Claritev Corporation

Hello everyone, and thank you for joining us today for the Claritev Corporation Third Quarter Earnings Call. My name is Sammy, and I'll be coordinating your call today. During the presentation, you can register a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two on your telephone keypad to remove yourself from the question queue. And we ask that you limit yourself to one question and one follow-up question per person. Please do rejoin the queue for any further questions. I will now hand over to your host, Todd Friedman, Head of Investor Relations, to begin. Please go ahead, Todd.

Thank you, Sammy. Good morning, everyone, and welcome to Claritiv's third quarter 2025 earnings call. I'm excited to be on my first earnings call since joining the company. I look forward to working with all of you in the months to come. Joining me today are Travis Dalton, President and Chief Executive Officer, and Doug Garris, EVP and Chief Financial Officer. During the call, we will refer to the supplemental slide deck that you can find in the investors portion of our website, along with the third quarter 2025 earnings press release that we issued earlier this morning. Before we begin, a couple of reminders. Our remarks and responses to questions today may 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 and a more complete description on our annual report of Form 10-K and other documents that we will file with the SEC. We will also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of Claritib'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 the supplemental slide deck. And with that, I will turn the call over to Travis.

Thanks, Todd. Good morning, everyone, and thank you for joining us today. This is an exciting call for Claritib and for me personally. When I joined the company early last year, we laid out a multi-year journey to create a vision and a foundation that would deliver sustainable growth. We called 2024 the year of the foundation and established our guiding principles of clarity of purpose, alignment of talent, and focus on results, and boldly declared 2025 as the year of the turn. I'm proud to stand here today and say the turn has happened. We set out to be fit for growth by investing in people, tools, and processes that will allow us to have better visibility into the business to apply our critical resources to areas with the highest impact. This has allowed us to have better telemetry into the business to call a number and hit a number, thus improving our credibility with internal and external stakeholders. What I call the say-do ratio in simple terms, and we are keeping our word. We will go into more detail over the next 20 minutes, but our Q3 results show a second consecutive beat and raise order, and most significantly, is our core business driving that strong performance. We will roll into Q4 ready to close a transformative year for Claritiv and begin executing on the next phase of our five-year strategy, what we will call the way up in 2026. On today's call, I'll provide some of the highlights from the quarter and share how we made the turn ahead of schedule. Then Doug will come on for the financial discussion, and I will end with some thoughts on the state of health care and how we see it impacting our progress. One strong quarter is a data point, but two strong quarters are the start of a trend. Revenue growth of 6.7% and adjusted EBITDA growth of 9.5% were both ahead of our internal expectations. Our strong results last quarter were important to build confidence and demonstrate the power of our strategy to drive horizontal products, across multiple vertical markets. It is working. The Q3 results show focus, discipline, and our sense of urgency. I tell the team urgency is about discerning the critical few priorities from the many things that hit the windshield and intense focus on finishing them. We are executing. We are building a company that delivers on our promises through our clarity, alignment, and focus on executing with clear priorities and performance metrics. I want to take a moment to explain why I think we successfully made the turn earlier than planned. It starts with our intense focus on our clients, our people and a clear mission that all of our associates understand. We exist to serve our clients and the consumers of the healthcare ecosystem. Put simply, we make healthcare more transparent and affordable for all. Our core solutions across our network, analytics, and payment and revenue integrity businesses combined with our commitment to delivery, play an important role in addressing healthcare's biggest challenges. Our significant investments in technology, data, and AI give us a platform to continue to evolve and innovate as the market evolves. We have continued to align and upgrade our talent, provide opportunities for our existing associates, and align the organization to focus KPIs built on our pillars for growth. All of this has enabled us to play a significant role in providing access to care, reducing costs for consumers, combating waste in a misaligned system, and bringing pricing transparency to an opaque industry. Most importantly, we are an honest broker in healthcare that aligns market participants with the needs of the consumer, the patient. We have demonstrated the value of our solutions and with our improved execution throughout 2025, we have demonstrated how the core will continue to be a launching point that will deliver our long-term aspirations. Underpinning this confidence, as recently announced, we have renewed our top 10 clients for extended terms. This includes the single client we have discussed previously. These renewals provide visibility and stability for us to build upon as we enter the way up. Beyond that core, we have solidified our expansion into new market verticals, adding new clients, partners, and solutions that I'll describe in more detail in a few minutes. Now, turning to the highlights from the quarter. As we have noted previously, our company is now aligned to six focused market verticals, each with a clearly accountable leader and sales incentives to serve existing clients and new opportunity. This focus is a primary driver of the success we are seeing across the business. We are seeing increases in white space for existing clients, adding new logos and new solutions that expand our total addressable market. The underlying metrics in our core business support this view of a business that is on the rise. During the first three quarters of this year, we're seeing improvements in the percentage of actionable claims while also increasing our revenue per claim, which Doug will cover in additional detail. In fact, we're seeing positive trends in our key growth metrics across the business. We added five new logos, bringing our year-to-date total to 20 and closed 180 opportunities. We closed another 15 million in annual contract value, or ACV. Our average ACV per transaction is up more than 25% over last year, and our funnel continues to grow with a 67% increase in pipeline year-to-date. This is directly attributable to our strategy to focus on existing client value and also drive our horizontal solutions into new client acquisition across those vertical markets. The growth team has done an outstanding job and honestly is just getting started under the leadership of our Chief Growth Officer, Tiffany Macinchik. Now, let's look at Q3 in each of our market verticals. At the core of Claritiv are our payer and PPA client relationships. The growth in this vertical is the biggest reason we made the turn in our strategic vision ahead of schedule. We added four new logos and closed several seven-figure deals this quarter, coming from expansion with existing clients who see our commitment to client success and value for them. As mentioned earlier, we now have renewed our top 10 clients during this year. That combination of growth, stability, and visibility is the key reason we are optimistic about our continued success in this vertical, that optimism is bolstered for a solid Q4 based on early wins and a diverse pipeline. The broker and employer market continues to be a highlight for our vision to expand our reach across the healthcare landscape. We signed over 100 deals, including our first premier broker agreement with several more in progress to drive greater expansion of our products, including BDHP. We also hosted our first-ever Broker Virtual National Summit with more than 300 attendees, which is in addition to four additional webinars and seven broker conferences that we attended. Our traction in this vertical is growing, and we are seeing the results in continued pipeline growth. Turning to the provider market, we continue to see the opportunity to have a meaningful impact with healthcare providers who are seeking transparency and analytics solutions to optimize their operations and financial performance. Simply put, with complete view and analytics, we can drive revenue up, cost down, and with efficiency, give providers more resources to deploy to patient care. We now have opportunities with 60 provider organizations in our active pipeline and continue to demonstrate success. We signed EPHC, a 13-hospital consortium, in the eastern plains of Colorado to use our payment accuracy and market analytics solutions. Rural hospitals, like those in the EPHC, face unique challenges, especially in light of regulatory changes coming from HR1. Healthcare consumers in rural areas will face significant barriers to care, and we are proud to work with the hospitals that serve them as they strive to continue meeting this critical healthcare need. We opened our newest vertical market just over five months ago with our expansion to international, specifically the Middle East. We believe the international markets represent a significant growth opportunity where U.S. standards are widely used and our solutions can be quickly adapted and marketed in new countries. We launched our advanced code editing solution in the UAE with our first client ahead of schedule while signing new existing partnerships with Iowa Health and CLAIM to accelerate development of new AI-driven solutions. I have personally spent time in the MENA region, including last week in Riyadh, at Global Health and FII, and believe this is one of our most exciting growth opportunities. Partnerships with Iowa and CLAIM, while grounded in the MENA region, also have the potential to bring more value and solution innovation to our core U.S. markets. You'll hear more from us about this exciting potential. Briefly touching on the government vertical, we expect to have some positive news to share in the near term with real tangible impact. We've been working on a number of opportunities with prime contractor partners and are seeing some decisions being made. I'm going to speak to some market trends later in the call, but we see opportunity with core set of solutions across existing government needs, but also with opportunities that we believe will arise with the implementation of HR1. Our vision is very much aligned with government initiatives on price transparency services and reducing waste. We are actively engaging in discussions where our experience can deliver immediate value. Lastly, it's been a busy quarter for our strategic partnership team. I mentioned a couple of our international partnerships. We also closed an agreement with Kinetic to provide health and wellness consulting as an added service for event insights and plan optics products. Perhaps the most visible sign of our partner engagement model was at Oracle AI World, where we were a title sponsor, gave a number of theater and breakout presentations, and earned a shout-out in Oracle's subsequent investor day. We are actively working with our first pilot client and continue to make meaningful progress on embedding our solutions within Oracle's human capital management products. This would bring real-time insights and prediction to help employers proactively manage their health plans, identify risk, drive costs down, and improve wellness. We're also seeing active pipeline growth with our payments powered by ECHO with over 30 opportunities. When you look at Clarity Payments powered by ECHO in our most recent partnership with CLAIM, with an AI-driven healthcare payment acceleration solution provider, you are beginning to see the early stages of a growing financial solutions business. It is one that we believe can expand our presence in the healthcare market and create another new vector for future growth. I won't elaborate just yet, but expect to hear more from us on an innovative approach to one of healthcare's most vexing problems in the coming months. Before I turn the call to Doug, I want to make one last comment about our rebrand. As I've said to the team before, you don't simply change your name. A rebrand must be earned. Kudos to our marketing team as we aggressively campaign and create greater awareness in the market. Brand engagement is running high. Website visits are up more than 100%, and engagement is growing across multiple channels. We're sponsoring more events and building an exciting calendar for 26. This all becomes part and parcel of a consistent market-leading company. You build the brand. You do the hard work to build pipeline. Win rates go up. sales cycles begin to shrink, and most importantly, you listen to your clients and solve problems. It is all part of the focus and discipline at the heart of a transformational journey. I'll come back in a few minutes to wrap up our prepared comments, but I'll close these opening remarks by saying this is the most energized I've been professionally. I visited a number of our offices this quarter on a CEO roadshow, and you can tell the momentum is building. and enthusiasm across the company is palpable. Our teams are showing it and our clients are feeling it. It's a good time to be a and I'm excited for how we're doing, how we're going to finish the year. With that, I'll turn it to Doug.