Corvel Corp 10-Q for FY2026 Q3

Corvel Corp (CRVL)

10-Q 2026-02-05 For: 2025-12-31

Added on April 04, 2026

About this 10-Q

Corvel Corp filed this 10-Q on February 5, 2026, covering the quarter ended December 31, 2025 (FY2026 Q3).

Headline figures

Quarter ended December 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $235.63M; up 3.4% from $227.97M a year earlier
Net income: $24.17M; up 1.7% from net income of $23.77M a year earlier
Diluted EPS: $0.47; up 2.2% from $0.46 a year earlier

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5128 Apache Plume Road, Suite 400
Fort Worth, TX		76109
(Address of principal executive offices)		(Zip Code)


Large accelerated filer	☑	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐


		Page

PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements	3

	Consolidated Balance Sheets – December 31, 2025 (unaudited) and March 31, 2025	3
	Consolidated Income Statements (unaudited) – Three months ended December 31, 2025 and 2024	4
	Consolidated Income Statements (unaudited) – Nine months ended December 31, 2025 and 2024	5
	Consolidated Statements of Stockholders’ Equity (unaudited) – Three and nine months ended December 31, 2025 and 2024	6
	Consolidated Statements of Cash Flows (unaudited) – Nine months ended December 31, 2025 and 2024	7
	Notes to Consolidated Financial Statements	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26

Item 4.	Controls and Procedures	26

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	27

Item 1A.	Risk Factors	27

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36

Item 3.	Defaults Upon Senior Securities	36

Item 4.	Mine Safety Disclosures	36

Item 5.	Other Information	36

Item 6.	Exhibits	37

	Signatures	38


	December 31, 2025			March 31, 2025
	(Unaudited)
Assets
Current Assets
Cash and cash equivalents	$	230,033,000		$	170,584,000
Customer deposits		115,427,000			101,472,000
Accounts receivable, net		102,100,000			104,126,000
Prepaid taxes and expenses		16,363,000			10,507,000
Total current assets		463,923,000			386,689,000
Property and equipment, net		114,122,000			92,052,000
Goodwill		36,814,000			36,814,000
Other intangibles, net		307,000			438,000
Right-of-use asset, net		19,447,000			20,825,000
Deferred tax asset, net		9,749,000			8,704,000
Other assets		423,000			454,000
TOTAL ASSETS	$	644,785,000		$	545,976,000
Liabilities and Stockholders' Equity
Current Liabilities
Accounts and taxes payable	$	29,998,000		$	16,792,000
Accrued liabilities		220,449,000			187,244,000
Total current liabilities		250,447,000			204,036,000
Long-term lease liabilities		18,616,000			19,953,000
Total liabilities		269,063,000			223,989,000
Commitments and contingencies
Stockholders' Equity
Common stock, $.0001 par value: 360,000,000 shares authorized at December 31, 2025 and March 31, 2025; 166,036,690 shares issued (51,143,561 shares outstanding, net of Treasury shares) and 165,836,235 shares issued (51,359,544 shares outstanding, net of Treasury shares) at December 31, 2025 and March 31, 2025, respectively		5,000			5,000
Paid-in capital		260,835,000			250,407,000
Treasury stock (114,893,129 shares at December 31, 2025 and 114,476,691 shares at March 31, 2025)		(867,518,000	)		(831,510,000	)
Retained earnings		982,400,000			903,085,000
Total stockholders' equity		375,722,000			321,987,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	644,785,000		$	545,976,000


	Three Months Ended
	December 31, 2025		December 31, 2024
REVENUES	$	235,625,000	$	227,973,000
Cost of revenues		180,709,000		175,115,000
Gross profit		54,916,000		52,858,000
General and administrative expenses		22,684,000		22,058,000
Income before income tax provision		32,232,000		30,800,000
Income tax provision		8,058,000		7,029,000
NET INCOME	$	24,174,000	$	23,771,000
Net income per common and common equivalent share
Basic	$	0.47	$	0.46
Diluted	$	0.47	$	0.46
Weighted average common and common equivalent shares
Basic		51,317,000		51,388,000
Diluted		51,582,000		52,038,000


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Nine Months Ended
	December 31, 2025		December 31, 2024
REVENUES	$	709,979,000	$	664,075,000
Cost of revenues		540,125,000		512,528,000
Gross profit		169,854,000		151,547,000
General and administrative expenses		66,439,000		64,043,000
Income before income tax provision		103,415,000		87,504,000
Income tax provision		24,100,000		18,758,000
NET INCOME	$	79,315,000	$	68,746,000
Net income per common and common equivalent share
Basic	$	1.55	$	1.34
Diluted	$	1.53	$	1.32
Weighted average common and common equivalent shares
Basic		51,328,000		51,384,000
Diluted		51,739,000		51,999,000


	Three Months Ended December 31, 2025
	Common Shares		Stock Amount		Paid-in- Capital			Treasury Shares			Treasury Stock			Retained Earnings		Total Stockholders' Equity
Balance – September 30, 2025		166,000,944	$	5,000	$	258,511,000			(114,707,570	)	$	(853,965,000	)	$	958,226,000	$	362,777,000
Stock issued under stock option plan, net of shares repurchased		35,746		—		962,000			—			—			—		962,000
Stock-based compensation expense		—		—		1,362,000			—			—			—		1,362,000
Purchase of treasury stock		—		—		—			(185,559	)		(13,553,000	)		—		(13,553,000	)
Net income		—		—		—			—			—			24,174,000		24,174,000
Balance – December 31, 2025		166,036,690	$	5,000	$	260,835,000			(114,893,129	)	$	(867,518,000	)	$	982,400,000	$	375,722,000


	Three Months Ended December 31, 2024
	Common Shares		Stock Amount		Paid-in- Capital			Treasury Shares			Treasury Stock			Retained Earnings		Total Stockholders' Equity
Balance – September 30, 2024		165,715,800	$	3,000	$	242,894,000			(114,310,320	)	$	(813,020,000	)	$	852,895,000	$	282,772,000
Stock issued under stock option plan, net of shares repurchased		47,403		—		1,978,000			—			—			—		1,978,000
Stock-based compensation expense		—		—		1,823,000			—			—			—		1,823,000
Purchase of treasury stock		—		—		—			(85,710	)		(9,494,000	)		—		(9,494,000	)
Adjusted shares outstanding		—		2,000		(2,000	)		—			—			—		—
Net income		—		—		—			—			—			23,771,000		23,771,000
Balance – December 31, 2024		165,763,203	$	5,000	$	246,693,000			(114,396,030	)	$	(822,514,000	)	$	876,666,000	$	300,850,000


	Nine Months Ended December 31, 2025
	Common Shares		Stock Amount		Paid-in- Capital			Treasury Shares			Treasury Stock			Retained Earnings		Total Stockholders' Equity
Balance – March 31, 2025		165,836,235	$	5,000	$	250,407,000			(114,476,691	)	$	(831,510,000	)	$	903,085,000	$	321,987,000
Stock issued under employee stock purchase plan		5,682		—		418,000			—			—			—		418,000
Stock issued under stock option plan, net of shares repurchased		187,162		—		5,049,000			—			—			—		5,049,000
Stock-based compensation expense		—		—		4,177,000			—			—			—		4,177,000
Stock issuance for asset acquisition		7,611		—		784,000			—			—			—		784,000
Purchase of treasury stock		—		—		—			(416,438	)		(36,008,000	)		—		(36,008,000	)
Net income		—		—		—			—			—			79,315,000		79,315,000
Balance – December 31, 2025		166,036,690	$	5,000	$	260,835,000			(114,893,129	)	$	(867,518,000	)	$	982,400,000	$	375,722,000


	Nine Months Ended December 31, 2024
	Common Shares		Stock Amount		Paid-in- Capital			Treasury Shares			Treasury Stock			Retained Earnings		Total Stockholders' Equity
Balance – March 31, 2024		165,486,225	$	3,000	$	233,629,000			(114,099,537	)	$	(793,905,000	)	$	807,920,000	$	247,647,000
Stock issued under employee stock purchase plan		3,306		—		342,000			—			—			—		342,000
Stock issued under stock option plan, net of shares repurchased		273,672		—		8,348,000			—			—			—		8,348,000
Stock-based compensation expense		—		—		4,376,000			—			—			—		4,376,000
Purchase of treasury stock		—		—		—			(296,493	)		(28,609,000	)		—		(28,609,000	)
Adjusted shares outstanding		—		2,000		(2,000	)		—			—			—		—
Net income		—		—		—			—			—			68,746,000		68,746,000
Balance – December 31, 2024		165,763,203	$	5,000	$	246,693,000			(114,396,030	)	$	(822,514,000	)	$	876,666,000	$	300,850,000


	December 31, 2025			March 31, 2025
Billed receivables	$	68,197,000		$	65,323,000
Allowance for expected credit losses		(4,179,000	)		(7,690,000	)
Unbilled receivables		38,082,000			46,493,000
Accounts receivable, net	$	102,100,000		$	104,126,000


	Nine Months Ended
	December 31, 2025
Beginning balance at April 1, 2025	$	30,809,000
Additions		59,417,000
Revenue recognized from beginning of period		(27,259,000	)
Revenue recognized from additions		(32,028,000	)
Ending balance at December 31, 2025	$	30,939,000


		Three Months Ended
		December 31, 2025
Risk-free interest rate		3.69%
Expected volatility		31%
Expected dividend yield		0.00%
Expected weighted average life of option in years		4 years


Range of Exercise Price	Outstanding Options – Number of Outstanding Options		Outstanding Options – Weighted Average Remaining Contractual Life		Outstanding Options – Weighted Average Exercise Price		Exercisable Options – Number of Exercisable Options		Exercisable Options – Weighted Average Exercise Price
$14.44 to $49.63		320,540		1.63	$	31.32		308,483	$	30.60
$49.64 to $54.54		281,325		2.53		52.43		198,306		52.40
$54.55 to $73.36		341,586		2.93		69.14		149,263		66.79
$73.37 to $110.18		162,320		4.74		103.02		20,097		92.59
Total		1,105,771		2.72	$	58.90		676,149	$	46.83


	Number of Options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value as of December 31, 2025
Options outstanding at October 1, 2025		1,071,486		$	56.73
Granted		83,000			75.32
Exercised		(43,467	)		35.52
Cancelled – forfeited		(4,670	)		68.27
Cancelled – expired		(578	)		85.05
Ending outstanding		1,105,771		$	58.90		2.72	$	16,338,984
Ending vested and expected to vest		993,674		$	58.28		2.72	$	15,367,233
Ending exercisable at December 31, 2025		676,149		$	46.83		2.08	$	14,733,744


	December 31, 2025			December 31, 2024
Cash paid for amounts included in the measurement of operating lease liabilities	$	7,009,000		$	6,559,000
Operating lease liabilities arising from obtaining ROU assets	$	42,364,000		$	40,637,000
Finance lease liabilities arising from obtaining ROU assets	$	—		$	358,000
Reductions to ROU assets resulting from reductions to operating lease liabilities	$	(1,650,000	)	$	(10,210,000	)



2026	$	2,226,000
2027		8,175,000
2028		7,461,000
2029		5,209,000
2030		3,265,000
Thereafter		2,392,000
Total lease payments		28,728,000
Less interest		(2,780,000	)
Total lease liabilities	$	25,948,000


	Three Months Ended
	December 31, 2025			December 31, 2024
Patient management services		62.0	%		64.0	%
Network solutions services		38.0	%		36.0	%
		100.0	%		100.0	%


	Nine Months Ended
	December 31, 2025			December 31, 2024
Patient management services		62.5	%		65.1	%
Network solutions services		37.5	%		34.9	%
		100.0	%		100.0	%


	December 31, 2025		March 31, 2025
Accounts payable	$	25,872,000	$	15,422,000
Income taxes payable and uncertain tax positions		4,126,000		1,370,000
Total accounts and taxes payable	$	29,998,000	$	16,792,000


	December 31, 2025		March 31, 2025
Payroll, payroll taxes and employee benefits	$	51,858,000	$	30,971,000
Customer deposits		115,427,000		101,472,000
Accrued professional service fees		9,460,000		11,004,000
Self-insurance accruals		3,193,000		3,276,000
Deferred revenue		30,939,000		30,809,000
Operating lease liabilities		7,332,000		8,126,000
Other		2,240,000		1,586,000
Total accrued liabilities	$	220,449,000	$	187,244,000


(1)	Includes other operating costs (such as marketing and maintenance expenses), net gain (loss) on asset sales and disposals and other costs.


	Three Months Ended									Percentage
	December 31, 2025			December 31, 2024			Change			Change
Revenue	$	235,625,000		$	227,973,000		$	7,652,000			3.4	%
Cost of revenues		180,709,000			175,115,000			5,594,000			3.2	%
Gross profit		54,916,000			52,858,000			2,058,000			3.9	%
Gross profit as percentage of revenue		23.3	%		23.2	%
General and administrative expenses		22,684,000			22,058,000			626,000			2.8	%
General and administrative as percentage of revenue		9.6	%		9.7	%
Income before income tax provision		32,232,000			30,800,000			1,432,000			4.6	%
Income before income tax provision as percentage of revenue		13.7	%		13.5	%
Income tax provision		8,058,000			7,029,000			1,029,000			14.6	%
Net income	$	24,174,000		$	23,771,000		$	403,000			1.7	%
Weighted average common and common equivalent shares
Basic		51,317,000			51,388,000			(71,000	)		(0.1	%)
Diluted		51,582,000			52,038,000			(456,000	)		(0.9	%)
Net income per common and common equivalent shares
Basic	$	0.47		$	0.46		$	0.01			2.2	%
Diluted	$	0.47		$	0.46		$	0.01			2.2	%


					Total Number of		Maximum Number
					Shares Purchased		of Shares Remaining
					as Part of Publicly		Available to
	Total Number of		Average Price Paid		Announced		be Purchased
Period	Shares Purchased		Per Share		Program		Under the Program
October 1 to October 31, 2025		62,339	$	73.77		62,339		2,230,091
November 1 to November 30, 2025		52,327	$	74.52		52,327		2,177,764
December 1 to December 31, 2025		70,893	$	69.82		70,893		2,106,871
Total		185,559	$	72.47		185,559		2,106,871


31.1		Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a) Promulgated under the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a) Promulgated under the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*		Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

32.2*		Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

101.INS		Inline XBRL Instance Document.

101.SCH		Inline XBRL Taxonomy Extension Schema With Embedded Linkbases Document.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*		The certifications attached as Exhibit 32.1 and Exhibit 32.2 accompany this Quarterly Report pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the registrant for purposes of Section 18 of the Exchange Act and are not to be incorporated by reference into any of the registrant’s filings under the Securities Act or the Exchange Act, irrespective of any general incorporation language contained in any such filing.


	CORVEL CORPORATION

Dated: February 5, 2026	By:	/s/ Michael G. Combs
	Michael G. Combs, Chairman of the Board, Chief Executive Officer and President (Principal Executive Officer)

Dated: February 5, 2026	By:	/s/ Brian S. Nichols
	Brian S. Nichols,
	Chief Financial Officer (Principal Financial Officer)