Claritev Corp
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
CTEV$22.71+12.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001793229-25-000135
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001793229-25-000170
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 214 previous paragraphs and 155 current paragraphs.
94 unchanged; 51 reworded; 9 added; 62 removed; 7 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Forward-Looking Statements
Current report
This item and other sections of this Quarterly Report on Form 10-Q contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forwarding-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in Part I, Item 1A of the 2024 Form 10-K and Part II, Item 1A of this Form 10-Q, in each case under the heading “Risk Factors.” Given these risks, uncertainties, and other factors, you should not place undue reliance on these forward-looking statements. Also, these forward-looking statements represent our estimates and assumptions only as of the date of this filing. We hereby qualify our forward-looking statements by these cautionary statements. The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.
Current report
There have been no material changes during the three months ended September 30, 2025 to the components of results of operations as disclosed in Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's 2024 Annual Report on Form 10-K.
Current report
(2)"Transformation costs" represent costs directly associated with our multi-year transformation program called Vision 2030 which includes internal personnel costs for employees that have been either hired or redeployed and are fully dedicated to transformation activities, as well as other non-recurring and duplicative costs. At such time that internal personnel are redeployed to non-transformation activities, they will no longer be included as an adjustment herein.
Current report
Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024
Current report
General and Administrative Expenses (in thousands):
Current report
For the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024
Current report
In the nine months ended September 30, 2024, the Company repurchased and cancelled $21.1 million of the Senior Convertible PIK Notes, resulting in the recognition of a gain on debt extinguishment of $5.9 million.
Current report
The preparation of condensed consolidated financial statements and related disclosures in conformity with GAAP and the Company's discussion and analysis of its financial condition and operating results, require the Company's management to make judgments, assumptions, and estimates, which we believe are reasonable and prudent based on the available facts and circumstances. These judgments, assumptions and estimates affect the amounts reported. There have been no material changes to the Company's critical accounting policies and estimates described in Part II, Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our 2024 Annual Report on Form 10-K.
Removed paragraphs (62)
Previous report
Cautionary Note Regarding Forward-looking Statements
Previous report
All statements other than statements of historical fact included in this Quarterly Report including, without limitation, statements under this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), each as amended, including, in particular, statements about our plans, strategies and prospects as well as estimates of industry growth for the next quarter and beyond. When used in this Quarterly Report, words such as “believes,” “estimates,” “anticipates,” “expects,” “seeks,” “projects,” “intends,” “plans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology represent forward-looking statements that include matters that are not historical facts. They may appear in a number of places throughout this Quarterly Report and these forward-looking statements reflect management’s expectations regarding our future growth, results of operations, operational and financial performance and business prospects and opportunities. Such forward-looking statements are based on available current market material and management’s expectations, beliefs and forecasts concerning future events impacting our business. Factors that may impact such forward-looking statements include:
Previous report
•loss of our clients, particularly our largest clients;
Previous report
•the ability to achieve the goals of our strategic plans and recognize the anticipated strategic, operational, growth and efficiency benefits when expected;
Previous report
•our ability to enter new lines of business and broaden the scope of our services;
Previous report
•the loss of key members of our management team or inability to maintain sufficient qualified personnel;
Previous report
•our ability to continue to attract, motivate and retain a large number of skilled employees, and adapt to the effects of inflationary pressure on wages;
Previous report
•trends in the U.S. healthcare system, including recent trends of unknown duration of reduced healthcare utilization and increased patient financial responsibility for services;
Previous report
•effects of competition;
Previous report
•effects of pricing pressure;
Previous report
•the inability of our clients to pay for our services;
Previous report
•changes in our industry and in industry standards and technology;
Previous report
•adverse outcomes related to litigation or governmental proceedings;
Previous report
•interruptions or security breaches of our information technology systems and other cybersecurity attacks;
Previous report
•our ability to maintain the licenses or right of use for the software we use;
Previous report
•our ability to protect proprietary information, processes and applications;
Previous report
•our inability to expand our network infrastructure;
Previous report
•inability to preserve or increase our existing market share or the size of our preferred provider organization ("PPO") networks;
Previous report
•decreases in discounts from providers;
Previous report
•pressure to limit access to preferred provider networks;
Previous report
•changes in our regulatory environment, including healthcare law and regulations;
Previous report
•the expansion of privacy and security laws;
Previous report
•heightened enforcement activity by government agencies;
Previous report
•our ability to obtain additional financing;
Previous report
•our ability to pay interest and principal on our notes and other indebtedness;
Previous report
•lowering or withdrawal of our credit ratings;
Previous report
•changes in accounting principles or the incurrence of impairment charges;
Previous report
•the possibility that we may be adversely affected by other political, economic, business, and/or competitive factors;
Previous report
•other factors disclosed in this Quarterly Report; and
Previous report
•other factors beyond our control.
Previous report
The forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effects on our business. There can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors referred to under the heading “Risk Factors” in Part II, Item 1A of this Quarterly Report or as described in our 2024 Annual Report. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Previous report
We generate revenues from several sources including: (i) Network-Based Services that process claims at a discount compared to billed fee-for-service rates and by using an extensive network, (ii) Analytics-Based Services that use our leading and proprietary information technology platform to offer customers solutions to reduce medical costs, and (iii) Payment and Revenue Integrity Services that use data, technology, and clinical expertise to identify improper, unnecessary and excessive charges. Payors typically compensate us through either a PSAV achieved or a PEPM rate. Approximately 88% of revenue for the year ended December 31, 2024 was based on a PSAV achieved rate.
Previous report
Costs of services (exclusive of depreciation and amortization of intangible assets) consist of all costs specifically associated with claims processing activities for clients, sales and marketing, and the development and maintenance of our networks, analytics-based services, and payment and revenue integrity services. Two of the largest components in costs of services are personnel expenses and access and bill review fees. Access and bill review fees include fees for accessing non-owned third-party provider networks, expenses associated with vendor fees for database access and systems technology used to reprice claims, and outsourced services. Third-party network expenses are fees paid to non-owned provider networks used to supplement our owned network assets to provide more network claim savings to our clients.
Previous report
General and Administrative Expenses
Previous report
General and administrative expenses include corporate management and governance functions composed of general management, legal, treasury, tax, real estate, financial reporting, auditing, benefits and human resource administration, communications, public relations, billing and information management. In addition, general and administrative expenses include taxes, insurance, advertising, transaction costs, and other general expenses.
Previous report
Depreciation expense consists of depreciation and amortization of property and equipment related to our investments in leasehold improvements, furniture and equipment, computer hardware and software, and internally generated capitalized software development costs. We provide for depreciation and amortization on property and equipment using the straight-line method to allocate the cost of depreciable assets over their estimated useful lives.
Previous report
Amortization of Intangible Assets
Previous report
A loss on impairment can be recorded in connection with the quantitative impairment testing of our goodwill and indefinite-lived intangibles and is performed annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable, and their fair value is less than their carrying value.
Previous report
Interest expense consists of accrued interest and related interest payments on our outstanding long-term debt and amortization of debt issuance costs and discounts.
Previous report
Interest income consists primarily of bank interest.
Showing the first 40 of 62 passages. Open the source sections for the rest.
Reworded paragraphs (51)
Previous wording
The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and accompanying notes thereto contained elsewhere in this Quarterly Report and together with the information included in the Company’s 2024 Annual Report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties; the results described below are not necessarily indicative of the results to be expected in any future periods. References to common stock, warrants to purchase common stock, options to purchase common stock, restricted stock units, performance stock units, share date, per share data and conversion rates with respect to convertible notes and related information have been retroactively adjusted to reflect the effect of the Reverse Stock Split for all periods presented.
Current wording
The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the information included in the Company's 2024 Annual Report on Form 10-K and the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 in this Quarterly Report on Form 10-Q and risks described elsewhere in this Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission.
Previous wording
Although the end beneficiary of our services are employers and other plan sponsors and their health plan members, our direct customers are typically payors, including payors providing administrative services only, third-party administrators ("TPAs"), who go to market with our services to those end customers. We offer these payors a single interface to our services, which are used in combination or individually to reduce the medical cost burden on their health plan customers, by lowering the per-unit cost of medical services incurred, managing the utilization of medical services, and increasing the likelihood that the services are reimbursed without error and accepted by the provider. We are a technology-enabled service provider and transaction processor and do not deliver health-care services, provide or manage healthcare services, provide care or care management, or adjudicate or pay claims.
Current wording
Although the end beneficiary of our services are employers and other plan sponsors and their health plan members, our direct customers are typically payors, including payors providing administrative services only, and third-party administrators ("TPAs"), who go to market with our services to those end customers. We offer these payors a single interface to our services, which are used in combination or individually to reduce the medical cost burden on their health plan customers, by lowering the per-unit cost of medical services incurred, managing the utilization of medical services, and increasing the likelihood that the services are reimbursed without error and accepted by the provider. We are a technology-enabled service provider and transaction processor and do not deliver health-care services, provide or manage healthcare services, provide care or care management, or adjudicate or pay claims.
Previous wording
During the three months ended June 30, 2025, the Company advanced its long-term growth strategy by initiating its first international market expansion into the Middle East and North Africa ("MENA") region through a strategic partnership with Claims Care Revenue Cycle Management LLC ("Claims Care"), a division of Burjeel Holdings. Through this partnership, we will collaborate on a comprehensive product roadmap to deliver state-of-the-art revenue cycle management solutions, tailored to the needs of the MENA market. The relationship will involve the transition of certain of Claritev’s offshore business processes to Claims Care, in an effort to foster deeper operational synergies and market alignment.
Current wording
During the nine months ended September 30, 2025, the Company advanced its long-term growth strategy by initiating its first international market expansion into the Middle East and North Africa ("MENA") region through a strategic partnership with Claims Care Revenue Cycle Management LLC ("Claims Care"), a division of Burjeel Holdings. Through this partnership, we will collaborate on a comprehensive product roadmap to deliver state-of-the-art revenue cycle management solutions, tailored to the needs of the MENA market. The relationship will involve the transition of certain of Claritev’s offshore business processes to Claims Care, in an effort to foster deeper operational synergies and market alignment.
Previous wording
We believe our solutions provide a strong value proposition to payors, their health plan customers and healthcare consumers, as well as to providers. Overall, our service offerings aim to reduce healthcare costs in a manner that is orderly, efficient, and fair to all parties. In addition, because in most instances the fee for our services is linked to the savings we identify, our revenue model is aligned with the interests of our customers. For the six months ended June 30, 2025 and June 30, 2024 and for the year ended December 31, 2024, our comprehensive services identified approximately $12.5 billion, $11.9 billion, and $24.7 billion in potential medical cost savings, respectively.
Current wording
We believe our solutions provide a strong value proposition to payors, their health plan customers and healthcare consumers, as well as to providers. Overall, our service offerings aim to reduce healthcare costs in a manner that is orderly, efficient, and fair to all parties. In addition, because in most instances the fee for our services is linked to the savings we identify, our revenue model is aligned with the interests of our customers. For the nine months ended September 30, 2025 and September 30, 2024 and for the year ended December 31, 2024, our comprehensive services identified approximately $18.6 billion, $18.3 billion, and $24.7 billion in potential medical cost savings, respectively.
Previous wording
References to common stock, warrants to purchase common stock, options to purchase common stock, restricted stock units, performance stock units, share data, per share data and conversion rates with respect to convertible notes and related information contained in the unaudited condensed consolidated financial statements have been retroactively adjusted to reflect the effect of the Reverse Stock Split for all periods presented.
Current wording
References to common stock, warrants to purchase common stock, options to purchase common stock, restricted stock units, performance stock units, share data, per share data and conversion rates with respect to convertible notes and related information contained in the condensed consolidated financial statements have been retroactively adjusted to reflect the effect of the Reverse Stock Split for all periods presented.
Previous wording
The following table presents the medical charges processed and the potential savings identified across our products and revenue streams, including PEPM and percentage of savings ("PSAV"), for the periods presented:
Current wording
The following table presents the medical charges processed and the potential savings identified across our products and revenue streams, including PEPM and percentage of savings ("PSAV"), for the periods presented (in millions):
Previous wording
EBITDA, Adjusted EBITDA, and Adjusted EPS are widely used measures of corporate profitability eliminating the effects of financing and capital expenditures from the operating results. We define EBITDA as net loss adjusted for interest expense, interest income, income tax (benefit) expense, depreciation, amortization of intangible assets, and non-income taxes. Non-income taxes includes personal property taxes, real estate taxes, sales and use taxes and franchise taxes which are included in cost of services and general and administrative expenses. We define Adjusted EBITDA as EBITDA further adjusted to eliminate the impact of certain items that we do not consider to be indicative of our core business, including other expenses, net, Loss on disposal of assets, including right-of-use assets, integration expenses, gain (loss) on change in fair value of Private Placement Warrants and Unvested Founder Shares, transaction related expenses, transformation costs, (gain) loss on debt extinguishment, (gain) loss on investments, loss on impairment of goodwill and intangible assets, and stock-based compensation. See our unaudited condensed consolidated financial statements included in this Quarterly Report for more information regarding these adjustments. Adjusted EBITDA is used in our agreements governing our outstanding indebtedness for debt covenant compliance purposes. Our Adjusted EBITDA calculation is consistent with the definition of Adjusted EBITDA used in our debt instruments.
Current wording
EBITDA, Adjusted EBITDA, and Adjusted EPS are widely used measures of corporate profitability eliminating the effects of financing and capital expenditures from the operating results. We define EBITDA as net loss adjusted for interest expense, interest income, income tax (benefit) expense, depreciation, amortization of intangible assets, and non-income taxes. Non-income taxes includes personal property taxes, real estate taxes, sales and use taxes and franchise taxes which are included in cost of services and general and administrative expenses. We define Adjusted EBITDA as EBITDA further adjusted to eliminate the impact of certain items that we do not consider to be indicative of our core business, including other expenses, net, Loss on disposal of assets, including right-of-use assets, integration expenses, gain (loss) on change in fair value of Private Placement Warrants and Unvested Founder Shares, transaction related expenses, transformation costs, (gain) loss on debt extinguishment, (gain) loss on investments, loss on impairment of goodwill and intangible assets, and stock-based compensation. See our condensed consolidated financial statements included in this Quarterly Report for more information regarding these adjustments. Adjusted EBITDA is used in our agreements governing our outstanding indebtedness for debt covenant compliance purposes. Our Adjusted EBITDA calculation is consistent with the definition of Adjusted EBITDA used in our debt instruments.
Previous wording
The following table presents a reconciliation of net loss to EBITDA and Adjusted EBITDA for the periods presented:
Current wording
The following table presents a reconciliation of net loss to EBITDA and Adjusted EBITDA for the periods presented (in thousands):
Previous wording
(1)"Other expenses, net" represents miscellaneous non-recurring expenses, impairment of other assets, tax penalties, non-integration related severance costs, legal expenses associated with antitrust matters, start-up costs related to international expansion, and implementation costs for cloud computing arrangements.
Current wording
(1)"Other expenses, net" represents miscellaneous non-recurring expenses, impairment of other assets, non-integration related severance costs, legal expenses associated with the multi-district litigation, and start-up costs related to international expansion.
Previous wording
(2)"Transformation costs" represents costs directly associated with our multi-year transformation program which include personnel costs as well as non-recurring and duplicative costs.
Current wording
(2)"Transformation costs" represent costs directly associated with our multi-year transformation program called Vision 2030 which includes internal personnel costs for employees that have been either hired or redeployed and are fully dedicated to transformation activities, as well as other non-recurring and duplicative costs. At such time that internal personnel are redeployed to non-transformation activities, they will no longer be included as an adjustment herein.
Previous wording
The following table presents a reconciliation of net loss to Adjusted EPS for the periods presented:
Current wording
The following table presents a reconciliation of net loss to Adjusted EPS for the periods presented (in thousands, except share and per share amounts):
Previous wording
(1)"Other expenses, net" represents miscellaneous non-recurring expenses, impairment of other assets, tax penalties, non-integration related severance costs, legal expenses associated with antitrust matters, start-up costs related to international expansion, and implementation costs for cloud computing arrangements.
Current wording
(1)"Other expenses, net" represents miscellaneous non-recurring expenses, impairment of other assets, non-integration related severance costs, legal expenses associated with the multi-district litigation, and start-up costs related to international expansion.
Previous wording
(3)Shares, common stock and additional paid-in capital have been retroactively adjusted for all periods presented to reflect the one-for-forty (1-for-40) reverse stock split that became effective on September 20, 2024. See Note 1 General Information and Basis of Accounting of the Notes to the unaudited condensed consolidated financial statements included in this Quarterly Report for additional information.
Current wording
(3)Shares, common stock and additional paid-in capital have been retroactively adjusted for all periods presented to reflect the one-for-forty (1-for-40) reverse stock split that became effective on September 20, 2024. See Note 1, General Information and Basis of Accounting of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information.
Previous wording
As part of the Refinancing Transactions, we have incurred transaction expenses of approximately $71.8 million, of which $7.9 million have been expensed as incurred for six months ended June 30, 2025, and are included in Transaction costs - Refinancing Transaction in the accompanying unaudited condensed consolidated statements of loss and comprehensive loss.
Current wording
As part of the Refinancing Transactions, we have incurred transaction expenses of approximately $71.8 million, of which $7.9 million have been expensed as incurred for nine months ended September 30, 2025, and are included in Transaction costs - Refinancing Transaction in the accompanying condensed consolidated statements of operations and comprehensive loss.
Previous wording
During the six months ended June 30, 2024, the Company repurchased and cancelled $21.1 million of the Senior Convertible PIK Notes, resulting in the recognition of a gain on debt extinguishment of $5.9 million, representing the difference between the purchase price including associated fees and the net carrying amount of the extinguished debt.
Current wording
During the nine months ended September 30, 2024, the Company repurchased and cancelled $21.1 million of the Senior Convertible PIK Notes, resulting in the recognition of a gain on debt extinguishment of $5.9 million, representing the difference between the purchase price including associated fees and the net carrying amount of the extinguished debt.
Previous wording
The following table provides the results of operations for the periods indicated:
Current wording
The following table provides the results of operations for the periods indicated (in thousands):
Previous wording
Revenues increased by $8.1 million, or 3.5%, for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. This increase in revenues was due to the increase in Network-Based Services of $8.4 million.
Current wording
Revenues increased by $15.5 million, or 6.7%, for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. This increase in revenues was due to the increase in Network-Based Services of $6.8 million and Analytics-Based Services revenues of 6.7 million.
Previous wording
Revenues increased by $4.9 million, or 1.1%, for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. This increase in revenues was due to the increase in Network-Based Services of $9.1 million and Payment and Revenue Integrity Services Revenues of $5.4 million during this time period partially offset by the decrease in Analytics-Based Services revenues of $9.6 million.
Current wording
Revenues increased by $20.4 million, or 2.9%, for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. This increase in revenues was due to the increase in Network-Based Services of $15.9 million and Payment and Revenue Integrity Services Revenues of $7.4 million during this time period partially offset by the decrease in Analytics-Based Services revenues of $2.9 million.
Previous wording
Network-Based Services revenues increased by $8.4 million, or 18.4%, in the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. The increase was primarily due to an increase in the Property and Casualty service line.
Current wording
Network-Based Services revenues increased by $6.8 million, or 14.6%, in the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. The increase was primarily due to an increase in the Property and Casualty service line.
Previous wording
Network-Based Services revenues increased by $9.1 million, or 9.9%, in the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. The increase was primarily due to an increase in the Property and Casualty service line.
Current wording
Network-Based Services revenues increased by $15.9 million, or 11.5%, in the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. The increase was primarily due to an increase in the Property and Casualty service line.
Previous wording
Analytics-Based Services revenues decreased by $9.6 million, or 3.0%, for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. This decrease in revenue was primarily due to a decrease in PSAV of $16.4 million, primarily related to customer and program attrition partially offset by increases in PEPM of $3.4 million primarily related to value driven health plans and an increase of $3.4 million in other revenues.
Current wording
Analytics-Based Services revenues increased by $6.7 million, or 4.2%, for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. This increase in revenue was primarily due to an increase in the Data iSight ("DIS") and Financial Negotiation ("FNX") services and partially offset by customer and program attrition.
Previous wording
Analytics-Based Services revenues decreased by $2.9 million, or 1.8%, for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. This decrease in revenue was primarily due to a decrease in PSAV of $7.5 million, primarily related to customer and program attrition partially offset by increases in PEPM of $2.1 million primarily related to value driven health plans and an increase of $2.5 million in other revenues
Current wording
Analytics-Based Services revenues decreased by $2.9 million, or 0.6%, for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. This decrease in revenue was primarily due to a decrease in Surprise Bill Services of $15.8 million, primarily related to customer and program attrition partially offset by increases in DIS and FNX services.
Previous wording
Payment and Revenue Integrity Services revenues increased by $2.6 million, or 9.4%, for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. This increase was primarily due to increases in our Clinical Review and Payment Accuracy product lines of $3.5 million partially offset by decreases in our Revenue Integrity product line of $1.5 million. The increase in Payment and Revenue Integrity Services was primarily within our PSAV revenues.
Current wording
Payment and Revenue Integrity Services revenues increased by $2.0 million, or 7.5%, for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. This increase was primarily due to increases in our Clinical Review and Payment Accuracy service lines of $4.0 million partially offset by decreases in our Revenue Integrity service line of $2.3 million.
Previous wording
Payment and Revenue Integrity Services revenues increased by $5.4 million, or 9.6%, for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. This increase was primarily due to increases in our Clinical Review and Payment Accuracy product lines of $7.9 million partially offset by decreases in our Revenue Integrity product line of $2.3 million. The increase in Payment and Revenue Integrity Services was primarily within our PSAV revenues.
Current wording
Payment and Revenue Integrity Services revenues increased by $7.4 million, or 8.9%, for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. This increase was primarily due to increases in our Clinical Review and Payment Accuracy service lines of $11.9 million partially offset by decreases in our Revenue Integrity service line of $2.4 million.
Previous wording
Amortization of intangible assets includes amortization of the value of our customer relationships, provider network, technology, and trademarks which were identified in valuing the intangible assets in connection with the June 6, 2016 acquisition by Hellman & Friedman Capital Partners VIII, L.P. and its affiliates, as well as the subsequent acquisitions of BST, HST and DHP by the Company.
Current wording
Costs of Services (exclusive of depreciation and amortization of intangible assets) (in thousands):
Previous wording
Costs of services were stable for the three and six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024.
Current wording
Costs of services were stable for the three and nine months ended September 30, 2025 as compared to the three and nine months ended September 30, 2024.
Previous wording
The increase in general and administrative expenses of $18.4 million for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024 was primarily due to $7.9 million of transformation costs, $1.8 million of losses on disposal of assets, increase in personnel expenses of $4.4 million and increased stock compensation of $1.6 million.
Current wording
The increase in general and administrative expenses of $24.2 million for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024 was primarily due to $13.9 million of transformation costs, increase in personnel expenses of $4.0 million, increased stock compensation of $2.6 million, and $1.9 million of losses on disposal of assets (including right-of-use assets).
Previous wording
The increase in general and administrative expenses of $34.2 million for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024 was primarily due to $15.7 million of transformation costs, $5.5 million of losses on disposal of assets, increase in personnel expenses of $6.3 million and increased stock compensation of $2.6 million.
Current wording
The increase in general and administrative expenses of $58.3 million for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024 was primarily due to $29.5 million of transformation costs, increase in personnel expenses of $10.0 million, $7.4 million of losses on disposal of assets (including right-of-use assets), and increased stock compensation of $5.1 million.
Previous wording
The increases in depreciation expenses of $3.5 million, or 15.8%, and $7.0 million, or 16.4% for the three and six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024, were due to purchases of property and equipment, including internally generated capitalized software, partially offset by assets that were written off or became fully depreciated in the period.
Current wording
The increases in depreciation expenses of $3.4 million, or 15.0%, and $10.4 million, or 15.9% for the three and nine months ended September 30, 2025 as compared to the three and nine months ended September 30, 2024, were due to purchases of property and equipment, including internally generated capitalized software, partially offset by assets that were written off or became fully depreciated in the period.
Previous wording
For the three and six months ended June 30, 2024, in connection with quantitative impairment testing performed on our goodwill and indefinite-lived intangibles, we recorded a loss on impairment of goodwill and indefinite-lived intangibles of $553.7 million and $1,072.8 million, respectively. For the three and six months ended June 30, 2025, no such loss was recorded.
Current wording
For the three and nine months ended September 30, 2024, in connection with quantitative impairment testing performed on our goodwill and indefinite-lived intangibles, we recorded a loss on impairment of goodwill and indefinite-lived intangibles of $361.6 million and $1,434.4 million, respectively. For the three and nine months ended September 30, 2025, no such loss was recorded.
Previous wording
The increase in interest expense of $18.6 million and $28.1 million for the three and six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024 was primarily due the PIK interest recognized on the New Notes of $26.0 million.
Current wording
The increase in interest expense of $19.4 million and $47.5 million for the three and nine months ended September 30, 2025 as compared to the three and nine months ended September 30, 2024 was primarily due the non-cash interest recognized on the New Notes and the increase in average indebtedness outstanding during the periods.
Previous wording
Our annualized weighted average cash interest rate increased by 0.13% across our total debt in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. As of June 30, 2025 and June 30, 2024, our total debt had an annualized weighted average cash interest rate of 6.95% and 6.82%, respectively. As of December 31, 2024, our total debt had a weighted average cash interest rate of 6.68%.
Current wording
Our annualized weighted average cash interest rate increased by 0.16% across our total debt in the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. As of September 30, 2025 and September 30, 2024, our total debt had an annualized weighted average cash interest rate of 6.95% and 6.79%, respectively. As of December 31, 2024, our total debt had a weighted average cash interest rate of 6.68%.
Previous wording
The decreases in interest income of $0.2 million and $0.7 million for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024 were primarily due to less interest earned on interest bearing bank accounts resulting from lower average invested cash and cash equivalents balances.
Current wording
The decreases in interest income of $0.8 million and $1.4 million for the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024 were primarily due to less interest earned on interest bearing bank accounts resulting from lower average invested cash and cash equivalents balances.
Previous wording
During the six months ended June 30, 2025, in connection with the Refinancing Transactions, the Company recognized a loss on extinguishment of debt of $0.7 million for unamortized deferred costs relating to the Existing Revolving Credit Commitments.
Current wording
During the nine months ended September 30, 2025, in connection with the Refinancing Transactions, the Company recognized a loss on extinguishment of debt of $0.7 million for unamortized deferred costs relating to the Existing Revolving Credit Commitments.
Previous wording
During the six months ended June 30, 2024, the Company repurchased and cancelled $21.1 million of the Senior Convertible PIK Notes, resulting in the recognition of a gain on debt extinguishment of $5.9 million, representing the difference between the reacquisition price of the debt and the net carrying amount of the extinguished debt.
Current wording
During the nine months ended September 30, 2024, the Company repurchased and cancelled $21.1 million of the Senior Convertible PIK Notes, resulting in the recognition of a gain on debt extinguishment of $5.9 million, representing the difference between the reacquisition price of the debt and the net carrying amount of the extinguished debt.
Previous wording
Net loss before income taxes for the three months ended June 30, 2025 of $82.9 million generated a benefit for income taxes of $20.3 million. Net loss before income taxes for the three months ended June 30, 2024 of $604.2 million generated a benefit for income taxes of $27.5 million.
Current wording
Net loss before income taxes for the three months ended September 30, 2025 of $93.4 million generated a benefit for income taxes of $23.6 million. Net loss before income taxes for the three months ended September 30, 2024 of $418.7 million generated a benefit for income taxes of $27.2 million.
Previous wording
Net loss before income taxes for the six months ended June 30, 2025 of $172.8 million generated a benefit for income taxes of $38.8 million. Net loss before income taxes for the six months ended June 30, 2024 of 1,165.9 million generated a benefit for income taxes of $49.5 million.
Current wording
Net loss before income taxes for the nine months ended September 30, 2025 of $266.2 million generated a benefit for income taxes of $62.4 million. Net loss before income taxes for the nine months ended September 30, 2024 of $1,584.6 million generated a benefit for income taxes of $76.7 million.
Previous wording
The effective tax rate for the six months ended June 30, 2025 differed from the statutory rate primarily due to stock compensation expense, limitations on executive compensation, and state taxes. The effective tax rate for the six months ended June 30, 2024 differed from the statutory rate primarily due to stock compensation expense, limitations on executive compensation, non-deductible goodwill impairment, and state taxes.
Current wording
The effective tax rate for the nine months ended September 30, 2025 differed from the statutory rate primarily due to stock compensation expense, limitations on executive compensation and state taxes. The effective tax rate for the nine months ended September 30, 2024 differed from the statutory rate primarily due to stock compensation expense, limitations on executive compensation, non-deductible goodwill impairment, and state taxes.
Previous wording
As of June 30, 2025, we had cash and cash equivalents of$67.3 million, which includes restricted cash of$10.9 million. As of June 30, 2025, we had $263.6 million of loan availability under the revolving credit facility. As of June 30, 2025, we had five letters of credit totaling $6.4 million of utilization against the revolving credit facility. Four letters of credit are used to satisfy real estate lease agreements for four of our offices in lieu of security deposits in the amount of $4.4 million and $3.2 million as of June 30, 2025 and December 31, 2024, respectively. The Company also has an irrevocable letter of credit to satisfy the obligations of a subsidiary in the amount of $2.0 million as of June 30, 2025 and $6.1 million as of December 31, 2024.
Current wording
As of September 30, 2025, we had cash and cash equivalents of$50.6 million, which includes restricted cash of$11.5 million. As of September 30, 2025, we had $273.6 million of loan availability under the revolving credit facility. As of September 30, 2025, we had five letters of credit totaling $6.4 million of utilization against the revolving credit facility. Four letters of credit are used to satisfy real estate lease agreements for four of our offices in lieu of security deposits in the amount of $4.4 million and $3.2 million as of September 30, 2025 and December 31, 2024, respectively. The Company also has an irrevocable letter of credit to satisfy the obligations of a subsidiary in the amount of $2.0 million as of September 30, 2025 and $6.1 million as of December 31, 2024.
Previous wording
The following table is derived from our unaudited condensed consolidated statements of cash flows:
Current wording
The following table is derived from our condensed consolidated statements of cash flows (in thousands):
Showing the first 40 of 51 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
References to common stock, warrants to purchase common stock, options to purchase common stock, restricted stock units, performance stock units, share date, per share data and conversion rates with respect to convertible notes and related information have been retroactively adjusted to reflect the effect of the Reverse Stock Split for all periods presented.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
Costs of Services (exclusive of depreciation and amortization of intangible assets)
Previous report — wording carried elsewhere
Gain (Loss) on change in fair value of Private Placement Warrants and Unvested Founder Shares
Previous report — wording carried elsewhere
(2)"Transformation costs" represents costs directly associated with our multi-year transformation program which include personnel costs as well as non-recurring and duplicative costs.
Previous report — wording carried elsewhere
Costs of Services (exclusive of depreciation and amortization of intangible assets)
Previous report — wording carried elsewhere
Loss on Impairment of Goodwill and Intangible Assets
Previous report — wording carried elsewhere
Loss (gain) on extinguishment of debt
Previous report — wording carried elsewhere
Corp. ("Polaris Intermediate"). The interest rate on the Senior Convertible PIK Notes is fixed at 6% in cash and 7% in kind and is payable semi-annually on April 15 and October 15 of each year.