Corvel Corp 10-Q for FY2026 Q2

Corvel Corp (CRVL)

10-Q 2025-11-06 For: 2025-09-30

Added on April 04, 2026

About this 10-Q

Corvel Corp filed this 10-Q on November 6, 2025, covering the quarter ended September 30, 2025 (FY2026 Q2).

Headline figures

Quarter ended September 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $239.64M; up 6.8% from $224.38M a year earlier
Net income: $27.91M; up 19.3% from net income of $23.4M a year earlier
Diluted EPS: $0.54; up 20.0% from $0.45 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 – September 30, 2025 (unaudited) and March 31, 2025	3
	Consolidated Income Statements (unaudited) – Three months ended September 30, 2025 and 2024	4
	Consolidated Income Statements (unaudited) – Six months ended September 30, 2025 and 2024	5
	Consolidated Statements of Stockholders’ Equity (unaudited) – Three and six months ended September 30, 2025 and 2024	6
	Consolidated Statements of Cash Flows (unaudited) – Six months ended September 30, 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


	September 30, 2025			March 31, 2025
	(Unaudited)
Assets
Current Assets
Cash and cash equivalents	$	207,453,000		$	170,584,000
Customer deposits		112,302,000			101,472,000
Accounts receivable, net		104,919,000			104,126,000
Prepaid taxes and expenses		9,593,000			10,507,000
Total current assets		434,267,000			386,689,000
Property and equipment, net		111,174,000			92,052,000
Goodwill		36,814,000			36,814,000
Other intangibles, net		350,000			438,000
Right-of-use asset, net		19,178,000			20,825,000
Deferred tax asset, net		9,408,000			8,704,000
Other assets		490,000			454,000
TOTAL ASSETS	$	611,681,000		$	545,976,000
Liabilities and Stockholders' Equity
Current Liabilities
Accounts and taxes payable	$	23,110,000		$	16,792,000
Accrued liabilities		207,219,000			187,244,000
Total current liabilities		230,329,000			204,036,000
Long-term lease liabilities		18,575,000			19,953,000
Total liabilities		248,904,000			223,989,000
Commitments and contingencies
Stockholders' Equity
Common stock, $.0001 par value: 360,000,000 shares authorized at September 30, 2025 and March 31, 2025; 166,000,944 shares issued (51,293,374 shares outstanding, net of Treasury shares) and 165,836,235 shares issued (51,359,544 shares outstanding, net of Treasury shares) at September 30, 2025 and March 31, 2025, respectively		5,000			5,000
Paid-in capital		258,511,000			250,407,000
Treasury stock (114,707,570 shares at September 30, 2025 and 114,476,691 shares at March 31, 2025)		(853,965,000	)		(831,510,000	)
Retained earnings		958,226,000			903,085,000
Total stockholders' equity		362,777,000			321,987,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	611,681,000		$	545,976,000


	Three Months Ended
	September 30, 2025		September 30, 2024
REVENUES	$	239,643,000	$	224,380,000
Cost of revenues		181,466,000		173,632,000
Gross profit		58,177,000		50,748,000
General and administrative expenses		22,277,000		22,078,000
Income before income tax provision		35,900,000		28,670,000
Income tax provision		7,994,000		5,272,000
NET INCOME	$	27,906,000	$	23,398,000
Net income per common and common equivalent share
Basic	$	0.54	$	0.46
Diluted	$	0.54	$	0.45
Weighted average common and common equivalent shares
Basic		51,314,000		51,399,000
Diluted		51,723,000		52,023,000


☒	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


	Six Months Ended
	September 30, 2025		September 30, 2024
REVENUES	$	474,354,000	$	436,102,000
Cost of revenues		359,552,000		337,200,000
Gross profit		114,802,000		98,902,000
General and administrative expenses		43,619,000		42,198,000
Income before income tax provision		71,183,000		56,704,000
Income tax provision		16,042,000		11,729,000
NET INCOME	$	55,141,000	$	44,975,000
Net income per common and common equivalent share
Basic	$	1.07	$	0.88
Diluted	$	1.06	$	0.87
Weighted average common and common equivalent shares
Basic		51,333,000		51,381,000
Diluted		51,817,000		51,981,000


	Three Months Ended September 30, 2025
	Common Shares		Stock Amount		Paid-in- Capital		Treasury Shares			Treasury Stock			Retained Earnings		Total Stockholders' Equity
Balance – June 30, 2025		165,889,159	$	5,000	$	253,334,000		(114,563,796	)	$	(841,127,000	)	$	930,320,000	$	342,532,000
Stock issued under employee stock purchase plan		5,682		—		418,000		—			—			—		418,000
Stock issued under stock option plan, net of shares repurchased		98,492		—		2,577,000		—			—			—		2,577,000
Stock-based compensation expense		—		—		1,398,000		—			—			—		1,398,000
Stock issuance for asset acquisition		7,611		—		784,000		—			—			—		784,000
Purchase of treasury stock		—		—		—		(143,774	)		(12,838,000	)		—		(12,838,000	)
Net income		—		—		—		—			—			27,906,000		27,906,000
Balance – September 30, 2025		166,000,944	$	5,000	$	258,511,000		(114,707,570	)	$	(853,965,000	)	$	958,226,000	$	362,777,000


	Three Months Ended September 30, 2024
	Common Shares		Stock Amount		Paid-in- Capital		Treasury Shares			Treasury Stock			Retained Earnings		Total Stockholders' Equity
Balance – June 30, 2024		165,584,634	$	3,000	$	237,804,000		(114,213,951	)	$	(803,431,000	)	$	829,497,000	$	263,873,000
Stock issued under employee stock purchase plan		3,306		—		342,000		—			—			—		342,000
Stock issued under stock option plan, net of shares repurchased		127,860		—		3,266,000		—			—			—		3,266,000
Stock-based compensation expense		—		—		1,482,000		—			—			—		1,482,000
Purchase of treasury stock		—		—		—		(96,369	)		(9,589,000	)		—		(9,589,000	)
Net income		—		—		—		—			—			23,398,000		23,398,000
Balance – September 30, 2024		165,715,800	$	3,000	$	242,894,000		(114,310,320	)	$	(813,020,000	)	$	852,895,000	$	282,772,000


	Six Months Ended September 30, 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		151,416		—		4,087,000		—			—			—		4,087,000
Stock-based compensation expense		—		—		2,815,000		—			—			—		2,815,000
Stock issuance for asset acquisition		7,611		—		784,000		—			—			—		784,000
Purchase of treasury stock		—		—		—		(230,879	)		(22,455,000	)		—		(22,455,000	)
Net income		—		—		—		—			—			55,141,000		55,141,000
Balance – September 30, 2025		166,000,944	$	5,000	$	258,511,000		(114,707,570	)	$	(853,965,000	)	$	958,226,000	$	362,777,000


	Six Months Ended September 30, 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		226,269		—		6,371,000		—			—			—		6,371,000
Stock-based compensation expense		—		—		2,552,000		—			—			—		2,552,000
Purchase of treasury stock		—		—		—		(210,783	)		(19,115,000	)		—		(19,115,000	)
Net income		—		—		—		—			—			44,975,000		44,975,000
Balance – September 30, 2024		165,715,800	$	3,000	$	242,894,000		(114,310,320	)	$	(813,020,000	)	$	852,895,000	$	282,772,000


	September 30, 2025			March 31, 2025
Billed receivables	$	69,065,000		$	65,323,000
Allowance for expected credit losses		(4,662,000	)		(7,690,000	)
Unbilled receivables		40,516,000			46,493,000
Accounts receivable, net	$	104,919,000		$	104,126,000


	Six Months Ended
	September 30, 2025
Beginning balance at April 1, 2025	$	30,809,000
Additions		39,707,000
Revenue recognized from beginning of period		(20,489,000	)
Revenue recognized from additions		(19,118,000	)
Ending balance at September 30, 2025	$	30,909,000


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 $39.83		269,513		2.17	$	25.39		269,513	$	25.39
$39.84 to $52.00		282,940		2.37		50.99		190,093		50.77
$52.01 to $66.85		312,864		2.76		62.37		191,808		61.39
$66.86 to $110.18		206,169		4.78		97.04		37,556		83.05
Total		1,071,486		2.90	$	56.73		688,970	$	45.56


	Number of Options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value as of September 30, 2025
Options outstanding at July 1, 2025		1,174,393		$	54.23
Granted		7,500			85.56
Exercised		(103,482	)		29.49
Cancelled – forfeited		(6,775	)		69.65
Cancelled – expired		(150	)		90.08
Ending outstanding		1,071,486		$	56.73		2.90	$	26,352,436
Ending vested and expected to vest		978,489		$	56.19		2.93	$	24,598,698
Ending exercisable at September 30, 2025		688,970		$	45.56		2.51	$	22,230,281


	September 30, 2025		March 31, 2025
Accounts payable	$	19,144,000	$	15,422,000
Income taxes payable and uncertain tax positions		3,966,000		1,370,000
Total accounts and taxes payable	$	23,110,000	$	16,792,000


	Three Months Ended
	September 30, 2025	September 30, 2024
Risk-free interest rate	4.23%	3.89%
Expected volatility	31%	35%
Expected dividend yield	0.00%	0.00%
Expected weighted average life of option in years	9.2 years	9.2 years



2026	$	4,438,000
2027		7,711,000
2028		6,933,000
2029		4,742,000
2030		2,823,000
Thereafter		1,905,000
Total lease payments		28,552,000
Less interest		(2,660,000	)
Total lease liabilities	$	25,892,000


	Three Months Ended
	September 30, 2025			September 30, 2024
Patient management services		62.9	%		65.6	%
Network solutions services		37.1	%		34.4	%
		100.0	%		100.0	%


	Six Months Ended
	September 30, 2025			September 30, 2024
Patient management services		62.7	%		65.7	%
Network solutions services		37.3	%		34.3	%
		100.0	%		100.0	%


	September 30, 2025		March 31, 2025
Payroll, payroll taxes and employee benefits	$	39,817,000	$	30,971,000
Customer deposits		112,302,000		101,472,000
Accrued professional service fees		10,879,000		11,004,000
Self-insurance accruals		3,561,000		3,276,000
Deferred revenue		30,909,000		30,809,000
Operating lease liabilities		7,317,000		8,126,000
Other		2,434,000		1,586,000
Total accrued liabilities	$	207,219,000	$	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
	September 30, 2025			September 30, 2024			Change			Change
Revenue	$	239,643,000		$	224,380,000		$	15,263,000			6.8	%
Cost of revenues		181,466,000			173,632,000			7,834,000			4.5	%
Gross profit		58,177,000			50,748,000			7,429,000			14.6	%
Gross profit as percentage of revenue		24.3	%		22.6	%
General and administrative expenses		22,277,000			22,078,000			199,000			0.9	%
General and administrative as percentage of revenue		9.3	%		9.8	%
Income before income tax provision		35,900,000			28,670,000			7,230,000			25.2	%
Income before income tax provision as percentage of revenue		15.0	%		12.8	%
Income tax provision		7,994,000			5,272,000			2,722,000			51.6	%
Net income	$	27,906,000		$	23,398,000		$	4,508,000			19.3	%
Weighted average common and common equivalent shares
Basic		51,314,000			51,399,000			(85,000	)		(0.2	%)
Diluted		51,723,000			52,023,000			(300,000	)		(0.6	%)
Net income per common and common equivalent shares
Basic	$	0.54		$	0.46		$	0.08			17.4	%
Diluted	$	0.54		$	0.45		$	0.09			20.0	%


					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
July 1 to July 31, 2025		45,992	$	95.64		45,992		2,390,212
August 1 to August 31, 2025		47,308	$	88.92		47,308		2,342,904
September 1 to September 30, 2025		50,474	$	83.19		50,474		2,292,430
Total		143,774	$	89.06		143,774		2,292,430


10.1#		CorVel Corporation 2025 Stock Incentive Plan (Appendix A to the Company’s Definitive Proxy Statement filed with the Securities and Exchange Commission on June 24, 2025).

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.

31.3		Second Amended and Restated Bylaws of CorVel Corporation. Incorporated herein by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020 filed on August 6, 2020 (File No. 000-19291).

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.

#		Management contract or compensatory plan or arrangement.


	CORVEL CORPORATION

Dated: November 6, 2025	By:	/s/ Michael G. Combs
	Michael G. Combs, Chairman of the Board, Chief Executive Officer and President (Principal Executive Officer)

Dated: November 6, 2025	By:	/s/ Brian S. Nichols
	Brian S. Nichols,
	Chief Financial Officer (Principal Financial Officer)