CorVel Corporation reported significant financial growth for the three and six months ended September 30, 2024, compared to the same periods in 2023. Revenues for the quarter reached $224.4 million, marking a 14.8% increase from $195.5 million in the prior year. For the six-month period, revenues totaled $436.1 million, up 13.0% from $385.8 million. This growth was primarily driven by increased revenues in both the Patient Management Services and Network Solutions Services segments, which saw increases of 13.4% and 17.5%, respectively.

Gross profit for the quarter was $50.7 million, a 14.7% increase from $44.3 million in the same quarter of 2023. For the six months, gross profit rose to $98.9 million, up 14.8% from $86.1 million. Net income for the quarter was $23.4 million, reflecting a 17.6% increase from $19.9 million in the prior year, while net income for the six months was $45.0 million, a 13.3% rise from $39.7 million. Basic net income per share for the quarter increased to $1.37 from $1.16, and for the six months, it rose to $2.63 from $2.32.

The company's total assets increased to $518.6 million as of September 30, 2024, up from $454.7 million at the end of March 2024. Cash and cash equivalents also saw a notable rise, reaching $138.3 million compared to $105.6 million in the previous period. This increase in cash was attributed to higher net income and improved cash flow from operating activities, which amounted to $62.7 million for the six months, up from $54.6 million in 2023.

CorVel's operational expenses also increased, with general and administrative expenses for the quarter rising to $22.1 million, a 13.0% increase from $19.5 million in the same period last year. The cost of revenues for the quarter was $173.6 million, reflecting a similar 14.8% increase from $151.3 million in the prior year.

The company continues to face challenges, including pricing pressures from competitors and rising costs in labor and facilities due to inflation. Additionally, the competitive landscape remains fragmented, with increasing competition from larger managed care providers and potential declines in referrals for patient management services.

CorVel has also been active in its stock repurchase program, having repurchased 32,123 shares for $9.6 million during the quarter. As of September 30, 2024, the company had repurchased a total of 38.1 million shares under this program, which was authorized in 1996 and has been periodically increased.