Executive Summary

Q4 2024 revenue was $232.1M, down 4.9% YoY (vs. $244.1M), with adjusted EBITDA of $141.6M; management said Q4 “would mirror” Q3 and delivered slightly higher sequential revenue with flat adjusted EBITDA, consistent with that message .
2025 guide: revenue down (2)% to flat versus 2024; adjusted EBITDA margin 62.5%–63.5%; capex $155–$165M; effective tax rate 25%–28%; Free Cash Flow $(65)–$(75)M; tone emphasizes “The Turn” in 2025 with sequential quarterly growth through the year and low-single digit exit rate growth .
Debt exchanged/refinanced in Jan-2025 with 99.75% participation, extending maturities ~3 years and easing near-term overhang; leadership frames this as confidence in Vision 2030 and a key catalyst to focus on operations and growth .
Key offsets/headwinds: a single large-client program attrition remains a drag but expected to normalize by Q3 2025; revenue yield/mix pressure persisted through 2024, partly tied to NSA dynamics and the Change Healthcare outage/IDR exception period; management signaled better cost visibility and margin control under the transformation program .
Street consensus vs. results: S&P Global consensus data were unavailable for MPLN at the time of analysis, so we cannot quantify beats/misses versus estimates; management characterized Q4 as consistent with Q3 expectations with a slight sequential revenue uptick . Values retrieved from S&P Global were unavailable due to mapping.

What Went Well and What Went Wrong

What Went Well

Delivered what management telegraphed: Q4 revenue slightly above Q3 with adjusted EBITDA flat, showing stabilization through late 2024 despite a difficult backdrop .
Strategic/financial catalysts: completed a comprehensive debt exchange in Jan-2025 with 99.75% participation, extending maturities and improving runway; also announced rebrand to Claritev and a forthcoming ticker change to CTEV (Feb 28) as part of Vision 2030 .
Commercial traction and pipeline: signed one of the largest-ever enterprise bookings at $34M TCV with price-escalation features; renewed one of the largest clients for three years at current value; net revenue retention in core products ~97% targeted for 2025; growing pipeline across PlanOptix, BenInsights, and new product initiatives .

Quote: “In Q4, we closed one of our largest ever single contract bookings of $34 million total contract value…with built-in price escalation features…” .
Quote: “We successfully renewed one of our largest clients for an additional three years at current value.” .

What Went Wrong

YoY declines persisted: Q4 revenue fell 4.9% YoY and adjusted EBITDA declined YoY; full year 2024 revenue down 3.2% with adjusted EBITDA down 6.7%, reflecting yield/mix pressure and a large-client decline .
NSA/IDR headwinds and external shocks: Change Healthcare outage plus a 120-day CMS IDR exception period weighed on NSA volumes and revenue conversion in 2024; yield pressure and mix shifts reduced revenue as a percent of identified savings .
Profitability/FCF under pressure: 2024 net loss ballooned to $(1.646)B from $(91.7)M on non-cash impairment, and 2024 Free Cash Flow was $(10.5)M; 2025 FCF guide remains negative $(65)–$(75)M, with elevated capex for transformation .

Financial Results

Headline P&L and Margins (YoY and Sequential context)

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$244.1	$233.5	$230.5	$232.1
Net Income (Loss) ($USD Millions)	$(31.4)	$(576.7)	$(391.5)	$(138.0)
Adjusted EBITDA ($USD Millions)	$156.8	$146.7	$141.6	$141.6
Adjusted EBITDA Margin %	N/A	62.8%	61.5%	61.0% (calc from $141.6/$232.1)

Notes: Q4 2024 adj. EBITDA margin is calculated from reported revenue and adj. EBITDA (both in ).

Non-GAAP use: Company emphasizes adjusted EBITDA as a primary non-GAAP performance measure, with reconciliations and definitions provided; management cites adjusted cash conversion and unlevered FCF as supplemental measures .

Segment/Service Line Indications

Service Line	FY 2024 YoY Growth
Network-based revenue	(17.1%)
Analytics-based revenue	+1.4%
Payment & Revenue Integrity revenue	(1.6%)

Context: Q3 2024 showed network-based down 18.8% YoY, analytics down 0.4% YoY, PRI down 3.4% YoY (quarterly snapshot) .

Operating KPIs (volume/savings)

KPI	Q2 2024	Q3 2024	FY 2024
Billed Charges Processed	$45.3B	$44.7B	$177.6B
Identified Potential Savings	$6.2B	$6.4B	$24.7B

Management cited sequential growth in identified savings through 2024 despite revenue yield headwinds .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	$935–$955M (updated at Q2)	$930–$940M (updated at Q3)	Lowered/Narrowed
Adjusted EBITDA	FY 2024	$580–$595M (updated at Q2)	$580–$590M (updated at Q3)	Narrowed
Revenue	FY 2025	—	(2)% to flat vs FY 2024	New
Adjusted EBITDA Margin	FY 2025	—	62.5%–63.5%	New
Capital Expenditures	FY 2025	—	$155–$165M	New
Effective Tax Rate	FY 2025	—	25%–28%	New
Free Cash Flow	FY 2025	—	$(65)–$(75)M	New

Additional color (call): sequential revenue and EBITDA growth expected each quarter in 2025 with low single-digit growth exit rate; core product NRR of ~97% planned for 2025; single-client impact normalizing by Q3 2025 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
AI/Technology enablement	Initiated data/tech modernization; internal automation on NSA; product discipline and KPI cadence	Hired first Chief AI Officer; Oracle Cloud multiyear contract; modernizing platform to accelerate product delivery and leverage AI	Improving execution/visibility
Capital structure/refinancing	Discussed readiness and active lender dialogues	Debt exchange closed Jan-2025, 99.75% participation; maturities extended ~3 years	Resolved near-term overhang
NSA/IDR dynamics	Change Healthcare outage; weaker NSA volumes; yield pressure	CMS 120-day IDR exception cited as headwind; backlog/automation improving; NSA remains focal area	Stabilizing with process fixes
Client concentration	3% 2025 headwind from one large client program; otherwise core growth	Renewal of a top client for three years at current value; core NRR ~97% targeted	Stabilizing; attrition normalizing by Q3’25
Product/performance	PlanOptix, BenInsights gaining traction; pipeline building	$34M TCV enterprise booking; provider analytics pilots (CompleteView) and D&DS growth; 37 PlanOptix opps with $14M ACV potential	Building bookings; revenue lag due to ramp
Regulatory/legal	Vigorous defense; Verity decision encouraging; centralized cases in N.D. Illinois	Continued defense, engagement with lawmakers; corporate/government affairs strengthened	Ongoing but better coordinated
Operating model/cost	Expect 10%–20% cost base efficiency over time; ERP, GM model, shared services	Transformation program targets 10%–15% net operating cost reduction; adj. EBITDA margin guide embeds cost control	Positive leverage building

Management Commentary

Strategic posture: “We have laid the foundation, reset the vision and started the turn…We successfully addressed our capital structure…This transaction closed in January 2025 with a 99.75% participation outcome” .
Commercial momentum: “We successfully renewed one of our largest clients for an additional three years at current value…we closed one of our largest ever single contract bookings of $34 million TCV” .
2025 execution bar: “We are providing guidance with a down the middle plan that I strongly believe our team can deliver…We expect revenue to be slightly down to flat, and we are internally planning for roughly flat EBITDA as we complete the turn” .
Transformation scope: “Designed to modernize operations to deliver a 10% to 15% net reduction in our operating cost base and to accelerate our growth agenda under our Vision 2030 plan” .

Q&A Highlights

Net revenue retention/gross adds: Core NRR ~97% planned for 2025; excluding the single-client impact, underlying business expected to grow mid-single digits, with HST and Data & Decision Science bookings growth ~20% and ~50% revenue conversion in 2025 .
Contract renewals: One top customer renewed for three years at current value; next two major contracts up within 12–24 months, with early-renewal discussions and packaging/pricing opportunities; weighted-average renewal ~2 years across largest customers .
Yield dynamics: Management views revenue yield as stabilizing near current levels ex the one-client effect; acknowledged past degradation driven by mix and onetime items rather than new rate concessions .
NSA strategy and backlog: Continued investment/automation; opportunities with state-level volumes and scale; supportive of transparency goals .
Guidance cadence: 2025 sequential growth expected each quarter with low-single digit exit-rate growth; cost control plus transformation underpin 62.5%–63.5% adjusted EBITDA margin guide .

Estimates Context

Street consensus (S&P Global): Consensus estimate data were unavailable for MPLN at the time of analysis due to a Capital IQ mapping issue; as a result, we cannot present revenue/EPS/EBITDA beats or misses versus Wall Street. Values retrieved from S&P Global were unavailable due to mapping.
Company context: Management stated Q4 results were consistent with internal expectations (slight sequential revenue uptick and flat adjusted EBITDA vs. Q3), but did not cite Street comparisons .

Key Takeaways for Investors

Stabilization achieved against a tough 2024: Q4 performed as telegraphed (slightly higher sequential revenue, flat EBITDA), suggesting a base from which to build in 2025 despite lingering client/yield headwinds .
2025 playbook is sequential growth plus margin control: Revenue down (2)% to flat with quarterly sequential growth and a low-single digit exit-rate; tight cost discipline supports a 62.5%–63.5% adjusted EBITDA margin .
Balance sheet/capital structure overhang eased: 99.75% participation debt exchange in Jan-2025 extends maturities ~3 years; unlocks management bandwidth to focus on growth execution .
Sales pipeline tangible but revenue ramps with lag: $34M TCV enterprise win and multi-product pipeline (PlanOptix/BenInsights/D&DS) provide visibility; expect partial-year revenue contribution in 2025 and more material in 2026 as bookings convert .
NSA/IDR and yield mix remain watch items: 2024 headwinds (Change outage, CMS IDR exception) pressured yield; management expects stabilization and has automated processes to reduce backlog and improve throughput .
Contract renewals a key barometer: One major renewal secured; next two up in 12–24 months with packaging/pricing opportunities—positive outcomes would validate NRR and support the sequential growth thesis .
Non-GAAP reliance will persist through the Turn: Adjusted EBITDA remains the core profitability metric; investors should track adjusted cash conversion and unlevered FCF alongside capex intensity tied to the transformation .

Citations

Q4 2024 press release and data:
Q4 2024 earnings call (prepared remarks and Q&A):
Q3 2024 press release/call:
Q2 2024 press release/call:

Claritev Corp (MPLN)·Q4 2024 Earnings Summary