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Claritev exceeded first quarter expectations with revenue of $244.7 million and adjusted EBITDA of $146.9 million, and management said sales momentum supports its full-year outlook. The company raised the low end of its 2026 revenue guidance to between $985 billion and $1 billion, leaving EBITDA guidance unchanged.
Reserves reach a record to $44.1 million in annual contract value, driven primarily by cross-sell and upsell activity. Claritev also said pipeline growth increased 70% year-over-year, with more major deals and improved success rates.
AI and expanding achievements are driving growth and efficiencyincluding new agreements with the public sector and providers such as GDIT and a top five health system. Management said AI is improving productivity in coding, claims processing and finance, while supporting new service offerings.
Claritev (NYSE:CTEV) reported first-quarter 2026 revenue and adjusted EBITDA above internal expectations, while management said sales momentum and new market expansion support its full-year outlook.
President and CEO Travis Dalton said the quarter reflected “not just performance, but progress,” noting the strength of the company’s core offerings, new customer wins and growing use of artificial intelligence across its operations and customer solutions.
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Total revenue for the quarter was $244.7 million, up 5.8% from a year earlier, Chief Financial Officer Doug Garis said. Adjusted EBITDA was $146.9 million, up 3.4% year-over-year and a margin of 60%.
Garis said the growth came from both the core business and the company’s expansion areas. Of note was performance in Data iSight, Claritev’s flagship reference-based pricing solution within its Claims Intelligence service line, which increased 8.4% in the quarter. The payments and network revenue integrity service lines performed at or slightly above internal expectations, it said.
Reserves reach a record level
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Claritev reported $44.1 million in annual contract value bookings in the first quarter, which management described as another record quarter. Dalton said the company remains confident in its full-year ACV sales target of $80 million to $100 million, representing 20% to 50% growth over last year’s sales results.
Garis said first-quarter bookings reflected the diversification strategy discussed at the company’s March Investor Day. Cross-selling and upselling activities accounted for 73% of bookings, while 27% came from net new customers. The company closed 19 deals with over $100,000 in ACV and nine deals with over $1 million in ACV, which Garis said represented a 350% increase in seven-figure deals in the quarter.
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Project growth is up 70% year over year, Garis said, adding that average deal size has more than doubled, sales cycles have compressed and success rates continue to improve.
Dalton said Claritev signed six new logos in the first quarter after adding 30 new logos last year. He said the company has “significantly more coverage” in its portfolio than it did two years ago, giving management confidence in revenue conversion and investment decisions.
The public sector and the supplier gain notable expansion
Dalton highlighted two recently announced wins as evidence of Claritev’s market expansion. The company signed an agreement with GDIT to provide a customized network for the World Trade Center Health Program, which Dalton said leverages a core solution in the public sector and demonstrates the company’s ability to form new relationships with partners.
Claritev also signed what Dalton described as a top-five health system that operates more than 700 facilities, including hospitals, ambulatory surgery centers, walk-in centers and other care sites. He said the relationship arose directly from Claritev’s acquisition of OPCG in the fourth quarter, supporting the company’s recently launched service offering.
In response to an analyst question, Garis said supplier and public sector bookings contributed about 20% of first-quarter bookings. He said service bookings are expected to represent about 20% of the full-year booking mix at the midpoint of the company’s target of $80 million to $100 million, with margins about half those of the core business as the segment grows and scales.
Dalton said the health system deal is strategic because Claritev will provide managed services for the client’s electronic health records platform, a new line of services for the company. He added that such relationships could provide recurring revenue and create opportunities to sell additional products, including transparency products like CompleteVue.
AI drives product efficiency and performance
Management emphasized artificial intelligence as a tool for operational efficiency and competitive advantage. Dalton said engineering teams fully utilizing AI coding tools nearly doubled coding capacity without adding staff.
He also described several operational examples. Within Claims Intelligence, Claritev created a supplier contact agent to address claims that come in without a supplier ID. Dalton said the tool achieves “research-level accuracy,” adds supplier contact IDs, cuts processing time by more than half and saves more than 2,000 hours of processing time.
In the independent dispute resolution process, Dalton said Claritev automated invoice extraction and reconciliation for accounts payable IDR workflows. He said the company now handles thousands of invoices each day, automating daily processing in less than an hour with nearly 100% accuracy and uptime.
Dalton said Claritev has AI teams working on its internal solutions and operations, including sales and finance, to drive scale and efficiency.
Elevated targeting at the lower end of the income range
Claritev raised the low end of its full-year revenue guidance by $5 million and now expects revenue of $985 million to $1 billion. Garis said the company is comfortable adding first-quarter revenue outperformance to existing models within that revised range.
The company maintained full-year adjusted EBITDA guidance of $605 million to $615 million, with margins of 61% to 62%. Garis said that after normalizing the impact of $18 million in property and casualty one-time revenue and EBITDA contribution last year, the guidance implies adjusted EBITDA growth of 3.5% to 5% on a comparable basis.
Claritev also maintained its outlook for total capital spending of between $160 million and $170 million and positive free cash flow through 2026. Garis said the company expects operating and unlevered free cash flow growth, with adjusted cash conversion normalizing to pre-2025 levels by year-end.
During the first quarter, Claritev generated $36.8 million of unlevered free cash flow, up $23.7 million, or 181%, from the same period last year. Free cash flow was a use of $92.5 million, which Garis said was lower by $23.6 million in the quarter. He noted that the company expects the first and third quarters to be cash burning quarters and the second and fourth quarters to be cash generating quarters in the short and medium term.
Management cites key growth and deleveraging priorities
Dalton said Claritev is focused on organic growth, investing in the core business, diversifying into new verticals and deleveraging over time. He also highlighted opportunities in the third-party administrator market and said the company brought in Dallas Scrip, an industry veteran, in late 2025 to lead that effort.
In the Q&A, Garis said payment revenue integrity represents a significant part of the company’s opportunity funnel, including demand tied to Medicare Advantage pressures. He said Claritev has a broad set of solutions spanning prepaid, claim editing and postpaid functions.
Dalton closed the call by saying the company is “in a good place” and confident about its year, while reiterating that Claritev is operating with a long-term vision.
About Claritev (NYSE:CTEV)
Claritev is a healthcare insights, data and technology company focused on improving affordability, transparency and quality. Led by highly experienced associates, data scientists and innovators, Claritev offers technology-enabled solutions and services powered by multiple data sources from over 40 years of claims pricing review. Claritev uses world-class technology and artificial intelligence solutions to power a robust business platform that delivers meaningful insights to drive affordability in healthcare, provides price transparency, and optimizes network and benefit design.
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The article “Highlights from Claritev’s Q1 earnings calls” was originally published by MarketBeat.
