# EDGAR Filing Document

**Accession Number:** 0000874866
**File Stem:** 0001193125-26-237024
**Filing Date:** 2026-5
**Character Count:** 286754
**Document Hash:** 05d7ed0d07b14a6d562649e9ee21b1c7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-237024.hdr.sgml**: 20260522

**ACCESSION NUMBER**: 0001193125-26-237024

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 91

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260522

**DATE AS OF CHANGE**: 20260522

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CORVEL CORP
- **CENTRAL INDEX KEY:** 0000874866
- **STANDARD INDUSTRIAL CLASSIFICATION:** INSURANCE AGENTS BROKERS & SERVICES [6411]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 330282651
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-19291
- **FILM NUMBER:** 261014414

**BUSINESS ADDRESS:**
- **STREET 1:** 1800 SW FIRST AVENUE
- **STREET 2:** SUITE 600
- **CITY:** PORTLAND
- **STATE:** OR
- **ZIP:** 97201
- **BUSINESS PHONE:** 503-222-3144

**MAIL ADDRESS:**
- **STREET 1:** 1800 SW FIRST AVENUE
- **STREET 2:** SUITE 600
- **CITY:** PORTLAND
- **STATE:** OR
- **ZIP:** 97201

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FORTIS CORP
- **DATE OF NAME CHANGE:** 19600201

?xml version='1.0' encoding='ASCII'? 10-K

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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**Form** 10-K

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**(Mark One)** 

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the fiscal year ended** **March 31,** 2026

**OR** 

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**FOR THE TRANSITION PERIOD FROM TO**

**Commission File Number:** 0-19291

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CorVel Corporation

**(Exact name of registrant as specified in its charter)** 

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| | |
|:---|:---|
| Delaware | 33-0282651 |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **(I.R.S. Employer**<br>**Identification No.)** |
| 5128 Apache Plume Road**,** Suite 400<br>Fort Worth**,** Texas | 76109 |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**(**817**)** 390-1416 **(Registrant's telephone number, including area code)**

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Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, Par Value $0.0001 Per Share | CRVL | Nasdaq Global Select Market |

---

Securities registered pursuant to Section 12(g) of the Act: **None** 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Small reporting company | ☐ |
|  |  | Emerging growth company | ☐ |

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of September 30, 2025, the aggregate market value of the registrant's voting and non-voting common equity held by non-affiliates of the registrant was approximately $2,224,229,000 based on the closing price per share of $77.42 for the registrant's common stock as reported on the Nasdaq Global Select Market on such date multiplied by 28,729,389 shares (total outstanding shares of 51,293,374 less 22,563,985 shares held by affiliates) of the registrant's common stock which were outstanding on such date. For the purposes of the foregoing calculation only, all of registrant's directors, executive officers and persons known to the registrant to hold ten percent or greater of the registrant's outstanding common stock have been excluded in that such persons may be deemed to be affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes.

The number of shares of registrant's Common Stock outstanding as of May 19, 2026 was 50,691,185.

**DOCUMENTS INCORPORATED BY REFERENCE**

Information required by Items 10 through 14 of Part III of this Annual Report on Form 10-K, to the extent not set forth herein, is incorporated herein by reference to portions of the registrant's Definitive Proxy Statement for the registrant's 2026 annual meeting of stockholders, which will be filed with the Securities and Exchange Commission not later than 120 days after the end of the fiscal year ended March 31, 2026. Except with respect to the information specifically incorporated by reference in this Annual Report on Form 10-K, the registrant's definitive proxy statement is not deemed to be filed as a part of this Form 10-K.

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**CORVEL CORPORATION**

**2026 ANNUAL REPORT ON FORM 10-K**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | **Page** |
|  | [**<u>PART I</u>**](#part_i) |  |
| Item 1. | [<u>Business</u>](#item_1_business) | 3 |
| Item 1A. | [<u>Risk Factors</u>](#item_1a_risk_factors) | 12 |
| Item 1B. | [<u>Unresolved Staff Comments</u>](#item_1b_unresolved_staff_comments) | 21 |
| Item 1C. | [<u>Cybersecurity</u>](#item_1c_cybersecurity) | 21 |
| Item 2. | [<u>Properties</u>](#item_2_properties) | 22 |
| Item 3. | [<u>Legal Proceedings</u>](#item_3_legal_proceedings) | 22 |
| Item 4. | [<u>Mine Safety Disclosures</u>](#item_4_mine_safety_disclosures) | 22 |
|  | [**<u>PART II</u>**](#part_ii) |  |
| Item 5. | [<u>Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities</u>](#item_5_market_for_registrants_common_equ) | 22 |
| Item 6. | [<u>Reserved</u>](#item_6_selected_financial_data) | 24 |
| Item 7. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_7_managements_discussion_analysis_f) | 25 |
| Item 7A. | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item_7a_quantitative_qualitative_disclos) | 25 |
| Item 8. | [<u>Financial Statements and Supplementary Data</u>](#item_8_financial_statements_supplementar) | 25 |
| Item 9. | [<u>Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</u>](#item_9_changes_in_disagreements_with_acc) | 25 |
| Item 9A.  | [<u>Controls and Procedures</u>](#item_9a_controls_procedures) | 25 |
| Item 9B.  | [<u>Other Information</u>](#item_9b_or_information) | 26 |
| Item 9C. | [<u>Disclosure Regarding Foreign Jurisdictions that Prevent Inspections</u>](#item_9c_disclosure__regarding_foreign) | 26 |
|  | [**<u>PART III</u>**](#part_iii) |  |
| Item 10. | [<u>Directors, Executive Officers and Corporate Governance</u>](#item_10_directors_executive_ficers_corpo) | 27 |
| Item 11. | [<u>Executive Compensation</u>](#item_11_executive_compensation) | 27 |
| Item 12. | [<u>Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</u>](#item_12_security_ownership_certain_benef) | 27 |
| Item 13. | [<u>Certain Relationships and Related Transactions, and Director Independence</u>](#item_13_certain_relationships_related_pa) | 27 |
| Item 14. | [<u>Principal Accountant Fees and Services</u>](#item_14_principal_accounting_fees_servic) | 27 |
|  | [**<u>PART IV</u>**](#part_iv) |  |
| Item 15. | [<u>Exhibit and Financial Statement Schedules</u>](#item_15_exhibits_financial_statement_sch) | 28 |
| Item 16. | [<u>Form 10-K Summary</u>](#item_16_form_10k_summary) | 31 |
|  | [<u>Signatures</u>](#signatures) | 32 |

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i

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In this Annual Report on Form 10-K (this "Annual Report"), the terms "CorVel," "Company," "we," "us," and "our" refer to CorVel Corporation and its subsidiaries.

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS**

This Annual Report and information incorporated by reference herein contain forward-looking statements within the meaning of the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including, but not limited to, the statements about our plans, strategies and prospects in Part I, Item 1, "Business," Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Annual Report. Words such as "expects," "anticipates," "intends," "plans," "predicts," "believes," "seeks," "estimates," "potential," "continue," "strive," "ongoing," "may," "will," "would," "could," and "should," as well as variations of these words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on management's current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by management, and we can give no assurance that we will achieve our plans, intentions or expectations. Certain important factors could cause actual results to differ materially from the forward-looking statements we make in this Annual Report. Representative examples of these factors include without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•General industry and economic conditions, including a decreasing number of national claims due to decreasing number of injured workers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Competition from other managed care companies and third-party administrators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Company's ability to renew or maintain contracts with its customers on favorable terms or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The ability to expand certain areas of the Company's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Growth in the Company's sale of third-party administrator ("TPA") services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Shifts in customer demands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Increases in operating expenses, including employee wages, benefits and medical inflation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The ability of the Company to produce market-competitive software;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Cost of capital and capital requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Company's ability to attract and retain key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The impact of potential cybersecurity incidents on the Company's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Existing and possible litigation and legal liability in the course of operations, and the Company's ability to resolve such litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in regulations affecting the workers' compensation, insurance and healthcare industries in general;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Governmental and public policy changes, including, but not limited to, legislative and administrative law and rule implementation or change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The impact of recently issued accounting standards on the Company's consolidated financial statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The availability of financing in the amounts, at the times, and on the terms necessary to support the Company's future business.

Part I, Item 1A of this Annual Report, "Risk Factors," discusses these and other important risk factors that may affect our business, results of operations and financial condition. The factors listed above and the factors described in Part I, Item 1A of this Annual Report, as well as similar discussions in our other filings with the Securities and Exchange Commission ("SEC") are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could have material adverse effects on our future results. Investors should consider these factors before deciding to make or maintain an investment in our securities. The forward-looking statements included in this Annual Report are based on information available to us as of the date of this Annual Report. We expressly disclaim any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

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**PART I**

**Item 1. *Business.***

**INTRODUCTION**

CorVel is an independent nationwide provider of medical cost containment and managed care services designed to address the escalating medical costs of workers' compensation benefits, automobile insurance claims, and group health insurance. CorVel applies certain technology, including artificial intelligence, machine learning, and natural language processing, to enhance the management of episodes of care and the related health-care costs. We provide services to insurance companies, third-party administrators ("TPAs"), government entities, and self-administered employers to assist them in managing the increasing medical costs of workers' compensation, group health and auto insurance, and monitoring the quality of care provided to claimants. Our diverse suite of solutions combines our integrated technologies with a human touch. CorVel's customized services, delivered locally, are backed by a national team to support its clients, as well as their customers and patients.

The Company's services include claims management, bill review, preferred provider networks, utilization management, case management, pharmacy services, directed care, and Medicare services. CorVel delivers its solutions three ways – as a fully integrated claims-management program, as discrete standalone services, or as targeted add-ons that enhance an existing client workflow. Integrated, end-to-end bundled programs are designed primarily for customers that are self-insured employers who want a single, turnkey partner. Conversely, individual modules and à-la-carte add-ons tend to fit larger scale relationships, where insurance carriers or TPAs plug specific CorVel capabilities into a broader service stack.

CorVel was incorporated in Delaware in 1987, and its principal executive offices are located at 5128 Apache Plume Road, Suite 400, Fort Worth, Texas 76109. The Company's telephone number is (817) 390-1416. The Company maintains a nationwide presence across a network of branches, and our Fort Worth, Texas location provides a centrally located hub for the Company. The location provides a sizable property footprint and a concentrated number of employees. We believe the location of our headquarters puts us in the best position for future growth across our business in these areas of service. Additionally, we have Dallas-Fort Worth metropolitan area offices that perform both workers' compensation and group health services.

**INDUSTRY OVERVIEW**

CorVel provides services to employers and payors in the risk management and insurance services arenas, including workers' compensation, general liability, auto liability, and hospital bill auditing and payment integrity. Workers' compensation is a federally mandated, state-legislated insurance program that requires employers to fund medical expenses, lost wages, and other costs resulting from work-related injuries and illnesses. Workers' compensation benefits and arrangements vary extensively on a state-by-state basis and are often highly complex. State statutes and court decisions control many aspects of the compensation process, including claims handling, impairment or disability evaluation, dispute settlement, benefit amount guidelines, and cost-control strategies. In January 2026, the Bureau of Labor Statistics reported that the occupational injury count for 2024 was 2.34 million compared to 2.37 million in 2023, 2.34 million in 2022, 2.24 million in 2021, 2.11 million in 2020, and 2.69 million in 2019. While the injury count has steadily increased since 2019, it has not returned to pre-pandemic levels. Despite fewer claims to administrate from 2020 to 2024 as compared to 2019, the Company has been able to offset the decrease in claims with an increase in market share.

In addition to the compensation process, cost containment and claims management continue to be significant employer concerns and many look to managed care vendors and TPAs for cost saving solutions. Cost drivers in workers' compensation include implementing effective return-to-work and transitional duty programs, coordinating medical care, managing medical costs, recognizing fraud and abuse, and improving communications with injured workers. Further, failing to recognize a complex claim at the onset of an injury, often results in a lengthier claims process and a delayed return to work, which increases costs. We offer holistic savings solutions to cost containment using an integrated claims model, which controls costs by advocating medical management at the onset of injury to decrease administrative costs and to reduce the duration of a claimant's disability.

**FISCAL 2026 DEVELOPMENTS**

**Company Stock Repurchase Program**

During the fiscal year ended March 31, 2026 (the "fiscal year 2026"), the Company spent $56.2 million to repurchase 782,744 shares of its common stock under a program approved by the Company's Board of Directors (the "Board"). Since the commencement of this program in fiscal 1997 through fiscal year 2026, the Company has repurchased 115,259,435 shares of its common stock, at a cost of approximately $888 million, and had 1,740,565 shares of common stock authorized for repurchase remaining under its share repurchase program as of March 31, 2026. These repurchases were funded primarily from the Company's operating cash flows.

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**Appointment of Chief Financial Officer**

During fiscal year 2026, Mr. Brian S. Nichols was appointed Chief Financial Officer of the Company, effective September 10, 2025.

**BUSINESS — SERVICES**

The Company's network solutions and patient management services reduce claim costs by advocating medical management at the onset of an injury. These solutions offer personalized treatment programs that use precise protocols to advocate timely, quality care for injured workers.

**Organizational Structure**

The Company's management is structured geographically with regional vice presidents who are responsible for all services provided by the Company in his or her particular region and responsible for the operating results of the Company in multiple states. These regional vice presidents have area and district managers who are also responsible for all services provided by the Company in their given area and district.

**<u>Network Solutions Services</u>**

CorVel offers a complete medical savings solution for all in-network and out-of-network medical bills. The Company's services include professional nurse review, true line item review, expert fee negotiations, specialty networks, preferred provider organization ("PPO") management, medical bill repricing, automated adjudication, and electronic reimbursement. Each feature focuses on increasing process efficiencies and maximizing savings opportunities for our customers.

**Bill Review**

Many states have adopted fee schedules, which regulate the maximum allowable fees payable under workers' compensation for procedures performed by a variety of health treatment providers. CorVel's proprietary bill review and claims management technology provides customers with cost savings by decreasing the turnaround time for bill review results through automated, customized algorithms. CorVel's artificial intelligence engine includes over 100 million individual rules, which offers a comprehensive, paperless solution that surpasses the capabilities of traditional, manual bill review processes.

Our online portal, CareMC<sup>®</sup>, offers a paperless and cost-effective solution for payors to review and approve bills and access savings reports online. Further, CorVel's solutions are fully customizable and can be tailored to meet unique payor requirements.

Bill review services include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Coding review and re-bundling;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Reasonable and customary review;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fee schedule analysis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Out-of-network bill review;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Pharmacy review;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•PPO management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Repricing.

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**PPO Management**

PPOs are groups of hospitals, physicians and other healthcare providers that offer services at pre-negotiated rates to employee groups. The Company believes that PPO networks afford employers an additional means of managing healthcare costs by reducing the per-unit price of medical services provided to employees. CorVel offers a proprietary national PPO network and added leased network agreements to offer our customers extensive coverage and optimal network performance. As of March 31, 2026, the Company's PPO network was comprised of over 1.2 million providers nationwide, which are searchable based on quality, types of services, and location by the public through the Company's applications.

CorVel has a long-term strategy of network development; (i) providing comprehensive networks to our customers, and (ii) customizing of networks to meet the specific needs of our customers. The Company believes that the strength of its national PPO network, combined with local PPO developers' commitment and community involvement, enables CorVel to grow its PPO network's size, quality, depth of discount, and commitment to service.

The Company has a team of national, regional and local personnel supporting CorVel's PPO network. This team of developers is responsible for local recruitment, contract negotiations, credentialing and re-credentialing of providers, and working with customers to develop customer-specific provider networks. Each bill review operation has provider relations support staff to address provider grievances and other billing issues.

The Company selects its providers based on their quality, range of services, price and location. The Company evaluates and credentials each provider before inviting them to join its network, and reevaluates them every three years. Through this extensive evaluation process, we are able to provide significant hospital, physician and ancillary medical savings, while maintaining high quality care. Provider network services include a national network for all medical coverages, board-certified physicians, provider credentialing, patient channeling, online PPO look-up, printable directories and driving directions, and medical care organizations ("MCOs").

**CERIS**<sup>®</sup>

CERIS<sup>®</sup>, CorVel's enhanced review program, is a national provider of cost management solutions to employers, TPAs, insurance companies and government agencies. It performs a clinical review and comparative analysis of itemized billing statements against national and customer payment standards. This comprehensive forensic solution reviews charge utilization, appropriateness of charges, and billing behavior, to verify proper payment of claims. CERIS<sup>®</sup> offers clarity to those who pay facility claims and are unsure if the billing is correct. CERIS<sup>®</sup> produces incremental savings both prior to and after payment, lowers provider friction, increases efficiencies with client and facility relationships, and easily scales to a payor's enterprise needs.

**Professional Review**

CorVel's professional review service audits and validates the accuracy of facility bills. This service also includes review of in-network facility bills. If a bill is identified for professional review, the bill image and its associated medical reports are routed within the system to an experienced medical nurse for review and auditing. The Company's experienced nurse auditors have clinical backgrounds in all areas of medicine, medical billing and coding to ensure an accurate, consistent and thorough review.

**Provider Reimbursement**

CorVel's bill review service automatically issues provider reimbursements and allows its customers to track dollars spent and bills reviewed, and set reserves through charts available online.

**Symbeo**<sup>SM</sup>

We complement our comprehensive solutions by offering our Symbeo<sup>SM</sup> technologies, which include scanning, optical character recognition, and document management services. We have added scanning operations to most of the Company's larger offices around the country, designating them "Capture Centers," and sell scanning and document management services through all offices. Our scanning service includes a web interface, which provides immediate access to documents and data. Secure document review, approval, transaction workflow and archival storage are available at subscription-based pricing.

Additionally, Symbeo<sup>SM</sup> automates the accounts payable process, configuring coding and approvals to customer specific workflows.

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**Pharmacy Services**

CorVel provides patients with a full-feature pharmacy program that offers formulary management, discounted prescriptions, drug interaction monitoring, utilization management and eligibility confirmation. Our network of nationally recognized pharmacies offers claimants savings on the retail price of prescriptions associated with a workers' compensation claim. The Company's pharmacy services program includes preferred access to a national pharmacy network, streamlined processing for pharmacies at point of sale, first fill and next fill programs, out-of-network management, medication review services and clinical modeling.

**Directed Care Services**

CorVel offers a national directed care network that provides access to specialty medical services, which may be required to support an injured worker's medical treatment plan. CorVel has contracted with medical imaging, physical therapy, diagnostics and ancillary service networks to offer convenient access, timely appointments and preferred rates for these services. The Company manages the entire coordination of care from appointment scheduling through reimbursement, working to achieve timely recovery and increased savings. The Company has directed care networks for CTs and MRIs, diagnostic imaging, physical and occupational therapy, independent medical evaluations, durable medical equipment and transportation and translation.

**Medicare Solutions**

CorVel offers solutions to help manage the requirements mandated by the Centers for Medicare and Medicaid Services ("CMS"). Services include Medicare set asides and agent reporting services to help employers comply with new CMS reporting legislation. As an assigned agent, CorVel can provide services for responsible reporting entities ("RREs"), such as insurers and employers. As an experienced information-processing provider, CorVel is able to electronically submit files to the CMS in compliance with timelines and reporting requirements.

**Clearinghouse Services**

CorVel's proprietary medical review software and claims management technology interfaces with multiple clearinghouses to provide for medical review, conversion of electronic forms to appropriate payment formats, seamless submission of bills for payments and a rules engine used to help ensure jurisdictional compliance.

**<u>Patient Management Services</u>**

CorVel offers a unique approach to patient management through the TPA services it offers. Patient management services include claims management and all services sold to claims management customers, case management, a 24/7 virtual care platform with nurse triage, utilization management, vocational rehabilitation and disability management, liability claims management, and auto claims management. This integrated service model controls claims costs by advocating medical management at the onset of a claimant's injury to decrease administrative costs and to shorten the duration of the claimant's disability. This automated solution offers a personalized treatment program for each injured worker, using precise treatment protocols to meet the changing needs of patients on an ongoing basis. The Company offers these services on a stand-alone basis or as an integrated component of its medical cost containment services.

**Claims Management**

CorVel serves customers in the self-insured and commercially-insured markets. Incidents and injuries are reported through a variety of intake methods including our 24/7 nurse triage call center, website, mobile applications, toll-free call centers and traditional methods of paper and fax reporting. Reported incidents and injuries are immediately processed by CorVel's proprietary rules engine, which provides alerts and recommendations throughout the life of a claim. This technology instantly assigns the claimant an expert claims professional, while simultaneously determining if a claim requires immediate attention for triage.

The Company serves customers through alternative loss-funding methods and provides them with a complete range of services, including claims administration, case management, and medical bill review. In addition to the field investigation and evaluation of claims, the Company may also provide initial loss reporting services for claims, loss mitigation services, vocational rehabilitation, administration of trust funds established to pay claims, and risk management information services.

Features of claims management services include automated first notice of loss, three-point contact within 24 hours, prompt claims investigations, detailed notes for each step of the claim, graphical dashboards and claim history scorecards, as well as litigation management and expert testimony.

**Case Management**

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CorVel's case management services address all aspects of disability management and recovery, including utilization review (pre-certification, concurrent review and discharge planning), early intervention, telephonic, field and catastrophic case management, as well as vocational rehabilitation.

The medical management components of CorVel's program focus on medical intervention, management and appropriateness. In these cases, the Company's case managers confer with the attending physician, other providers, the patient and the patient's family to identify the appropriate rehabilitative treatment and most cost-effective healthcare alternatives. The program is designed to offer the injured party prompt access to appropriate medical providers who will provide quality cost-effective medical care. Case managers may coordinate the services or care required and arrange for special pricing of the services.

A telephonic case manager ("TCM") focuses on assisting the claimant's early return to work, medical improvement and determining the appropriate duration of disability. Further, the telephonic case manager facilitates treatment, negotiates with medical providers on behalf of the injured worker and directs the worker's care until certain case closure criteria is met. Utilization review of provider treatment remains ongoing until discharge from treatment.

A field case manager ("FCM") is assigned to claims requiring an onsite referral. Cases are referred to the most appropriate FCM based on geographic location and injury type. Specialized case management services include catastrophic management, life care planning, and vocational rehabilitation services.

**Virtual Care Platform**

Injured workers can contact our 24/7 nurse triage hotline to speak with a registered nurse who specializes in occupational injuries. An assessment is immediately made to recommend self-care, or refer the worker to seek further medical care from our network of preferred providers. CorVel is able to provide quick and accurate care intervention, often preventing a minor injury from becoming an expensive claim. Our virtual platform allows employer-access to online case information, comprehensive incident gathering, and healthcare advocacy for injured workers. Additionally, after being screened by a triage nurse, the service offers Telehealth, which connects injured workers with doctors for virtual appointments via their computers and smart mobile devices. Telehealth, which is approved in nearly all states, is integrated into CorVel's healthcare model as an option for qualified injuries, primarily musculoskeletal injuries. Telehealth preserves the integrity of the patient-physician relationship with confidential HIPAA compliant transactions, while also channeling injured workers to network providers for physical therapy or prescriptions when needed.

**Utilization Management**

CorVel's utilization management programs review proposed care to determine appropriateness, frequency, duration and setting. These programs use experienced registered nurses, proprietary medical treatment protocols and systems technology to avoid unnecessary treatments and associated costs. Utilization management processes include injury review, diagnosis and treatment planning, contacting and negotiating provider treatment requirements, certifying appropriateness of treatment parameters, and responding to provider requests for additional treatment. Utilization management services include prospective review, retrospective review, concurrent review, professional nurse review, second opinion, peer review, precertification and independent medical evaluation.

**Vocational Rehabilitation**

CorVel's vocational rehabilitation program is designed for injured workers that need assistance to return to work or retain employment. This comprehensive suite of services helps employees who are unable to perform their work functions and who face the possibility of joining the open labor market to seek re-employment. These services are available unbundled on an integrated basis as dictated by the requirement of each case and customer preference, or by individual statutory requirements. Vocational rehabilitation services include: ergonomic assessments, rehabilitation plans, transferable skills analysis, labor market services, marketability, resumé development, job analysis and development, job placement, career counseling and expert testimony.

**Disability Management**

CorVel's disability management programs offer a continuum of services for short and long-term disability coverages that advocate an employee's early return to work. Disability management services include, absence reporting, disability evaluations, national preferred provider organizations, independent medical examinations, utilization review, medical case management, return-to-work coordination and integrated reporting.

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**Liability Claims Management**

CorVel also offers liability claims management services that can be sold on a stand-alone basis or as part of patient management. Liability claims management services include, claims management, adjusting services, litigation management, claims subrogation, and investigations regarding auto liability, general liability, product liability, personal injury, professional liability, property damage, accidents and weather-related damage.

**Auto Claims Management**

Injury claims are one of the largest components of auto indemnity costs. Effective management of these claims and their associated costs, combined with an optimal healthcare management program, offers a unique method of cost savings for CorVel's customers. The Company's auto claims services include national preferred provider organizations, medical bill review, first or third party bill review, first notice of loss, demand packet reviews and reporting and analytics.

**SYSTEMS AND TECHNOLOGY**

**Infrastructure and Data Center**

The Company utilizes a tier III-rated data center as its primary processing site along with leveraging a leading enterprise-grade cloud computing platform. Within the data center, redundancy is provided at many levels in power, cooling, and computing resources, with the goal of ensuring maximum uptime and system availability for the Company's production systems. The Company has embraced server virtualization and consolidation techniques to push the fault-tolerance of systems even further. These technologies bring increased availability, speed-to-production and scalability.

**Redundancy Center**

The Company's national data center is located near Portland, Oregon. The redundancy center, which is located in Lone Mountain, Nevada, is the Company's backup processing site in the event that the Portland data center suffers catastrophic loss. Currently, the Company's data is continually replicated to Lone Mountain in near-real time, so that in the event the Portland data center is offline, the redundancy center can be activated with current information quickly. The Lone Mountain data center also hosts duplicates of the Company's websites. The systems are maintained and exercised on a continuous basis as they host demonstration and pilot environments that mirror production, with the goal of ensuring their ongoing readiness.

**Adoption of Imaging Technologies and Paperless Workflow**

Utilizing scanning and automated data capture processes allows the Company to process incoming paper and electronic claims documents, including medical bills, with less manual handling, which has improved the Company's workflow processes and resulted in cost savings to us and our customers. Through the Company's online portal, CareMC<sup>®</sup>, customers can review bills as soon as they are processed and approve a bill for payment, streamlining their workflows and expediting the payment process.

**CareMC**<sup>®</sup>

The Company's CareMC<sup>®</sup> platform, which can be found at <u>www.caremc.com,</u> offers customers direct and immediate access to its primary service lines. CareMC<sup>®</sup> facilitates electronic communication and reporting between providers, payors, employers and patients. The website gives customers the ability to report an incident/injury, request service, schedule an appointment, review bills, manage claims, access their treatment calendar, contest medical bills, and access automated provider reimbursement.

In addition, through CareMC<sup>®</sup>, customers can:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Manage files throughout the life of the claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Receive and relay case notes from case managers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Integrate information from multiple claims management sources into one database.

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CareMC<sup>®</sup> streamlines healthcare transaction processing. Using artificial intelligence technology, the website provides situation alerts and event triggers, to facilitate prompt and effective decisions. CareMC<sup>®</sup> users can quickly see where event outliers are occurring within the claims management process. If costs exceed pre-determined thresholds or activities fall outside expected timelines, the customer is quickly notified. The latest feature within CareMC<sup>®</sup>, the Edge, modernizes claims processing and adapts to the way people work. This module facilitates quicker decision making by prioritizing information that is easily actionable. Seamlessly integrated within CareMC<sup>®</sup>, the Edge browses codified data and prioritizes claims, alerting adjusters to those claims needing attention and actions that need to be taken. The Edge displays live, claims information on one screen to help guide users toward their next action.

**Claims Processing**

We continue to develop our claims system capabilities, which reflects the Company's preference for owning and maintaining our own software assets. Ongoing integration projects are underway to present more of this claims-centric information available through the CareMC<sup>®</sup> online portal. The Company's goal is to continue to modernize user interfaces, give more rapid feedback and put real-time information in the hands of our customers.

**CUSTOMERS AND MARKETING**

CorVel serves a diverse group of customers, which include insurers, TPAs, self-administered employers, government agencies, municipalities, state funds, and numerous other stakeholders in the health care industry. CorVel provides workers' compensation services to virtually any size employer and in any state or region of the United States. No single customer accounted for 10% or more of revenue for fiscal years 2026, 2025 or 2024. Two customers accounted for 10% or more of accounts receivable as of March 31, 2026 and 2025. Many claims management decisions in workers' compensation are the responsibility of the local claims office of national or regional insurers. The Company's national branch office network enables the Company to market and offer its services at both a local and national account level, though the Company placed increasing emphasis on national account marketing. The sales and marketing activities are conducted primarily by account executives located in key geographic areas.

**COMPETITION AND MARKET CONDITIONS**

The healthcare cost containment industry is competitive and is subject to economic pressures for cost savings and legislative reforms. CorVel's primary competitors in the workers' compensation market include TPAs, MCOs, large insurance carriers and numerous independent companies. Many of the Company's competitors are significantly larger and have greater financial and marketing resources than the Company. Moreover, the Company's customers may establish the in-house capability of performing the kinds of services offered by the Company. If the Company is unable to compete effectively, it will be difficult to add and retain customers, and the Company's business, financial condition and results of operations will be materially and adversely affected.

There has been unprecedented acceleration in mobile and other technology in the past few years. This capability provides immediate access and begins to present business opportunities that were previously predicated on a less connected environment. The Company continues to leverage the latest technological innovation to connect all parties involved in the workers' compensation, risk management, and insurance processes in ways that were unimaginable in the past. The Company remains focused on executing its strategy to offer industry-leading claims management and cost containment solutions to the market.

**GOVERNMENT REGULATIONS**

***General***

Managed healthcare programs for workers' compensation are subject to various laws and regulations. Both the nature and degree of applicable government regulation vary greatly depending upon the specific activities involved. Generally, parties that actually provide or arrange for the provision of healthcare services, such as the Company, assume financial risk related to the provision of those services or undertake direct responsibility for making payment or payment decisions for those services. These parties are subject to a number of complex regulatory requirements that govern many aspects of their conduct and operations.

In contrast, the management and information services provided by the Company to its customers typically have not been the subject of regulation by the federal government or the states. Since the managed healthcare field is a rapidly expanding and changing industry and the cost of healthcare continues to increase, it is possible that state and federal regulatory frameworks will expand to have a greater impact on the conduct and operation of the Company's business.

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We are required to be licensed or receive regulatory approval in nearly every state and foreign jurisdiction in which we do business. In addition, most jurisdictions require individuals who engage in claim adjusting and certain other insurance service activities to be personally licensed. These licensing laws and regulations vary from jurisdiction to jurisdiction. In most jurisdictions, licensing laws and regulations generally grant broad discretion to supervisory authorities to adopt and amend regulations and to supervise regulated activities.

***Medical Cost Containment Legislation***

Historically, governmental strategies to contain medical costs in the workers' compensation field have been generally limited to legislation on a state-by-state basis. For example, many states have implemented fee schedules that list maximum reimbursement levels for healthcare procedures. In certain states that have not authorized the use of a fee schedule, the Company adjusts bills to the usual and customary levels authorized by the payor. Opportunities for the Company's services could increase if more states legislate additional cost containment strategies. Conversely, the Company would be materially and adversely affected if states elect to reduce the extent of medical cost containment strategies available to insurance carriers and other payors, or adopt other strategies for cost containment that would not support a demand for the Company's services.

**HUMAN CAPITAL**

As of March 31, 2026, CorVel had 5,239 employees, including nurses, claims adjusters, and other employees. Our entire workforce is concentrated in the United States. No employees are represented by any collective bargaining unit. Management believes the Company's relationship with its employees to be good. Currently, 93% of our employees are working either permanently from home or in a hybrid arrangement.

Human capital is a key component to our success. CorVel was recently awarded, for the sixth year in a row, certification as a "Great Place to Work Company" based on independent surveys of its employees. Our culture and organizational purpose is embodied by our ACE-IT values of Accountability, Commitment, Excellence, Integrity, and Teamwork. These values define our desired culture, and influence organizational behavior, decision-making and our people priorities. Our mission is to provide an enduring culture where we are empowered to seek our full potential, working together to change the industry, making a real difference to those we serve. Our vision is to make a real difference with our partners by creating a new standard of excellence in service and outcomes.

***Talent, Inclusion and Opportunity***

Talent, inclusion and opportunity are core to the Company's values and instrumental in delivering stronger business growth. The more diverse our backgrounds and experiences, the more we can achieve together working side by side. We are committed to recruiting the most qualified people for the job regardless of gender, ethnicity or other protected traits, and to complying fully with all domestic, foreign and local laws relating to discrimination in the workplace. Additionally, we believe in providing opportunities for career progression for our people and, as such, we strive to fill our open positions with internal talent whenever possible. Our Company's greatest strength and resource is the talent of our employees.

To ensure that our leaders and employees model fairness and inclusivity in their behaviors, talent, inclusion and opportunity training is completed by our leaders and mandated for all employees. We are proud of having a diverse workforce and remain committed to ensuring equal opportunity for advancement for each of our employees.

As of March 31, 2026, over one-third of our employees identified as racially or ethnically diverse. Additionally, over 79% of our employees identify as women, and over 74% of the Company's managers identify as women.

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***Employee Wellness***

At CorVel, we provide a variety of comprehensive benefit programs that are designed to support the physical, mental and financial well-being of our people. Examples of such programs include: formal wellness programs with fitness challenges and incentives for prioritizing physical exercise; employee assistance programs; group healthcare and telemedicine programs; Company-sponsored retirement savings plans; tuition assistance; and programs that support work-life balance such as remote work arrangements and paid-time off.

***Employee Development***

Employee development continued to be of strategic importance in fiscal year 2026. We require our adjusters and nurse case managers to undergo specific training related to their responsibilities as part of their onboarding process. During fiscal year 2024, we launched CorVel University, which is a national training initiative to equip candidates with the necessary skills to become claims specialists. Internal and external candidates can go through the four-week training program that enables an individual who graduated from the program to be integrated into claims operations and developed into claims specialists with local mentors. Additionally, a supervisor training series has been launched, which includes a series of virtual and interactive modules in the learning management system. The focus is on building and refining both management and leadership skills, for newly promoted supervisors, as well as for experienced supervisors to refresh their skills.

**<u>AVAILABLE INFORMATION</u>**

Copies of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and any amendments to those reports filed or furnished pursuant to Sections 13(a) or 15(d) of the Exchange Act, as well as other filings made with the SEC, are available free of charge through our website (<u>http://www.corvel.com</u>, under the *Investor* section) as soon as reasonably practicable after such reports are electronically filed with, or furnished to, the SEC. The SEC also maintains a website at <u>www.sec.gov</u> that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

We have adopted a code of ethics and business conduct that applies to all of the Company's employees, officers and directors. The full text of the Company's code of ethics and business conduct is posted on the Company's website at www.corvel.com. The Company intends to disclose future amendments to certain provisions of the Company's code of ethics and business conduct, or waivers of such provisions, applicable to the Company's directors and executive officers, at the same location on the Company's website identified above.

The inclusion of our website address and the address of any of our portals, such as <u>www.caremc.com</u>, in this Annual Report does not include or incorporate by reference into this Annual Report any information contained on, or accessible through, such websites and portals, and references to our website address and the address of any of our portals within this Annual Report are inactive textual references only.

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**Item 1A. *Risk Factors.***

*Past financial performance is not necessarily a reliable indicator of future performance, and investors in our common stock should not use historical performance to anticipate results or future period trends. Investing in our common stock involves a high degree of risk. Investors should consider carefully the following risk factors, as well as the other information in this Annual Report and our other filings with the SEC, including our consolidated financial statements and the related notes, before deciding whether to invest or maintain an investment in shares of our common stock. If any of the following risks actually occurs, our business, financial condition, and results of operations would suffer. In this case, the trading price of our common stock would likely decline. The risks described below are not the only ones we face. Additional risks that we currently do not know about or that we currently believe to be immaterial may also impair our business operations.*

**<u>Risks Related to Our Business and Industry</u>**

***Our sequential revenue may not increase and may decline. As a result, we may fail to meet or exceed the expectations of investors or analysts which could cause our common stock price to decline.***

Our sequential revenue growth may not increase and may decline in the future as a result of a variety of factors, many of which are outside of our control. If changes in our sequential revenue fall below the expectations of investors or analysts, the price of our common stock could decline substantially. Fluctuations or declines in sequential revenue growth may be due to a number of factors, including, but not limited to, those listed below and identified throughout this "Risk Factors" section: the decline in manufacturing employment, the decline in workers' compensation claims, the decline in healthcare expenditures, the considerable price competition in a flat-to-declining workers' compensation market, litigation, the increase in competition, and the changes and the potential changes in state workers' compensation and automobile-managed care laws which can reduce demand for our services. These factors create an environment where revenue and margin growth is more difficult to attain and where revenue growth is less certain than historically experienced. Additionally, our technology and preferred provider network face competition from companies that have more resources available to them than we do. Also, some customers may handle their managed care services in-house and may reduce the amount of services which are outsourced to managed care companies such as us. These factors could cause the market price of our common stock to fluctuate substantially. There can be no assurance that our growth rate in the future, if any, will be at or near historical levels.

***If we fail to grow our business internally or through strategic acquisitions we may be unable to execute our business plan, maintain high levels of service, or adequately address competitive challenges.***

Our strategy is to continue internal growth and, as strategic opportunities arise in the workers' compensation managed care industry, to consider acquisitions of, or relationships with, other companies in related lines of business. As a result, we are subject to certain growth-related risks, including the risk that we will be unable to retain personnel or acquire other resources necessary to service such growth adequately. Expenses arising from our efforts to increase our market penetration may have a negative impact on operating results. In addition, there can be no assurance that any suitable opportunities for strategic acquisitions or relationships will arise or, if they do arise, that the transactions contemplated could be completed. If such a transaction does occur, there can be no assurance that we will be able to integrate effectively any acquired business. In addition, any such transaction would be subject to various risks associated with the acquisition of businesses, including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an acquisition may (i) negatively impact our results of operations because it may require incurring large one-time charges, substantial debt or liabilities; (ii) require the amortization or write down of amounts related to deferred compensation, goodwill and other intangible assets; or (iii) cause adverse tax consequences, substantial depreciation or deferred compensation charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may encounter difficulties in assimilating and integrating the business, technologies, products, services, personnel, or operations of companies that are acquired, particularly if key personnel of the acquired company decide not to work for us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an acquisition may disrupt ongoing business, divert resources, increase expenses, and distract management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the acquired businesses, products, services, or technologies may not generate sufficient revenue to offset acquisition costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may have to issue equity or debt securities to complete an acquisition, which would dilute the position of stockholders and could adversely affect the market price of our common stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the acquisitions may involve the entry into a geographic or business market in which we have little or no prior experience.

There can be no assurance that we will be able to identify or consummate any future acquisitions or other strategic relationships on favorable terms, or at all, or that any future acquisition or other strategic relationship will not have an adverse impact on our business or results of operations. If suitable opportunities arise, we may finance such transactions, as well as internal growth, through debt or

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equity financing. There can be no assurance, however, that such debt or equity financing would be available to us on acceptable terms when, and if, suitable strategic opportunities arise.

***If we are unable to increase our market share among national and regional insurance carriers and large, self-funded employers, our results may be adversely affected.***

Our business strategy and future success depend in part on our ability to capture market share with our cost containment services as national and regional insurance carriers and large, self-funded employers look for ways to achieve cost savings. There can be no assurance that we will successfully market our services to these insurance carriers and employers or that they will not resort to other means to achieve cost savings. Additionally, our ability to capture additional market share may be adversely affected by the decision of potential customers to perform services internally instead of outsourcing the provision of such services to us. Furthermore, we may not be able to demonstrate sufficient cost savings to potential or current customers to induce them not to provide comparable services internally or to accelerate efforts to provide such services internally.

***If competition increases, our growth and profits may decline.***

The markets for our network services and patient management services are fragmented and competitive. Our competitors include national managed care providers, preferred provider networks, smaller independent providers, and insurance companies. Companies that offer one or more workers' compensation managed care services on a national basis are our primary competitors. We also compete with many smaller vendors who generally provide unbundled services on a local level, particularly companies with an established relationship with a local insurance company adjuster. In addition, several large workers' compensation insurance carriers offer managed care services for their customers, either by performance of the services in-house or by outsourcing to organizations like ours. If these carriers increase their performance of these services in-house, our business may be adversely affected. In addition, consolidation in the industry may result in carriers performing more of such services in-house.

***If the referrals for our patient management services decline, our business, financial condition and results of operations would be materially adversely affected.***

In some years, we have experienced a general decline in the revenue and operating performance of patient management services. We believe that the performance decline has been due to the following factors: the decrease of the number of workplace injuries that have become longer-term disability cases; increased regional and local competition from providers of managed care services; a possible reduction by insurers on the types of services provided by our patient management business; the closure of offices and continuing consolidation of our patient management operations; and employee turnover, including management personnel, in our patient management business. In the past, these factors have all contributed to the lowering of our long-term outlook for our patient management services. If some or all of these conditions continue, we believe that revenues from our patient management services could decrease.

***Declines in workers' compensation claims may materially harm our results of operations.***

Historically, because the labor market has become less labor intensive and more service oriented, there are declining work-related injuries. Additionally, employers are being more proactive to prevent injuries. If declines in workers' compensation costs occur in many states and persist over the long-term, it would have a material adverse impact on our business, financial condition and results of operations.

We provide an outsource service to payors of workers' compensation benefits, automobile insurance claims, and group health insurance benefits. These payors include insurance companies, TPAs, municipalities, state funds, and self-insured, self-administered employers. If these payors reduce the amount of work they outsource, our results of operations would be materially adversely affected.

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***Healthcare providers are becoming increasingly resistant to the application of certain healthcare cost containment techniques; this may cause revenue from our cost containment operations to decrease.***

Healthcare providers have become more active in their efforts to minimize the use of certain cost containment techniques and are engaging in litigation to avoid application of certain cost containment practices. Recent litigation between healthcare providers and insurers has challenged certain insurers' claims adjudication and reimbursement decisions. These cases may affect the use by insurers of certain cost containment services that we provide and may result in a decrease in revenue from our cost containment business.

***Our failure to compete successfully could make it difficult for us to add and retain customers and could reduce or impede the growth of our business.***

We face competition from PPOs, TPAs, and other managed healthcare companies. We believe that as managed care techniques continue to gain acceptance in the workers' compensation marketplace, our competitors will increasingly consist of nationally-focused workers' compensation managed care service companies, insurance companies, HMOs and other significant providers of managed care products. Legislative reform in some states has been considered, but not enacted, to permit employers to designate health plans such as HMOs and PPOs to cover workers' compensation claimants. Because many health plans have the ability to manage medical costs for workers' compensation claimants, such legislation may intensify competition in the markets served by us. Many of our current and potential competitors are significantly larger and have greater financial and marketing resources than we do, and there can be no assurance that we will continue to maintain our existing customers, maintain our past level of operating performance, or be successful with any new products or in any new geographical markets we may enter.

***If the utilization by healthcare payors of early intervention services continues to increase, the revenue from our later-stage network and healthcare management services could be negatively affected.***

The performance of early intervention services, including injury occupational healthcare, first notice of loss, and telephonic case management services, often result in a decrease in the average length of, and the total costs associated with, a healthcare claim. By successfully intervening at an early stage in a claim, the need for additional cost containment services for that claim often can be reduced or even eliminated. As healthcare payors continue to increase their utilization of early intervention services, the revenue from our later stage network and healthcare management services will decrease.

***We face competition for staffing, which may increase our labor costs and reduce profitability.***

We compete with other healthcare providers in recruiting qualified management and staff personnel for the day-to-day operations of our business, including nurses and other case management professionals. In some markets, the scarcity of nurses and other medical support personnel has become a significant operating issue to healthcare providers. This shortage may require us to enhance wages to recruit and retain qualified nurses and other healthcare professionals. Our failure to recruit and retain qualified management, nurses, and other healthcare professionals, or to control labor costs could have a material adverse effect on profitability.

***We are subject to inflation risks which could increase our wages, benefits, and other costs which may result in decreased profitability.***

We are impacted by inflationary increases in wages, benefits and other costs. Wage and benefit inflation, whether driven by competition for talent or ordinary course pay increases and other inflationary pressure, may increase our cost of providing services and reduce our profitability. If we are not able to pass increased wage and other costs resulting from inflation onto our clients or charge premium prices when justified by market demand, our profitability could decline.

***Sustained increases in the cost of our employee benefits could materially reduce our profitability.***

The cost of our current employees' medical and other benefits substantially affects our profitability. In the past, we have occasionally experienced significant increases in these costs as a result of macro-economic factors beyond our control, including increases in healthcare costs. There can be no assurance that we will succeed in limiting future cost increases, and continued upward pressure in these costs could materially reduce our profitability.

***The introduction of software products incorporating new technologies and the emergence of new industry standards could render our existing software products less competitive, obsolete, or unmarketable.*** 

There can be no assurance that we will be successful in developing and marketing new software products that respond to technological changes or evolving industry standards. If we are unable, for technological or other reasons, to develop and introduce new software products cost-effectively, in a timely manner and in response to changing market conditions or customer requirements, our business, results of operations, and financial condition may be adversely affected.

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Developing or implementing new or updated software products and services may take longer and cost more than expected. We rely on a combination of internal development, strategic relationships, licensing and acquisitions to develop our software products and services. The cost of developing new healthcare information services and technology solutions is inherently difficult to estimate. Our development and implementation of proposed software products and services may take longer than originally expected, require more testing than originally anticipated and require the acquisition of additional personnel and other resources. If we are unable to develop new or updated software products and services cost-effectively on a timely basis and implement them without significant disruptions to the existing systems and processes of our customers, we may lose potential sales and harm our relationships with current or potential customers.

***We may not be able to develop or acquire necessary IT resources to support and grow our business, and disruptive technologies could impact the volume and pricing of our products, which could materially adversely affect our business, results of operations, and financial condition.***

We have made substantial investments in software and related technologies that are critical to the core operations of our business. These IT resources will require future maintenance and enhancements, potentially at substantial costs. Additionally, these IT resources may become obsolete in the future and require replacement, potentially at substantial costs. We may not be able to develop, acquire replacement resources or identify new technology resources necessary to support and grow our business.

In addition, we could face changes in our markets due to disruptive technologies that could impact the volume and pricing of our products, or introduce changes to the claims management processes which could negatively impact our volume of case referrals. Our failure to address these risks, or to do so in a timely manner, or at a cost considered reasonable by us, could materially adversely affect our business, results of operations, and financial condition.

***If we are unable to apply technology and data analytics effectively in driving value for our clients through technology-based solutions or gain internal efficiencies and maintain effective financial internal controls through the application of technology and related tools, our operating results, client relationships, growth and compliance programs could be adversely affected.***

Our future success depends, in part, on our ability to anticipate and respond effectively to the risk of, and conversely, the opportunity presented by digital disruption, "big data" and data analytics, and other developments in technology. These may include new applications or insurance-related services based on artificial intelligence, machine learning, robotics, blockchain, the metaverse or new approaches to data mining that impact the nature of how we generate revenue. We may be exposed to competitive risks related to the adoption and application of new technologies by established market participants or new entrants such as technology companies, start-up companies and others. These new entrants are focused on using technology and innovation, including artificial intelligence and blockchain, in an attempt to simplify and improve the client experience, increase efficiencies, alter business models and effect other potentially disruptive changes in the industries in which we operate. We must also develop and implement technology solutions and technical expertise among our employees that anticipate and keep pace with rapid and continuing changes in technology, industry standards, client preferences and internal control standards. We may not be successful in anticipating or responding to these developments on a timely and cost-effective basis and our ideas may not be accepted in the marketplace. Data produced by or contained in technology that uses artificial intelligence may contain a degree of inaccuracy and error. Additionally, the effort to gain technological expertise, make use of data analytics, and develop new technologies in our business requires us to incur significant expenses. Investments in technology systems and data analytics capabilities may not deliver the benefits or perform as expected, or may be replaced or become obsolete more quickly than expected, which could result in operational difficulties or additional costs. If we or our third-party vendors fail to effectively implement these new technologies, including, artificial intelligence, we could be subject to additional risks that we do not understand or cannot adequately mitigate, which could have a material adverse effect on our results of operations and financial condition. Further, if we cannot offer new technologies or data analytics solutions as quickly as our competitors, or if our competitors develop more cost-effective technologies, data analytics solutions or other product offerings, we could experience a material adverse effect on our operating results, client relationships, growth and compliance programs.

In some cases, we depend on key third-party vendors and partners to provide technology and other support for our strategic initiatives. If these third parties fail to perform their obligations or cease to work with us, our ability to execute on our strategic initiatives could be adversely affected.

***The failure to attract and retain qualified or key personnel may prevent us from effectively developing, marketing, selling, integrating, and supporting our services.***

We are dependent, to a substantial extent, upon the continuing efforts and abilities of certain key management personnel. In addition, we face competition for experienced employees with professional expertise in the workers' compensation managed care area. The loss of key personnel, especially Michael Combs, our Chairman, Chief Executive Officer and President, or the inability to attract qualified employees, could have a material adverse effect on our business, financial condition, and results of operations.

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***If we lose several recurring customers in a short period, our results may be materially adversely affected.***

Our results may decline if we lose several recurring customers during a short period. Most of our customer contracts permit either party to terminate without cause. If several customers terminate, or do not renew or extend their contracts with us, our results could be materially and adversely affected. Many organizations in the insurance industry have consolidated and this could result in the loss of one or more of our customers through a merger or acquisition. Additionally, we could lose customers due to competitive pricing pressures or other reasons.

***We are subject to risks associated with acquisitions of intangible assets.***

Our acquisition of other businesses may result in significant increases in our intangible assets and goodwill. We regularly evaluate whether events and circumstances have occurred indicating that any portion of our intangible assets and goodwill may not be recoverable. When factors indicate that intangible assets and goodwill should be evaluated for possible impairment, we may be required to reduce the carrying value of these assets. We cannot currently estimate the timing and amount of any such charges.

***Natural and other disasters may adversely affect our business.***

We may be vulnerable to damage from severe weather conditions or natural disasters, including hurricanes, fires, floods, earthquakes, power loss, communications failures, and similar events, including the effects of pandemics, war or acts of terrorism. If a disaster were to occur, our ability to operate our business could be seriously or completely impaired or destroyed. The insurance we maintain may not be adequate to cover our losses resulting from disasters or other business interruptions. If there is a resurgence in global pandemics, or if any other pandemic arises, it could materially adversely impact our business operations, financial position and results of operations in unpredictable ways that depend on highly-uncertain future developments, such as determining the effectiveness of current or future government actions to address the public health or economic impacts of the pandemic. Any of these risks might have a materially adverse effect on our business operations and our financial position or results of operations.

**<u>Risks Related to Cybersecurity and Our Information Systems</u>**

***A cybersecurity attack or other disruption to our information technology systems could result in the loss, theft, misuse, unauthorized disclosure, or unauthorized access of customer or sensitive company information or could disrupt our operations, which could damage our relationships with customers or employees, expose us to litigation or regulatory proceedings, or harm our reputation, any of which could materially adversely affect our business, financial condition or results of operations.***

We rely on information technology to support our business activities. Our business involves the storage and transmission of a significant amount of personal, confidential, or sensitive information, including the personal information of our customers and employees, and our financial, operational and strategic information. As with many businesses, we are subject to numerous data privacy and security risks. These risks may prevent us from maintaining the confidentiality and integrity of this information, result in the disruption of our business and online systems, and require us to expend significant resources to attempt to secure and protect such information and respond to incidents, any of which could materially adversely affect our business, financial condition or results of operations. The loss, theft, misuse, unauthorized disclosure, or unauthorized access of such sensitive information could lead to significant reputational or competitive harm, result in litigation or regulatory proceedings, or cause us to incur substantial liabilities, fines, penalties or expenses.

Cybersecurity incidents affecting the systems on which we rely may result from circumvention of security measures, denial-of-service attacks or other cyber-attacks, hacking, "phishing" attacks, computer viruses, ransomware, malware, employee or insider error, malfeasance, social engineering, physical breaches or other actions. According to media reports, the frequency, intensity, and sophistication of cyber-attacks, ransomware attacks, and other data security incidents has significantly increased worldwide in recent years, including as a result of the increasing sophistication in the development and use of artificial intelligence tools. As with many other businesses, we have experienced, and are continually at risk of being subject to, attacks that result in cybersecurity incidents caused by computer viruses, unauthorized parties gaining access to our information technology systems, and other similar threats. In some cases, cybersecurity incidents could cause reputational harm, loss of customers, loss and/or delay of revenue, loss of proprietary data, loss of licenses, regulatory actions and scrutiny, sanctions or other statutory penalties, litigation, liability for failure to safeguard customers' information, financial losses, or a drop in our stock price. If we acquire any businesses, the process of integrating the information systems of the businesses we acquire is complex and exposes us to additional risks as we might not adequately identify weaknesses in the acquired company's information systems, which could expose us to unexpected liabilities or make our own systems more vulnerable to attack. We have invested in and continue to expend significant resources on information technology and information security tools, measures, processes, initiatives, policies and employee training designed to protect our information technology systems, as well as the personal, confidential or sensitive information stored on or transmitted through those systems, and to ensure an effective response to any cyber-attack or security incident, however, such measures cannot provide absolute security and may fail to operate as intended or be circumvented. These expenditures could also have an adverse impact on our financial condition and results of operations, and divert

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management's attention from pursuing our strategic objectives. In addition, the cost and operational consequences of implementing, maintaining and further enhancing our system's protective measures could increase significantly as cybersecurity threats increase. There can be no assurance that the security measures we employ will effectively prevent cybersecurity incidents or otherwise prevent malicious actors from obtaining access to our systems and information.

As these threats evolve, cybersecurity incidents could be more difficult to detect, prevent, and remediate. Cybersecurity-attacks or data handling incidents could remain undetected for some period of time, which could not only result in significant harm to our systems, but also lead to unauthorized access to the information stored on and transmitted by our systems. Further, despite our security efforts and training, our employees may purposefully or inadvertently cause cybersecurity incidents. Any occurrence of cybersecurity incidents, whether caused by employees or third parties, could have the potential to adversely impact our relationships with our customers or restrict our ability to meet our customers' expectations.

Additionally, as artificial intelligence technologies continue to develop and become more accessible, malicious actors are increasingly leveraging such technologies to carry out advanced cyber-attacks. These artificial intelligence tools can be used to automate and scale attacks, generate phishing or social engineering schemes, employ deepfakes, identity system vulnerabilities, or evade transitional detection methods. Consequently, the use of artificial intelligence by malicious actors may result in an increase in the frequency, speed, and severity of cybersecurity threats targeting our systems, networks, and employees.

If a cyber-attack or other data incident results in the loss, theft, misuse, unauthorized disclosure, or unauthorized access of personal, confidential, or sensitive information belonging to our customers or employees, it could put us at a competitive disadvantage, result in the deterioration of our customers' confidence in our services, cause our customers to reconsider their relationship with us, impose more onerous contractual provisions, cause us to lose our regulatory licenses, or subject us to potential litigation, liability, fines and penalties. For example, we could become subject to regulatory or other actions pursuant to privacy laws. This could result in costly investigations and litigation, civil or criminal penalties, operational changes, and negative publicity that could adversely affect our reputation, as well as our results of operations and financial condition.

A cyber-attack or other data security incident could result in the significant and protracted disruption of our business such that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•critical business systems become inoperable or require a significant amount of time or cost to restore;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•key personnel are unable to perform their duties or communicate with employees, customers or other third-parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•it results in the loss, theft, misuse, unauthorized disclosure, or unauthorized access of customer or Company information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we are prevented from accessing information necessary to conduct our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we are required to make unanticipated investments in equipment, technology or security measures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our customers lose the ability to access our websites and online systems; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we become subject to other unanticipated liabilities, costs, or claims.

Any of the foregoing could have a material adverse effect on our business, financial condition and results of operations, and result in harm to our reputation. While we maintain insurance coverage that may, subject to policy terms and conditions, cover certain aspects of the losses and costs associated with cyber-attacks and data incidents, such insurance coverage may be insufficient to cover all losses and would not, in any event, remedy damage to our reputation. In addition, we may face difficulties in recovering any losses from our provider and any losses we recover may be lower than we initially expect.

***A breach of security may cause our customers to curtail or stop using our services.***

We rely on industry standard security systems, confidentiality procedures, and employee nondisclosure agreements to maintain the privacy and security of our and our customers' proprietary information. Intentional or unintentional incidents, like unauthorized access by third parties to our information systems, the infection of our systems or software with malware, and misappropriation of our proprietary information could expose us to a risk of information loss, litigation, and other possible liabilities which may have a material adverse effect on our business, financial condition, and results of operations. If cybersecurity incidents occur because of third-party actions, employee errors, malfeasance, or otherwise, or if design flaws in our software are exposed and exploited, and, as a result, a third party obtains unauthorized access to any customer data, our relationships with our customers and our reputation could be significantly damaged, our business may suffer, and we could incur significant liability. Cybersecurity threats are rapidly evolving and those threats and the means for obtaining access to our systems are becoming increasingly sophisticated. Because techniques used to obtain unauthorized access or to sabotage systems change frequently and generally are not recognized until launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures. The rapid evolution and growing adoption of

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artificial intelligence technologies may heighten our cybersecurity risks, including through the use of artificial intelligence by malicious actors seeking to identify and exploit vulnerabilities.

***An interruption in our ability to access critical data may cause customers to cancel their service and/or may reduce our ability to effectively compete.***

Certain aspects of our business are dependent upon our ability to store, retrieve, process, and manage data and to maintain and upgrade our data processing capabilities. An interruption of data processing capabilities for any extended length of time, loss of stored data, programming errors or other system failures could impair our ability to perform for our customers on a timely basis and cause customers to cancel their service and could have a material adverse effect on our business, financial condition, and results of operations.

In addition, we expect that a considerable amount of our future growth will depend on our ability to process and manage claims data more efficiently and to provide more meaningful healthcare information to customers and payors of healthcare. There can be no assurance that our current data processing capabilities will be adequate for our future growth, that we will be able to efficiently upgrade our systems to meet future demands, or that we will be able to develop, license or otherwise acquire software to address these market demands as well or as timely as our competitors.

***If we are unable to leverage our information systems to enhance our outcome-driven service model, our results may be adversely affected.***

To leverage our knowledge of workplace injuries, treatment protocols, outcomes data, and complex regulatory provisions related to the workers' compensation market, we must continue to implement and enhance information systems that can analyze our data related to the workers' compensation industry. We frequently upgrade existing operating systems and are updating other information systems that we rely upon in providing our services and financial reporting. We have detailed implementation schedules for these projects that require extensive involvement from our operational, technological, and financial personnel. Delays or other problems we might encounter in implementing these projects could adversely affect our ability to deliver streamlined patient care and outcome reporting to our customers.

**<u>Risks Related to Potential Litigation</u>**

***Exposure to possible litigation and legal liability may adversely affect our business, financial condition, and results of operations.***

We, through our utilization management services, make recommendations concerning the appropriateness of providers' medical treatment plans for patients throughout the country, and as a result, could be exposed to claims for adverse medical consequences. We do not grant or deny claims for payment of benefits and we do not believe that we engage in the practice of medicine or the delivery of medical services. There can be no assurance, however, that we will not be subject to claims or litigation related to the authorization or denial of claims for payment of benefits or allegations that we engage in the practice of medicine or the delivery of medical services.

In addition, there can be no assurance that we will not be subject to other litigation that may adversely affect our business, financial condition or results of operations, including but not limited to being joined in litigation brought against our customers in the managed care industry. We maintain professional liability insurance and such other coverages as we believe are reasonable in light of our experience to date. If such insurance is insufficient or unavailable in the future at reasonable cost to protect us from liability, our business, financial condition, or results of operations could be adversely affected.

***If lawsuits against us are successful, we may incur significant liabilities.***

We provide to insurers and other payors of healthcare costs managed care programs that utilize preferred provider organizations and computerized bill review programs. Healthcare providers have brought, against us and our customers, individual and class action lawsuits challenging such programs. If such lawsuits are successful, we may incur significant liabilities.

We make recommendations about the appropriateness of providers' proposed medical treatment plans for patients throughout the country. As a result, we could be subject to claims arising from any adverse medical consequences. Although plaintiffs have not, to date, subjected us to any claims or litigation relating to the granting or denial of claims for payment of benefits or allegations that we engage in the practice of medicine or the delivery of medical services, we cannot assure you that plaintiffs will not make such claims in future litigation. We also cannot assure you that our insurance will provide sufficient coverage or that insurance companies will make insurance available at a reasonable cost to protect us from significant future liability.

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***The increased costs of professional and general liability insurance may have an adverse effect on our profitability.***

The cost of commercial professional and general liability insurance coverage has risen significantly for us in the past several years, and this trend may continue. In addition, if we were to suffer a material loss, our costs may increase over and above the general increases in the industry. If the costs associated with insuring our business continue to increase, it may adversely affect our business. We believe our current level of insurance coverage is adequate for a company of our size engaged in our business. Additionally, we may have difficulty getting carriers to pay under coverage in certain circumstances.

**<u>Risks Related to Our Regulatory Environment</u>**

***Changes in government regulations could increase our costs of operations and/or reduce the demand for our services.***

Many states, including a number of those in which we transact business, have licensing and other regulatory requirements applicable to our business. Approximately half of the states have enacted laws that require licensing of businesses which provide medical review services such as ours. Some of these laws apply to medical review of care covered by workers' compensation. These laws typically establish minimum standards for qualifications of personnel, confidentiality, internal quality control, and dispute resolution procedures. These regulatory programs may result in increased costs of operation for us, which may have an adverse impact upon our ability to compete with other available alternatives for healthcare cost control. In addition, new laws regulating the operation of managed care provider networks have been adopted by a number of states. These laws may apply to managed care provider networks we have contracts with or to provider networks which we may organize. To the extent we are governed by these regulations, we may be subject to additional licensing requirements, financial and operational oversight and procedural standards for beneficiaries and providers.

Regulation in the healthcare and workers' compensation fields is constantly evolving. We are unable to predict what additional government initiatives, if any, affecting our business may be promulgated in the future. Our business may be adversely affected by failure to comply with existing laws and regulations, failure to obtain necessary licenses and government approvals, or failure to adapt to new or modified regulatory requirements. Proposals for healthcare legislative reforms are regularly considered at the federal and state levels. To the extent that such proposals affect workers' compensation, such proposals may adversely affect our business, financial condition, and results of operations.

In addition, changes in workers' compensation, automobile insurance, and group healthcare laws or regulations may reduce demand for our services, which would require us to develop new or modified services to meet the demands of the marketplace, or reduce the fees that we may charge for our services.

***Increasing regulatory focus on privacy issues and expanding privacy laws could impact our business models and expose us to increased liability.***

U.S. privacy and data security laws apply to our various businesses. Governments, privacy advocates and class action attorneys are increasingly scrutinizing how companies collect, process, use, store, share and transmit personal data. Globally, new laws, such as the General Data Protection Regulation in Europe, the California Consumer Privacy Act in California, and industry self-regulatory codes have been enacted and more are being considered that may affect our ability to respond to customer requests under the laws, and to implement our business models effectively. These requirements, among others, may force us to bear the burden of more onerous obligations in our contracts. Any perception of our practices, products or services as a violation of individual privacy rights may subject us to public criticism, class action lawsuits, reputational harm, or investigations or claims by regulators, industry groups or other third parties, all of which could disrupt our business and expose us to increased liability. Additionally, we store information on behalf of our customers and if our customers fail to comply with contractual obligations or applicable laws, it could result in litigation or reputational harm to us.

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***Increased regulatory scrutiny on use of "big data" techniques, machine learning, and artificial intelligence could impact our business and expose us to increased liability.*** 

There has also been increased regulatory scrutiny of the use of "big data" techniques, machine learning, and artificial intelligence. It is likely that we will be subject to new regulations that could materially adversely affect our operations or ability to write business profitably in one or more jurisdictions. The legal and regulatory framework governing artificial intelligence is evolving rapidly and remains highly uncertain. Federal and state agencies are actively proposing or implementing new regulations and guidelines targeting artificial intelligence. With many of these artificial intelligence regulations still in the early stages of development, it is difficult to predict the impact they will have on our business. These regulations may require changes to our implementation of artificial intelligence technology, increase compliance costs, or increase the risk of non-compliance. Any failure to comply with applicable laws or regulations related to artificial intelligence could expose us to investigations, enforcement actions, lawsuits, fines, or other penalties, which could have a material adverse effect on our business, results of operation and financial condition. In addition, regulators have recently requested information from insurers on their use of algorithms, artificial intelligence and machine learning. We have internal policies governing the use of artificial intelligence by our employees designed to protect the Company from breaches of data privacy, liability and regulatory enforcement risk; however, if our employees violate these policies, it could expose us to such risks. Our exposure to these risks also could increase if our vendors, suppliers, or other third-party providers employ artificial intelligence in relation to the products or services they provide to us, as we have limited control over such use in third-party products or services. These risks include, among others, the input of confidential information, including material non-public information, in contravention of our policies or contractual restrictions to which any of the foregoing are subject, or in violation of applicable laws or regulations, including those relating to data protection. We cannot predict what, if any, regulatory actions may be taken with regard to "big data," but any limitations could have a material impact on our business, business processes, financial condition, and results of operations.

***The costs of compliance with sustainability or other environmental, social responsibility or governance laws, regulations, or policies, including investor and client-driven policies and standards, could adversely affect our business.***

As a non–manufacturing service business, we have to date been less impacted from laws and regulations related to sustainability concerns or other environmental, social responsibility or governance ("ESG") laws, regulations, or policies. However, we may need to incur ESG-related costs in response to our customers or shareholders. Increasingly our customers and shareholders expect that we meet environmental, social responsibility, sustainability or other business policies or standards, which may be more restrictive than current laws and regulations, before our customers commence, or continue, doing business with us or before shareholders invest in our common stock. Our compliance with these policies and related requirements could be costly, and our failure to comply could adversely affect our business relationships or reputation.

**<u>Risks Related to Ownership of Our Common Stock</u>**

***The market price and trading volume of our common stock may be volatile, which could result in rapid and substantial losses for our stockholders.***

The market price of our common stock may be highly volatile and could be subject to wide fluctuations. In addition, the trading volume in our common stock may fluctuate and cause significant price variations to occur. The stock market has in the past experienced price and volume fluctuations that have particularly affected companies in the healthcare and managed care markets resulting in changes in the market price of the stock of many companies, which may not have been directly related to the operating performance of those companies. There can be no assurance that the market price of our common stock will not fluctuate or decline significantly in the future.

***We cannot assure our stockholders that our stock repurchase program will enhance long-term stockholder value and stock repurchases, if any, could increase the volatility of the price of our common stock and will diminish our cash reserves.***

In 1996, the Board of Directors authorized a stock repurchase program and, since then, has periodically increased the number of shares authorized for repurchase under the program. The most recent increase occurred in November 2022 and brought the number of shares authorized for repurchase over the life of the program to 117,000,000 shares. There is no expiration date for the repurchase program. The timing and actual number of shares repurchased, if any, will depend on a variety of factors including the timing of open trading windows, trading price, corporate and regulatory requirements, and market conditions. The stock repurchase program does not obligate us to acquire any amount of common stock and may be suspended or discontinued at any time without notice. Repurchases pursuant to our stock repurchase program could affect our stock price, increase the volatility of the price of our common stock and reduce the market liquidity for our common stock. Additionally, repurchases under our stock repurchase program will diminish our cash reserves, which could strain our liquidity, impact our ability to pursue future strategic opportunities and acquisitions, and result in lower overall returns on our cash balances. There can be no assurance that any further stock repurchases will enhance stockholder value because the market price of our common stock may decline below the levels at which we repurchased shares of common stock. Although our stock repurchase program is intended to enhance long-term stockholder value, there is no guarantee we will be successful in achieving this objective.

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**Item 1B. *Unresolved Staff Comments.***

None.

**Item 1C. *Cybersecurity.***

Our information security and cybersecurity program is based on a cybersecurity framework that is designed to protect against operational risks related to cybersecurity.

**Cybersecurity Risk Management and Strategy** 

We recognize the importance of developing, implementing, and maintaining cybersecurity measures to safeguard our information systems and protect the confidentiality, integrity, and availability of company information, and data entrusted to us by our customers. We have implemented a cybersecurity program to assess, identify, and manage risks from cybersecurity threats that could adversely and materially affect the confidentiality, integrity, and availability of our information and information systems. We maintain administrative, technical, and physical controls designed to protect the security and privacy of confidential, personal, and proprietary information. We conduct regular assessments, measuring our exposure to cyber threats. These assessments form the basis for our cyber risk program. Threats and risks are identified from threat intelligence sources that include our vendors, industry, and government organizations. Our Chief Information Security Officer ("CISO") is responsible for implementing our cybersecurity program and enforcing our cybersecurity policy. We employ internal dedicated security personnel and also have contracted services delivered from a full-service Managed Security Service Provider. Our Chief Technology Officer ("CTO") oversees our day-to-day security operations, and our Chief Information Officer ("CIO") oversees our secure development activities.

The Board of Directors and the Audit Committee maintain oversight of the cybersecurity program to ensure risks to the Company are managed appropriately. Our cybersecurity program leverages people, processes, and technology to identify and respond to cybersecurity threats. We have a Cybersecurity Incident Response Plan which contains processes and procedures related to security incident handling.

Our CISO leads our enterprise information security, privacy, and cybersecurity program, which is designed to (i) ensure the security, confidentiality, integrity and availability of our information and information systems; (ii) protect against any anticipated threats or hazards to the security, confidentiality, integrity or availability of such information and information systems; and (iii) protect against unauthorized access to or use of such information or information systems that could result in substantial harm or inconvenience to us, our partners or our customers. We have implemented an industry adopted cybersecurity framework, which is continuously improving. We continuously test and assess our cybersecurity posture, including through third-party risk assessments performed by reputable assessors, consultants, and auditors. Additionally, we perform an annual evaluation of our cybersecurity program.

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We also have vendor assessment processes to oversee, identify, and reduce the potential impact of a security incident at a third-party vendor, service provider or customer or otherwise implicating the third-party technology and systems we use. Our agreements with third parties may include various compliance requirements, data protection terms, audit or monitoring rights, and notification requirements in the event the third party experiences its own cybersecurity event.

We perform ongoing cybersecurity awareness training for our employees that reinforces our information security policies, standards and practices. In addition, employees receive periodic newsletters emphasizing awareness of new cybersecurity threats (e.g., phishing attempts, smishing, pretexting, and deep fakes). This training is mandatory for all employees and is supplemented with periodic social engineering tests.

We engage consultants to review our cybersecurity program to help identify areas for continued focus, improvement and compliance. Our processes also address cybersecurity risks associated with third-party service providers, including those with access to our non-public or restricted data, including client data.

**Cybersecurity Governance** 

As stated above, the Board of Directors and the Audit Committee maintain oversight of the cybersecurity program to ensure risks to the Company are managed appropriately. Our CISO is responsible for providing annual updates to the Board of Directors and to executive leadership. In addition, our CISO partners closely with our CIO and CTO and their respective organizations to execute defined functions within our cybersecurity program. Our CISO, CIO, and CTO report any cybersecurity issues to the Chief Executive Officer who, as appropriate, will escalate to the Board. Our CISO and CIO both attend regular meetings with the executive officer team, including our Chief Executive Officer, Chief Financial Officer and other senior executive officers, and report on cybersecurity matters as appropriate.

Our cybersecurity and IT leaders have extensive relevant work experience in various roles which includes developing cybersecurity strategy, implementing effective information and cybersecurity programs, and implementing cybersecurity and privacy solutions. Such leaders in our organization hold industry recognized certifications such as Certified Information Systems Security Professional (CISSP), Certified Information Security Manager (CISM) and Global Information Assurance Certification (GIAC).

**Item 2. *Properties.***

The Company's principal executive office is located in Fort Worth, Texas. The Company entered into a lease for approximately 26,000 square feet for its headquarters, which expires in April 2028. The Company leases 59 branch offices in 39 states, which range in size from 600 square feet up to 26,000 square feet. The lease terms for the branch offices range from monthly to seven years and expire at various dates through 2033. In addition to its leased properties, the Company owns a 32,000 square foot building located in Milwaukie, Oregon, used as office space. The Company believes that its facilities are adequate for its current needs and that suitable additional space will be available as required to scale its business.

**Item 3. *Legal Proceedings.***

From time to time the Company is involved in legal proceedings arising in the ordinary course of business. Although the results of these ordinary course matters cannot be predicted with certainty, we believe that the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on our financial position or results of operations.

**Item 4*. Mine Safety Disclosures.***

Not applicable.

**PART II**

**Item 5. *Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.***

**Market Information**

The Company's common stock is traded on the Nasdaq Global Select Market under the symbol CRVL.

*Holders.* As of May 19, 2026, there were approximately 611 holders of record of the Company's common stock according to the information provided by the Company's transfer agent.

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*Dividends.* The Company has never paid any cash dividends on its common stock and has no current plans to do so in the foreseeable future. The Company intends to retain future earnings, if any, for use in the Company's business and for purchases of stock under its stock repurchase program. The payment of any future dividends on its common stock will be determined by the Board of Directors in light of conditions then existing, including the Company's earnings, financial condition and requirements, restrictions in financing agreements, business conditions and other factors.

*Recent Sales of Unregistered Equity Securities.* None.

*Issuer Purchases of Equity Securities.* The following table summarizes purchases of the Company's common stock made by or on behalf of the Company or on behalf of any affiliated purchaser in the quarter ended March 31, 2026.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total<br>Number of<br>Shares<br>Purchased** | **Average<br>Price Paid<br>Per Share** | **Total Number of Shares<br>Purchased as Part of<br>Publicly Announced<br>Program** | **Maximum Number of<br>Shares that may still<br>be Purchased Under<br>the Program** |
| January 1 to January 31, 2026 | 65030 | $69.19 | 65030 | 2041841 |
| February 1 to February 28, 2026 | 136075 | 49.78 | 136075 | 1905766 |
| March 1 to March 31, 2026 | 165201 | 53.26 | 165201 | 1740565 |
| Total | 366306 | $54.80 | 366306 | 1740565 |

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In 1996, the Board of Directors authorized a stock repurchase program initially for up to 100,000 original shares of our common stock. The Board of Directors has periodically increased the number of shares authorized for repurchase under the repurchase program. In November 2022, the Board of Directors increased the number of shares of common stock authorized to be repurchased over the life of the program by 3,000,000 shares to 117,000,000 shares. There is no expiration date for the program. The program does not obligate us to acquire any amount of common stock and may be suspended or discontinued at any time without notice. As of March 31, 2026, the Company has repurchased 115,259,435 shares of its common stock over the life of the program.

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STOCK PERFORMANCE GRAPH

The graph and the table depicted below show a comparison of cumulative total stockholder return on our Common Stock against the cumulative total return of the Nasdaq Composite and the Nasdaq Healthcare Services Index over a five year period beginning on March 31, 2021. The graph assumes that $100 was invested in the Company's Common Stock, the Nasdaq Composite, and the Nasdaq Healthcare Services Index on March 31, 2021, and in each index, and that all dividends were reinvested. No cash dividends have been paid or declared on the Common Stock. Stockholder returns over the indicated period should not be considered indicative of future stockholder returns.

![img212043134_0.jpg](img212043134_0.jpg)

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2021** | **2021** | **2022** | **2022** | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** | **2026** | **2026** |
| CorVel Corporation |  | 100.00 |  | 164.19 |  | 185.48 |  | 256.32 |  | 327.43 |  | 159.81 |
| U.S. Nasdaq Composite |  | 100.00 |  | 107.35 |  | 92.26 |  | 123.65 |  | 130.59 |  | 162.99 |
| U.S. Nasdaq Healthcare Services |  | 100.00 |  | 83.35 |  | 77.75 |  | 85.09 |  | 79.60 |  | 96.92 |

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Notwithstanding anything to the contrary set forth in any of our previous filings made under the Securities Act or the Exchange Act that might incorporate future filings made by us under those statutes, neither the preceding Stock Performance Graph, nor the information relating to it, is "soliciting material" or is "filed" or is to be incorporated by reference into any such prior filings, nor shall such graph or information be incorporated by reference into any future filings made by us under those statutes.

**Item 6. [Reserved.]**

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**Item 7. *Management's Discussion and Analysis of Financial Condition and Results of Operations.***

Management's Discussion and Analysis of Financial Condition and Results of Operations financial condition appears in a separate section of this Annual Report immediately following the "Signatures" section in this Annual Report, and is incorporated herein by this reference.

**Item 7A. *Quantitative and Qualitative Disclosures About Market Risk.***

Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of fluctuations in interest rates. We do not hold or issue financial instruments for trading purposes.

**Interest Rate Risk**

Our invested assets are primarily held as cash and cash equivalents, which are subject to various market risk exposures such as interest rate risk. The fair value of our portfolio of cash and cash equivalents as of March 31, 2026 approximated its carrying value due to its short-term duration. We estimated market risk as the potential decrease in fair value resulting from a hypothetical one-percentage point increase in interest rates for the instruments contained in the cash and cash equivalents investment portfolio. The resulting fair values were not materially different from their carrying values at March 31, 2026.

**Inflation Risk**

An increase in inflation could affect our business in several ways. Inflation increases expenses for labor and other operating costs, potentially putting pressure on our profitability if such costs cannot be passed through to our customers. Inflation could also lead to increased costs for losses and loss adjustment expenses in each of our operating service lines. Prolonged and elevated inflation could adversely affect the financial markets and the economy generally, and may force governments to pursue a restrictive fiscal and monetary policy, which could constrain overall economic activity or inhibit our revenue growth opportunities.

**Credit Risk Related to Performing Certain Services for Our Clients**

We process payments for claims settlements, primarily on behalf of our self-insured clients. The liability for the settlement cost of claims processed, which is generally pre-funded, remains with the client. Accordingly, we do not incur significant credit risk in the performance of these services.

**Item 8. *Financial Statements and Supplementary Data.***

The Company's consolidated financial statements, as listed under Item 15(a)(1), appear in a separate section of this Annual Report, and are incorporated herein by this reference. The financial statement schedule is included below under Item 15(a)(2).

**Item 9. *Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.***

None.

**Item 9A. *Controls and Procedures.***

**Evaluation of Disclosure Controls and Procedures**

Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2026, our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is (i) recorded, processed, summarized, and reported, within the time periods specified in the SEC's rules and forms and (ii) accumulated and communicated to our management, including our principal executive and principal accounting officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

**Management's Report on Internal Control over Financial Reporting**

Our management is responsible for establishing and maintaining a system of internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Internal control over financial reporting is designed to provide reasonable

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assurance regarding the reliability of our financial reporting and preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States. Internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our transactions; providing reasonable assurance that transactions are recorded as necessary for preparation of our financial statements in accordance with accounting principles generally accepted in the United States of America; providing reasonable assurance that our receipts and expenditures are made in accordance with authorizations of our management and directors; and providing reasonable assurance that unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements would be prevented or detected on a timely basis.

Management conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission in the 2013 *Internal Control—Integrated Framework*. Based on this assessment, our management, including our principal executive officer and principal financial officer, concluded that our internal control over financial reporting was effective as of March 31, 2026, to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States of America.

Our independent registered public accounting firm, Haskell & White LLP, has audited our consolidated financial statements included in this Annual Report and has issued an attestation report on the effectiveness of our internal control over financial reporting as of March 31, 2026, as stated in their report that is included in Part II, Item 8 of this Annual Report.

**Changes to Internal Control over Financial Reporting**

During the quarter ended March 31, 2026, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**Item 9B. *Other Information.***

The Company's directors and officers (as defined in Rule4 16a-1 under the Exchange Act) may enter into trading plans or other arrangements with financial institutions to purchase or sell shares of the Company's common stock. These plans or arrangements may be intended to comply with the affirmative defense provisions of Rule 10b5-1 of the Exchange Act, which are referred to as Rule 10b5-1 trading arrangements, or they may represent non-Rule 10b5-1 trading arrangements.

On March 9, 2026, Michael G. Combs, Chairman of the Board, Chief Executive Officer, and President, adopted a Rule 10b5-1 trading arrangement to sell up to 28,500 shares of the Company's common stock over a period ending December 15, 2026, subject to certain conditions. No other directors and officers adopted or terminated any contract or written plan to purchase or sell Company securities.

**Item 9C. *Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.***

None.

------

**PART III**

**Item 10. *Directors, Executive Officers and Corporate Governance.***

The information required by this Item will be disclosed in the Company's Definitive Proxy Statement on Schedule 14A for its 2026 Annual Meeting of Shareholders and is incorporated herein by reference. The Company's Proxy Statement will be filed with the SEC within 120 days after March 31, 2026 (the "Proxy Statement").

**Item 11. *Executive Compensation.***

The information required by this item will be disclosed in the Proxy Statement and is incorporated herein by reference.

**Item 12. *Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.***

The information required by this item will be disclosed in the Proxy Statement and is incorporated herein by reference.

**Item 13. *Certain Relationships and Related Party Transactions, and Director Independence.***

The information required by this item will be disclosed in the Proxy Statement and is incorporated herein by reference.

**Item 14. *Principal Accountant Fees and Services.***

The information required by this item will be disclosed in the Proxy Statement and is incorporated herein by reference.

------

**PART IV**

**Item 15. *Exhibit and Financial Statement Schedules.***

**(a)(1) Financial Statements:**

The Company's financial statements appear in a separate section of this Annual Report, beginning on the pages referenced below:

---

| | |
|:---|:---|
|  | **Page** |
| [<u>Report of Independent Registered Public Accounting Firm (PCAOB ID:</u> 200<u>)</u>](#report_independent_registered_public_acc) | 44 |
| [<u>Consolidated Balance Sheets as of March 31, 2026 and 2025</u>](#consolidated_balance_sheets) | 47 |
| [<u>Consolidated Statements of Income for the Fiscal Years Ended March 31, 2026, 2025 and 2024</u>](#consolidated_statements_income) | 48 |
| [<u>Consolidated Statements of Stockholders' Equity for the Fiscal Years Ended March 31, 2026, 2025 and 2024</u>](#consolidated_statements_stockholders_equ) | 49 |
| [<u>Consolidated Statements of Cash Flows for the Fiscal Years Ended March 31, 2026, 2025 and 2024</u>](#consolidated_statements_cash_flows) | 50 |
| [<u>Notes to Consolidated Financial Statements</u>](#notes_to_consolidated_financial_statemen) | 51 |

---

**(a)(2) Financial Statement Schedule:**

The Company's consolidated financial statements, as listed under Item 15(a)(1), appear in a separate section of this Annual Report and are incorporated herein by this reference. The Company's financial statement schedule is as follows:

**Schedule II — Valuation and Qualifying Accounts**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Balance at<br>Beginning of Year** | **Additions<br>Charged to Cost<br>and Expenses** | **Deductions** | **Balance at <br>End of Year** |
| **Allowance for expected credit losses:** |  |  |  |  |
| Fiscal Year Ended March 31, 2026: | $7689000 | $2397000 | $(6117000) | $3969000 |
| Fiscal Year Ended March 31, 2025: | 4245000 | 3530000 | (86000) | 7689000 |
| Fiscal Year Ended March 31, 2024: | 2823000 | 1828000 | (406000) | 4245000 |

---

------

**(a)(3) Exhibits:**

**EXHIBITS**

---

| | | |
|:---|:---|:---|
| **Exhibit**<br>**No.** | **Title** | **Method of Filing** |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1 | [<u>Fourth Amended and Restated Certificate of Incorporation of CorVel Corporation.</u>](https://www.sec.gov/Archives/edgar/data/0000874866/000156459020037803/crvl-ex31_279.htm) | Incorporated herein by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020 filed on August 6, 2020 (File No. 000-19291). |
| 3.2 | [<u>Certificate of Amendment of Fourth Amended and Restated Certificate of Incorporation of CorVel Corporation</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000874866/000119312524285219/d872268d8k.htm)<br>| Incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on December 26, 2024. |
| &nbsp;&nbsp;&nbsp;&nbsp;3.3 | [<u>Second Amended and Restated Bylaws of CorVel Corporation.</u>](https://www.sec.gov/Archives/edgar/data/0000874866/000156459020037803/crvl-ex32_280.htm) | Incorporated herein by reference to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020 filed on August 6, 2020 (File No. 000-19291). |
| &nbsp;&nbsp;&nbsp;&nbsp;4.1 | [<u>Description of Capital Stock</u>](crvl-ex4_1.htm) | Filed herewith. |
| &nbsp;&nbsp;&nbsp;&nbsp;10.1\* | [<u>Restated Omnibus Incentive Plan (Formerly The Restated 1988 Executive Stock Option Plan)</u>](https://www.sec.gov/Archives/edgar/data/0000874866/000119312520209171/d849279dex101.htm) | Incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on August 4, 2020 (File No. 000-19291). |
| &nbsp;&nbsp;&nbsp;&nbsp;10.2\* | [<u>Forms of Notice of Grant of Stock Option, Stock Option Agreement and Notice of Exercise Under the Restated Omnibus Incentive Plan (Formerly The Restated 1988 Executive Stock Option)</u>](https://www.sec.gov/Archives/edgar/data/874866/000119312518242865/d571587dex102.htm) | Incorporated herein by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on August 8, 2018 (File No. 000-19291), Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2006 filed on November 9, 2006 (File No. 000-19291), Exhibits 10.7, 10.8 and 10.9 to the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 1994 filed on June 29, 1994 (File No. 000-19291), Exhibits 99.2, 99.3, 99.4, 99.5, 99.6, 99.7 and 99.8 to the Company's Registration Statement on Form S-8 (File No. 333-94440) filed on July 10, 1995, and Exhibits 99.3 and 99.5 to the Company's Registration Statement on Form S-8 (File No. 333-58455) filed on July 2, 1998. |
| &nbsp;&nbsp;&nbsp;&nbsp;10.3\* | [<u>Restated 1991 Employee Stock Purchase Plan, as amended</u>](https://www.sec.gov/Archives/edgar/data/874866/000119312515367081/d35245dex104.htm) | Incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on August 11, 2021 (File No. 000-19291).  |
| &nbsp;&nbsp;&nbsp;&nbsp;10.4(P) | Fidelity Master Plan for Savings and Investment, and amendments | Incorporated herein by reference to Exhibits 10.16 and 10.16A to the Company's Registration Statement on Form S-1 Registration No. 33-40629 initially filed on May 16, 1991. |
| &nbsp;&nbsp;&nbsp;&nbsp;10.5\*† | [<u>Stock Option Agreement, dated November 5, 2020, by and between CorVel Corporation and Michael G. Combs, providing for performance vesting.</u>](https://www.sec.gov/Archives/edgar/data/0000874866/000119312520291739/d947155dex101.htm) | Incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on November 12, 2020 (File No. 000-19291). |
| &nbsp;&nbsp;&nbsp;&nbsp;10.6\*† | [<u>Stock Option Agreement, dated November 5, 2020, by and between CorVel Corporation and Brandon T. O'Brien, providing for performance vesting.</u>](https://www.sec.gov/Archives/edgar/data/0000874866/000119312520291739/d947155dex102.htm) | Incorporated herein by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on November 12, 2020 (File No. 000-19291). |
| &nbsp;&nbsp;&nbsp;&nbsp;10.7\*† | [<u>Stock Option Agreement, dated November 5, 2020, by and between CorVel Corporation and Maxim Shishin, providing for performance vesting.</u>](https://www.sec.gov/Archives/edgar/data/0000874866/000119312520291739/d947155dex104.htm) | Incorporated herein by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed on November 12, 2020 (File No. 000-19291). |

---

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;10.8\*† | [<u>Stock Option Agreement, dated November 5, 2020, by and between CorVel Corporation and Jennifer Yoss, providing for performance vesting.</u>](https://www.sec.gov/Archives/edgar/data/0000874866/000119312520291739/d947155dex105.htm) | Incorporated herein by reference to Exhibit 10.5 to the Company's Current Report on Form 8-K filed on November 12, 2020 (File No. 000-19291). |
| &nbsp;&nbsp;&nbsp;&nbsp;10.9\*† | [<u>Stock Option Agreement, dated December 8, 2021, by and between CorVel Corporation and Michael G. Combs, providing for performance vesting.</u>](https://www.sec.gov/Archives/edgar/data/874866/000095017022000749/crvl-ex10_1.htm) | Incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2021 filed on February 3, 2022 (File No. 000-19291). |
| &nbsp;&nbsp;&nbsp;&nbsp;10.10\*† | [<u>Stock Option Agreement, dated December 8, 2021, by and between CorVel Corporation and Brandon T. O'Brien, providing for performance vesting.</u>](https://www.sec.gov/Archives/edgar/data/874866/000095017022000749/crvl-ex10_2.htm) | Incorporated herein by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2021 filed on February 3, 2022 (File No. 000-19291). |
| &nbsp;&nbsp;&nbsp;&nbsp;10.11\*† | [<u>Stock Option Agreement, dated December 8, 2021, by and between CorVel Corporation and Maxim Shishin, providing for performance vesting.</u>](https://www.sec.gov/Archives/edgar/data/874866/000095017022000749/crvl-ex10_4.htm) | Incorporated herein by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2021 filed on February 3, 2022 (File No. 000-19291). |
| &nbsp;&nbsp;&nbsp;&nbsp;10.12\*† | [<u>Stock Option Agreement, dated December 8, 2021, by and between CorVel Corporation and Jennifer Yoss, providing for performance vesting.</u>](https://www.sec.gov/Archives/edgar/data/874866/000095017022000749/crvl-ex10_5.htm) | Incorporated herein by reference to Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2021 filed on February 3, 2022 (File No. 000-19291). |
| &nbsp;&nbsp;&nbsp;&nbsp;10.13\* | [<u>CorVel Corporation 2025 Stock Incentive Plan.</u>](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000874866/000119312525145760/d912651ddef14a.htm#toc912651_39) | Incorporated herein by reference to Appendix A to the Company's Definitive Proxy Statement filed on June 24, 2025. |
| &nbsp;&nbsp;&nbsp;&nbsp;10.14\*<br>| [<u>Forms of Notice of Stock Option Grant and Stock Option Agreement</u>](https://www.sec.gov/Archives/edgar/data/874866/000119312525270014/d82229dex102.htm) | Incorporated by reference to Exhibit 10.2 to the Company's Registration Statement on Form S-8 (File No. 333- 291331) filed on November 6, 2025. |
| &nbsp;&nbsp;&nbsp;&nbsp;19.1 | [<u>Insider Trading Policy</u>](https://www.sec.gov/Archives/edgar/data/874866/000095017024064645/crvl-ex19_1.htm) | Incorporated herein by reference to Exhibit 19.1 to the Company's Annual Report on Form 10-K for the period ended March 31, 2024 filed on May 24, 2024 (File No. 000-19291). |
| &nbsp;&nbsp;&nbsp;&nbsp;21.1 | [<u>Subsidiaries of the Company.</u>](crvl-ex21_1.htm) | Filed herewith. |
| &nbsp;&nbsp;&nbsp;&nbsp;23.1 | [<u>Consent of Independent Registered Public Accounting Firm, Haskell & White LLP.</u>](crvl-ex23_1.htm) | Filed herewith. |
| &nbsp;&nbsp;&nbsp;&nbsp;31.1 | [<u>Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](crvl-ex31_1.htm) | Filed herewith. |
| &nbsp;&nbsp;&nbsp;&nbsp;31.2 | [<u>Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](crvl-ex31_2.htm) | Filed herewith. |
| &nbsp;&nbsp;&nbsp;&nbsp;32.1 | [<u>Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](crvl-ex32_1.htm) | Furnished herewith. |
| &nbsp;&nbsp;&nbsp;&nbsp;32.2 | [<u>Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](crvl-ex32_2.htm) | Furnished herewith. |
| &nbsp;&nbsp;&nbsp;&nbsp;97.1 | [<u>Executive Clawback Policy</u>](https://www.sec.gov/Archives/edgar/data/874866/000095017024064645/crvl-ex97_1.htm) | Incorporated herein by reference to Exhibit 97.1 to the Company's Annual Report on Form 10-K for the period ended March 31, 2024 filed on May 24, 2024 (File No. 000-19291). |
| 101.INS | Inline XBRL Instance Document | Furnished herewith. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents | Furnished herewith. |

---

------

104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) Furnished herewith. <br>

\* - Denotes management contract or compensatory plan or arrangement.

† - Certain confidential information contained in this exhibit has been omitted by means of redacting a portion of the text and replacing it with empty brackets indicated by [ ], pursuant to Regulation S-K Item 601(b)(10)(iv) of the Securities Act of 1933, as amended. Certain confidential information has been excluded from the exhibit because it (i) is not material and (ii) would likely cause competitive harm to CorVel if publicly disclosed. An unredacted copy of the exhibit will be provided on a supplemental basis to the SEC upon request.

(P) – Previously filed only in paper.

**(b) Exhibits**

The exhibits filed as part of this Annual Report are listed under Item 15(a)(3) of this Annual Report.

**(c) Financial Statement Schedule**

The Financial Statement Schedule required by Regulation S-X and Item 8 of Form 10-K is listed under Item 15(a)(2) of this Annual Report.

**Item 16. *Form 10-K Summary.***

None.

------

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Annual Report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| CorVel Corporation | CorVel Corporation |
| By: | /s/ Michael G. Combs |
|  | Michael G. Combs |
| *Chairman of the Board, Chief Executive Officer, and President* | *Chairman of the Board, Chief Executive Officer, and President* |
| *(Principal Executive Officer)* | *(Principal Executive Officer)* |

---

Date: May 22, 2026

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Annual Report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Michael G. Combs | Chairman of the Board, Chief Executive Officer, and President | May 22, 2026 |
| Michael G. Combs | (Principal Executive Officer) |  |
| /s/ Brian S. Nichols | Chief Financial Officer  | May 22, 2026 |
| Brian S. Nichols | (Principal Financial Officer) |  |
| /s/ Jennifer L. Yoss | Vice President, Accounting  | May 22, 2026 |
| Jennifer L. Yoss | (Principal Accounting Officer) |  |
| /s/ Alan R. Hoops | Director | May 22, 2026 |
| Alan R. Hoops |  |  |
| /s/ Steven J. Hamerslag | Director | May 22, 2026 |
| Steven J. Hamerslag |  |  |
| /s/ R. Judd Jessup | Director | May 22, 2026 |
| R. Judd Jessup |  |  |
| /s/ Joanna C. Burkey | Director | May 22, 2026 |
| Joanna C. Burkey |  |  |
| /s/ Jeffrey J. Michael | Director | May 22, 2026 |
| Jeffrey J. Michael |  |  |

---

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF**

**FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

This Management's Discussion and Analysis of Financial Condition and Results of Operations may include certain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation statements with respect to anticipated future operating and financial performance, growth and acquisition opportunities and other similar forecasts and statements of expectation. Words such as "expects," "anticipates," "intends," "plans," "predicts," "believes," "seeks," "estimates," "potential," "continue," "strive," "ongoing," "may," "will," "would," "could," "should," as well as variations of these words and similar expressions, are intended to identify these forward-looking statements. Forward-looking statements made by the Company and its management are based on estimates, projections, beliefs and assumptions of management at the time of such statements and are not guarantees of future performance.

The Company disclaims any obligations to update or revise any forward-looking statement based on the occurrence of future events, the receipt of new information or otherwise. Actual future performance, outcomes, and results may differ materially from those expressed in forward-looking statements made by the Company and its management as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include without limitation; general industry and economic conditions, including a decreasing number of national claims due to a decreasing number of injured workers; competition from other managed care companies and third party administrators; the Company's ability to renew or maintain contracts with its customers on favorable terms or at all; the ability to expand certain areas of the Company's business; growth in the Company's sale of TPA services; shifts in customer demands; increases in operating expenses, including employee wages, benefits, and medical inflation; the ability of the Company to produce market-competitive software; cost of capital and capital requirements; on the Company's ability to attract and retain key personnel; the impact of potential cybersecurity incidents on the Company's business; existing and possible litigation and legal liability in the course of operations and the Company's ability to resolve such litigation; changes in regulations affecting the workers' compensation, insurance and healthcare industries in general; governmental and public policy changes, including but not limited to legislative and administrative law and rule implementation or change; the impact of recently issued accounting standards on the Company's consolidated financial statements; the availability of financing in the amounts, at the times, and on the terms necessary to support the Company's future business, and the other risks identified in Part I, Item 1A of this Annual Report, "Risk Factors."

**Overview**

The Company is an independent nationwide provider of medical cost containment and managed care services designed to address the escalating medical costs of workers' compensation benefits, automobile insurance claims, and group health insurance benefits. The Company's services are provided to insurance companies, TPAs, governmental entities, and self-administered employers to assist them in managing the medical costs of workers' compensation, group health and auto insurance, and monitoring the quality of care provided to claimants.

**Network Solutions Services**

The Company's network solutions services are designed to reduce the price paid by its customers for medical services rendered in workers' compensation cases, automobile insurance policies, and group health insurance policies. The network solutions services offered by the Company include automated medical fee auditing, preferred provider management and reimbursement services, retrospective utilization review, facility claim review, professional review, pharmacy services, directed care services, Medicare solutions, clearinghouse services, independent medical examinations, and inpatient medical bill review. Network solutions services also include revenue from the Company's directed care network (known as CareIQ), including imaging, physical therapy, durable medical equipment, and translation and transportation.

**Patient Management Services**

In addition to its network solutions services, the Company offers a range of patient management services, which involve working one-on-one with injured employees and their various healthcare professionals, employers and insurance company adjusters. Patient management services include claims management and all services sold to claims management customers, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning. The services are designed to monitor the medical necessity and appropriateness of healthcare services provided to workers' compensation and other healthcare claimants and to expedite return to work. The Company offers these services on a stand-alone basis, or as an integrated component of its medical cost containment services. Patient management services include the processing of claims for self-insured payors with respect to property and casualty insurance.

------

 **Segment Reporting**

Based on the Company's Chief Operating Decision Maker's ("CODM") review and assessment of the Company's operations for purposes of performance monitoring and resource allocation, the Company determined that its operations and the decisions to allocate resources and deploy capital are organized and managed on a consolidated basis. Accordingly, management has identified one operating segment, which is its reportable segment, under this organizational and reporting structure

**Business Enterprise Segments**

The Company operates in one reportable operating segment, managed care. The Company's services are delivered to its customers through its local offices in each region and financial information for the Company's operations follows this service delivery model. All regions provide the Company's patient management and network solutions services to customers. Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") 280-10, "Segment Reporting" establishes standards for the way that public business enterprises report information about operating segments in annual and interim consolidated financial statements. The Company's internal financial reporting is segmented geographically, as discussed above, and managed on a geographic rather than service line basis, with virtually all of the Company's operating revenue generated within the United States.

Under FASB ASC 280-10, two or more operating segments may be aggregated into a single operating segment for financial reporting purposes if aggregation is consistent with the objective and basic principles, if the segments have similar economic characteristics, and if the segments are similar in each of the following areas: (i) the nature of products and services; (ii) the nature of the production processes; (iii) the type or class of customer for their products and services; and (iv) the methods used to distribute their products or provide their services. The Company believes each of its regions meet these criteria as each provides similar services and products to similar customers using similar methods of production and distribution.

Because we believe we meet each of the criteria set forth above and each of our regions have similar economic characteristics, we aggregate our results of operations in one reportable operating segment, managed care.

**Number of Working Days**

We are affected by the change in working days in a given quarter. There are generally fewer working days for our employees to generate revenue in the third fiscal quarter due to employee vacations, inclement weather and holidays.

**Company Stock Split**

During fiscal year 2025, the Company effected a three-for-one forward stock split of its common stock. All prior period share, equity award and per share amounts and calculations in this Annual Report and in the consolidated financial statements have been retroactively adjusted to reflect the stock split**.**

**Summary of Fiscal 2026 Annual Results**

The Company's revenues increased to $959 million in fiscal year 2026 from $896 million in fiscal year 2025, an increase of $63 million, or 7%. This increase was due to an increase in revenues primarily from network solutions activity with existing customers due to utilizing additional services with the Company.

During fiscal year 2026, the Company's gross profit increased to $233 million from $210 million in fiscal year 2025, an increase of $23 million, or 11%. This increase was primarily due to the increase of 7% in revenue mentioned above, secondarily, a significant part of the growth was from the higher margin services of network solutions.

During fiscal year 2026, the Company's general and administrative expenses increased to $89.7 million from $88.9 million in fiscal year 2025, an increase of $0.8 million, or 1%. Historically, general and administrative expenses have been between 9% and 10% of revenues.

During fiscal year 2026, the Company's net income before tax increased to $143.1 million from $120.8 million in fiscal year 2025, an increase of $22.3 million, or 18%. The increase was primarily due to an increase in revenues and gross profit margin.

During fiscal year 2026, the Company's income tax expense increased to $32.8 million from $25.7 million in fiscal year 2025, an increase of $7.1 million, or 28%. The increase was due to an increase in income before income taxes. The Company's effective income tax rate was 23% for fiscal year 2026 and 21% for fiscal year 2025.

------

Diluted weighted average shares were 51.6 million shares in fiscal year 2026 and 52.0 million shares in fiscal year 2025, with a decrease of 369,000 shares, or 0.7%. This decrease was primarily due to the repurchase of 782,744 shares of common stock in fiscal year 2026 under the Company's stock repurchase program. Since commencing this program in the fall of 1996, the Company has repurchased 115,259,435 shares of its common stock through March 31, 2026, at a cost of $888 million. These repurchases were funded primarily from the Company's operating cash flows.

Diluted earnings per share increased to $2.14 per share in fiscal year 2026 from $1.83 per share in fiscal year 2025, an increase of $0.31 per share, or 17%. The increase in diluted earnings per share was primarily due to an increase in net income.

**Results of Operations**

The Company derives its revenues from providing patient management and network solutions services to payors of workers' compensation benefits, automobile insurance claims, and group health insurance benefits. Patient management services include claims management and all services sold to claims management customers, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning. Network solutions services include fee schedule auditing, hospital bill auditing, pharmacy, independent medical examinations, directed care services, diagnostic imaging review services and preferred provider referral services. The percentages of total revenues attributable to patient management and network solutions services for the fiscal years ended March 31, 2026, 2025 and 2024 are listed below.

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | **2025** | **2024** |
| Patient management services | 62.3% | 64.9% | 66.6% |
| Network solutions services | 37.7% | 35.1% | 33.4% |
|  | 100.0% | 100.0% | 100.0% |

---

As noted in the table above, the percentage of revenue from patient management services decreased from fiscal year 2024 to fiscal year 2026 and the percentage of revenue from network solutions services grew from fiscal year 2024 to fiscal year 2026. This is primarily due to the Company's increased focus in enhanced bill review programs services, which are included within network solutions services.

The following table shows the consolidated statements of income for the fiscal years ended March 31, 2026, 2025 and 2024, and the dollar changes, as well as the percentage changes for each fiscal year. The following amounts are in thousands, except per share data and percentages.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2024** | **Amount Change<br>from Fiscal 2025<br>to 2026** | **Amount Change<br>from Fiscal 2024<br>to 2025** | **Percent Change<br>from Fiscal 2025<br>to 2026** | **Percent Change<br>from Fiscal 2024<br>to 2025** |
| Revenues | $958527 | $895589 | $795311 | $62938 | $100278 | 7.0% | 12.6% |
| Cost of revenues | 725664 | 685861 | 623618 | 39803 | 62243 | 5.8 | 10.0 |
| Gross profit | 232863 | 209728 | 171693 | 23135 | 38035 | 11.0 | 22.2 |
| General and administrative | 89732 | 88904 | 76592 | 828 | 12312 | 0.9 | 16.1 |
| Income before income taxes | 143131 | 120824 | 95101 | 22307 | 25723 | 18.5 | 27.0 |
| Income tax provision | 32787 | 25659 | 18849 | 7128 | 6810 | 27.8 | 36.1 |
| Net income | $110344 | $95165 | $76252 | $15179 | $18913 | 16.0% | 24.8% |
| Net income per share: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $2.15 | $1.85 | $1.48 | $0.30 | $0.37 | 16.2% | 25.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $2.14 | $1.83 | $1.47 | $0.31 | $0.36 | 16.9% | 24.5% |
| Weighted average shares used in net income per share: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 51283 | 51379 | 51366 | (96) | 13 | (0.2%) | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 51625 | 51994 | 52041 | (369) | (47) | (0.7%) | (0.1%) |

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As previously identified in Part I, Item 1A of this Annual Report, "Risk Factors," the Company's ability to maintain or grow revenues is subject to several risks including, but not limited to, changes in government regulations, exposure to litigation and the ability to add or retain customers. Any of these, or a combination of all of them, could have a material and adverse effect on the Company's results of operations going forward.

The following table sets forth, for the periods indicated, the percentage of revenues represented by certain items reflected in the Company's consolidated statements of income. The Company's past operating results are not necessarily indicative of future operating results. The percentages for the fiscal years ended March 31, 2026, 2025 and 2024 are as follows:

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| | | | |
|:---|:---|:---|:---|
| **Income Statement Percentages** | **2026** | **2025** | **2024** |
| Revenues | 100.0% | 100.0% | 100.0% |
| Cost of revenues | 75.7% | 76.6% | 78.4% |
| Gross profit | 24.3% | 23.4% | 21.6% |
| General and administrative | 9.4% | 9.9% | 9.6% |
| Income before income taxes | 14.9% | 13.5% | 12.0% |
| Income tax provision | 3.4% | 2.9% | 2.4% |
| Net income | 11.5% | 10.6% | 9.6% |

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**Revenue**

The Company derives its revenues from providing patient management and network solutions services to payors of workers' compensation benefits, automobile insurance claims, and group health insurance benefits.

***Change in Revenue***

***Fiscal 2026 Compared to Fiscal 2025***

Revenues increased to $959 million in fiscal year 2026 from $896 million in fiscal year 2025, an increase of $63 million, or 7%. Network solutions services revenues increased to $362 million from $314 million, an increase from fiscal year 2025 of 15%. This increase was primarily attributable to growth with existing customers that expanded their use of the Company's enhanced bill review programs services, resulting in higher revenue per bill. Most of the increase is primarily attributable to the growth with existing customers in enhanced bill review programs services due to expanding the use of our services. Patient management services increased to $596 million from $581 million, an increase from fiscal year 2025 of 3%.

***Fiscal 2025 Compared to Fiscal 2024***

Revenues increased to $896 million in fiscal 2025 from $795 million in fiscal 2024, an increase of $100 million, or 13%. Patient management services increased to $581 million from $530 million, an increase from fiscal 2024 of 10%. This increase is primarily due to higher revenue from the Company's TPA and related services. Total new claims increased by 5% during fiscal 2025 compared to fiscal 2024. Network solutions services revenues increased to $314 million from $265 million, an increase from fiscal 2024 of 19%. This increase is primarily due to increases in enhanced bill review programs services, which resulted in higher revenue per bill. Most of the increase is primarily attributable to the growth with new customers in managed care and enterprise companies and, to a lesser extent, growth with existing customers in enhanced bill review programs services.

**Cost of Revenue**

The Company's cost of revenues consists of direct expenses, costs directly attributable to the generation of revenue, and indirect costs which are incurred to support the operations in the field offices which generate the revenue. Direct expenses primarily include (i) case manager and bill review analysts' salaries, along with related payroll taxes and fringe benefits, and (ii) costs associated with independent medical examinations (known as IME), prescription drugs, and MRI, physical therapy, and durable medical equipment providers. Most of the Company's revenues are generated in offices which provide both patient management services and network solutions services. The largest of the field indirect costs are (i) manager salaries and bonuses, (ii) account executive base pay and commissions, (iii) salaries of administrative and clerical support, field systems personnel and PPO network developers, along with related payroll taxes and fringe benefits, and (iv) office rent. During both fiscal year 2026 and 2025, approximately 33% of the costs incurred in the field were considered field indirect costs, which support both the patient management services and network solutions services operations of the Company's field operations.

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***Change in Cost of Revenue***

***Fiscal 2026 Compared to Fiscal 2025***

The Company's cost of revenues increased to $726 million in fiscal year 2026 from $686 million in fiscal year 2025, an increase of $40 million, or 6%. This increase was primarily due to the increase of 7% in revenue mentioned above, secondarily, a significant part of the growth was from the higher margin services of network solutions.

***Fiscal 2025 Compared to Fiscal 2024***

The Company's cost of revenues increased to $686 million in fiscal 2025 from $624 million in fiscal 2024, an increase of $62 million, or 10%. The increase in cost of revenues was primarily due to the increase in total revenues of 13%. Just over half the Company's cost of revenue is labor cost. Additionally, there was an increase in salaries of 9% resulting from increased average headcount of 6% in field operations and growth in average annual salary increases due to wage inflation. Headcount increased due to an increase in business volume.

**General and Administrative Expense**

During fiscal years 2026, 2025 and 2024, approximately 45%, 44%, and 51%, respectively, of general and administrative costs consisted of corporate systems costs, which include the corporate systems support, implementation and training, rules engine development, national IT strategy and planning, depreciation of hardware costs in the Company's corporate offices and backup data center, the Company's nationwide area network, and other systems related costs. The Company includes all IT-related costs managed by the corporate office in general and administrative whereas the field IT-related costs are included in the cost of revenues. The remaining general and administrative costs consist of national marketing, national sales support, corporate legal, corporate insurance, human resources, accounting, product management, new business development, and other general corporate expenses.

***Change in General and Administrative Expense***

***Fiscal 2026 Compared to Fiscal 2025***

General and administrative expenses increased to $89.7 million in fiscal year 2026 from $88.9 million in fiscal year 2025, an increase of $0.8 million, or 1%. Historically, general and administrative expenses have been between 9% and 10% of revenues.

***Fiscal 2025 Compared to Fiscal 2024***

General and administrative expenses increased to $88.9 million in fiscal 2025 from $76.6 million in fiscal 2024, an increase of $12.3 million, or 16%. This increase was primarily due to a one-time insurance recovery settlement from a lawsuit in 2011 during fiscal 2024. The Company expects general and administrative expenses to grow at the same rate as revenues.

**Income Tax Provision**

***Fiscal 2026 Compared to Fiscal 2025***

The Company's income tax expense increased to $32.8 million for fiscal year 2026 from $25.7 million for fiscal year 2025, an increase of $7.1 million. Income before income tax provision increased to $143 million in fiscal year 2026 from $121 million in fiscal year 2025, an increase of $22.3 million. The Company's effective income tax rate was 23% for fiscal year 2026 and 21% for fiscal year 2025. The effective tax rate is less than the statutory tax rate primarily due to the impact of stock option exercises for both periods. The effective tax rate for fiscal year 2026 increased over fiscal year 2025 primarily due to a decrease in benefit from stock option exercises.

***Fiscal 2025 Compared to Fiscal 2024***

The Company's income tax expense increased to $25.7 million for fiscal 2025 from $18.8 million for fiscal 2024, an increase of$6.8 million. Income before income tax provision increased to $121 million in fiscal 2025 from $95 million in fiscal 2024, an increase of $25.7 million. The Company's effective income tax rate was 21% for fiscal 2025 and 20% for fiscal 2024. The effective tax rate is less than the statutory tax rate primarily due to the impact of stock option exercises for both periods.

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**Net Income**

***Fiscal 2026 Compared to Fiscal 2025***

The Company's net income was $110.3 million in fiscal year 2026 and $95.2 million in fiscal year 2025, an increase of $15.2 million, or 16%. The increase was primarily due to an increase in revenues and gross profit margin.

***Fiscal 2025 Compared to Fiscal 2024***

The Company's net income was $95.2 million in fiscal 2025 and $76.3 million in fiscal 2024, an increase of $18.9 million, or 25%. The increase was primarily due to an increase in revenues and pretax margin.

**Earnings per Share**

***Fiscal 2026 Compared to Fiscal 2025***

The Company's diluted earnings per share increased to $2.14 per share in fiscal year 2026 from $1.83 per share in fiscal year 2025, an increase of $0.31 per share, or 17%. This was primarily due to an increase in net income.

***Fiscal 2025 Compared to Fiscal 2024***

The Company's diluted earnings per share increased to $1.83 per share in fiscal 2025 from $1.47 per share in fiscal 2024, an increase of $0.36 per share, or 24%. This was primarily due to an increase in net income.

**Liquidity and Capital Resources**

The Company manages its liquidity and financial position in the context of its overall business strategy. The Company continually forecasts and manages its cash, investments, working capital balances and capital structure to meet the short- and long-term obligations of its businesses while seeking to maintain liquidity and financial flexibility. Cash flows generated from operating activities are principally from earnings before non-cash expenses. The risk of decreased operating cash flow from a decline in earnings is partially mitigated by the diversity of the Company's services, geographies and customers, and the Company has had virtually no interest-bearing debt for the past 35 years.

The Company has historically funded its operations and capital expenditures primarily from cash flow from operations, and to a lesser extent, stock option exercises. The Company's net accounts receivables have ranged from 39 to 44 days of average sales for the fiscal years ended March 31, 2026, 2025 and 2024. The Company expects days sales outstanding (known as DSO) to remain in the low to mid 40-day range. The Company's historical profit margins and historical ratio of investments in assets used in the business has allowed the Company to generate sufficient cash flow to repurchase $888 million of its common stock during the past 30 fiscal years, on inception-to-date net earnings of $1 billion. The Company repurchases shares during periods of excess liquidity, which has occurred in all 35 years that the Company has been public. Should the Company have lower income or cash flows, it could reduce or eliminate repurchases under the stock repurchase program until earnings and cash flow improved. Working capital increased to $234 million at March 31, 2026, from $183 million at March 31, 2025. This is primarily due to the increase in net income.

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The Company is not a party to off-balance sheet arrangements as defined by the SEC. However, from time to time the Company enters into certain types of contracts that contingently require the Company to indemnify parties against third-party claims. The contracts primarily relate to: (i) certain contracts to perform services, under which the Company may provide customary indemnification for the purchases of such services, (ii) certain real estate leases, under which the Company may be required to indemnify property owners for environmental and other liabilities, and other claims arising from the Company's use of the applicable premises, and (iii) certain agreements with the Company's officers, directors and employees, under which the Company may be required to indemnify such persons for liabilities arising out of certain actions taken by such persons, acting in their respective capacities within the Company. The terms of such customary obligations vary by contract and in most instances a specific or maximum dollar amount is not explicitly stated therein. Generally, amounts under these contracts cannot be reasonably estimated until a specific claim is asserted. Consequently, no liabilities have been recorded for these obligations on the Company's balance sheets for any of the periods presented.

The Company believes that cash from operations and funds from exercises of stock options granted to employees are adequate to fund existing obligations, repurchase shares of the Company's common stock under its current stock repurchase program, introduce new services, and continue to develop the Company's healthcare related services for at least the next twelve months. Should the Company have lower income or cash flows, it could reduce or eliminate repurchases under the stock repurchase program until earnings and cash flow have returned to comfortable levels. The Company regularly evaluates cash requirements for current operations, commitments, capital acquisitions, and other strategic transactions. The Company may elect to raise additional funds for these purposes, through debt or equity financings or otherwise, as appropriate. However, additional equity or debt financing may not be available when needed, with terms favorable to the Company or at all.

As of March 31, 2026, the Company had $233 million in cash and cash equivalents, invested primarily in short-term, interest-bearing, highly-liquid, investment-grade securities with maturities of 90 days or less.

The Company believes that the cash balance at March 31, 2026, along with anticipated internally-generated funds, will be sufficient to meet the Company's expected cash requirements for at least the next twelve months.

**Operating Cash Flows**

***Fiscal 2026 Compared to Fiscal 2025***

Net cash provided by operating activities increased to $155.6 million in fiscal year 2026 from $127.3 million in fiscal year 2025, an increase of $28.3 million. The increase in cash flow from operating activities was primarily due to an increase in net income of $15.2 million during fiscal year 2026. Additionally, accounts receivable decreased compared to the prior fiscal year due to a decrease of five days in days sales outstanding.

***Fiscal 2025 Compared to Fiscal 2024***

Net cash provided by operating activities increased to $127.3 million in fiscal 2025 from $99.2 million in fiscal 2024, an increase of $28.1 million. The increase in cash flow from operating activities was primarily due to an increase in net income of $18.9 million during fiscal 2025. Additionally, accounts receivable increased at a lesser rate than prior year due to improvement in days sales outstanding.

**Investing Activities**

***Fiscal 2026 Compared to Fiscal 2025***

Net cash flow used in investing activities increased to $45.4 million in fiscal year 2026 from $35.8 million in fiscal year 2025, an increase of $9.6 million. This increase in investing activity was primarily due to an increase in software development efforts. The Company expects future expenditures for property and equipment to increase if revenues increase.

***Fiscal 2025 Compared to Fiscal 2024***

Net cash flow used in investing activities increased to $35.8 million in fiscal 2025 from $29.2 million in fiscal 2024, an increase of $6.5 million. This increase in investing activity was primarily due to an increase in software development efforts. The Company expects future expenditures for property and equipment to increase if revenues increase.

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**Financing Activities**

***Fiscal 2026 Compared to Fiscal 2025***

Net cash flow used in financing activities increased to $47.8 million in fiscal year 2026 from $26.5 million in fiscal year 2025, an increase of $21.3 million. During fiscal year 2026, the Company spent $56.2 million to repurchase 782,744 shares of its common stock (at an average price of $71.81 per share). During fiscal year 2025, the Company spent $37.6 million to repurchase 377,154 shares of its common stock (at an average price of $99.71 per share).

If the Company continues to generate cash flow from operating activities, the Company may continue to repurchase shares of its common stock on the open market, if authorized by the Company's Board of Directors pursuant to the Company's stock repurchase program, or seek to identify other businesses to acquire. The Company has historically used cash provided by operating activities and from the exercise of stock options to repurchase stock. The Company expects that it may use some of the cash on the balance sheet at March 31, 2026, to repurchase additional shares of its common stock in the future.

***Fiscal 2025 Compared to Fiscal 2024***

Net cash flow used in financing activities decreased to $26.5 million in fiscal 2025 from $35.8 million in fiscal 2024, a decrease of $9.2 million. During fiscal 2025, the Company spent $37.6 million to repurchase 377,154 shares of its common stock (at an average price of $99.71 per share). During fiscal 2024, the Company spent $45.7 million to repurchase 645,939 shares of its common stock (at an average price of $70.76 per share).

**Litigation** 

The Company is involved in litigation arising in the ordinary course of business. Management believes that resolution of these matters will not result in any payment that, in the aggregate, would be material to the consolidated financial position or results of operations of the Company.

**Inflation**

The Company experiences pricing pressures in the form of competitive prices. The Company is also impacted by rising costs for certain inflation-sensitive operating expenses such as labor, employee benefits, and facility leases. The Company does not believe these impacts were material to its revenues or net income in fiscal year 2026; however, the Company believes inflation could have a material impact on pricing and operating expenses in future years due to the state of the economy and current inflation rates.

**Critical Accounting Estimates**

Our consolidated financial statements are prepared in accordance with the accounting principles generally accepted in the United States of America ("GAAP"), which require management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. These accounting principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenues and expenses, and the disclosure of contingent assets and liabilities at the date of our consolidated financial statements.

We periodically evaluate our estimates and assumptions, including those relating to revenue recognition, leases, allowance for uncollectible accounts, goodwill and long-lived assets, accrual for self-insured costs, accounting for income taxes, legal and other contingencies, share-based compensation, and software development costs. We base our estimates on historical experience and various assumptions that we believe to be reasonable based on specific circumstances. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. We believe the following significant accounting estimates may involve a higher degree of judgment and complexity. The following is not intended to be a comprehensive list of our accounting policies. See Note 1, "Summary of Significant Accounting Policies" in the notes to our consolidated financial statements for other significant accounting policies.

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***Revenue Recognition***: Revenue is recognized when control of the promised services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to receive in exchange for those services. As the Company completes its performance obligations, which are identified below, it has an unconditional right to consideration as outlined in the Company's contracts. Generally, the Company's billed accounts receivable are expected to be collected in 30 days in accordance with the underlying payment terms. For many of the Company's services, the Company typically has one performance obligation; however, it also provides the customer with an option to acquire additional services. The Company offers multiple services under its patient management and network solutions service lines. The Company typically provides a menu of offerings from which the customer may choose to purchase. Each service is priced separately and provides a distinct value to the customer. Pricing is generally consistent for each service irrespective of the other services or quantities requested by the customer. Revenue is recognized at the point in time when the results of the medical bill review service are delivered to the customer, with the Company believes is the most accurate depiction of the transfer of the service to the customer. Medical bill review revenues are variable, generally based on performance metrics set forth in the underlying contracts. Each period, the Company bases its estimates on a contract-by-contract basis. The Company makes its best estimate of amounts the Company has earned and expects to be collected using historical averages and other factors to project such revenues. Variable consideration is recognized in the amount that the Company concludes is probable that a significant revenue reversal will not occur in future periods.

In transactions related to third-party service revenue, which includes pharmacy, directed care services and other services provided by the Company's integrated network solutions services, the Company is considered the principal, as it directs the third party, controls the specified service, performs program utilization review, directs payment to the provider, accepts the financial risk of loss associated with services rendered and combines the services provided into an integrated solution, as specified within the Company's customer contracts. The Company has the ability to influence contractual fees with customers and possesses the financial risk of loss in certain contractual obligations. These factors indicate the Company is the principal and, as such, it is required to recognize revenue gross and service partner vendor fees in the cost of revenue in the Company's consolidated income statements.

***Leases:*** The Company determines if an arrangement includes a lease at inception. Right-of-use assets represent the Company's right to use an underlying asset for the lease term; and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date of the lease, renewal date of the lease or significant remodeling of the lease space based on the present value of the remaining future minimum lease payments. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and short-term and long-term lease liabilities, as applicable.

Operating and financing lease liabilities and their corresponding right-of-use assets are initially recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, we utilize our incremental borrowing rate to discount lease payments, which reflects the fixed rate at which we could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. The Company's leases may include options to extend or terminate the lease which are included in the lease term when it is reasonably certain that we will exercise any such options. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

***Allowance for Expected Credit Losses***: The Company determines its allowance for uncollectible accounts by considering a number of factors, including the length of time trade accounts receivable are past due, the Company's previous loss history, the customers' current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off accounts receivable when they become uncollectible.

The Company must make significant judgments and estimates in determining contractual and bad debt allowances in any accounting period. One significant uncertainty inherent in the Company's analysis is whether its past experience will be indicative of future periods. Although the Company considers future projections when estimating contractual and bad debt allowances, the Company ultimately makes its decisions based on the best information available to it at the time the decision is made. Adverse changes in general economic conditions or trends in reimbursement amounts for the Company's services could affect the Company's contractual and bad debt allowance estimates, collection of accounts receivable, cash flows, and results of operations.

***Goodwill and Long-Lived Assets***: Goodwill arising from business combinations represents the excess of the purchase price over the estimated fair value of the net assets of the acquired business. Pursuant to ASC 350-10 through ASC 350-30, "Goodwill and Other Intangible Assets," goodwill is tested annually for impairment or more frequently if circumstances indicate the potential for impairment. Also, management tests for impairment of its amortizable intangible assets and long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The impairment test is conducted at the company level. The measurement of fair value is based on an evaluation of market capitalization. Management considers industry growth rates and trends and cost structure changes. Based on the Company's tests and reviews, no impairment of its goodwill, intangible assets, or other long-lived assets existed at March 31, 2026 or March 31, 2025. However, future events or changes in current circumstances could affect the recoverability of the carrying value of goodwill and long-lived assets.

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***Accrual for Self-insurance Costs***: The Company accrues for the group medical costs and workers' compensation costs of its employees based on claims filed and an estimate of claims incurred but not reported as of each balance sheet date. The Company determines its estimated self-insurance reserves based upon historical trends along with outstanding claims information provided by its claims paying agents. However, it is possible that recorded accruals may not be adequate to cover the future payment of claims. Adjustments, if any, to estimated accruals resulting from ultimate claim payments will be reflected in earnings during the periods in which such adjustments are determined. The Company's self-insured liabilities contain uncertainties because management is required to make assumptions and judgments to estimate the ultimate cost to settle reported claims and claims incurred but not reported at the balance sheet date.

The Company does not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to calculate its self-insured liabilities. However, if actual results are not consistent with these estimates or assumptions, the Company may be exposed to losses or gains that could be material.

***Accounting for Income Taxes***: The Company records a tax provision for the anticipated tax consequences of its reported results of operations. The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently-enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company records a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

Management believes it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with future reversals of existing taxable temporary differences, will be sufficient to fully recover the deferred tax assets. In the event that the Company determines all or part of the net deferred tax assets are not realizable in the future, the Company will make an adjustment to the valuation allowance that would be charged to earnings in the period such determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of GAAP and complex tax laws. Resolution of these uncertainties in a manner inconsistent with management's expectations could have a material impact on the Company's financial condition and operating results. The significant assumptions and estimates described above are important contributors to our ultimate effective tax rate in each year.

***Legal and Other Contingencies***: As discussed in Part I, Item 3 of this Annual Report, "Legal Proceedings" and in Note 10, "Contingencies and Legal Proceedings" in the notes to our consolidated financial statements, the Company is subject to various legal proceedings and claims that arise in the ordinary course of business. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. There is significant judgment required in both the probability determination and as to whether an exposure can be reasonably estimated. The outcomes of legal proceedings and claims brought against the Company are subject to significant uncertainty.

***Share-Based Compensation***: The Company accounts for share-based compensation in accordance with the provisions of ASC Topic 718 "Compensation – Stock Compensation". Under ASC 718, share-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity grant).

The Company estimates the fair value of stock options using the Black-Scholes valuation model. Key input assumptions used to estimate the fair value of stock options include the exercise price of the award, the expected option term, the expected volatility of the Company's stock over the option's expected term, the risk-free interest rate over the option's term, and the Company's expected annual dividend yield. The Company issues performance-based stock options which vest only upon the Company's achievement of certain earnings per share targets on a calendar year basis, as determined by the Company's Board of Directors. These options were valued in the same manner as the time-based options. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options. The Company's management believes that this valuation technique and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair values of the Company's stock options granted in fiscal year 2026. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by persons who receive equity awards.

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The Company does not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to determine stock-based compensation expense. However, if actual results are not consistent with our estimates or assumptions, we may be exposed to changes in stock-based compensation expense that could be material.

***Software Development Costs***: Development costs incurred in the research and development of new software products and enhancements to existing software products for internal use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any additional external software development costs are capitalized and amortized on a straight-line basis over the estimated economic life of the related product, which is typically five years. The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs. If a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ and the Company may be exposed to increases or decreases in revenue that could be material.

**Recently Issued Accounting Standards**

In September 2025, the FASB issued ASU 2025-06, *Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software*, which replaces the existing stage-based rules for internal-use software with a principles-based framework. Under the new guidance, entities may capitalize eligible costs once management has authorized funding the software, the entity has committed to using the software, and it is probable the project will be completed. Entities may elect to apply the guidance retrospectively, prospectively to software costs incurred after the adoption date or on a modified prospective basis. The update is effective for fiscal years beginning after December 15, 2027, including interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures*, to require disaggregated disclosure of certain income statement expense line items, such as purchases of inventory, employee compensation, and depreciation and amortization. The new standard is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments should be applied prospectively, but retrospective application is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*, enhances the transparency and decision usefulness of income tax disclosures. The standard is effective for fiscal years beginning after December 15, 2024, and is required to be applied prospectively, with retrospective application permitted. The Company adopted this standard prospectively in the fiscal year 2026 and provided the required disclosures in *Note 6 - Income Taxes,* to the consolidated financial statements.

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Stockholders

CorVel Corporation

**Opinions on the Consolidated Financial Statements and Internal Control over Financial Reporting**

We have audited the accompanying consolidated balance sheets of CorVel Corporation (the "Company") as of March 31, 2026 and 2025, the related consolidated statements of income, stockholders' equity, and cash flows for each of the years in the three-year period ended March 31, 2026, and the related notes and financial statement schedule (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of March 31, 2026, based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). .

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company as of March 31, 2026 and 2025, and the consolidated results of its operations and its cash flows for each of the years in the three-year period ended March 31, 2026, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of March 31, 2026, based on criteria established in *Internal Control — Integrated Framework (2013)* issued by COSO .

**Basis for Opinion**

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's consolidated financial statements and an opinion on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB .

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects .

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued)**

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions .

**Definition and Limitations of Internal Control Over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements .

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate .

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which they relate.

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued)**

<u>Revenue Recognition - Refer to Note 2 to the Consolidated Financial Statements</u>

*<u>Critical Audit Matter Description:</u>*

The Company recognizes revenue upon transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services. Certain services involve estimation of the related transaction price that, in turn, led to a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence related to management's judgments. Revenues that are most significantly impacted by management's estimates and judgments include (i) bill review services that contain contractual provisions that allow the customer to compensate the Company only for services that it utilizes and (ii) directed care services at period-end for which the Company has not been billed by the related providers.

*<u>How the Critical Matter was Addressed in the Audit:</u>*

The primary procedures we performed to address this critical audit matter included the following, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company's process to estimate the most likely amount of consideration to which the Company will be entitled in exchange for transferring the promised services to a customer. We tested the effectiveness of certain controls over revenue recognition, including management's controls over the methodology used to determine estimated revenues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪We evaluated the reasonableness of management's estimates through tests of the underlying data used by the Company to determine related bill review revenue estimates. We examined customer contracts and analyzed historical utilization analyses completed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪We tested assumptions used in management's calculations of period-end directed care revenues by analyzing historical time lag patterns between the provision of service and provider invoicing. We also examined trends associated with the number of period-end provider referrals and performed gross margin reasonableness analyses to evaluate management's estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪We tested the mathematical accuracy of management's calculations of revenue and the associated timing of revenue recognized in the consolidated financial statements.

/s/ HASKELL & WHITE LLP

We have served as the Company's auditor since 2006.

Irvine, California

May 22, 2026

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**CORVEL CORPORATION**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| **ASSETS** |  |  |
| Current Assets |  |  |
| Cash and cash equivalents | $233072000 | $170584000 |
| Customer deposits | 115706000 | 101472000 |
| Accounts receivable (less allowance for expected credit losses of $3,969,000 at March 31,<br> 2026 and $7,690,000 at March 31, 2025) | 101313000 | 104126000 |
| Prepaid expenses and income taxes | 12206000 | 10507000 |
| Total current assets | 462297000 | 386689000 |
| Property and equipment, net | 117906000 | 92052000 |
| Goodwill | 36814000 | 36814000 |
| Other intangible assets, net | 263000 | 438000 |
| Right-of-use asset, net | 21164000 | 20825000 |
| Deferred tax asset, net | 3924000 | 8704000 |
| Other assets | 618000 | 454000 |
| Total assets | $642986000 | $545976000 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current Liabilities |  |  |
| Accounts and income taxes payable | $24550000 | $16792000 |
| Accrued liabilities | 203518000 | 187244000 |
| Total current liabilities | 228068000 | 204036000 |
| Long-term lease liabilities | 20687000 | 19953000 |
| Total liabilities | 248755000 | 223989000 |
| Commitments and contingencies |  |  |
| Stockholders' Equity |  |  |
| Common stock, $.0001 par value: 360,000,000 shares authorized at March 31, 2026 and<br> 2025; 166,168,732 shares issued (50,909,297 shares outstanding, net of treasury shares) <br> and 165,836,235 shares issued (51,359,544 shares outstanding, net of treasury shares) at <br> March 31, 2026 and March 31, 2025, respectively | 5000 | 5000 |
| Paid-in-capital | 268513000 | 250407000 |
| Treasury stock, at cost (115,259,435 and 114,476,691 shares at March 31, 2026 and 2025,<br> respectively) | (887716000) | (831510000) |
| Retained earnings | 1013429000 | 903085000 |
| Total stockholders' equity | 394231000 | 321987000 |
| Total liabilities and stockholders' equity | $642986000 | $545976000 |

---

See accompanying notes to consolidated financial statements.

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**CORVEL CORPORATION**

**CONSOLIDATED STATEMENTS OF INCOME**

---

| | | | |
|:---|:---|:---|:---|
|  | **Fiscal Years Ended March 31,** | **Fiscal Years Ended March 31,** | **Fiscal Years Ended March 31,** |
|  | **2026** | **2025** | **2024** |
| Revenues | $958527000 | $895589000 | $795311000 |
| Cost of revenues | 725664000 | 685861000 | 623618000 |
| Gross profit | 232863000 | 209728000 | 171693000 |
| General and administrative | 89732000 | 88904000 | 76592000 |
| Income before income taxes | 143131000 | 120824000 | 95101000 |
| Income tax provision | 32787000 | 25659000 | 18849000 |
| Net income | $110344000 | $95165000 | $76252000 |
| Net income per share: |  |  |  |
| Basic | $2.15 | $1.85 | $1.48 |
| Diluted | $2.14 | $1.83 | $1.47 |
| Weighted average shares outstanding: |  |  |  |
| Basic | 51283000 | 51379000 | 51366000 |
| Diluted | 51625000 | 51994000 | 52041000 |

---

See accompanying notes to consolidated financial statements.

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**CORVEL CORPORATION**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common<br>Shares** | **Stock<br>Amount** | **Paid-in-Capital** | **Treasury<br>Shares** | **Treasury<br>Stock** | **Retained<br>Earnings** | **Total<br>Stockholders'<br>Equity** |
| Balance – March 31, 2023 | 164962098 | $3000 | $218700000 | (113453598) | $(748195000) | $731668000 | $202176000 |
| Stock issued under employee stock<br> purchase plan | 9534 |  | 681000 |  |  |  | 681000 |
| Stock issued under stock option<br> plan, net of shares repurchased | 514593 |  | 9266000 |  |  |  | 9266000 |
| Stock-based compensation expense |  |  | 4982000 |  |  |  | 4982000 |
| Purchase of treasury stock |  |  |  | (645939) | (45710000) |  | (45710000) |
| Net income |  |  |  |  |  | 76252000 | 76252000 |
| Balance – March 31, 2024 | 165486225 | 3000 | 233629000 | (114099537) | (793905000) | 807920000 | 247647000 |
| Stock issued under employee stock<br> purchase plan | 7129 |  | 749000 |  |  |  | 749000 |
| Stock issued under stock option<br> plan, net of shares repurchased | 342881 |  | 10317000 |  |  |  | 10317000 |
| Stock-based compensation expense |  |  | 5714000 |  |  |  | 5714000 |
| Purchase of treasury stock |  |  |  | (377154) | (37605000) |  | (37605000) |
| Adjusted shares outstanding |  | 2000 | (2000) |  |  |  |  |
| Net income |  |  |  |  |  | 95165000 | 95165000 |
| Balance – March 31, 2025 | 165836235 | 5000 | 250407000 | (114476691) | (831510000) | 903085000 | 321987000 |
| Stock issued under employee stock<br> purchase plan | 13987 |  | 849000 |  |  |  | 849000 |
| Stock issued under stock option plan,<br> net of shares repurchased | 276905 |  | 7562000 |  |  |  | 7562000 |
| Stock-based compensation expense |  |  | 5411000 |  |  |  | 5411000 |
| Stock issuance for asset acquisition | 41605 |  | 4284000 |  |  |  | 4284000 |
| Purchase of treasury stock |  |  |  | (782744) | (56206000) |  | (56206000) |
| Net income |  |  |  |  |  | 110344000 | 110344000 |
| Balance – March 31, 2026 | 166168732 | $5000 | $268513000 | (115259435) | $(887716000) | $1013429000 | $394231000 |

---

See accompanying notes to consolidated financial statements.

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**CORVEL CORPORATION**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | | |
|:---|:---|:---|:---|
|  | **Fiscal Years Ended March 31,** | **Fiscal Years Ended March 31,** | **Fiscal Years Ended March 31,** |
|  | **2026** | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |  |
| Net income | $110344000 | $95165000 | $76252000 |
| Adjustments to reconcile net income to net cash provided by operating<br> activities: |  |  |  |
| Depreciation and amortization | 31764000 | 29536000 | 26252000 |
| Loss on write down or disposal of property, capitalized software or<br> investment | 710000 | 443000 | 290000 |
| Stock compensation expense | 5411000 | 5714000 | 4982000 |
| Provision for expected credit losses | 115000 | 3445000 | 1828000 |
| Deferred income taxes | 4780000 | (5159000) | (3321000) |
| Changes in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;Accounts receivable | 2698000 | (10463000) | (17902000) |
| &nbsp;&nbsp;Customer deposits | (14234000) | (13330000) | (8120000) |
| &nbsp;&nbsp;Prepaid expenses and income taxes | (1699000) | 910000 | (32000) |
| &nbsp;&nbsp;Other assets | (190000) | 863000 | 60000 |
| &nbsp;&nbsp;Accounts and income taxes payable | (728000) | 162000 | 1322000 |
| &nbsp;&nbsp;Accrued liabilities | 16274000 | 19376000 | 15290000 |
| &nbsp;&nbsp;Operating lease liabilities | 395000 | 653000 | 2336000 |
| Net cash provided by operating activities | 155640000 | 127315000 | 99237000 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |  |
| Purchases of property and equipment | (45357000) | (35755000) | (29240000) |
| Net cash used in investing activities | (45357000) | (35755000) | (29240000) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |  |
| Exercise of employee stock purchase options | 849000 | 749000 | 681000 |
| Exercise of common stock options | 7562000 | 10317000 | 9266000 |
| Purchase of treasury stock | (56206000) | (37605000) | (45710000) |
| Net cash used in financing activities | (47795000) | (26539000) | (35763000) |
| Net increase in cash and cash equivalents | 62488000 | 65021000 | 34234000 |
| Cash and cash equivalents at beginning of year | 170584000 | 105563000 | 71329000 |
| **CASH AND CASH EQUIVALENTS AT END OF YEAR** | $233072000 | $170584000 | $105563000 |
| Supplemental cash flow information |  |  |  |
| Income taxes paid | $31137000 | $28095000 | $22874000 |
| Accrual of software license purchase | $8485000 | $— | $— |
| Asset acquisition for stock | $4284000 | $— | $— |

---

See accompanying notes to consolidated financial statements.

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**CORVEL CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**Fiscal Years Ended March 31, 2026, 2025 and 2024**

**<u>Note 1 — Summary of Significant Accounting Policies</u>**

*Organization:* CorVel Corporation ("CorVel" or "the Company"), incorporated in Delaware in 1987, is an independent nationwide provider of medical cost containment and managed care services designed to address the escalating medical costs of workers' compensation benefits, automobile insurance claims, and group health insurance benefits. The Company's services are provided to insurance companies, TPAs, governmental entities, and self-administered employers to assist them in managing the medical costs of workers' compensation, group health and auto insurance, and monitoring the quality of care provided to claimants.

*Basis of Presentation:* The consolidated financial statements include the accounts of CorVel and its wholly-owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. These changes had no impact on previously-reported results of operations or shareholders' equity.

The Company evaluated all subsequent events and transactions through the date of this filing.

*Use of Estimates:* The preparation of financial statements in compliance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements. Actual results could differ from those estimates. Significant estimates include the values assigned to intangible assets, capitalized software development, the allowance for expected credit losses, work in process, accrual for income taxes, share-based payments related to performance-based awards, loss contingencies, estimated lives of claims for claims administration revenue recognition, estimates used in stock options valuations, and accrual for self-insurance reserves.

*Cash and Cash Equivalents:* Cash and cash equivalents consist of short-term, interest-bearing highly-liquid investment-grade securities with maturities of 90 days or less when purchased. The carrying amounts of the Company's financial instruments approximate their fair values at March 31, 2026 and 2025 due to the short-term nature of those instruments. Customer deposits represent cash that is expected to be returned or applied towards payment within one year through the Company's provider reimbursement services.

*Fair Value of Financial Instruments:* The Company applies Accounting Standard Codification ("ASC") 820, "Fair Value Measurements and Disclosures," which defines fair value, establishes a framework for measuring fair value, and provides for disclosures about fair value measurements, to measure and disclose fair value for (i) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company's consolidated financial statements on a recurring basis, at least annually, and (ii) all financial assets and liabilities. ASC 820 prioritizes the inputs used in measuring fair value into the following hierarchy:

*Level 1 -* Quoted market prices in active markets for identical assets or liabilities;

*Level 2* - Observable inputs other than those included in Level 1 (for example, quoted prices for similar assets in active markets or quoted prices for identical assets in inactive markets); and

*Level 3* - Unobservable inputs reflecting management's own assumptions about the inputs used in estimating the value of the asset.

The carrying amount of the Company's financial instruments (i.e. cash and cash equivalents, accounts receivable, accounts payable, etc.) approximates their fair values at March 31, 2026 and 2025, due to the short-term nature of those instruments. The Company has no financial instruments that are measured at fair value on a recurring basis.

*Revenue Recognition:* Revenue is recognized when control of the promised services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to receive in exchange for those services. As the Company completes its performance obligations which are identified in Note 2, it has an unconditional right to consideration as outlined in the Company's contracts. Generally, the Company's billed accounts receivable are expected to be collected in 30 days in accordance with the underlying payment terms. For many of the Company's services, the Company typically has one performance obligation; however, it also provides the customer with an option to acquire additional services. The Company offers multiple services under its patient management and network solutions service lines. The Company typically provides a menu of offerings from which the customer may choose to purchase. Each service is priced separately and provides distinct value to the customer. Pricing is generally consistent for each service irrespective of the other services or quantities requested by the customer.

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*Accounts Receivable:* The majority of the Company's accounts receivable are due from companies in the property and casualty insurance industries, self-administered employers and governmental entities. Credit is extended based on evaluation of a customer's financial condition and, generally, collateral is not required. Accounts receivable are typically due within 30 days and are stated at amounts due from customers net of an allowance for expected credit losses. Those accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company's previous loss history, the customer's current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off accounts receivable against the reserve when they become uncollectible. Accounts receivable includes $37,847,000 and $46,493,000 of unbilled receivables at March 31, 2026 and 2025, respectively. Unbilled receivables represent the amounts expected to be collected for work performed which has not yet been invoiced to the customer. Unbilled receivables are generally invoiced within one year.

*Concentrations of Credit Risk:* Substantially all of the Company's customers are payors of workers' compensation benefits and property and casualty insurance, which include insurance companies, TPAs, self-administered employers and government entities. Credit losses consistently have been within management's expectations. Virtually all of the Company's cash is invested at financial institutions in amounts which exceed the FDIC insurance levels. No customer accounted for 10% or more of revenue for fiscal 2026, 2025 or 2024. Two customers accounted for 10% or more of accounts receivable as of March 31, 2026 and 2025.

*Segment Reporting:* Based on the Company's Chief Operating Decision Maker's ("CODM") review and assessment of the Company's operations for purposes of performance monitoring and resource allocation, the Company determined that its operations and the decisions to allocate resources and deploy capital are organized and managed on a consolidated basis. Accordingly, management has identified one operating segment, which is its reportable segment, under this organizational and reporting structure.

*Property and Equipment:* Additions to property and equipment are recorded at cost. The Company provides for depreciation on property and equipment using the straight-line method by charges to operations in amounts that allocate the cost of depreciable assets over their estimated lives as follows:

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| | |
|:---|:---|
| <u>Asset Classification</u><br>Building<br>Building Improvements<br>Land Improvements | <u>Estimated Useful Life</u><br>40 years<br>20 years<br>20 years |
| Leasehold Improvements | Shorter of 5 years or the life of lease |
| Furniture and Equipment | 5 to 7 years |
| Computer Hardware | 2 to 5 years |
| Computer Software | 3 to 5 years |

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The Company accounts for internally-developed software costs in accordance with ASC 350-40, "Internal Use Software." Capitalized software development costs, intended for internal use, totaled $49,581,000 (net of $185,936,000 in accumulated amortization) and $42,756,000 (net of $170,041,000 in accumulated amortization), as of March 31, 2026 and 2025, respectively. These costs are included in computer software in property and equipment and are amortized over a period of five years.

*Long-Lived Assets:* The carrying amount of all long-lived assets is evaluated periodically to determine if adjustment to the depreciation and amortization period or to the unamortized balance is warranted. Such evaluation is based principally on the expected utilization of the long-lived assets and the projected, undiscounted cash flows of the operations in which the long-lived assets are deployed.

*Leases:* The Company determines if an arrangement includes a lease at inception. Right-of-use assets represent the Company's right to use an underlying asset for the lease term; and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date of the lease, renewal date of the lease or significant remodeling of the lease space based on the present value of the remaining future minimum lease payments. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and short-term and long-term lease liabilities, as applicable.

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Operating and financing lease liabilities and their corresponding right-of-use assets are initially recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, we utilize our incremental borrowing rate to discount lease payments, which reflects the fixed rate at which we could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. The Company's leases may include options to extend or terminate the lease which are included in the lease term when it is reasonably certain that we will exercise any such options. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term.

*Goodwill and Indefinite Lived Long-Lived Assets:* The Company accounts for its business combinations in accordance with the ASC 805-10 through ASC 805-50, "Business Combinations," which (i) requires that the purchase method of accounting be applied to all business combinations and (ii) addresses the criteria for initial recognition of intangible assets and goodwill. In accordance with ASC 350-10 through ASC 350-30, goodwill and other intangible assets with indefinite lives are not amortized but are tested for impairment annually, or more frequently if circumstances indicate the possibility of impairment. If the carrying value of goodwill or an intangible asset exceeds its fair value, an impairment loss will be recognized. Based on the Company's tests and reviews, no impairment of its goodwill, intangible assets or other long-lived assets existed at March 31, 2026 and 2025. However, future events or changes in current circumstances could affect the recoverability of the carrying value of goodwill and long-lived assets.

*Cost of Revenues:* Cost of revenues consists primarily of the compensation and fringe benefits of field personnel, including managers, medical bill analysts, field case managers, telephonic case managers, systems support, administrative support, account managers and account executives, and related facility costs including rent, telephone and office supplies. Historically, the costs associated with these additional personnel and facilities have been the most significant factor driving increases in the Company's cost of revenues.

*Income Taxes:* The Company provides for income taxes in accordance with provisions specified in ASC 740, "Accounting for Income Taxes." Accordingly, deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities. These differences will result in taxable or deductible amounts in the future, based on tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. In making an assessment regarding the probability of realizing a benefit from these deductible differences, management considers the Company's current and past performance, the market environment in which the Company operates, tax-planning strategies and the length of carry-forward periods for loss carry-forwards, if any. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that are more likely than not to be realized. Further, the Company accrues for income tax issues not yet resolved with federal, state and local tax authorities, when it appears more likely than not that a tax liability has been incurred.

*Share-Based Compensation:* The Company accounts for share-based compensation in accordance with the provisions of ASC Topic 718 "Compensation – Stock Compensation." Under ASC 718, share-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). The Company issues performance-based stock options, which vest only upon the Company's achievement of certain earnings per share targets on a calendar year basis, as determined by the Company's Board of Directors. These options were valued in the same manner as the time-based options. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options.

*Accrual for Self-insurance Costs:* The Company self-insures for the group medical costs and workers' compensation costs of its employees. Management believes that the self-insurance reserves are appropriate; however, actual claims costs may differ from the original estimates requiring adjustments to the reserves. The Company determines its estimated self-insurance reserves based upon historical trends along with outstanding claims information provided by its claims paying agents.

*Earnings per Share:* Earnings per common share-basic is based on the weighted average number of common shares outstanding during the period. Earnings per common shares-diluted is based on the weighted average number of common shares and common share equivalents outstanding during the period. In calculating earnings per share, earnings are the same for the basic and diluted calculations. Weighted average shares outstanding is greater for diluted earnings per share due to the effect of stock options.

The difference between the basic weighted average shares and the diluted weighted average shares for each of the fiscal years ended March 31, 2026, 2025 and 2024 is as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2024** |
| Basic weighted average shares | 51283000 | 51379000 | 51366000 |
| Treasury stock impact of stock options | 342000 | 615000 | 675000 |
| Diluted weighted average shares | 51625000 | 51994000 | 52041000 |

---

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During fiscal year 2025, the Company effected a three-for-one forward stock split of its common stock. All prior period share, equity award and per share amounts and calculations in these consolidated financial statements and elsewhere in this Annual Report have been retroactively adjusted to reflect the stock split.

**Recently Issued Accounting Standards**

In September 2025, the FASB issued ASU 2025-06, *Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software*, which replaces the existing stage-based rules for internal-use software with a principles-based framework. Under the new guidance, entities may capitalize eligible costs once management has authorized funding the software, the entity has committed to using the software, and it is probable the project will be completed. Entities may elect to apply the guidance retrospectively, prospectively to software costs incurred after the adoption date or on a modified prospective basis. The update is effective for fiscal years beginning after December 15, 2027, including interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures*, to require disaggregated disclosure of certain income statement expense line items, such as purchases of inventory, employee compensation, and depreciation and amortization. The new standard is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments should be applied prospectively, but retrospective application is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*, enhances the transparency and decision usefulness of income tax disclosures. The standard is effective for fiscal years beginning after December 15, 2024, and is required to be applied prospectively, with retrospective application permitted. The Company adopted this standard prospectively in the fiscal year 2026 and provided the required disclosures in *Note 6 - Income Taxes,* to the consolidated financial statements.

**<u>Note 2 – Revenue Recognition</u>**

*Revenue from Contracts with Customers*

The Company operates in one reportable operating segment: managed care. The Company generates revenue through its patient management and network solutions service lines. Revenue generated from the patient management service line is recognized over time as services are provided and performance obligations are satisfied. Revenue generated from the network solutions service line is recognized when control of the promised services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. As the Company completes its performance obligations, which are described in greater detail below, it has an unconditional right to consideration pursuant to the Company's contracts. Generally, the Company's accounts receivable are expected to be collected within 30 days, in accordance with the underlying payment terms.

**<u>Patient Management Service Line</u>**

The patient management service line provides services primarily related to workers' compensation claims management and case management, as well as additional services such as accident and health claims programs. Each claim referred by the customer is considered an optional purchase of additional claims management services under the customer agreement. The transaction price is fixed for each service and readily determinable from the contract. The Company recognizes revenue over time as services are provided and performance obligations are satisfied. These performance obligations are satisfied as the Company researches, investigates, evaluates, documents, and reports on each claim, and control of the services transfers to the customer. The Company recognizes revenue using a portfolio approach based on historical claim closure rates, claim type, and the passage of time, which claims generally remaining open between three and fifteen months. The Company believes this approach reasonably reflects the transfer of the claims management services to its customers.

The Company's obligation to manage claims and cases under patient management service line contracts range from less than one year to multiple years. These contracts typically have one year terms; however, many include auto-renewal provisions leading the Company's customer relationships to span multiple years. Under certain claims management agreements, the Company receives consideration from a customer at contract inception before services are transferred to the customer, however, the Company begins performing services immediately. The period between the customer's payment of consideration and the completion of the promised services is generally less than one year. The amount of promised consideration is no different than the cash selling price of the promised

------

services. The fee is billed upfront by the Company in order to provide customers with simplified and predictable ways of purchasing the Company's services.

The patient management service line also offers the services of case managers who provide administration services by proactively managing medical treatment for claimants while also facilitating an understanding of, and participation in, their rehabilitation process. Revenue for case management services is recognized over time as the performance obligations are satisfied through the effort expended to manage the medical treatment for claimants and control of these services is transferred to the customer. Case management services are generally billed based on time incurred, are considered variable consideration, and revenue is recognized for the amount in which the Company has the right to invoice for services performed. The Company believes this approach reasonably reflects the transfer of the case management service to the customer.

**<u>Network Solutions Service Line</u>**

The network solutions service line consists primarily of medical bill review and third-party services. Medical bill review services analyze medical charges for customers' claims to identify potential savings opportunities. The Company recognizes revenue from medical bill review services at the point in time when control of the service transfers to the customer, which occurs when the results of the medical bill review service are delivered to the customer. Medical bill review revenue is variable and is generally based on performance metrics set forth in the underlying contracts. Each period, the Company bases its revenue estimates on a contract-by-contract basis. The Company makes its best estimate using amounts the Company has earned and expects to be collected using historical averages and other factors to project such revenues. Variable consideration is recognized when the Company concludes it is probable that a significant revenue reversal will not occur in future periods.

Third-party services revenue includes revenue from pharmacy, directed care services and other services, including amounts received from customers to reimburse the Company for certain third-party costs incurred in providing its integrated network solutions services. The Company is considered the principal in these transactions as it directs the third-party, controls the specified service and pricing, performs program utilization review, directs payment to the provider, assumes the financial risk of loss associated with services rendered, and combines the services provided into an integrated solution, as specified within its customer contracts. The Company has the ability to influence contractual fees with customers and assumes the financial risk of loss in certain contractual obligations. These factors indicate that the Company is the principal and therefore required to recognize gross revenue and operating expense from service-partner fees within its consolidated statements of income.

The following table presents revenues disaggregated by service line for the fiscal years ended March 31, 2026, 2025 and 2024:

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| | | | |
|:---|:---|:---|:---|
|  | **2026** | **2025** | **2024** |
| Patient management services | $596703000 | $581192000 | $529995000 |
| Network solutions services | 361824000 | 314397000 | 265316000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total services | $958527000 | $895589000 | $795311000 |

---

*Arrangements with Multiple Performance Obligations*

The Company offers a suite of services under its patient management and network solutions service lines. Although customers can select from a variety of services, the Company typically has one performance obligation per customer. The Company always provides its customers with an option to contract additional services. The price of each service is separate and distinct to each customer. Pricing is generally consistent for each service irrespective of the other services or quantities requested by the customer.

*Contract Balances*

Due to the timing of revenue recognition, billings and cash collections, the Company's consolidated balance sheets include billed accounts receivables, unbilled receivables, and contract liabilities (reported as deferred revenues). Unbilled receivables represent amounts due are due for services that have been performed but not yet billed, except for physical invoicing and the passage of time. Invoicing requirements vary by customer contract, but substantially all unbilled revenues are billed within one year.

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2025** |
| Billed receivables | $67435000 | $65323000 |
| Allowance for expected credit losses | (3969000) | (7690000) |
| Unbilled receivables | 37847000 | 46493000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | $101313000 | $104126000 |

---

------

When the Company receives consideration from a customer prior to transferring services to the customer under the terms of certain claims management agreements, it records deferred revenues on the consolidated balance sheets, which represents a contract liability.

Certain services, such as claims management, are provided under fixed-fee service agreements and require the Company to manage claims over a contract period, typically for one year with the option for auto renewal, with the fixed fee renewing on the anniversary date of such contract. The Company recognizes deferred revenues as revenues when it performs services and transfers control of the services to the customer and satisfies the performance obligation, which it determines utilizing a portfolio approach. For all fixed fee service agreements, revenues are straight-lined and recognized over the expected service periods by type of claim.

The table below presents the deferred revenues balance and the significant activity affecting deferred revenues during the fiscal year ended March 31, 2026:

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| | |
|:---|:---|
|  | **March 31, 2026** |
| Beginning balance at April 1, 2025 | $30809000 |
| Additions | 76987000 |
| Revenue recognized from beginning of period | (28604000) |
| Revenue recognized from additions | (46957000) |
| Ending balance at March 31, 2026 | $32235000 |

---

*Remaining Performance Obligations*

Remaining performance obligations consist of deferred revenues. As of March 31, 2026, the Company had approximately $32.2 million of remaining performance obligations related to claims and non-claims services for which the price is fixed. The Company expects to recognize approximately 98% of its remaining performance obligations as revenues within one year and expects to recognize the remaining balance as revenues thereafter. See the discussion below regarding the practical expedients elected for the disclosure of remaining performance obligations.

*Costs to Obtain a Contract*

The Company has an internal sales force compensation program where remuneration is based solely on the revenues recognized in the period and does not represent an incremental cost to the Company, which provides a future benefit expected to be longer than one year and would meet the criteria to be capitalized and presented on the consolidated balance sheets.

*Practical Expedients Elected*

As a practical expedient, the Company does not adjust the consideration in a contract for the effects of a significant financing component. It expects, at contract inception, that the period between a customer's payment of consideration and the transfer of promised services to the customer will be one year or less.

For patient management services that are billed on a time-and-expense incurred or per unit basis and for which revenue is recognized over time, the Company recognizes revenue at the amount to which it has the right to invoice for services performed.

The Company does not disclose the value of remaining performance obligations for (i) contracts under which revenue is recognized in the amount the Company has the right to invoice for services performed, or (ii) contracts in which variable consideration is allocated entirely to a single performance obligation.

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**<u>Note 3 — Stock Options and Stock-Based Compensation</u>**

As of March 31, 2025, 1,185,727 stock options were outstanding and 1,775,459 shares were available for issuance under the Company's Restated Omnibus Incentive Plan (formerly the Restated 1988 Executive Stock Option Plan) (the "Omnibus Plan"). Under the Omnibus Plan, the Company granted shares of common stock to key employees, non-employee directors, and consultants at exercise prices equal to or greater than the fair market value of the common stock on the grant date. Options granted under the Omnibus Plan generally vested as to 25% of the underlying shares one year after the grant date, with the remaining 75% vesting ratably each month over the following 36 months. Options granted to employees expire five years from the grant date, and options granted to directors expire ten years from the date of grant. All options granted in fiscal year 2026 and 2025 had an exercise price equal to the fair value of the Company's common stock on the grant date and are non-statutory stock options. After August 7, 2025, the Company will not grant any further equity awards under the Omnibus Plan. Outstanding awards under the Omnibus Plan will remain outstanding, unchanged and subject to the terms of the Omnibus Plan and their respective award agreements.

On August 7, 2025, the Company's stockholders approved the 2025 Stock Incentive Plan (the "2025 SIP") replacing the Omnibus Plan, which expires on June 30, 2026. Consistent with the Omnibus Plan, the primary purpose of the 2025 SIP is to attract and retain qualified personnel. The 2025 SIP has 1,775,459 shares of common stock reserved for issuance to employees, directors, consultants, independent contractors and advisors. The 2025 SIP permits the issuance of stock options, restricted stock, stock appreciation rights, restricted stock units and performance awards.

Shares subject to awards that are forfeited, expire or are otherwise terminated without shares being issued, or shares withheld to pay the exercise price of an award or to satisfy tax withholding obligations, including shares subject to awards granted under the Omnibus Plan that are outstanding after June 30, 2026, will be returned to the pool of shares available for grant and issuance under the 2025 SIP. As of March 31, 2026, 1,447,857 shares of common stock remained available for future issuance under the 2025 SIP, subject to adjustment for future stock splits, stock dividends, and similar changes in capitalization.

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model based on the assumptions included in the table below. The risk-free rate is based on the interest rate paid on a U.S. Treasury issue with a term similar to the estimated life of the option. The Company uses historical data, among other factors, to estimate the expected volatility, dividend yield and option life. The Company accounts for forfeitures as they occur, rather than estimating expected forfeitures.

The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following weighted average assumptions were used for the fiscal years ended March 31, 2026, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2024** |
| Expected volatility | 34% | 32% | 34% |
| Risk free interest rate | 3.67% to 4.23% | 3.89% to 4.59% | 3.91% to 4.65% |
| Dividend yield | 0.0% | 0.0% | 0.0% |
| Weighted average option life | 3.9 to 4.0 years | 3.9 to 4.0 years | 4.0 to 4.1 years |

---

For the fiscal years ended March 31, 2026, 2025 and 2024, the Company recorded share-based compensation expense of $5,411,000, $5,714,000, and $4,982,000, respectively. The table below shows the amounts recognized in the financial statements for the fiscal years ended March 31, 2026, 2025 and 2024.

---

| | | | |
|:---|:---|:---|:---|
|  | **Fiscal 2026** | **Fiscal 2025** | **Fiscal 2024** |
| Cost of revenue | $2641000 | $2794000 | $2797000 |
| General and administrative | 2770000 | 2920000 | 2185000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cost of stock-based compensation <br> included in income before income taxes | 5411000 | 5714000 | 4982000 |
| Amount of income tax benefit recognized | (1241000) | (1256000) | (987000) |
| Amount charged to net income | $4170000 | $4458000 | $3995000 |
| Effect on basic earnings per share | $0.08 | $0.09 | $0.08 |
| Effect on diluted earnings per share | $0.08 | $0.09 | $0.08 |

---

------

The following table summarizes the status of stock options outstanding and exercisable at March 31, 2026:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Range of<br><u>Exercise Prices</u>** | **Number of<br>Outstanding<br>Options** | **Weighted<br>Average<br>Remaining<br>Contractual<br>Life** | **Outstanding<br>Options –<br>Weighted<br>Average<br>Exercise Price** | **Exercisable<br>Options –<br>Number of<br>Exercisable<br>Options** | **Exercisable<br>Options –<br>Weighted<br>Average<br>Exercise Price** |
| $14.44 to $51.01 | 303116 | 2.09 | $35.75 | 298373 | $35.53 |
| $51.02 to $53.08 | 329370 | 3.68 | 52.73 | 104890 | 52.10 |
| $53.09 to $74.09 | 325404 | 2.43 | 64.56 | 231802 | 63.99 |
| $74.10 to $110.18 | 238393 | 4.53 | 93.78 | 37895 | 99.48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 1196283 | 3.11 | $59.83 | 672960 | $51.52 |

---

The following table summarizes the status of all outstanding options at March 31, 2026, and changes during the fiscal year then ended:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br>Options** | **Weighted<br>Average<br>Exercise<br>Price per<br>Share** | **Weighted Average<br>Remaining<br>Contractual Life<br>(Years)** | **Aggregate<br>Intrinsic Value<br>as of March 31, 2026** |
| Options outstanding, March 31, 2025 | 1185727 | $51.07 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted | 348600 | 66.51 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercised | (317046) | 33.32 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cancelled – forfeited | (19364) | 76.39 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cancelled – expired | (1634) | 79.43 |  |  |
| Options outstanding, March 31, 2026 | 1196283 | $59.83 | 3.11 | $6369271 |
| Options vested and expected to vest | 1164506 | $59.25 | 3.09 | $6369271 |
| Ending exercisable | 672960 | $51.52 | 2.13 | $5978576 |

---

The weighted average fair value of options granted during fiscal 2026, 2025 and 2024 was $20.89, $33.64, and $25.16, respectively. The total intrinsic value of options exercised during fiscal years 2026, 2025 and 2024 was $15,963,000, $24,182,000, and $29,230,000 respectively.

Included in the above-noted stock option grants and stock compensation expense are performance-based stock options which vest only upon the Company's achievement of certain earnings per share targets on a calendar year basis, as determined by the Company's Board of Directors. These options were valued in the same manner as the time-based options. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options. During the fiscal years ended March 31, 2026, 2025 and 2024, the Company recognized stock compensation expense for performance-based options in the amount of $1,564,000, $1,715,000, and $1,199,000, respectively.

The Company received $7,562,000, $10,317,000, and $9,266,000 of cash receipts from the exercise of stock options during fiscal 2026, 2025 and 2024, respectively. As of March 31, 2026, $9,009,000 of total unrecognized compensation costs related to stock options is expected to be recognized over a weighted average period of 3 years.

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**<u>Note 4 — Property and Equipment</u>**

Property and equipment, net consisted of the following at March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
|  | **2026** | **2025** |
| Computer software | $270404000 | $234459000 |
| Office equipment and computers | 76788000 | 65429000 |
| Land, building and improvements | 11047000 | 11047000 |
| Leasehold improvements | 23075000 | 22607000 |
|  | 381314000 | 333542000 |
| Less: accumulated depreciation and amortization | (263408000) | (241490000) |
|  | $117906000 | $92052000 |

---

Depreciation expense totaled $31,589,000, $29,152,000 and $25,829,000 for the fiscal years ended March 31, 2026, 2025 and 2024, respectively.

**<u>Note 5 — Accounts and Income Taxes Payable and Accrued Liabilities</u>**

Accounts and income taxes payable consisted of the following at March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
|  | **2026** | **2025** |
| Accounts payable | $24323000 | $15422000 |
| Income taxes payable | 227000 | 1370000 |
|  | $24550000 | $16792000 |

---

Accrued liabilities consisted of the following at March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
|  | **2026** | **2025** |
| Payroll, payroll taxes and employee benefits | $31324000 | $30971000 |
| Customer deposits | 115706000 | 101472000 |
| Accrued professional service fees | 9804000 | 11004000 |
| Self-insurance accruals | 3569000 | 3276000 |
| Deferred revenue | 32235000 | 30809000 |
| Operating lease liabilities | 7420000 | 8126000 |
| Other | 3460000 | 1586000 |
|  | $203518000 | $187244000 |

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**<u>Note 6 — Income Taxes</u>**

The income tax provision consisted of the following for the fiscal years ended March 31, 2026, 2025 and 2024:

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| | | | |
|:---|:---|:---|:---|
|  | **2026** | **2025** | **2024** |
| Current — Federal | $20394000 | $23985000 | $17463000 |
| Current — State | 7613000 | 6833000 | 4707000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 28007000 | 30818000 | 22170000 |
| Deferred — Federal | 5076000 | (4594000) | (2828000) |
| Deferred — State | (296000) | (565000) | (493000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 4780000 | (5159000) | (3321000) |
|  | $32787000 | $25659000 | $18849000 |

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The Company adopted ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*, on a prospective basis. As a result, disclosures for fiscal year 2026 reflect the requirements of ASU 2023-09, including the reconciliation of the statutory federal income tax rate and disaggregated tax payment information. The disclosures for fiscal years 2025 and 2024 are presented under the prior disclosure requirements.

The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the fiscal year ended March 31, 2026:

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| | | |
|:---|:---|:---|
|  | **2026** | **2026** |
| Income taxes at federal statutory rate | $30058000 | 21.00% |
| State income taxes, net of federal benefit <sup>(1)</sup> | 6047000 | 4.22% |
| Tax credits | (1262000) | (0.88%) |
| Change in valuation allowance | 38000 | 0.03% |
| Nondeductible items: |  |  |
| &nbsp;&nbsp;Stock-based compensation | (2640000) | (1.84%) |
| &nbsp;&nbsp;§162(m) limitation and permanent items | 1065000 | 0.74% |
| Worldwide changes in unrecognized tax benefits | 33000 | 0.02% |
| Other: |  |  |
| &nbsp;&nbsp;Deferred tax adjustment | (552000) | (0.38%) |
|  | $32787000 | 22.91% |

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<sup>(1)</sup> State taxes in the following states made up the majority of the tax effect in this category: California, Georgia, Illinois, Pennsylvania and Texas.

The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the fiscal years ended March 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Income taxes at federal statutory rate | $25373000 | $19971000 |
| State income taxes, net of federal benefit | 4937000 | 3369000 |
| Uncertain tax positions | 9000 | (22000) |
| Stock-based compensation and §162(m) limitation | (3687000) | (3961000) |
| Permanent items and tax credits | (568000) | (480000) |
| Adjustments to returns as filed | (420000) | 67000 |
| Valuation allowance | 15000 | (95000) |
|  | $25659000 | $18849000 |

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The cash paid for income taxes (net of refunds) during the fiscal year 2026 was as follows:

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| | |
|:---|:---|
|  | **2026** |
| Federal | $23912000 |
| State and local: |  |
| &nbsp;&nbsp;California | 1269000 |
| &nbsp;&nbsp;Texas | 592000 |
| &nbsp;&nbsp;Georgia | 538000 |
| &nbsp;&nbsp;New York | 451000 |
| &nbsp;&nbsp;Pennsylvania | 398000 |
| &nbsp;&nbsp;Illinois | 354000 |
| &nbsp;&nbsp;Other | 3478000 |
| State and local total | 7080000 |
| Foreign: |  |
| &nbsp;&nbsp;Puerto Rico | 145000 |
| Foreign total | 145000 |
| Total | $31137000 |

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Net cash payments for income taxes were $28,095,000 and $22,874,000 in 2025 and 2024, respectively.

Deferred tax assets and liabilities at March 31, 2026 and 2025 are, as follows:

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| | | |
|:---|:---|:---|
|  | **2026** | **2025** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;Accrued liabilities not currently deductible | $8753000 | $8363000 |
| &nbsp;&nbsp;Allowance for expected credit losses | 1024000 | 1947000 |
| &nbsp;&nbsp;Stock-based compensation | 3362000 | 2808000 |
| &nbsp;&nbsp;Deferred lease liability | 7253000 | 7094000 |
| &nbsp;&nbsp;Capitalized research and development expenditures | 321000 | 5826000 |
| &nbsp;&nbsp;Other | 574000 | 541000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | 21287000 | 26579000 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;Excess of book over tax basis of fixed assets | (4108000) | (4645000) |
| &nbsp;&nbsp;Intangible assets | (4987000) | (4905000) |
| &nbsp;&nbsp;Right-of-use asset | (5461000) | (5267000) |
| &nbsp;&nbsp;Accrued revenue | (1911000) | (2350000) |
| &nbsp;&nbsp;Other | (606000) | (456000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax liabilities | (17073000) | (17623000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance | (290000) | (252000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | (17363000) | (17875000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax assets (liabilities) | $3924000 | $8704000 |

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Prepaid income taxes are $1,287,000 at March 31, 2026, and $0 at March 31, 2025.

A reconciliation of the financial statement recognition and measurement of uncertain tax positions during the current fiscal year is as follows:

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| | |
|:---|:---|
| Balance as of March 31, 2025 | $163000 |
| Additions based on tax positions related to the current year |  |
| Additions for tax positions of prior years | 91000 |
| Reductions for tax positions related to the current year |  |
| Reductions for tax positions of prior years | (50000) |
| Balance as of March 31, 2026 | $204000 |

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The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. During the fiscal years ended March 31, 2026, 2025 and 2024, the Company recognized approximately $(8,000), $(9,000) and $(14,000) in interest and

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penalties, respectively. As of March 31, 2026, 2025 and 2024, accrued interest and penalties related to uncertain tax positions were $23,000, $31,000 and $40,000, respectively.

The tax fiscal years from 2023-2025 remain open to examination by the major taxing jurisdictions to which the Company is subject.

**<u>Note 7 — Employee Stock Purchase Plan</u>**

The Company maintains an Employee Stock Purchase Plan, as amended (the "ESPP") which allows employees of the Company and its subsidiaries to purchase shares of common stock on the last day of two six-month purchase periods (i.e. March 31 and September 30) at a purchase price that is 95% of the closing sale price of shares as quoted on NASDAQ on the last day of such purchase period. Employees are allowed to contribute up to 20% of their gross pay. A maximum of 8,550,000 shares have been authorized for issuance under the ESPP. As of March 31, 2026, 7,531,826 shares had been issued pursuant to the ESPP. Summarized ESPP information is as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **2026** | **2025** | **2024** |
| Employee contributions | $849000 | $749000 | $681000 |
| Shares acquired | 13987 | 7129 | 9534 |
| Average purchase price | $60.71 | $105.05 | $71.40 |

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**<u>Note 8 — Treasury Stock</u>**

During each of the three fiscal years ended March 31, 2026, 2025 and 2024, the Company continued to repurchase shares of its common stock under a program originally approved by the Company's Board of Directors in 1996. Including a 3,000,000 share expansion authorized in November 2022 by the Company's Board of Directors, the total number of shares of common stock authorized to be repurchased over the life of the program is 117,000,000 shares of common stock. During the fiscal year 2025, the Company effected a three-for-one forward stock split. All prior period share, equity award and per share amounts and calculations in these consolidated financial statements and elsewhere in this Annual Report have been retroactively adjusted to reflect the stock split. Purchases may be made from time to time depending on market conditions and other relevant factors. The share repurchases for the fiscal years ended March 31, 2026, 2025 and 2024 and cumulatively since inception of the authorization, are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **2026** | **2025** | **2024** | **Cumulative** |
| Shares repurchased | 782744 | 377154 | 645939 | 115259435 |
| Cost | $56206000 | $37605000 | $45710000 | $887716000 |
| Average price | $71.81 | $99.71 | $70.76 | $7.70 |

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During the period subsequent to March 31, 2026, through the date of filing this Annual Report, the Company repurchased 240,933 shares for $13.6 million, or an average of $56.44 per share. The repurchased shares were recorded as treasury stock, at cost, and are available for general corporate purposes. The repurchases were primarily financed from cash generated from operations and from cash proceeds from the exercise of stock options.

**<u>Note 9 – Leases</u>**

The Company determines if an arrangement contains a lease at contract inception. The Company's current lease agreements have remaining lease terms between one and seven years. The Company recognizes a right-of-use ("ROU") asset and a lease liability at the lease commencement date. The lease liability is initially measured based on the present value of the unpaid lease payments as of the lease commencement date. Key estimates and judgments used in determining the liability include the (1) discount rate the Company uses to discount the unpaid lease payments to present value, (2) lease term, and (3) lease payments.

ASC 842, "Leases," requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Company cannot determine the interest rate implicit in the lease because it does not have access to the lessor's estimated residual value or the amount of the lessor's deferred initial direct costs. Therefore, the Company generally uses its incremental borrowing rate as the discount rate for the lease. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because the Company does not generally borrow on a collateralized basis, it uses quoted interest rates obtained from financial institutions as an input to derive an appropriate incremental borrowing rate, adjusted for the amount of the lease payments, the lease term, and the effect on that rate of designating specific collateral with a value equal to the unpaid lease payments for that lease.

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Some of the Company's lease agreements include options to extend the lease following the initial term. The Company elected the practical expedient of hindsight in determining the option to renew. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

For lease agreements entered into or reassessed after the adoption of ASC 842, "Leases," the Company has elected the practical expedient to account for the lease and non-lease components as a single lease component. Therefore, for those leases, the lease payments used to measure the lease liability include all of the fixed consideration in the contract.

Variable lease payments associated with the Company's leases are recognized upon occurrence of the event, activity, or circumstance in the lease agreement on which those payments are assessed.

Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

The components of lease expenses are as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2025** | **March 31, 2024** |
| Operating lease expense | $8185000 | $9070000 | $9989000 |
| Finance lease expense | 19000 | 80000 | 86000 |
| Short-term lease expense |  | 114000 | 114000 |
| Variable lease expense | 628000 | 665000 | 559000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease expenses | $8832000 | $9929000 | $10748000 |

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The following table presents the lease related assets and liabilities recorded on the Company's consolidated balance sheets related to its operating leases at March 31, 2026 and March 31, 2025:

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| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2025** |
| Right-of-use asset, net | $21164000 | $20825000 |
| Short-term lease liability | $7420000 | $8126000 |
| Long-term lease liability | 20687000 | 19953000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease liabilities | $28107000 | $28079000 |
| Weighted average remaining lease term | 4.23 years | 4.01 years |
| Weighted average finance lease term |  | 0.25 years |
| Weighted average discount rate | 5.3% | 4.5% |

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Supplemental cash flow information related to operating leases for fiscal years ended March 31, 2026 and 2025 were as follows:

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| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2025** |
| Cash paid for amounts included in the measurement<br> of operating lease liabilities | $8457000 | $9151000 |
| Operating lease liabilities arising from obtaining ROU assets | $41582000 | $46954000 |
| Finance lease liabilities arising from obtaining ROU assets | $— | $358000 |
| Additions to ROU assets resulting from additions to<br> operating lease liabilities | $3300000 | $4555000 |

---

As of March 31, 2026, maturities of operating lease liabilities for each of the next five years and thereafter are as follows:

---

| | |
|:---|:---|
| 2027 | $8700000 |
| 2028 | 8213000 |
| 2029 | 5949000 |
| 2030 | 3968000 |
| 2031 | 2455000 |
| Thereafter | 2345000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease payments | 31630000 |
| Less interest | (3523000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease liabilities | $28107000 |

---

------

As of March 31, 2026, the Company has approximately $1.5 million of additional operating lease commitments that have not yet commenced. This lease will commence in 2026 and has lease terms of 10 years.

**<u>Note 10 — Contingencies and Legal Proceedings</u>**

From time to time, the Company is involved in litigation arising in the ordinary course of business. Although the results of these ordinary course matters cannot be predicted with certainty, we believe that the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on our financial position or results of operations.

**<u>Note 11 — Retirement Savings Plan</u>**

The Company maintains a retirement savings plan for its employees, which is a qualified plan under Section 401(k) of the Internal Revenue Code. Full-time employees that meet certain requirements are eligible to participate in the plan. Employer contributions are made annually, primarily at the discretion of the Company's Board of Directors. Contributions of $3,294,000, $1,696,000 and $1,505,000 were charged to operations for the fiscal years ended March 31, 2026, 2025 and 2024, respectively.

**<u>Note 12 — Segment Reporting</u>**

The Company operates within one operating segment. The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM reviews segment financial information presented on a consolidated basis, including revenue, gross profit and operating expenses, and considers budget-to-actual variances for the purposes of making operating decisions, assessing financial performance and allocating resources.

The Company derives its revenues from providing patient management and network solutions services. Patient management services include claims administration, utilization review, medical case management, and vocational rehabilitation. Network solutions services include fee schedule auditing, hospital bill auditing, coordination of independent medical examinations, diagnostic imaging review services and preferred provider referral services. The percentages of revenues attributable to patient management and network solutions services for the fiscal years ended March 31, 2026, 2025 and 2024 are listed below.

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | **2025** | **2024** |
| Patient management services | 62.3% | 64.9% | 66.6% |
| Network solutions services | 37.7% | 35.1% | 33.4% |
|  | 100.0% | 100.0% | 100.0% |

---

The Company's management is structured geographically with regional vice presidents who are responsible for all services provided by the Company and the operating results of the Company within their respective regions. Area and district managers support the regional vice presidents by overseeing all services provided by the Company within their given areas and districts. All revenues are derived from customers within the United States, and all long-lived assets are located in the United States.

Under ASC 280-10, two or more operating segments may be aggregated into a single operating segment for financial reporting purposes if aggregation is consistent with the objective and basic principles of the accounting guidance, if the segments have similar economic characteristics, and if the segments are similar in each of the following areas: (i) the nature of products and services, (ii) the nature of the production processes, (iii) the type or class of customer for their products and services, and (iv) the methods used to distribute their products or provide their services. The Company believes its patient management and network solutions services meet these criteria as they provide similar managed care services to similar customers using similar methods of production and distribution. All of the Company's regions perform both patient management and network solutions services.

The following table presents the financial information for the Company's one reportable and operating segment for fiscal years ended March 31, 2026, 2025 and 2024:

------

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | **2025** | **2024** |
| Revenues | $958527000 | $895589000 | $795311000 |
| Less: |  |  |  |
| &nbsp;&nbsp;Labor expenses | 460605000 | 445701000 | 406422000 |
| &nbsp;&nbsp;Direct product expenses | 215466000 | 197184000 | 170989000 |
| &nbsp;&nbsp;Income tax provision | 32787000 | 25659000 | 18849000 |
| &nbsp;&nbsp;Depreciation and amortization expenses | 31764000 | 29536000 | 26252000 |
| &nbsp;&nbsp;Occupancy Expense | 20177000 | 21252000 | 21704000 |
| &nbsp;&nbsp;Other items <sup>(1)</sup> | 87384000 | 81092000 | 74843000 |
| Net income | $110344000 | $95165000 | $76252000 |

---

<sup>(1)</sup> Includes other operating costs (such as marketing and maintenance expenses), net gain (loss) on asset sales and disposals and other costs.

**<u>Note 13 —</u> <u>Other Intangible Assets</u>**

Other intangible assets consisted of the following at March 31, 2026:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **<u>Item</u>** | **Life** | **Cost** | **Fiscal 2026 Amortization<br>Expense** | **Accumulated<br>Amortization at<br>March 31, 2026** | **Cost, Net of<br>Accumulated<br>Amortization at<br>March 31, 2026** |
| Covenant Not to Compete | 5 years | $775000 | $— | $775000 | $— |
| Customer Relationships | 18-20 years | 7922000 | 175000 | 7659000 | 263000 |
| Third Party Administrator Licenses | 15 years | 204000 |  | 204000 |  |
| Total |  | $8901000 | $175000 | $8638000 | $263000 |

---

Other intangible assets consisted of the following at March 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **<u>Item</u>** | **Life** | **Cost** | **Fiscal 2025 Amortization<br>Expense** | **Accumulated<br>Amortization at<br>March 31, 2025** | **Cost, Net of<br>Accumulated<br>Amortization at<br>March 31, 2025** |
| Covenant Not to Compete | 5 years | $775000 | $— | $775000 | $— |
| Customer Relationships | 18-20 years | 7922000 | 383000 | 7484000 | 438000 |
| Third Party Administrator Licenses | 15 years | 204000 |  | 204000 |  |
| Total |  | $8901000 | $383000 | $8463000 | $438000 |

---

Amortization expense is expected to be $174,000 in fiscal 2027, $42,000 in fiscal 2028, $18,000 in fiscal 2029, $18,000 in fiscal 2030, and $11,000 in fiscal 2031.

------

## Exhibit 4.1

**EXHIBIT 4.1**

**DESCRIPTION OF CAPITAL STOCK**

<br> The following is a summary of the material characteristics of the capital stock of CorVel Corporation (the "Company," "we," "us" and "our") as set forth in our Fourth Amended and Restated Certificate of Incorporation, as amended (the "Certificate of Incorporation"), our Amended and Restated Bylaws (the "Bylaws"), and certain provisions of the General Corporation Law of the State of Delaware (the "DGCL"). The summary does not purport to be complete and is qualified in its entirety by reference to our Certificate of Incorporation and Bylaws, copies of which have been filed as exhibits to our public filings with the Securities and Exchange Commission.

**<u>Authorized Capital Stock</u>**

The Certificate of Incorporation authorizes the Company to issue up to 360,000,000 shares of common stock, par value $0.0001 per share (the "Common Stock"), and 1,000,000 shares of preferred stock, par value $0.0001 per share (the "Preferred Stock"), of which 200,000 shares have been designated as Series A Junior Participating Preferred Stock.

**<u>Common Stock</u>**

*Voting Rights.* Holders of our Common Stock are entitled to one vote per share on all matters submitted to a vote of stockholders. Stockholders are not entitled to cumulate votes for the election of directors.

*Dividend Rights.* Holders of Common Stock are entitled to share ratably in any dividends that may be declared by the board of directors of the Company (the "Board"), in its discretion from funds legally available therefor.

*Rights upon Liquidation*. In the event of our liquidation, dissolution or winding up, holders of Common Stock are entitled to share ratably in all assets remaining after payment of liabilities and the payment of any liquidation preferences on any preferred stock.

*Rights and Preferences*. Holders of Common Stock do not have any preemptive rights, conversion, redemption, sinking fund or other similar rights. The rights, preferences and privileges of the holders of the Common Stock are subject to the rights, preferences and privileges of the holders of any classes or series of the Preferred Stock that we may issue in the future.

**Preferred Stock**

*Designation of Series of Preferred Stock*. Under the Certificate of Incorporation, without further action by our stockholders, the Board is authorized to (a) issue Preferred Stock in one or more series, (b) establish the number of shares to be included in such series, (c) fix or alter, the designation, powers, preferences and rights of the shares of each such series and any qualifications, limitations or restrictions thereof, and (d) increase or decrease the number of shares of any such series (but not below the number of shares of such series then outstanding.

**Certain Provisions of Our Certificate of Incorporation and Bylaws** 

Certain terms of our Certificate of Incorporation and Bylaws may have the effect of delaying, deferring or discouraging another person from acquiring control of us by means of a tender offer, a proxy contest or otherwise, or removing incumbent officers and directors. These provisions, some of which are summarized below, are expected to discourage certain types of coercive takeover practices and takeover bids that our Board may consider inadequate and to encourage any person seeking to acquire control of us to first negotiate with our Board.

*Election of Directors*. Our Bylaws provide for the annual election of directors. The directors shall be elected by a plurality vote of the shares represented in person or by proxy. Our Bylaws provide that the number of directors shall be seven. Any amendment to our Bylaws adopted by the Board increasing or reducing the authorized number of directors require a resolution adopted by the affirmative vote of all the directors then in office.

------

*Special meetings of Stockholders*. Special meetings of the stockholders may only be called by the Chairman of the Board, Chief Executive Officer, or Secretary at the request in writing of the Chairman of the Board, Chief Executive Officer or a majority of the members of the Board.

*Issuance of Undesignated Preferred Stock*. Our Board has the authority, without further action by our stockholders, to issue up to 1,000,000 shares of Preferred Stock with the rights and preferences designated by the Board.

*Amendment of the Certificate of Incorporation*. The Corporation reserves the right to amend any provision of the Certificate of Incorporation upon the affirmative vote of a majority of the outstanding shares entitled to vote.

*Amendment of the Bylaws*. In addition to any vote required by the DGCL, any amendment of any provision of the Bylaws must be approved by (a) at least 66 2/3% of the outstanding shares entitled to vote, voting together as a single class, or (b) the Board, when such power is conferred upon them by the Certificate of Incorporation. Any Bylaw amendment adopted by the Board increasing or reducing the authorized number of directors, or amending, repealing, altering or rescinding certain sections of the Bylaws shall require a resolution adopted by the affirmative vote of all of the directors then in office.

*Advance Notice of Director Nominations and Other Stockholder Proposals.*In accordance with the Bylaws, to be properly brought before an annual meeting of stockholders, any nomination of a person to serve as a member of the Board, and any other proposal to conduct business at the annual meeting, that is being proposed by one of our stockholders, must (a) be delivered to our Corporate Secretary 90 days prior to the anniversary date of the immediately preceding annual meeting; and (b) such business must otherwise be a proper matter for stockholder action.

**Certain Anti-Takeover Effects of Delaware Law**

We are subject to Section 203 of the DGCL ("Section 203"). In general, Section 203 prohibits a corporation incorporated under the DGCL from engaging in a "business combination" with an "interested stockholder" for a period of three years following the date such stockholder became an "interested stockholder," unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the transaction is approved by the Board prior to the date the interested stockholder obtained such status;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•on or subsequent to the date the business combination is approved by the Board and authorized at an annual or special meeting of stockholders by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.

A "business combination" is defined to include mergers, asset sales, and other transactions resulting in financial benefit to a stockholder. In general, an "interested stockholder" is a person who, together with its affiliates and associates, owns (or within three years, did own) 15% or more of a corporation's voting stock.

------

## Exhibit 21.1

**EXHIBIT 21.1**

**SUBSIDIARIES OF THE REGISTRANT**

---

| | | |
|:---|:---|:---|
| Name of Subsidiary | State of Incorporation  | Relationship to Registrant |
| CorVel Health Care Organization | California | wholly-owned subsidiary |
| CorVel Healthcare Corporation | California | wholly-owned subsidiary |
| CorVel Enterprise Comp, Inc. of New York  | New York | wholly-owned subsidiary |
| CorVel Enterprise Claims, Inc. | Delaware | wholly-owned subsidiary |
| CorVel IME Corporation | New York | wholly-owned subsidiary |
| CareIQ, Inc. | Minnesota | wholly-owned subsidiary |
| CorVel Ohio MCO, Inc. | Ohio | wholly-owned subsidiary |
| CorVel NY IPA, Inc. | New York | wholly-owned subsidiary |
| CorVel Rehabilitation Services, Inc. | Minnesota | wholly-owned subsidiary |
| Symbeo, Inc. | Delaware | wholly-owned subsidiary |
| CorVel Enterprise Comp, Inc. of Canada | Delaware | wholly-owned subsidiary |
| CERIS | Delaware | wholly-owned subsidiary |

---

------

## Exhibit 23.1

**EXHIBIT 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in the Registration Statements on Form S-8 (File Nos. 333-291331, 333-248244, 333-226825, 333-144402, 333-58455, 333-16379, 333-107428, 333-128739, 033-94440, 033-53684, 033-48186, 033-42554, and 033-42424) and in the Registration Statement on Form S-3 (File No. 333-209388) of CorVel Corporation (the "Company") of our report dated May 22, 2026, relating to the Company's consolidated financial statements, financial statement schedule and internal controls included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2026.

/s/ HASKELL & WHITE LLP

Irvine, California

May 22, 2026

------

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER**

**UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Michael G. Combs, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 10-K of CorVel Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 22, 2026

---

| |
|:---|
| /s/ Michael G. Combs |
| Michael G. Combs |
| Chairman of the Board, Chief Executive Officer, and President<br>(Principal Executive Officer) |

---

------

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER**

**UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Brian S. Nichols, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 10-K of CorVel Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 22, 2026

---

| |
|:---|
| /s/ Brian S. Nichols |
| Brian S. Nichols |
| Chief Financial Officer <br>(Principal Financial Officer) |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER**

**UNDER SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of CorVel Corporation (the "Registrant") on Form 10-K for the fiscal year ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Annual Report"), I, Michael G. Combs, Chief Executive Officer and President of the Registrant, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Annual Report fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| |
|:---|
| /s/ Michael G. Combs |
| Michael G. Combs |
| Chairman of the Board, Chief Executive Officer, and President |
| (Principal Executive Officer) |
| May 22, 2026 |

---

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to CorVel Corporation and will be retained by CorVel Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

This certification accompanies this Annual Report and is being furnished pursuant to Item 601(b)(32) of Regulation S-K promulgated under the Securities Act of 1933, as amended (the "Securities Act") and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. This certification shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, or incorporated by reference into any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific incorporation by reference in such a filing.

------

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER**

**UNDER SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of CorVel Corporation (the "Registrant") on Form 10-K for the fiscal year ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Annual Report"), I, Brian S. Nichols, Chief Financial Officer of the Registrant, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Annual Report fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| |
|:---|
| /s/ Brian S. Nichols |
| Brian S. Nichols |
| Chief Financial Officer <br>(Principal Financial Officer) |
| May 22, 2026 |

---

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to CorVel Corporation and will be retained by CorVel Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

This certification accompanies this Annual Report and is being furnished pursuant to Item 601(b)(32) of Regulation S-K promulgated under the Securities Act of 1933, as amended (the "Securities Act") and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. This certification shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, or incorporated by reference into any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific incorporation by reference in such a filing.

------