Claritev Corporation reported fourth‑quarter 2025 revenue of $246.6 million, a 6.2% year‑over‑year increase from $232.1 million in Q4 2024. The growth was driven by a mix of core business expansion and new international contracts, as CEO Travis Dalton noted, "We achieved 6.2% revenue growth in Q4 year‑over‑year, continuing to demonstrate not only durability, but that our vertical market strategy is working against our product roadmap." The revenue beat the consensus estimate of $241.0 million by $5.6 million, reflecting stronger demand in the company’s core segments and successful pricing initiatives.
Claritev posted a quarterly loss of $4.88 per share, missing the consensus estimate of $-3.88 by $1.00. The wider‑than‑expected loss was largely attributable to the company’s high debt load and associated interest expense, which rose to $392 million for the full year. CFO Doug Garis explained the loss, "Total revenue in Q4 was $246.6 million, up 6.2% year‑over‑year. Growth in Q4 came from both our core business and expansion areas." The miss underscores ongoing profitability challenges despite revenue growth.
Adjusted EBITDA for the quarter was $151.3 million, a 61.4% margin, down from $155.1 million and a 63.1% margin in Q3 2025. The margin compression reflects a shift toward lower‑margin expansion contracts and higher operating costs. Management highlighted the company’s focus on digital transformation, stating, "We are well into our digital transformation that will create a stronger and more durable operating and technology platform for the long haul."
Guidance for 2026 was updated to revenue of $980 million to $1.0 billion, adjusted EBITDA of $605 million to $615 million, capital expenditures of $160 million to $170 million, and free cash flow of $0 million to $10 million. The company also announced a five‑year share‑repurchase program authorizing up to $75 million of Class A common stock. The guidance signals management’s confidence in maintaining modest growth while managing debt, but the conservative revenue outlook relative to some analyst expectations indicates caution.
Management emphasized the company’s turnaround narrative, noting, "We returned to profitable growth sooner than expected." and "This year marked a pivotal time in our company's history, as we returned to top line revenue growth highlighted by operational and financial execution." The company also highlighted international expansion, with Dalton adding, "We are expanding our footprint internationally in the Middle East, signing two additional clients that will create momentum for growth in 2026." The market reaction was muted; the stock closed slightly down 0.17% as investors weighed the revenue beat against the EPS miss and the company’s substantial debt load.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.