Thank you for standing by. Welcome to the CorVel Corporation Quarterly Earnings Release Webcast. During the course of this webcast, CorVel Corporation may make projections or other forward-looking statements regarding future events or the future financial performances of the company. CorVel wishes to caution you that these statements are only predictions and that actual events or results may differ materially. CorVel refers you to the documents that the company files from time to time with the Securities and Exchange Commission, specifically the company's last Form 10-K and 10-Q filed for the most recent fiscal year and quarter. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. I would now like to turn it over to Michael Combs, President and Chief Executive Officer.

Good morning. Thank you for joining us to review CorVel's September quarter results. I'm very pleased to welcome Brian Nichols, CorVel's Chief Financial Officer to the call today.

Thank you, Michael, and good morning, everyone. It's a pleasure to join the call this morning.

Today, we're going to review our operational performance, key growth drivers and the market trends that are shaping our business. I'll also discuss how we're positioning the company to capture emerging opportunities and manage associated risks. Finally, I'll provide a closer look at our AI initiatives, highlighting the tangible benefits we're already seeing as well as the road map ahead. Brian, let's start with an overview of the quarter's financial results. After that, would you please share a bit about your journey at CorVel and your perspective on the opportunities you see in your new role to further strengthen the organization.

Certainly. The September quarter revenues were $240 million, 7% above the $224 million in the September 2024 quarter. The earnings per share for the quarter ending September 30, 2025 were $0.54, an increase of 20% over the same quarter of the prior year's EPS of $0.45. As a reminder to our listeners, the earnings per share results from the quarter and annual comparisons have been adjusted to account for the 3-for-1 stock split reported in the December 2024. It's not unusual to have onetime events. Sometimes they work in our favor. Other times, like the September quarter results, they do not. The combined effect of onetime events in the September quarter softened the increase in EPS by approximately 9 percentage points. Overall, the organization's fundamentals are strong. Regarding my journey at CorVel, I've been with the company for 15 years, much of that time spent with our ancillary care program. I started as a patient care coordinator providing administrative support for physical therapy cases. Towards the end of my first year, I was promoted to Manager and then the Director over ancillary care operations a few years later. In 2016, I accepted the Vice President Network Solutions role, which included all product and operational management of our ancillary care services. Subsequently, pharmacy, IME and PPO programs were added to my span of management, giving me an opportunity to oversee a large portion of our network solutions and patient management services. One of my goals now as CFO is to leverage my past CorVel product and operations experience in building resources and tools that will empower our business managers for maximizing growth opportunities.

Thank you, Brian. I want to dive into some market trends. There are 3 key trends that I'll discuss this morning: the first, our challenges in the workers' compensation labor market; the second, in the Commercial Health segment, our CERiS division is operating in an environment of elevated pricing pressure, driving an increased focus on delivering savings and operational efficiencies; and the third market trend, the most significant of the 3 I will review is the emergence of Agentic AI and its implications for our business. Specifically, how we're leveraging this technology to implement enhancements to our systems more quickly, how we're leveraging it to generate optimized results for our partners and also to ameliorate the impact of the first 2 trends, the workers' compensation labor market and the commercial health pricing pressure. But let's start with the labor market. The workers' compensation field is experiencing what I define as a demographic shift. The industry is losing experienced professionals faster than it's attracting the replacements. Many entered the field in the '80s and '90s, that's in 1980s and '90s, when workers' compensation legislation was evolving rapidly, and they're now approaching retirement age. Meanwhile, workers' compensation has not, let's say, traditionally been due to the destination industry for new graduates. It receives little exposure in business, insurance or health care educational programs. As a result, it has become increasingly challenging to recruit and retain experienced claims management, underwriting professionals. So what's CorVel's response? Well, we're investing in people, while this is an industry-wide challenge, we see the opportunity in it through CorVel University. Now in its fourth class, we are bringing new professionals into both the industry and into CorVel itself. The program has delivered exceptional retention rates and continues to build the next generation of experts who serve our partners.…

As reviewed in the August earnings release, CorVel completed the acquisition of assets and key talent from a privately held technology firm at the end of the June quarter. The assets acquired and the talent now engaged with CorVel's existing AI team, are driving the progress outlined on today's call. We're pleased with the current trajectory, the meaningful impact already realized and the pipeline of additional enhancement. To further progress our activity in the M&A space, we will add dedicated resources to focus on synergistic opportunities. The priority is to expand our suite of offerings to current partners and further enhance our existing team's technological expertise and capacity. And finally, I would like to review some additional financial items. Revenue growth for the September 2025 quarter was driven by both our Patient Management and Network Solutions segment. As Michael noted earlier, organic growth and expanded activity with existing partners contribute meaningfully to performance across both areas. Within patient management services, claims operations generated approximately $4 million in revenue growth. Network Solutions increased by $12 million, primarily reflecting higher utilization of our CERiS, Ancillary Care and Bill Review Solutions. The quarter also resulted in improved gross margin and net income, reaching $28 million, up from $23 million in the previous year. Ongoing product enhancements and strong operational management have generated lower direct costs. Those efficiencies along with sustained responsible management of general and administrative expenses have placed CorVel in a position where revenue growth has outpaced expenses. During the quarter, CorVel repurchased 143,774 shares at a cost of $12.8 million. From inception to date, the company has repurchased 114.7 million shares for an aggregated total of $854 million. Through this program, the company has now repurchased 69% of the total shares outstanding. The repurchasing of shares continues to be funded from the company's strong operating cash flow. CorVel's days sales outstanding was 40 days in the September quarter, an improvement of 2 days compared to the same period a year ago. The quarter ending cash balance was $207 million, and in contrast to many other organizations in the industry who are facing increasing debt loads and associated interest costs. CorVel remains able to manage operational risk. The strong and debt-free balance sheet generates improved earnings and positions CorVel well for continued product expansion and acquisition opportunities. Thank you for your time this morning. I will now invite the operator to open the session for questions.

[Operator Instructions] Thank you. Ladies and gentlemen, this concludes our Q&A session. And thus, concludes our call today. We thank you for your interest and participation. You may now disconnect your lines.