Claritev Corp (CTEV) Q2 2026 Earnings Call Transcript

This limit to one question and one follow-up. Also, please note that this call is being recorded. I would now like to turn the call over to Todd Friedman, Head of Investor Relations. Todd, you may begin.

Thank you, Mark. Good morning, everyone, and welcome to Clarida's second quarter 2026 earnings call. Joining me today are Travis Dalton, President and Chief Executive Officer, and Doug Garris, Chief Financial Officer. During our call, we will refer to the supplemental slide deck that is available in the investors portion of our website, along with the second quarter 2026 earnings press release that we issued earlier this morning. Our remarks and responses to questions today will include forward-looking statements. These forward-looking statements represent management's beliefs and expectations only as of the date of this call. Actual results may differ materially from these forward-looking statements due to a number of risks. A summary of these risks can be found on the second page of the supplemental slide deck in a more complete description in our annual report on Form 10-K and 10-Q and other documents that we filed with the SEC. We will also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of CLARIT's underlying operating results. An explanation of these non-GAAP measures and the reconciliations to their comparable GAAP measures can be found in the earnings press release and in the supplemental slide And with that, I would now like to turn the call over to Travis.

Good morning. Thank you for joining us. We're pleased to announce another strong quarter for CLARIT and continued progress on our turnaround journey. You are what your record says you are, and our results demonstrate that our strategy is working, our execution is strengthening, growth is returning, and we are building forward momentum across the business. The hard work and discipline over the last two years of laying the foundation of clarity and alignment focus resulted in the turn last year, which has positioned us to take advantage of the opportunities in front of us. at our investor day in march we introduced 2026 as the year of the way up which is a return to sustainable growth in our multi-year transformation the first half of the year has demonstrated that our strategy of driving horizontal solutions into vertical markets is working in addition to focusing on our core client solutions and attacking new markets we're building leaders in a culture of growth at the company i'm most proud of the way our people have embraced change and new opportunities to impact health care. We also have made thoughtful and smart investments in our technology, platforms, data architecture, and talent over the last two years. Our technology modernization positions us to quickly adapt and harness the power of new tools and technology like AI to bring more value to clients much faster. The organizations that have the knowledge and align structurally to unleash the potential of AI will be winners going forward. Our greatest asset is the knowledge and industry acumen we possess versus the competition. On today's call, I'll cover our strong second quarter results, the macro healthcare environment that demonstrates the challenges we are so good at tackling for consumers of healthcare, the continued progress and potential we see in AI. Let me begin with our Q2 performance, which exceeded our expectations on nearly every key metric. Revenue and adjusted EBITDA both came in above plan. We had another great bookings quarter exceeding $70 million ACV for the first half of 2026 and well on our way to achieve our $100 million full-year stretch target. Just as important, we are seeing larger deal sizes, broader contribution from our entire sales team, improving win rates, and a healthy and growing pipeline. Doug will give some color on the conversion cycle from booking to revenue, but this quarter's business performance validates the foundation against the multi-year financial goals that we outlined in our investor day. I do want to highlight one area that we stressed on our first quarter earnings call where we have ramped up our focus and brought in new leadership, and that's the third-party administrator or TPA business. The TPA vertical represented our largest contributor to second-quarter bookings with several seven-figure deals. Among them was MarPi, which selected our payment and revenue integrity solutions for both prepay and post-pay claims. We also expanded adoption of our network and advanced code editing solutions across the TPA market. Equally important is the breadth of our momentum with wins spanning large national TPAs, regional mid-market organizations, and technology-focused players. Our new segment leader, Dallas Grip, has provided immediate energy to the business, and we expect this segment to contribute roughly 30% of our total new bookings this year, second only to our payer segment. We also see an expanded opportunity in Medicare Advantage. We recently signed a five-six-figure ATV deal and a new logo in the quarter to build an MA network. While not a significant revenue driver for us today, we believe it represents a meaningful long-term growth opportunity as plans increasingly seek solutions that improve payment accuracy, optimize networks, identify high-cost trends, and enhance provider performance. This is an example of the diversification strategy we set in motion over the past two years, and we're beginning to see it translate into a broader, more durable growth profile. Taken together, our bookings, momentum, and revenue growth reinforce our confidence in the long-term strategy. Focus on our core solutions and faster innovation with our existing clients. Expand aggressively across new vertical markets with those solutions. create new capabilities for launch that fit the cost reduction and transparency demand of the market. This strategy is starting to yield sustainable growth momentum that will allow us the financial flexibility to invest, drive down our debt leverage over time, improve operating leverage, and unlock free cash flow to maximize long-term value. Next, I'd like to highlight several macro trends that continue in health care and make our mission of affordability and transparency so important. First, medical cost trends continue to rise, with medical inflation running between 8% and 10% annually, well above overall economic growth. Healthcare spending almost 20% of the USGDP, creating significant pressure on employers, the government, and consumers. Thirts have existed to help solve that problem, whether it's our network providing access to predictable care, transparency solutions bringing insights, PRI solutions tackling waste, or claims intelligence driving cost savings. Simply put, we make health care more affordable for consumers. Self-funded plan enrollment remains stable, and out-of-network claim volumes have remained in the mid-7% range over the last five years. Utilization is stable, but MIGS is shifting to higher-cost areas, such as emergency care, behavioral health, and specialty facilities, creating a durable demand environment for our network, payment integrity, and no-surprise-to-act solutions. And third, the regulatory complexity persists with NSA IDR changes and reduced federal funding for several programs. These changes and challenges can only be met by nimble, scaled, technology-enabled companies like ClareTest. Affordability and transparency remain central priorities for the federal government, aligning closely with our four capabilities and strategies. Let me highlight the area where government intervention is most measurable. 2022 introduction of the No Surprises Act and the Independent Dispute Resolution process. The recently finalized IDR rules increase the operational compliance requirements for both payers and providers. As those requirements grow, our scale, technology, and expertise become even more valuable. No company has demonstrated a greater ability to manage NSA claims at scale than clarity. Our arbitration outcomes continue to outperform the industry by approximately 8 percentage points, and we're seeing existing clients consolidate more of their NSA workflow onto our platform. The same dynamics are driving demand across our payment and revenue integrity portfolio. As healthcare organizations face increasing pressure to reduce costs, identify fraud, waste, and abuse, and improve payment accuracy, our solutions become increasingly strategic. We're proud that Evers Group recently recognized Claritif as a leader in payment integrity. and wins like the MarFi engagement underscore growing momentum, we continue to see across this portfolio. Finally, let me turn to AI. We view artificial intelligence as an accelerator of both growth and operating leverage in an area where Claritive has built a meaningful competitive advantage. AI is only as valuable as the quality of the data behind it, the harness engineering engaged, the workflows it improves, and the trust users place in its recommendations. Those are areas where Claretip stands a part. Our multi-year digital transformation positioned us well before AI became today's headline. We have organized data, modern cloud-based workflow, and deep domain expertise that allows us to deploy AI responsibly and execute. Today, we're already using AI across numerous models and production use cases to improve efficiency, accelerate decision-making, and deliver better outcomes for our clients. We have AI initiatives across all solutions and business functions, but I'll focus today on a few IDR examples where the need and the impact is needed. If you listen to recent healthcare earnings calls or have read any of the current articles related to NSA, you know that the system is being overwhelmed with volume that drives unnecessary administrative cost and delay. Payers on behalf of employers often have only a narrow window to validate claims, identify missing information, and screen out ineligible submissions. Our analysis indicates that nearly half of all IDR submissions are ineligible, highlighting a significant opportunity to use AI to improve efficiency and accelerate our client's ability to respond quickly. This is where Clarity's combination of scale data and AI makes a mean for the past six months, we've launched AI-powered capabilities that automate provider data validation and ineligibility assessments, improving both speed and accuracy. We're also automating case creation for resubmission and enhancing predictive models that optimize pre-arbitration strategy. Together, these types of innovations reduce operating costs, improve outcomes, and resolve disputes earlier in the process which is good for both parties. Finally we operate in a highly competitive environment with large and growing challenges facing our clients. The need for more health care affordability and transparency has never been greater. Our strategy is delivering results and we have the people, technology, data, and client relationships capitalized on the opportunities to deliver right now and in the future. With that, let me turn the call over to Doug.

Thank you, Travis, and good morning, everyone. In Q2, we outperformed virtually all of our internal financial metrics for revenue, adjusted EBITDA, cash flow, and bookings, or ACV. As Travis indicated in his opening remarks, we are executing against the key objectives necessary, and we are on track to deliver or exceed the multi-year financial targets we outlined at our March 26th investor day. We are encouraged by our first half results and the momentum we are carrying into the back half of the year. Total revenue in the quarter was $257.5 million of 6.6% year over year. This marks the fifth straight quarter of year over year revenue growth and was our highest revenue quarter in 15 quarters back to Q3 of 22. Growth in Q2 came primarily from our largest business where we saw noted performance in the claims intelligence service line. especially within our NSA business. Claims intelligence was up close to 14% in Q2, and our total PSA revenue of $220 million was at its highest level in nearly four years. Additionally, our network and payment and revenue integrity service lines performed at or slightly above internal expectations in the court. Network revenues would have been positive year over year if you exclude the $5.4 million of one-time revenue from Q2 last year. On a comparable basis, excluding the one-time revenue from last year, our total growth in Q2 is nearly 9%. Q2 adjusted, but that was $155.8 million, our strongest performance in 13 quarters on an absolute dollar basis, and represented 60.5% of revenue. Margin was in line with our expectations for the quarter. I'd like to take a moment to note the strength of our cash flow metrics this quarter because they were meaningful. We generated $93 million of operating cash flow up 51% first prior year, 89.5 million of unlevered free cash flow up 24% for a prior year, and we generated 54.6 million of levered free cash flow up 49%. With respect to levered free cash flow, this was our highest quarterly performance in 15 quarters. We also did a great job of managing working capital and improved the pacing of our working capital cash conversion metrics, DPO and DSO by greater than five days. As a reminder, since the debt refinancing transaction concluded in January 25, we expect Q1 and Q3 to be cash consumption quarters and Q2 to Q4 to be cash generation quarters in the near to midterm. Our strong Q2 cash flow performance gives us confidence to invest with the elevated pace of investment required to fund our multi-year transformation and to support our growth initiatives. Our diversification strategy continues to be supported by strong sales momentum, highlighted by another record booking score. Travis provided some stats about strong bookings. With 30 million of ACV booked in Q2, we have already surpassed the 67 million we booked for the full year in 25. We plan on achieving the 100 million bookings aspiration we announced earlier this year. 26 bookings were up 150 percent, and we exited June with greater than $300 million of active pipeline, up 50 percent on a comparable basis, with greater than three times coverage. As we have said before, bookings are not linear, but given improvements to our processes and insights into our pipeline, we feel highly confident in our ability to deliver at least 50% ACV bookings growth for the full year. In Q2, bookings reflected a balanced mix of expansion between existing clients and new client acquisition. Cross-sell and up-sell activity accounted for approximately 75% of bookings, while 25% came from five net new client logos, which included several from the provider and public sector verticals. A few additional highlights on Q2 bookings performance. Pipeline growth remains exceptionally strong alongside continued improvements in lead qualification and sales execution. So far in 26, we've closed 16 deals with greater than 1 million of ACV, up 25% versus last year. Through the first half of the year, our average deal size has grown more than 300% on an absolute dollar basis. Beyond deal size, most of our other key sales metrics continue to trend favorably. Sales cycle times from lead gen to deal close continue to shorten, and our win rates continue to improve. Our momentum is building. Our performance this quarter is reflective of the aggressive sales strategy and realignment to segments we announced at the end of last year. In our supplemental deck, you'll find on our website you'll see a shift in some of our claims and charges trends and Q2 claims volume grew 11% sequentially and 3% versus prior year reversing recent trends there are two primary drivers here that speak about the diversification of our business and why we balance these metrics instead of relying on just one first we have now largely allowed the residual impact of a single client issue from several years ago whose volumes declined increasingly over the last few years future quarters starting in Q3 will make for a better comparison to the run rate of our core business as we go forward. Second and more notable, we saw a significant increase in the volume of NSA claims we process, driven by a recent client link. Because NSA claims typically cover a broader set of services, gross NSA claims volume stepped up meaningfully, while total charges per claim and revenue per claim moved lower sequentially. This is simply a product mix shift, not pricing nor margin pressure. Total TSAVE revenue dollars grew 8% sequentially and 10% in the quarter versus prior year, and the net dollar contribution is clearly accretive. While we do not give a guide to claims volumes, we note that this mixed dynamic could persist in the second half, which could keep volumes elevated and revenue per claims averages closer to our Q2 exit rate in the near future. Turning to guidance, on the strength of Q2, we are raising our revenue guide to full percentage points to a new range of $1 billion to $1.02 billion, reflecting 4% to 6% growth and marking a return to greater than $1 billion of annual revenue, which we last eclipsed in 2020. As you review your second half model, I'll note Q2 included a small amount of volume-based revenue that was originally modeled in Q1. Therefore, for the quarterly revenue cadence, we suggest modeling Q3 revenue flat sequentially, largely consistent. We are raising our full year adjusted EBITDA guide to $610 to $620 million with margins of approximately 61%. As we stated last quarter, we will continue to invest increasingly in sales, marketing, and operations to support the growth in ACV. New bookings take on average two to four quarters to convert to revenue and then another four quarters to achieve fully annualized revenue contribution, which means we will continue to invest now for new and expansion revenue drivers that largely begin contributing to our top and bottom line growth in 2016. We are not changing our guidance for total capital spent at $160 million to $170 million in 2016. We are raising our free cash flow guide by $5 million to a new range of $5 million to $15 million. In 2016, we expect to deliver substantial operating, unlevered, and levered free cash flow growth with adjusted cash conversion normalized into pre-25 levels of greater than 50% by the end of this year. Finally, we remain committed to our capital allocation plan on a multi-year basis. We plan to primarily invest in our business to drive organic growth and drive absolute dollar earnings. All of this aligns with our guiding principles to diversify and accelerate, expanding our solutions, verticals, and channels to drive growth, while also deleveraging and de-risking our business to enhance cash flow and operating agility. With that, I'll turn the call back over to Travis for a second.

I've got one quick closing comment. We're a 45-year-old business, but the momentum and clarity is real, and you can see it as a constant and continuous force, and we're building the organization to adapt. Our strategy is working. We're executing with greater speed and discipline as we attack new areas to ensure... I also want to give a quick shout-out to Ryan Fox on his recent victory at the Open Championship. When we relaunched our brand last year, we made a decision to align ourselves with brand ambassadors who do more than wear a logo. They represent the values we aspire to as a company. Ryan is not just an amazing golfer. He's all about declarative, but not have been prouder. It's a cool moment to watch him sink that last 45-2 declarative. With that, I'll turn to the operator for questions.

We will now begin the question and answer session. If you would like to ask a question at this time, just press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, press star one again. And please limit to one question and one follow-up. And your first question comes from the line of Daniel Groslite with Citi. Daniel, please go ahead.

Hi, guys. Thanks for taking the question. Congrats on reaching what seems to be a nice inflection point. I know it was a lot of hard work to get here. I wanted to focus on the nice improvement in PSAV volume you saw this quarter. I know you noted it was largely driven by NSA claim growth. I'm wondering how much of that was due to maybe a bolus in 2Q just getting through the system, and how much is more structural? I'm trying to think through the volume dynamic in the back half of this year.

Yeah, thank you, Daniel. Thanks for the kudos, and happy to take that one. So, when you look at our first half volume, we modeled low single-digit volume on the full year. We think there was, you know, approximately maybe 45 to 60 million of savings that kind of slipped into Q2, which is a few million of revenue. We're actually highly encouraged by the volume environment heading into the second half of As the new pronouncements event, we've taken a little bit more of a modest view of volumes in our base modeling for the second. Some of the structural changes to NSA actually have us very well positioned, but we basically modeled a low single-digit volume decline on the full year. If you look at the sequential progression of volume, we think the Q2 exit rates are pretty fair baseline for us.

Got it. Okay. As a follow-up, more of a math question, if I hold 3Q revenue constant relative to 2Q and I plug in kind of the midpoint of guidance for the full year, that implies a step down from 3Q to 4Q of about $7-ish million. dollars is that just conservatism in the guide and you really expect to be kind of closer to the high end of revenue guide the revenue guide or even above it um i'm just trying to square you know why why we should why should we um see a a sequential step down in in 4q implied by the guide

yeah now that's that's a great question so what i would say is we're managing between the base and the high end of the range. If you look at the base case, that implies a 2H of about $508 million of total revenue, which year over year is up 3%, sequentially is up 1%. So if you kind of take the base of 1.01 on the year, between the base and the high end of the range, you kind of have a sequential step up of 1% to 3%, and then a year over year progression of about, again, largely dependent on claims volume and kind of flow through the PSA business. But we tend to plan the business a little bit more conservatively so we can manage free cash flow. But that's how I would think about your model for Q2.

Your next question comes from the line of Richard Close with Canaccord Genuity. Richard, please go ahead.

Excuse me. Yes, thanks for the question. Congratulations on the performance here. You know, Doug, I think you mentioned this a little bit in your prepared remarks, but can you just remind us on new booking, wins, like just the time to implement and trigger revenue recognition? Has there been any changes there? Just trying to plan out when these new wins come online.

Yep. No, that's a great question. Thanks for the question. So our average booking, when we have a new booking, it takes anywhere from about two to four quarters to turn into the first dollar of revenue, and then it takes about four quarters for the revenue to annualize. So our ACB bookings metric is not indifferent to like a software ARR. We had a larger NSA win earlier in the year that took about a quarter.

That's helpful. And then just on the digital transformation, you know, maybe an update there. Is it, you know, going as expected? Are you it able to accelerate it at all? Just any thoughts in terms of how that's tracking?

Yeah, Richard, this is Travis. Yeah, we're, look, I think we, as I said in my opening remarks, I think we made a smart decision two years ago to start that transformation program, to start aggressively modernizing the company. The point I would make is that we had investments to make in core systems. We had investments to make in digital transformation, and we had investments to make for growth. And I think the team's done, frankly, a tremendous job of what I call threading the needle, of bringing the company up to modern standards and then investing in our growth thesis by opening new markets, talent, people. Our digital transformation remains on track. It remains core and central to the company. We've been able to move most of our applications to cloud-based environments. and what was underpinning a lot of the digital work we were doing was really around data architecture and infrastructure. So I think it's positioned us really well, not just to run the company in its current form, but also to take full advantage of AI models and capability and forward-progressing technologies. So I would say we're very pleased with progress teams executing, and we're starting to see real value from those models that are emerging.

Yeah, and I would just say AI has been a focal point, obviously, for a lot of organizations. Our digital transformation enables us to be a winner in AI. We have dozens of use cases and models in place. And look, I mean, last quarter, I think we said it, more than half of our code now is generated by AI. And I think the expectation is going forward as we fully modernize our over 400 applications, we'll have, you know, approximately the same number of humans doing four to eight times more work. And so we're pretty well positioned in our digital transformation. I always joke around with our chief digital officer, ask him to go faster, but I think we're well on track to our multi-year transformation in the last update that we gave at Investor Day in March.

Thank you.

Your next question comes from the line of Stan Berenstein with Wells Fargo. Stan, please go ahead.

Hi, good morning. Thanks for taking my questions. Maybe first on bookings, obviously, you know, you've executed against most of the book that you anticipated. There's maybe $26 million remaining. Do you see a path to get to over $100 million here? And how have bookings been converting into revenue versus your expectations at the start of the year?

Yeah, thanks, Stan. And so, we are going to deliver in excess of 100 million of bookings this year. So, we've delivered 74 million of bookings through the first half of the year. So, we're already ahead of our pace from last year. And what I had said earlier is I think we got about an additional point of ACV to revenue conversion on a larger win we had in the NSA space that has been progressing well, a very large payer win that we had earlier in the year that's turned on at or maybe a little bit ahead of schedule. So, I think part of the uptick in our guide is attributable to the ACV conversion, but on average, the two to four quarters for ACV ramp is still a very good paradigm.

Got it. And then, you know, maybe it's a little bit early to start talking about 2027, but as you look at your sales pipeline, do you see any differences in the mix of opportunities versus what you've executed against in 2026? Thank you.

Yeah, so we felt comfortable coming out and giving a little bit more color into our actual funnel. So we have north of $300 million of active pipeline, and about a third of that is within our new verticals. And so some of them, especially the public sector, are a little bit longer lead time. But just like the World Trade Center, it's a business we would have never bid on before. And so our realignment under our chief growth officer of two segments was really smart. And then our pipeline and funnel and our bookings progression has been pretty steady at 70% to 75% of upsell and cross-sell. And so this notion that there's not growth in our core business is simply not true. When you look at our payer space, about 80% of our revenue, our TPA space is a little less than 20. There is significant white space left to go, and we're actively hitting the market, especially in the TPA space, thinking about pricing and packaging more strategically. We want to be the single vendor to a lot of large customers. We've seen great progress and momentum thinking about our sales motion differently, but we did close five new logos. We had 11 this year. We did 30 last year. And so it's goodness all around, but we're keeping the core business, the focus, because that's where most of our uplift in scale is going to come from over the next few years. I don't know if you've got anything.

Yeah, I would just add a little tiny bit of color commentary to that. I mean, I think Doug hit it, but our strategy we set out really a couple years ago that we're executing is to put together vertical market strategies against products that could work across those without massive customization or investments needed for each vertical market. So that's been something we've been focused on. We're now getting to it, and we're starting to execute against that. So it's not just calling on the same customers over and over. We expanded aggressively in the TPA market. We think MA represents a real advantage for us or opportunity as we build out our sales apparatus. This quarter was great. We had two, we had PPA deals, we had two public sector deals, we had two services deals, and International continues to be a business that we think could yield results for us. So the totality of it is healthier. I think it will take time for us in those new markets It's worked to become a significant portion of our ongoing revenue performance, but I'm very, very happy with what looks like early returns and durability of the business.

I appreciate the callers. Thank you. Your next question comes from the line of Jason Casorla with Guggenheim. Jason, please go ahead.

Great. Thanks. And good morning and congrats on the quarter. Maybe just on the NSA revenue upside, can you help a little bit in terms of the mix of drivers? It sounds like it was predominantly from the Wynn earlier this year, but I'm just curious if you're seeing that funnel widen, just given the backdrop. And then maybe following up on that, can you help in terms of how to think about the puts and takes for NSA moving forward in that business? Do you think that this year could be a tough comp for you, or how sticky is this NSA revenue in your view? Just any thoughts there would be great.

Yeah, thanks for the question, Jason. So the uptick in NSA is primarily due to one client. And it's not just NSA, it's a surprise bill. The surprise bill both includes the NSA. There's 27 different versions, which is yet another reason why we continue to be the market leader. We actually recently published a report. I think we probably need a quarter.

Very helpful. And then maybe just wanted to ask about the AI initiatives that are identifying more savings per claim. I guess, you know, curious, is there a way to help, you know, sort of quantify how incremental those savings are developing against sort of like your normal blocking and tackling? And then maybe, you know, a way to frame what the remaining savings opportunity there looks like. Like, are you in any two or three of this kind of AI-related savings potential? Just any thoughts around that would be helpful.

Yeah, so at our investor day, we announced our ProPricer product, which has identified over a billion dollars of additional savings. so that the uplift from the existing R&D we put into the business with respect to kind of additional savings.

Okay, thank you.

Again, if you would like to ask a question, just press star followed by the number one on your telephone keypad. And our next question comes from the line of Jessica Tassan with Piper Sandler. Jessica, please go ahead.

Hi, guys. Thank you very much for taking the question and congrats on the results. I'm wondering if you can just help us understand the variance versus consensus across each of your three revenue segments, so just drivers and any comments. Network, it looks like, was a $2.7 million beat. Analytics, $12.6 million beat. And then payments, $2.6 million missed. Appreciate the comments on flat sequential revenue and 3Q, but just helpful if you could provide detail on the performance versus consensus kind of across each of those three revenue lines.

Yes, sure. Thanks, Jess, and thanks for the question. So on payment and revenue integrity, the miss is timing. We still expect that business to be up versus prior year. But network, we mentioned in the prepared remarks, the network of payment and revenue integrity performed in line with our expectations. And if we need to go a little bit further in detail in the post call, we can. Network's going to be down highest thing last year. Our claims intelligence.

That's so helpful. So just one quick clarification, 25 of the 37 million ACV booked with payment and revenue integrity. And then my follow-up questions, just can you maybe discuss, of your top three customers, how many use Claritive for IDR help, and then just, you know, you mentioned eligibility determinations, but I guess what is Claritive doing in that process from the time the out-of-network service is rendered? And I would appreciate just any color on kind of the suite of products that address the NSA and the IDR process. Thank you.

Yeah, great. So, several of our top 10 customers use our services explicitly. And as I mentioned, we are the largest independent provider of surprise bill in NSA. Outside of the large payers and carriers to do the services themselves, we think we do it much better. And the recent PUP data from CFMC, most often, the dispute does go to the IDR process.

There's no further question at this time. I will not turn to call it back over to the company for closing remarks.

Yeah, thanks everybody for your time. We appreciate it. Like we said, we're pleased with our results and the positive momentum, and thanks for your time.

This concludes today's conference call. You may now disconnect.