Candid Health has raised $120 million in Series D funding to expand its autonomous healthcare revenue cycle management platform. Sixth Street Growth led the round, with participation from Oak HC/FT, 8VC and Y Combinator.
The financing values Candid at approximately three times its valuation from its February 2025 Series C round. The company did not disclose its current valuation or the earlier valuation used to calculate the increase.
Candid develops financial infrastructure that helps healthcare providers receive reimbursement for services delivered to patients. Its platform is designed to automate billing, claims processing, collections and other revenue cycle management activities.
Revenue cycle management, commonly called RCM, covers the financial processes beginning with patient registration and insurance verification and continuing through coding, claims submission, payment and the resolution of denied or underpaid claims.
Candid estimates that approximately $280 billion is spent annually on healthcare revenue cycle management in the United States. The company believes legacy billing systems create unnecessary administrative costs and contribute to lost collections.
The platform unifies clinical, billing and provider information within a single data model. This gives its automation tools and AI agents access to the context required to complete financial tasks and apply customer-specific billing rules.
Candid’s configurable rules engine and AI agents perform work that billing teams have traditionally handled manually. The platform also tracks remaining human interactions so providers can identify recurring tasks that may be suitable for further automation.
The company currently serves more than 200 healthcare organizations across dozens of medical specialties. Its customers include large and fast-growing provider groups with complex billing and reimbursement requirements.
Candid reported 190% year-over-year growth in annual contracted run-rate revenue. It also reported net dollar retention of 180% in 2025, indicating that revenue from its existing customer base increased substantially through expansion and continued use.
The company plans to use the new capital to expand its technology, support enterprise customers and increase the use of agentic AI across healthcare billing workflows. Candid has offices in San Francisco, New York and Denver.
Sixth Street Growth is the growth investment platform of Sixth Street, which manages more than $135 billion in assets and committed capital. The strategy has invested more than $13 billion across over 90 companies since its inception.
KEY QUOTES:
“Candid powers the financial infrastructure for many of the most important and innovative healthcare organizations in the United States.”
“The legacy players haven’t kept pace, and the companies lightly sprinkling AI on top of them have yet to deliver. We’ve spent the past seven years rebuilding the core infrastructure of this problem space from the ground up. We’re driving cost reduction and collection increases no one in our industry has ever seen before using AI and other automation.”
Nick Perry, Co-Founder and CEO of Candid Health
“We are thrilled to partner with Candid Health. The Candid team deeply understands its customers’ core challenges and has built a modern infrastructure to enable an agentic transformation of the healthcare revenue cycle.”
“In addition to a differentiated technology offering and clear proof points applying agentic AI at scale in RCM, the thing that stood out to us was Candid’s obsessive focus on customer outcomes. We spoke with nearly 40 Candid customers. The feedback was consistently ‘off the charts’ and really emphasized how Candid’s platform had transformed underlying practice operations.”
Alex Katz, Managing Director at Sixth Street Growth
“RCM is a hard problem, but a worthy problem. It affects individual patients and their families, the providers we serve and their organizations, as well as our society at large.”
“It’s a privilege to work on these critical outcomes with our customers, and to be building teams that are on the bleeding edge of harnessing agentic AI to transform one of the most broken parts of healthcare.”
Doug Proctor, Co-Founder and COO of Candid Health
