CorVel Corporation (CRVL) Q2 2026 Earnings Call Prepared Remarks Transcript
Revenue $240 million for the September quarter, a 7% increase from $224 million in the September 2024 quarter. The growth was driven by both the Patient Management and Network Solutions segments, with claims operations generating approximately $4 million in revenue growth and Network Solutions increasing by $12 million due to higher utilization of CERiS, Ancillary Care, and Bill Review Solutions.
Earnings Per Share (EPS) $0.54 for the quarter ending September 30, 2025, a 20% increase from $0.45 in the same quarter of the prior year. The increase was adjusted for a 3-for-1 stock split reported in December 2024. However, onetime events softened the EPS increase by approximately 9 percentage points.
Gross Margin and Net Income Net income reached $28 million, up from $23 million in the previous year. Improved gross margin and net income were attributed to ongoing product enhancements, strong operational management, lower direct costs, and responsible management of general and administrative expenses.
Share Repurchase 143,774 shares were repurchased at a cost of $12.8 million during the quarter. To date, the company has repurchased 114.7 million shares for a total of $854 million, representing 69% of the total shares outstanding. The repurchases were funded by strong operating cash flow.
Days Sales Outstanding (DSO) 40 days in the September quarter, an improvement of 2 days compared to the same period a year ago. This reflects improved operational efficiency.
Cash Balance $207 million at the end of the September quarter. The company remains debt-free, which positions it well for product expansion and acquisition opportunities.
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CorVel Corp (CRVL) Shares Oversold with RSI at 29.8
- Oversold Signal: CorVel Corp (CRVL) shares fell to $65.61, with an RSI of 29.8, indicating that the recent heavy selling may be nearing exhaustion, thus providing potential entry points for bullish investors.
- Market Comparison: Compared to the S&P 500 ETF (SPY) RSI of 53.2, CRVL's oversold condition may attract investor attention, particularly amid increasing market volatility.
- Historical Performance: With a 52-week low of $65.54 and a high of $128.61, CRVL's current trading price of $65.74 suggests the stock is hovering at low levels, potentially offering value investment opportunities for investors.
- Investor Sentiment: As CRVL's shares remain oversold, investors may reassess their strategies to seek potential gains during market recoveries, which could further influence market sentiment and trading activity.
CorVel (CRVL) Has Reached Oversold Status
CRVL Stock Performance: CorVel Corp (CRVL) shares have entered oversold territory with an RSI of 29.2, trading as low as $68.20 per share, compared to the S&P 500 ETF's RSI of 57.7.
Investment Opportunity: The low RSI reading may indicate that heavy selling is nearing exhaustion, potentially presenting a buying opportunity for bullish investors.
52-Week Range: CRVL's 52-week low is $68.20, while the high is $128.61, with the last trade recorded at $68.38.
Disclaimer: The views expressed in the article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
