't know if that's impacted by weather per se, it was a little bit better than we had internally modeled.

Doug Garis: Don't know if that's, you know, don't know if that's impacted by weather per se. It was a little bit better than we had internally modeled. Really, when you look at kind of the last 5 quarters in slide 11, that continuous pacing and trend of the higher acuity areas, especially in the outpatient setting, is about where 80% of our identified savings and revenue play. We've seen consistent elevated trends in those higher acuity areas, including behavioral health. Nothing in the quarter kind of indicated that there was an aberration or disruption to underlying volumes due to events like weather.

Speaker #3: But really, when you look at kind of the last five quarters and slide 11, that continuous pacing and trend of the higher acuity areas, especially in the outpatient setting, is about where 80% of our identified savings and revenue play.

Speaker #3: We've seen consistent elevated trends in those higher acuity areas, including behavioral health. Nothing in the quarter kind of indicated that there was an aberration or disruption.

Speaker #3: To underline volumes due to events like weather.

Speaker #4: And your next question, comes from the line of Jessica Tesson with Piper Sandler. Your line is open.

Operator 2: Your next question comes from the line of Jessica Tassan with Piper Sandler. Your line is open.

Operator: Your next question comes from the line of Jessica Tassan with Piper Sandler. Your line is open.

Speaker #6: So I'm curious on a few things. If you could first maybe give us a sense of the mix of services, bookings within your 80 to 100 million bookings target, and then just how do the margins look on that on those services?

Jessica Tassan: I'm curious on a few things. If you could first maybe give us a sense of the mix of services bookings within your $80 to 100 million bookings target, and then just how do the margins look on those services bookings maybe at contract launch and then over the course of the contract lifespan, and how would you expect the margins to progress?

Speaker #6: Bookings maybe at contract launch and then over the course of the contract lifespan, and how would you expect the margins to progress?

Speaker #3: Hey, Jess. I'll take a stab at that and maybe a Travis wants to give any color he can. So when we look at Q1 of our 44 million, the provider in public sector contributed about 20% of the bookings.

Doug Garis: Hey, Jess, I'll take a stab at that, and maybe if Travis wants to give any color, he can. When we look at Q1 of our $44 million, the provider and public sector contribute about 20% of the bookings. These were kind of flagship wins that we announced at Investor Day. We had indicated too, and I think maybe you had asked the question at Investor Day what the margin profile of services is. We expect it to be roughly kind of half the core business as we ramp and scale. When I look at the full year, the $80 to 100 million, we expect growth from these areas, and especially services, to be meaningful.

Speaker #3: So these were kind of flagship wins that we announced at Investor Day. We had indicated, too, and I think maybe you had asked the question at Investor Day what the margin profile of services is.

Speaker #3: We expect it business as we ramp and scale. When I look at the full year, the 80 to 100 million, we expect growth from these areas, and especially services, to be meaningful.

Speaker #3: But the total mix of bookings is still going to be around, I'd say, probably 20-ish percent of our total number at the midpoint. These investments are critically important to us, which is why we announced the additional 20 to 25 million investment this year.

Doug Garis: The total mix of bookings is still gonna be around 20-ish percent of our total number at the midpoint. These investments are critically important to us, which is why we announced the additional $20 to $25 million in investment this year. We see significant opportunity in the provider and public sector markets. The midpoint of those bookings will be about 20% of our total, and we expect margins to be roughly half of our core business. I don't know if you have anything.

Speaker #3: We see significant opportunity in the provider and public sector markets. The midpoint of those bookings will be about 20% of our total. And we expect the margins to be roughly half of our core business.

Speaker #3: I don't know if you had anything.

Speaker #5: Yeah. I'll just add a couple of things. So one is with the health system that we signed we do that as a very strategic thing.

Travis Dalton: Yeah. I'll just add a couple of things. One is with the health system that we signed, we view that as very strategic. I mean, we'll be providing managed services for their EMR, which is a new service line of business for us. We've got the people, we've got the talent, we have acquired OPCG in order to create those relationships. We'll also be, you know, deeply embedded in their workflow, complex problems they're trying to solve. And, you know, even more so, a few things are important. One is it's high level recurrence in some of these opportunities we have on recurring revenue services. You get some immediate revenue benefit when you can sign an opportunity like that and you start it quickly.

Speaker #5: We'll be providing managed services for their EMR. Which is a new service line of business for us. So we got the people, we got the talent, and we have acquired OPCG.

Speaker #5: In order to create those relationships. So we'll also be deeply embedded in our workflow. Complex problems they're trying to solve. And even more so, a few things are important.

Travis Dalton: We'll also be, you know, deeply embedded in their workflow, complex problems they're trying to solve. And, you know, even more so, a few things are important. One is it's high level recurrence in some of these opportunities we have on recurring revenue services. You get some immediate revenue benefit when you can sign an opportunity like that and you start it quickly. We're not having to constantly just wait for the revenue to flow, which is so seasonal and cyclical in some of our core business. It also gives us the opportunity to pull through, again.

Speaker #5: One is it's high-level recurrence. And some of these opportunities we have on recurring revenue, services, you get some immediate revenue benefit when you can sign an opportunity like that and you start it quickly.

Speaker #5: So we're not having to constantly just wait for the revenue to flow. Which is so seasonal and cyclical in some of our core business.

Travis Dalton: We're not having to constantly just wait for the revenue to flow, which is so seasonal and cyclical in some of our core business. It also gives us the opportunity to pull through, again.

Speaker #5: It also gives us the opportunity to pull through, again, horizontal and vertical. Can't stop talking about it, and I won't. But we can pull through our horizontal products into those organizations we're working with on the services basis to help them with efficiency.

Doug Garis: Stop talking about it, and I won't. We can pull through our horizontal products into those organizations we're working with on a services basis to help them with efficiency. Products like CompleteView, our transparency products. It's not a pure services play. To me, it's advisory, strategic, and thoughtful as it relates to the ability to pull through more products with high margin profiles to manage the entirety of our margin, our margin view over time.

Speaker #5: So products like CompleteView. Our transparency products. So it's not a pure services play. To me, it's advisory, strategic, and thoughtful as it relates to the ability to pull through more products.

Speaker #5: With high-margin profiles to manage the entirety of our margin view over time.

Speaker #4: Got it. That's helpful. And then I guess just my follow-up. So we have one of our MAOs kind of talk about these changes to concurrent reviews in the 2026 MA final rule.

Jessica Tassan: Got it. That's helpful. I guess just, my follow-up. We had one of our MAOs kind of talk about these changes to concurrent reviews in the 2026 MA Final Rule. I'm just curious, I think these are mostly in-network, but I guess, do you guys have exposure to, like, retrospective reviews in 2025 that are essentially, you know, less frequent in 2026? Just any comments on whether changes to inpatient determinations within the 2026 MA Final Rule has any impact on your claims volume, the 8% year-over-year PSAV claims volume decline. Thank you.

Speaker #4: And so I'm just curious, I think these are mostly in-network, but I guess, do you guys have exposure to retrospective reviews in '25 that are essentially less frequent in 2026?

Speaker #4: And just any comments on whether changes to inpatient determinations within the 2026 MA final rule has any impact on your claims volume, the 8% year-over-year PSAB claims volume declines?

Speaker #4: Thank you.

Speaker #3: Thanks, Jess. Limited impact. We think MA could be an opportunity kind of mid and long-term for us. But as it relates to the kind of quarterly progression limited if close to zero volume impact from that rule.

Doug Garis: Thanks, Jess. Limited impact. We think MA could be an opportunity kind of mid and long term for us. As it relates to the kind of quarterly progression, limited if, you know, close to zero volume impact from that ruling quarter to quarter. Thanks, Jess.

Speaker #3: Quarter to quarter. Thanks, Jess.

Operator 2: Thank you. Again, if you would like to ask a question, press star, then the number one on your telephone keypad. Our next question comes from the line of Stan Berenshteyn with Wells Fargo. Your line is open.

Operator: Thank you. Again, if you would like to ask a question, press star, then the number one on your telephone keypad. Our next question comes from the line of Stan Berenshteyn with Wells Fargo. Your line is open.

Speaker #4: Thank you. Again, if you would like to ask a question, press star, then the number one on your telephone keypad. Our next question comes from the line of Stan Berenstein with Wells Fargo.

Speaker #4: Your line is open.

Speaker #5: Hi. Good morning. Thanks for taking my questions. First, on ACV, you're already halfway there on your ACV goals for the year. I'm just wondering, how's your visibility into your remaining go-get?

Stan Berenshteyn: Hi, good morning. Thanks for taking my questions. First on ACV, you're already halfway there on your ACV goals for the year. I'm just wondering, how's your visibility into your remaining go get? Do you expect any changes in the mix of upsells versus new logos? Just any color you can add there would be helpful.

Speaker #5: Do you expect any changes in the mix of upsells versus new logos? Just any color you can add there would be helpful.

Speaker #3: Yeah. Great. Thanks for the question, Stan. So I'll take that first stab. So I think the 70/30 approximate split we actually covered that was our mix on upsell cross-sell versus net new logos.

Doug Garis: Yeah, great. Thanks for the question, Stan Berenshteyn. I'll take that first stab. I think the 70/30 approximate split we actually covered. That was our mix on upsell, cross-sell versus net new logos on the $67.3 million of bookings that we landed in 2025. That trend's been pretty consistent. I think the most compelling piece of that is we have a ton of white space within the payer and TPA segment. We are expanding our products and solutions to new markets, including provider, public sector, international. We think these are great long-term areas for growth and diversification. Make no mistake, our core business is still most of where the bookings are occurring. I think the Q1 bookings number was anchored by a lot of large deals, actually.

Speaker #3: On the 67.3 million of bookings that we landed in '25, that trend's been pretty consistent. I think the most compelling piece of that is we have a ton of white space within the payer and TPA segment.

Speaker #3: And so, we are expanding our products and solutions to new markets, including provider, public sector, and international. We think these are great long-term areas for growth and diversification.

Doug Garis: We are expanding our products and solutions to new markets, including provider, public sector, international. We think these are great long-term areas for growth and diversification. Make no mistake, our core business is still most of where the bookings are occurring. I think the Q1 bookings number was anchored by a lot of large deals, actually.

Speaker #3: But make no mistake, our core business is still most of where the bookings are occurring. And I think the Q1 bookings number was anchored by a lot of large deals, actually.

Speaker #3: I think we had nine deals over a million ACV. Last year, we had 108 deals over 100,000 ACV. The funnel we have and the funnel sufficiency is multi-nine figures.

Doug Garis: I think we had nine deals over $1 million ACV. Last year, we had 108 deals over $100,000 ACV. The funnel we have, the funnel sufficiency is multi nine figures. We feel very confident with the $80 million to $100 million on the full year. You know, quarter to quarter, there might be some seasonality and trending, but I would expect us to continue to deliver strong bookings growth for the foreseeable future. Yeah, I'll just add one comment, Stan. This is Travis. You know, we had 30 new logos last year and six new logos in Q1. We, you know, focusing on the core and what was said, we see significant white space. Doug just reiterated that.

Speaker #3: So we feel very confident with the 80 to 100 million on the full year. Quarter to quarter, there might be some seasonality and trending.

Speaker #3: But I would expect us to continue to deliver strong bookings growth for the foreseeable future.

Speaker #5: Yeah. I'll just add one comment, Stan. Mr. Travis. We had 30 new logos last year, and 6 new logos in the first quarter. So to me, focusing on the core and what we said we see significant white space does just reiterate that.

Travis Dalton: Yeah, I'll just add one comment, Stan. This is Travis. You know, we had 30 new logos last year and six new logos in Q1. We, you know, focusing on the core and what was said, we see significant white space. Doug just reiterated that.

Speaker #5: But we're also really focused on creating more diverse sustainable growth over time. And that starts with new clients. We have a lot more telemetry into our business as it relates to our forecast, our processes, our when-and-close rates.

Doug Garis: We're also, you know, really focused on creating more diverse, sustainable growth over time, and it starts with new clients. You know, we have a lot more telemetry into our business as it relates to our forecast, our processes, our win and close rates, the data with which we operate. We have significantly more coverage, pipeline coverage to quota than we had two years ago, almost 4.8 times, which is a significant number. I think it was closer to 1.5 times. More pipeline, more coverage, better visibility. The last thing I'll say is we, you know, we have the confidence to invest in the business because we can see the top line.

Travis Dalton: We're also, you know, really focused on creating more diverse, sustainable growth over time, and it starts with new clients. You know, we have a lot more telemetry into our business as it relates to our forecast, our processes, our win and close rates, the data with which we operate. We have significantly more coverage, pipeline coverage to quota than we had two years ago, almost 4.8 times, which is a significant number. I think it was closer to 1.5 times. More pipeline, more coverage, better visibility. The last thing I'll say is we, you know, we have the confidence to invest in the business because we can see the top line.

Speaker #5: The data with which we operate. And we have significantly more coverage pipeline coverage to quota than we had two years ago. Almost 4.8 times, which is significant number.

Speaker #5: And I think it was closer to 1.5 times. And so more pipeline, more coverage, better visibility. And the last thing I'll say is we have the confidence to invest in the business because we can see the top line.

Speaker #5: And so you're confident enough to make decisions like we made in Q4 and this year. And we're confident in our margin profile. For the year, because we have good visibility to our top line growth and revenue conversion.

Doug Garis: You're confident enough to make decisions like we made in Q4 and this year. We're confident in our margin profile for the year because we have good visibility to our top-line growth and revenue conversion. That's a great leading indicator for us. You know, we have clear visibility and confidence in our numbers for the year.

Travis Dalton: You're confident enough to make decisions like we made in Q4 and this year. We're confident in our margin profile for the year because we have good visibility to our top-line growth and revenue conversion. That's a great leading indicator for us. You know, we have clear visibility and confidence in our numbers for the year.

Speaker #5: So that's a great leading indicator for us. And we have clear visibility and confidence in our numbers for the year.

Speaker #2: Appreciate that. Helpful. That's my follow-up. Just wanted to ask on Medicare Advantage. Obviously, there's some rate pressure forcing payers to be a bit more mindful of admin savings and things like that.

Stan Berenshteyn: Appreciate that. Helpful. As my follow-up, just wanted to ask on Medicare Advantage. Obviously, there's some rate pressure, you know, forcing payers to be a bit more mindful of, you know, admin savings and things like that. Are you seeing that translate into increased demand for payment integrity solutions? Is that driving some more intensity with the payers? Just wanted to get some color on that as well. Thank you.

Speaker #2: Are you seeing that translate into increased demand for payment integrity solutions? Is that driving some more intensity with the payers just wanting to get some color on that as well?

Speaker #2: Thank you.

Speaker #3: Thanks, Stan. Yes, absolutely. When you look at our PRI business, had nice growth last year, we expect a similar growth rate this year. You look at, I I would say, maybe 25% to a third of the opportunities are in payment revenue integrity.

Doug Garis: Thanks, Stan. Yes, absolutely. When you look at our PRI business, had nice growth last year. We expect a similar growth rate this year. You look at, you know, I would say maybe 25% to a third of the opportunities are in payment revenue integrity. We have one of the most comprehensive set of solutions from prepay payment revenue integrity and claims editing all the way through post-pay. We feel very bullish on the prospects of that business medium to long term. A good portion of our funnel is in the payment revenue integrity space.

Speaker #3: We have one of the most comprehensive set of solutions from prepay, payment revenue integrity, and claims editing all the way through post-pay. We feel very bullish on the prospects of that business.

Speaker #3: Medium to long-term. And a good portion of our funnel is in the payment revenue integrity space.

Speaker #2: Great. Thanks so much.

Stan Berenshteyn: Great. Thanks so much.

Speaker #4: Thank you. I'm not showing any further questions in the queue. I will now turn back over to management for closing remarks.

Operator 2: Thank you. I am not showing any further questions in the queue. I will now turn back over to management for closing remarks.

Operator: Thank you. I am not showing any further questions in the queue. I will now turn back over to management for closing remarks.

Speaker #3: Thank you. This is Travis. Let me just close by saying thank you for the time and attention today. Thanks for the questions and the interest in the company.

Travis Dalton: Thank you. This is Travis. Let me just close by saying, thank you for the time and attention today. Thanks for the questions and the interest in the company. As noted, we feel like we're in a good place, and we're confident in our year. Look forward to talking to you again here soon. Thank you.

Speaker #3: And as noted, I feel like we're in a good place. And we're confident in our year. Look forward to talking to you again here soon.

Speaker #3: Thank you.

Operator 2: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.