Revenue growth remains tepid while gross margins experienced a sharp contraction to 26.4% in 2026Q1, down from the 70%+ levels maintained throughout 2025.
| Sales/Revenue | 978.76M | 965.41M | 930.62M | 961.52M | 1.08B | 1.12B | 937.76M | 982.9M |
| Revenue Growth % | 5.53% | 3.74% | -3.21% | -10.95% | -3.39% | 19.18% | -4.59% | - |
| Cost of Goods Sold | 381.09M | 698.84M | 239.4M | 235.47M | 204.1M | 175.29M | 318.68M | 149.61M |
| COGS % of Revenue | - | 72.39% | 25.73% | 24.49% | 18.9% | 15.68% | 33.98% | 15.22% |
| Gross Profit | 597.67M | 266.58M | 691.22M | 726.06M | 875.62M | 942.31M | 619.09M | 833.29M |
| Gross Margin % | 61.06% | 27.61% | 74.27% | 75.51% | 81.1% | 84.32% | 66.02% | 84.78% |
| Gross Profit Growth % | - | -61.43% | -4.8% | -17.08% | -7.08% | 52.21% | -25.71% | - |
| Operating Expenses | 555.68M | 221.52M | 2.08B | 564.07M | 1.24B | 556.19M | 750.91M | 465.08M |
| OpEx % of Revenue | - | 22.95% | 223.63% | 58.66% | 114.69% | 49.77% | 80.07% | 47.32% |
| Selling, General & Admin | 206.89M | 221.52M | 160.22M | 135.99M | 132.14M | 151.09M | 355.63M | 75.22M |
| SG&A % of Revenue | - | 22.95% | 17.22% | 14.14% | 12.24% | 13.52% | 37.92% | 7.65% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 0 | 1.92B | 428.08M | 1.11B | 405.1M | 395.27M | 389.86M |
| Operating Income | 41.99M | 45.06M | -1.39B | 161.98M | -362.73M | 386.12M | -131.82M | 368.21M |
| Operating Margin % | 4.29% | 4.67% | -149.35% | 16.85% | -33.6% | 34.55% | -14.06% | 37.46% |
| Operating Income Growth % | - | 103.24% | -958.08% | 144.66% | -193.94% | 392.91% | -135.8% | - |
| EBITDA | 489.88M | 493.51M | -953.49M | 587.77M | 52.93M | 798.18M | 271.86M | 767.66M |
| EBITDA Margin % | 50.05% | 51.12% | -102.46% | 61.13% | 4.9% | 71.42% | 28.99% | 78.1% |
| EBITDA Growth % | 207.9% | 151.76% | -262.22% | 1010.53% | -93.37% | 193.6% | -64.59% | - |
| D&A (Non-Cash Add-back) | 447.88M | 448.45M | 436.44M | 425.79M | 415.66M | 412.06M | 403.68M | 399.45M |
| EBIT | 71.07M | 26.99M | -1.44B | 226.15M | -257.34M | 402.93M | -211.27M | 386.86M |
| Net Interest Income | -397.03M | -398.51M | -323.24M | -324.98M | -299.9M | -267.44M | -335.35M | -376.15M |
| Interest Income | 1.25M | 1.56M | 3.13M | 8.23M | 3.5M | 30K | 288K | 196K |
| Interest Expense | 398.28M | 400.07M | 326.37M | 333.21M | 303.4M | 267.48M | 335.64M | 376.35M |
| Other Income/Expense | -370.71M | -418.14M | -380.78M | -269.04M | -198.01M | -250.67M | -415.09M | -357.7M |
| Pretax Income | -328.71M | -373.08M | -1.77B | -107.06M | -560.74M | 135.45M | -546.91M | 10.51M |
| Pretax Margin % | -33.58% | -38.64% | -190.27% | -11.13% | -51.93% | 12.12% | -58.32% | 1.07% |
| Income Tax | -42.19M | -88.8M | -124.88M | -15.36M | 12.17M | 33.37M | -26.34M | 799K |
| Effective Tax Rate % | 12.84% | 23.8% | 7.05% | 14.35% | -2.17% | 24.64% | 4.82% | 7.6% |
| Net Income | -286.52M | -284.28M | -1.65B | -91.7M | -572.91M | 102.08M | -520.56M | 9.71M |
| Net Margin % | -29.27% | -29.45% | -176.85% | -9.54% | -53.06% | 9.13% | -55.51% | 0.99% |
| Net Income Growth % | 75.67% | 82.73% | -1694.86% | 83.99% | -661.24% | 119.61% | -5461.11% | - |
| Net Income (Continuing) | -286.52M | -284.28M | -1.65B | -91.7M | -572.91M | 102.08M | -520.56M | 9.71M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 6.72M | 6.72M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -17.16 | -17.30 | -101.92 | -5.69 | -35.87 | 6.40 | -44.23 | 0.35 |
| EPS Growth % | 76.23% | 83.03% | -1691.21% | 84.14% | -660.47% | 114.47% | -12737.14% | - |
| EPS (Basic) | - | -17.30 | -101.92 | -5.69 | -35.87 | 6.40 | -44.23 | 0.35 |
| Diluted Shares Outstanding | 16.69M | 16.43M | 16.15M | 16.13M | 15.97M | 16.29M | 11.77M | 27.5M |
| Basic Shares Outstanding | 16.69M | 16.43M | 16.15M | 16.13M | 15.97M | 16.28M | 11.77M | 27.5M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Regulatory and Debt Overhang
According to recent quarterly filings, Claritev's revenue growth has remained tepid, fluctuating between -5.1% and 6.7% over the last ten quarters, suggesting that the company's core out-of-network repricing business is struggling to find meaningful expansion opportunities in an increasingly regulated U.S. healthcare landscape.
The modest 5.8% year-over-year growth observed in 2026Q1 appears insufficient to offset the structural headwinds facing the legacy PPO model. Investors should monitor whether the recent rebranding to Claritev can successfully pivot the firm toward higher-growth analytics, or if the current revenue trajectory reflects a permanent ceiling on its transactional business model.
As reported in financial statements, Claritev experienced a sharp contraction in gross margin to 26.4% in 2026Q1, a significant departure from the 70%+ levels maintained throughout 2025, which warrants further investigation into potential shifts in service delivery costs or data acquisition expenses.
The sudden collapse in gross margin suggests that the company's cost structure may be more variable than previously assumed, or that recent operational changes have introduced significant inefficiencies. This volatility undermines the narrative of a high-margin data analytics firm and suggests that the underlying service model remains highly sensitive to cost-of-revenue fluctuations.
Based on Claritev's reported figures, the company consistently posts deep net losses, including a -30.1% net margin in 2026Q1, which highlights a structural disconnect between operating income and the bottom line, likely driven by heavy interest expenses and non-cash charges related to past acquisitions.
The disparity between positive operating income and substantial net losses suggests that the company's capital structure is severely eroding shareholder value. Analysts should be wary of relying on operating metrics alone, as the persistent net losses indicate that the firm's debt burden remains a primary obstacle to achieving sustainable profitability.
Data from recent filings indicates that Claritev's reliance on a highly levered balance sheet creates significant vulnerability, as the company's inability to generate consistent net income may limit its capacity to fund the R&D necessary to compete with more agile, AI-native healthcare technology startups.
While management emphasizes a transition toward 'Decision Science,' the financial reality suggests that capital is being diverted toward debt service rather than innovation. This creates a potential 'melting ice cube' scenario where the legacy business declines faster than the new analytics suite can scale, leaving the company with limited strategic flexibility.
Quick answers to the most common questions about buying CTEV stock.
For fiscal year 2025, Claritev Corporation (CTEV) reported total revenue of $965.4M. This represents a 1.8% decline compared to $982.9M in 2019.
Claritev Corporation (CTEV) reported a net loss of $284.3M for the fiscal year ending 2025.
Claritev Corporation (CTEV) reported an operating income of $45.1M, resulting in an operating profit margin of 4.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Claritev Corporation (CTEV) generated $266.6M in gross profit for the year, representing a gross profit margin of 27.6%. This demonstrates the company's core pricing power and production efficiency.