Claritev Corporation

Good morning and welcome to the Claritav Corporation first quarter 2026 earnings conference call. I am Franz and I'll be the operator assisting you today. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star one on your telephone keypad. If you would like to withdraw your question, Simply press star 1 again. Thank you. I would now like to turn the call over to Todd Friedman, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Clarity's first quarter 2026 earnings call. Joining me today are Travis Baldwin, President and Chief Executive Officer, and Doug Garris, our Chief Financial Officer. During our call, we will refer to the supplemental slide deck that's available in the Investor press release issued earlier this morning. Our remarks and responses to questions today include four looking statements. These four looking statements represent management's beliefs and expectations only as of the date of this call. Actual results may differ materially from these four 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 in our annual report on Form 10-K and other documents we file with the FCC. We will also be referring to several non-gap measures, which we believe provide investors with a more complete understanding of Clarity's underlying operating results. An explanation of these non-gap measures and reconciliations to their comparable gap measures can be found in the earnings press release and the supplemental slide deck. With that, I would now like to turn the call over to Travis.

Good morning, and thank you for joining us. It was great to see so many of you at our Investor Day in March. We appreciate the feedback you provided and look forward to keeping that dialogue going throughout the year. There were a number of themes that we highlighted in New York, but I want to reiterate a few of those that we'll cover on the call today. First and foremost, we're entering this year with confidence. Confidence in our business, in our strategy, and in the durability of the foundation that we built. This was a strong quarter that reflects not just performance, but progress. Second, at the heart of that confidence is our competitive position, one that is grounded in our longstanding client relationships, scaled data ecosystem, deep domain expertise, and increasingly, our differentiated application of AI. In a market where accuracy, trust, and outcomes matter, those advantages are not easily replicated. And third, we've expanded our markets and our offerings to connect all phases of the healthcare lifecycle. That expansion has been critical to diversifying our revenue streams and in doing so, building a foundation for quality earnings driven by sustainable long-term growth. At the heart of that effort is the reinvigorated growth and strengthening of our core, which is most evident in our outstanding Q1 results. We believe strongly that Clarity's growth originates from those core offerings and gives us the foundation and time to execute against our growth I'm going to touch on each of these themes in my remarks and explain why they are driving record bookings, organic growth, and expanding market presence. First, I'll touch on the financials and results. This marks another quarter of consistent growth, with both revenue and EBITDA ahead of our expectations, demonstrating that our strategy is not only sound, but executable with focus. Our growth team had a strong start to the year, closing more than $40 million in annual contract value bookings in Q1. and showing diversity and momentum across our portfolio. Doug will touch on the ACV later, but we saw strength across the portfolio with wins in our core, particularly in our NSA business, with providers, and in the public sector. Importantly, our pipeline continues to grow, and our close rates have remained strong, giving me great confidence in our 80 to 100 million ACV sales target. over last year's sales results. At our investor day in March, we announced that we had signed an agreement with GDIT to provide a custom network for the World Trade Center Health Program. This is an exciting moment for Claritiv as it represents two important evolutions in the business. One, it is leveraging one of our core solutions to serve a new market, the public sector. We see a number of opportunities in this vertical and hope to share more good news as the year progresses. And two, it demonstrates our capacity to create new partner relationships with a shared goal of making healthcare more affordable and accessible to those who need it the most. Another bit of news we teased at the end of yesterday was our signing of a top five health system, one that operates more than 700 total facilities, including hospitals, ambulatory surgery centers, and outpatient centers and sites of care. This is an exciting addition for Claritib that fortifies our position in our provider vertical. We look forward to sharing more about this exciting relationship in the future, but I'd note that this relationship came about directly as a result of our acquisition of OPCG in the fourth quarter, which is the cornerstone of our newly launched services offering. Next, let me discuss our strong position in the market, bolstered by industry trends moving in our favor. There's a clear focus on driving affordability across the healthcare ecosystem. We know from our experience that the best way to achieve that objective is through transparency, but we have been a leader for many years with a long tenured client relationships and results to back it up. We're seeing a clear industry shift. Platform consolidation is accelerating and clients are moving toward fewer, more integrated partners with scaled data and end-to-end capabilities. This trend plays directly to our strengths. Our unified data architecture driven by our digital transformation and network strategy position us well to lead this environment. AI is another powerful tailwind, but it's not a rising tide that lifts all boats equally. In regulated high stakes industries like healthcare, AI disproportionately benefits incumbents with trusted data, compliance expertise, and establish relationships. That's where we operate, and that's where we deliver value. There's also a tremendous benefit to how we run our own business. Last quarter, when we reviewed the code output of the engineering teams that are fully leveraging AI coding tools, we have found that we are nearly doubling coding capacity of those teams without any increase in headcount. We're building a foundation for scalable, profitable, sustainable growth. The operating leverage we are seeing from the widespread adoption of AI tools is an important lever in achieving our long-term objectives. If you think about our formula for success, it's straightforward. Data rights combined with a scalable workflow and better platform anchored in trust and amplified by AI. Let me give you a few concrete examples. Within our claims intelligence solutions, we get tens of thousands of claims that don't have a provider ID. When that happens, the claim can't be processed through the standard workflow and becomes a highly manual process. Our team built a provider contact agent that achieves research-level accuracy, appends the provider contact ID, reduces process time by more than half, and saves more than 2,000 hours of processing time at a fraction of costs. Another area that gets a lot of attention is the IDR process. It's a high-volume, workload-heavy process with which you are familiar. Using AI, we have automated the invoice extraction and reconciliation process for our accounts-payable IDRE workflows. We're now handling thousands of invoices each day, automating 100% of the daily processing in less than an hour, achieving nearly 100% accuracy and uptime. For our clients, this is a level of builds trust. For Claritev, it freed up resources to do higher-value work while eliminating late fees and accelerating collections. These are just a few examples, with many more projects currently in progress yielding growth potential and savings. Our investments in technology, data architecture, and AI are deliberate and disciplined. strengthening our market position and are beginning to generate meaningful high value, high impact value. We have AI teams working across all our solutions to deliver more value and performance to our clients and integrating deeply into our own operations, including sales and finance to build scale and efficiency. Our strategy is working. we're executing with a combination of horizontal capabilities like our network, payment and revenue integrity, data platform, and analytics, and deep vertical expertise across key healthcare markets. Our recent wins with the World Trade Center and a top five health system demonstrate our direction and allow us to scale efficiently while remaining highly relevant to our core clients. Furthermore, we see a significant opportunity to expand our presence widely within the TPA market. This is another strategic client base where our existing solutions can deliver immediate, tangible value to improve the healthcare experience for millions of consumers. To this end, we added a key industry leader late in 2025 to drive our TPA market forward. Dallas Scripps is a highly regarded industry veteran, joining Claritiv after nearly 20 years in the industry including his most recent role where he was president and COO of a TPA that was focused on using AI throughout the TPA client lifecycle. We're already seeing faster pipeline growth under his leadership and are excited by his energy and vision for this market. Looking ahead, our priorities remain clear. We're focused on driving organic growth, continuing to invest in the business, and scaling our platform to capture the opportunities in front of us. At the same time, we remain committed to deleveraging over time. I'll repeat what I said at our investor day. We are operating against vision 2030, not vision 20 minutes. Strength in our core business, key wins in our expansion areas, strategic operating investments, and world-class team are the foundation for driving clarity along along the path we outlined at Investor Day for our short, mid, and long-term targets. This is a business built to last, built to grow, and built to deliver the long-term cash flow and the leveraging that will ultimately drive major shareholder value. With that, I'll turn it over to Doug to walk through the financials in more detail.