Claritev Corp (CTEV) Bounces to Revenue Growth as Net Loss Shrinks

Claritev Corporation (NYSE:CTEV) is one of the must-buy small-cap stocks to invest in. On August 6, the company delivered its second-quarter results, asserting a return to growth bolstered by value-added solutions across an expanded vertical and growing market segments.

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A close-up of a healthcare professional studying a computer screen with data while consulting with a patient.

The healthcare technology company achieved a 3.5% year-over-year revenue increase, as its adjusted EBITDA margin expanded by 94 basis points. Claritev’s net loss shrank to $62.6 million compared to a net loss of $576.7 million delivered in the same quarter last year.

Claritev saw its balance sheet receive a significant boost, with free cash flow in the second quarter increasing to $36.6 million from a negative $7 million in Q2 2024. Consequently, it ended the quarter with $56.4 million in unrestricted cash and cash equivalents.

Following the robust second-quarter results, Claritev has updated its full-year outlook. It now expects full-year revenue to be flat or increase by 2% compared to 2024 revenue. It also expects an adjusted EBITDA margin of between 62.5% and 63.5%.

Claritev Corporation (NYSE:CTEV) is a healthcare technology, data, and insights company that offers solutions for making healthcare more transparent, fair, and affordable for all.

While we acknowledge the potential of CTEV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CTEV and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.