CorVel Corporation Reports 12.7% Revenue Growth to $227.973 Million in Latest Quarter

CorVel Corporation reported significant financial growth in its latest quarterly results, with revenues reaching $227.973 million for the three months ended December 31, 2024, compared to $202.303 million for the same period in 2023, marking a 12.7% increase. The company's net income also rose to $23.771 million, up from $17.095 million, reflecting a 39.1% increase year-over-year. This growth translated to diluted earnings per share of $0.46, compared to $0.33 in the prior year. For the nine months ending December 31, 2024, revenues totaled $664.075 million, a 12.9% increase from $588.078 million in the same period last year, with net income rising to $68.746 million from $56.798 million.

The increase in revenue was primarily driven by higher activity in both patient management and network solutions services. Patient management services generated $145.860 million, up from $131.756 million, while network solutions services increased to $82.113 million from $70.547 million. The company noted a 10% rise in total new claims during the quarter, contributing to the revenue growth. Cost of revenues also increased, rising to $175.115 million from $160.143 million, which was attributed to the overall revenue increase and a 9.4% rise in salaries due to a higher average headcount.

In terms of operational developments, CorVel's total current assets increased to $383.161 million as of December 31, 2024, from $302.231 million at the end of March 2024. The company also reported a rise in customer deposits, which reached $99.496 million, up from $88.142 million. The total liabilities increased to $237.927 million from $207.032 million, primarily due to higher accrued liabilities, which rose to $200.108 million from $167.868 million. The company’s employee headcount increased to manage the growing business volume, reflecting a strategic decision to enhance service delivery.

CorVel's management indicated that the company is well-positioned for future growth, with expectations for general and administrative expenses to remain between 9% and 11% of revenues. The company also executed a three-for-one forward stock split on December 24, 2024, which was retroactively adjusted in the financial statements. Looking ahead, CorVel aims to continue expanding its market share and enhancing its service offerings, while maintaining a strong focus on operational efficiency and cost management. The company believes its cash and cash equivalents, along with cash generated from operations, will be sufficient to meet its financial obligations and support future growth initiatives.