Fri, May 9, 11:41 AM (35 days ago)
**Claritev Corporation (CTEV) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $231.33 million, a 1.4% decrease from Q1 2024 ($234.51 million). - **Profit Margins:** Operating income of $9.74 million, a significant improvement from an operating loss of $486.44 million in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $30.06 million, compared to $49.72 million provided in Q1 2024. - **Earnings Changes:** Net loss of $71.32 million, an improvement from a net loss of $539.69 million in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Streams:** Network-Based Services and Payment and Revenue Integrity Services saw increases, while Analytics-Based Services decreased. - **Expenses:** General and administrative expenses increased by 45.3%, primarily due to transformation costs and losses on disposal of assets. - **Interest Expense:** Increased by 11.5%, mainly due to PIK interest recognized on new notes. - **Debt Management:** Completed a refinancing transaction, incurring $7.8 million in transaction costs. **Trends & Uncertainties:** - **Customer Concentration:** Two clients accounted for 28% and 16% of revenues in 2024, posing a risk if lost. - **Legal Proceedings:** Ongoing litigation, including antitrust lawsuits, could impact financial results. - **Regulatory Environment:** Changes in healthcare laws and regulations may affect operations. **Future Operations Impact:** - **Refinancing:** Increased debt and interest obligations, with a financial covenant requiring a debt to EBITDA ratio not exceeding 2.50 to 1.00. - **Liquidity:** $264.8 million loan availability under the revolving credit facility, with sufficient liquidity for the next twelve months. - **Stock Performance:** A 1-for-40 reverse stock split was implemented in September 2024. **Ticker:** CTEV **Exchange:** New York Stock Exchange