ARLINGTON, Va., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Privia Health Group, Inc. (Nasdaq: PRVA) today announced that it expects to release financial results for its fourth-quarter and twelve-month periods ended December 31, 2025 before market open on Thursday, February 26, 2026. The press release is expected to be publicly disseminated by 7:00 am ET and will also be available on the Company’s Investor Relations website at ir.priviahealth.com. Privia Health management will host a conference call beginning at 8:00 ...

Industry Overview - Healthcare information technology (IT) is attracting significant investor interest in 2025 due to the acceleration of digital transformation in the U.S. health system, with investments aimed at enhancing telehealth access, streamlining workflows, and improving chronic disease management [1][2] - The global healthcare IT market was valued at $663 billion in 2023 and is projected to grow to $1,834.3 billion by 2030, reflecting a compound annual growth rate (CAGR) of 15.8% from 2024 to 2030, with North America holding over 40% of the market share in 2023 [3] Investment Opportunities - Investors are focusing on companies that offer scalable technology with recurring revenue models, as several healthcare IT stocks have outperformed broader indices in 2025, driven by strong fundamentals and product expansion [4] - Notable U.S.-listed stocks include Hims & Hers Health, Inc. (HIMS), Biotricity, Inc. (BTCY), and Privia Health Group, Inc. (PRVA), all of which have seen year-to-date share price gains exceeding 20% [4][10] Company Highlights Hims & Hers Health, Inc. (HIMS) - HIMS has gained 44.9% in 2025, focusing on a consumer-centric telehealth platform that offers personalized treatment plans and wellness solutions across various health domains [6] - The company reported nearly $600 million in Q3 revenues, a 49% year-over-year increase, with a subscriber base growth of about 21% to approximately 2.5 million [7] - HIMS is expanding its services and has initiated a $250 million share repurchase program, indicating confidence in long-term value creation [8] Biotricity, Inc. (BTCY) - BTCY has risen 25.9% year-to-date, focusing on remote patient monitoring solutions that support chronic disease management, particularly in cardiac care [11] - The company is recognized as one of the fastest-growing companies in the Americas, with improved gross margins and progress toward profitability [12][13] - Key metrics to monitor include recurring revenue growth and margin expansion as the company broadens its clinical applications [14] Privia Health Group, Inc. (PRVA) - PRVA has achieved a 22.9% stock growth in 2025, with Q3 revenues up 32.5% to $580.4 million and operating income increasing nearly 150% [19] - The company emphasizes value-based care and has expanded geographically through acquisitions, raising its full-year guidance [20] - Analysts maintain a strong buy view on PRVA, with sales and earnings estimates for 2026 suggesting growth of 9.7% and 142.9%, respectively [21]

Core Insights - Privia Health Group reported Q3 CY2025 revenue of $580.4 million, exceeding Wall Street expectations by 16.6% and reflecting a year-on-year growth of 32.5% [1][5] - The company raised its full-year revenue guidance to $2.08 billion, which is 3.6% above analysts' estimates and represents a 9.2% increase from previous guidance [1][5] - Non-GAAP profit per share was $0.29, surpassing analysts' consensus estimates by 33.7% [1][5] Financial Performance - Revenue: $580.4 million vs analyst estimates of $497.7 million, a 32.5% year-on-year growth [5] - Adjusted EPS: $0.29 vs analyst estimates of $0.22, a 33.7% beat [5] - Adjusted EBITDA: $38.19 million vs analyst estimates of $28.29 million, with a margin of 6.6% [5] - Operating Margin: 2.5%, up from 1.3% in the same quarter last year [5] - Sales Volumes rose 13.1% year on year [5] - Market Capitalization: $2.94 billion [5] Strategic Outlook - The raised guidance is supported by ongoing provider additions and the acquisition of Evolent Health's accountable care organization business [4] - Management emphasized the importance of entering new markets and integrating the Evolent business for expanding the company's national footprint [4] - CEO highlighted strong execution in the Medicare Shared Savings Program and operational leverage through an expanding provider network [3][4] - Management cautioned about the need for a disciplined approach to capital deployment and contract structuring due to integration challenges and headwinds in the Medicare Advantage environment [4]

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Financial Data and Key Metrics Changes - Privia Health reported a 61.6% increase in adjusted EBITDA, reaching $38.2 million, with an EBITDA margin of 30.5%, an improvement of 720 basis points year-over-year [6][10][12] - Practice collections grew by 27.1% year-over-year to $940.4 million in Q3 2025, while total collections for the first nine months of 2025 increased by 19.6% to $2.6 billion [10][11] - The company raised its 2025 outlook, expecting practice collections to grow by 17.1% and adjusted EBITDA to grow by 32% at the midpoint of guidance [12][13] Business Line Data and Key Metrics Changes - Implemented provider growth was 13.1% year-over-year, reaching 5,250 providers, contributing to a 12.8% growth in value-based attribution [5][10] - The total attributed lives increased by nearly 13% year-over-year, with commercial attributed lives up by more than 12% [7][8] - The acquisition of an ACO business from Elevance Health is expected to add over 120,000 value-based care attributed lives [6][7] Market Data and Key Metrics Changes - Privia Health managed over $2.5 billion in medical spend across its nine ACOs in the Medicare Shared Savings Program (MSSP) for 2024, achieving a savings rate of 9.4%, up from 8.2% in 2023 [9][10] - Total shared savings reached $234.1 million, a 32.6% increase from the previous year, with gross shared savings of $160.1 million, a 36% increase over 2023 [9][10] Company Strategy and Development Direction - The company aims to build scale and profitability without relying on any single contract, focusing on generating positive contribution margins in value-based contracts [8] - The acquisition of the ACO business is seen as a strategic move to enhance the company's national footprint and operational capabilities [6][7] - Privia Health continues to pursue organic provider growth and increase operating leverage for long-term adjusted EBITDA and free cash flow growth [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong operational trends into Q4 2025, despite not providing specific quarterly guidance [21][22] - The company anticipates a strong 2026, leveraging the momentum from its current performance and the upcoming acquisition [22][23] - Management highlighted the importance of aligning interests with payers and providers to ensure sustainable growth in the value-based care model [84] Other Important Information - Pro forma cash at the end of Q3 was $409.9 million with no debt, positioning the company for significant financial flexibility [11][12] - The company expects to close the ACO acquisition by year-end 2025, pending regulatory approvals [6][7] Q&A Session Summary Question: MSSP performance guidance for the future - Management indicated that strong results from 2024 will be factored into future planning, maintaining a consistent approach to guidance [16][17] Question: Core business performance going into Q4 - Management noted strong trends and did not foresee a change in momentum as they focus on annual results rather than quarterly guidance [19][20] Question: Factors influencing strong fee-for-service growth - Management attributed the growth to broad-based utilization trends and the addition of new markets, which contributed to practice collections [23][24] Question: Synergy opportunities with Evelyn Health ACO - Management discussed the potential for improving savings rates and the gradual integration of practices into Privia's medical groups [26][27][30] Question: Moving pieces in the capitated business - Management acknowledged the small size of the capitated book and expressed satisfaction with its performance, while remaining cautious about future growth [32][33] Question: Evolution of relationships with payers - Management highlighted ongoing discussions with payers and the importance of demonstrating strong results to enhance negotiations [46][48] Question: Impact of new legislation on Medicaid - Management indicated that the impact on their small Medicaid book is expected to be minimal, as practices run at capacity [75][77] Question: Ancillary services growth opportunities - Management emphasized the focus on building a multi-specialty medical group to manage total costs and expand ancillary services [79][80] Question: Future risk in MA contracts - Management reiterated the importance of sustainable contracts and alignment of interests among payers, providers, and the company [84]

Financial Data and Key Metrics Changes - Privia Health reported a 27.1% year-over-year increase in practice collections, reaching $940.4 million in Q3 2025 [10] - Adjusted EBITDA increased by 61.6% to $38.2 million, with an EBITDA margin of 30.5%, reflecting a 720 basis point improvement year-over-year [10][11] - For the first nine months of 2025, practice collections rose 19.6% to $2.6 billion, while adjusted EBITDA grew 43.5% to $94.1 million [11] Business Line Data and Key Metrics Changes - Implemented provider growth was 13.1% year-over-year, reaching 5,250 providers [10] - Value-based attribution growth was 12.8% year-over-year, contributing to the overall strong performance in practice collections [5] - Total attributed lives increased by nearly 13% from the previous year, driven by new provider growth and entry into Arizona [7] Market Data and Key Metrics Changes - Privia Health's national footprint now includes over 5.6 million patients across more than 1,340 care center locations in 15 states and Washington D.C. [7] - Commercial attributed lives increased by over 12% year-over-year, reaching 864,000, while lives attributed to CMS Medicare programs also rose by 12% [7] - Medicare Advantage and Medicaid attribution increased by more than 12% and 18% respectively from the previous year [7] Company Strategy and Development Direction - The company is focused on expanding its value-based care model and enhancing profitability without relying on any single contract [8] - The acquisition of an ACO business from Elevance Health for $100 million is expected to add over 120,000 value-based care attributed lives and enhance operational synergies [6][8] - The company aims to continue its momentum in organic provider growth and increase operating leverage for long-term adjusted EBITDA and free cash flow growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain strong performance and momentum into 2026, citing consistent operational execution and a differentiated business model [4][12] - The company plans to raise its 2025 outlook based on strong year-to-date performance and positive contributions from the ACO acquisition [12] - Management remains cautious about the capitated business but is optimistic about optimizing profitability in the existing small capitated book [32] Other Important Information - Pro forma cash at the end of Q3 was $409.9 million with no debt, positioning the company for significant financial flexibility [11] - The company expects to end the year with at least $410 million in cash, assuming no further capital deployment for business development [12] Q&A Session Summary Question: MSSP performance and future guidance - Management indicated that strong MSSP results will be factored into future planning, maintaining consistency with past practices [16][17] Question: Core business performance in Q4 - Management noted strong trends and momentum heading into Q4, but refrained from providing specific quarterly guidance [19][20] Question: Factors influencing fee-for-service growth - Management attributed strong fee-for-service growth to broad-based utilization trends and new market entries [23][24] Question: Synergy opportunities with Evelyn Health ACO - Management highlighted the potential for significant synergies and improved performance over time with the new ACO acquisition [26][27] Question: Capitated business performance - Management discussed the small size of the capitated book and expressed satisfaction with its performance while remaining cautious about future growth [31][32] Question: Evolution of payer relationships - Management emphasized ongoing discussions with payers and the differentiated value proposition offered by the company [44][46] Question: Impact of new legislation on Medicaid - Management indicated that the impact of new legislation on Medicaid would be minimal due to the small size of that segment in their business [73][76] Question: Ancillary services growth opportunities - Management expressed optimism about expanding ancillary services as the company builds out its multi-specialty medical group [78][79] Question: Future risk in MA contracts - Management reiterated a cautious approach to taking on more risk in MA contracts, focusing on sustainable models [81][84]

Financial Data and Key Metrics Changes - Privia Health reported a 27.1% year-over-year increase in practice collections, reaching $940.4 million in Q3 2025 [10] - Adjusted EBITDA increased by 61.6% to $38.2 million, with an EBITDA margin of 30.5%, reflecting a 720 basis point improvement year-over-year [5][10] - For the first nine months of 2025, practice collections rose 19.6% to $2.6 billion, while adjusted EBITDA grew 43.5% to $94.1 million [11] Business Line Data and Key Metrics Changes - Implemented provider growth was 13.1% year-over-year, reaching 5,250 providers [10] - Value-based attribution growth increased by 12.8% year-over-year, contributing to strong practice collections [4] - The total attributed lives increased by nearly 13% from the previous year, with commercial attributed lives up over 12% to 864,000 [6][7] Market Data and Key Metrics Changes - Privia managed over $2.5 billion in medical spend across nine ACOs in the Medicare Shared Savings Program (MSSP) for 2024, achieving a savings rate of 9.4%, up from 8.2% in 2023 [9] - Total shared savings reached $234.1 million, a 32.6% increase from the previous year, with gross shared savings of $160.1 million, reflecting a 36% increase over 2023 [9] Company Strategy and Development Direction - The company is focused on expanding its national footprint and enhancing its value-based care model, with an acquisition of an ACO business from Elevance Health for $100 million expected to close by year-end 2025 [5][6] - The acquisition is anticipated to add over 120,000 value-based care attributed lives and enhance operational synergies [5] - The company aims to maintain a diversified value-based care organization to build scale and profitability without reliance on any single contract [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong performance and momentum into 2026, with expectations for practice collections to grow 17.1% and care margin to increase by 13.2% [12] - The company plans to remain disciplined in its approach to business development and acquisitions, leveraging its strong cash position of over $400 million [39] - Management highlighted the importance of aligning interests among payers, providers, and the company for sustainable long-term growth [85] Other Important Information - The company has a balanced and diversified value-based care organization serving over 1.4 million patients through more than 100 commercial and government programs [6] - Pro forma free cash flow for the year-to-date was $104.4 million, with expectations to end the year with at least $410 million in cash [11] Q&A Session Summary Question: Future guidance on MSSP performance - Management indicated that strong results from 2024 will be factored into future planning, maintaining consistency in guidance updates based on performance relative to benchmarks [16][17] Question: Core business performance into Q4 - Management noted strong trends and momentum heading into Q4, emphasizing a focus on annual results rather than quarterly guidance [19][20] Question: Factors influencing fee-for-service growth - Management attributed strong fee-for-service growth to broad-based utilization trends and the addition of new markets, including Arizona [22][24] Question: Synergy opportunities with Evelyn Health ACO - Management discussed the potential for significant synergies and improvements in shared savings rates over time, emphasizing a gradual integration process [26][28] Question: Evolution of relationships with payers - Management highlighted ongoing discussions with payers, leveraging strong performance to negotiate favorable contracts across various payer classes [45][47] Question: Impact of new legislation on Medicaid - Management expressed that the impact of new legislation on Medicaid is expected to be minimal, given the small percentage of collections from this segment [76][77] Question: Ancillary services growth opportunities - Management indicated a focus on expanding ancillary services as the company builds density in new markets, enhancing overall cost management [60][62] Question: Future risk in MA contracts - Management reiterated a cautious approach to capitated MA contracts, emphasizing the importance of shared risk models for sustainable growth [32][34]

Financial Performance - Revenue for Q3 2025 was $580.4 million, a 32.4% increase from $437.9 million in Q3 2024[97] - Gross profit for Q3 2025 was $122.6 million, up 22.7% from $99.9 million in Q3 2024[97] - Net income attributable to Privia Health Group, Inc. for Q3 2025 was $6.9 million, compared to $3.5 million in Q3 2024, representing a 97.1% increase[97] - Practice Collections reached $940.4 million in Q3 2025, a 27.1% increase from $739.9 million in Q3 2024[97] - Adjusted EBITDA for the three months ended September 30, 2025, was $38.2 million, up from $23.6 million in 2024, resulting in an Adjusted EBITDA Margin of 30.5%[123] - Total revenue for the three months ended September 30, 2025, was $580.4 million, a 32.5% increase from $437.9 million in the same period in 2024[144] - Net income for the nine months ended September 30, 2025, was $19.1 million, an increase of $7.4 million compared to $11.7 million in 2024[168] Revenue Sources - VBC revenue accounted for 33.1% of total revenue in Q3 2025, up from 27.8% in Q3 2024[101] - Capitated revenue increased by 70.3% to $90.9 million for the three months ended September 30, 2025, compared to $53.4 million in 2024[143] - Shared savings revenue for the three months ended September 30, 2025, increased by 68.6% to $80.0 million compared to $47.4 million in 2024[143] Growth Metrics - Implemented Providers increased by 13.1% to 5,250 as of September 30, 2025, compared to 4,642 in 2024, driven by organic growth and market expansion into Indiana and Arizona[117] - Attributed Lives rose by 12.8% to 1,406,000 as of September 30, 2025, from 1,247,000 in 2024, reflecting growth from new market entries and organic expansion[118] - The growth in Attributed Lives and Implemented Providers is expected to positively impact VBC revenue, aligning with the company's long-term strategic goals[118] Expenses - Provider expenses for the three months ended September 30, 2025, increased by 35.3% to $455.2 million compared to $336.5 million in 2024[142] - General and administrative expenses rose to $39.6 million for the three months ended September 30, 2025, a 29.1% increase from $30.7 million in 2024[151][152] - Cost of platform expenses were $61.4 million for the three months ended September 30, 2025, a 9.6% increase from $56.1 million in 2024[148][149] Strategic Initiatives - The company expanded into the Indiana market through the acquisition of a majority stake in an independent group practice in November 2024[106] - Investments in sales, marketing, and technology are expected to continue to drive long-term growth[113] - The company aims to increase its provider base and attributed patient lives to enhance revenue growth in both FFS and VBC contracts[103] - The company continues to invest strategically to enhance services for patients and physicians, aiming for sustainable growth in Care Margin and overall performance[124] Cash Flow and Assets - Cash and cash equivalents as of September 30, 2025, totaled $441.4 million, primarily consisting of highly liquid investments[158] - Net cash provided by operating activities was $35.9 million for the nine months ended September 30, 2025, an increase from $34.5 million in 2024[163] - Net cash used in investing activities was $90.3 million for the nine months ended September 30, 2025, compared to $5.7 million in 2024, primarily due to business acquisitions[163] Tax and Liabilities - The provision for income taxes was $6.9 million for the three months ended September 30, 2025, compared to $4.0 million in 2024, reflecting additional tax benefits from share-based compensation[155] - An increase of $118.8 million in provider liability for the nine months ended September 30, 2025, compared to an increase of $85.2 million in 2024, primarily due to growth in Implemented Providers[168]

Financial Performance - Privia Health reported quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.06 per share, but showing an increase from $0.03 per share a year ago, resulting in an earnings surprise of -16.67% [1] - The company posted revenues of $580.42 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 16.64%, and up from $437.92 million year-over-year [2] Market Performance - Privia Health shares have increased approximately 28% since the beginning of the year, outperforming the S&P 500's gain of 15.6% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $516.3 million, and for the current fiscal year, it is $0.18 on revenues of $2.02 billion [7] - The Zacks Rank for Privia Health is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical Info Systems industry, to which Privia Health belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Q3 2025 Performance Highlights - Implemented Providers increased by 13.1% compared to Q3 2024[8, 18] - Practice Collections grew by 27.1% compared to Q3 2024[8, 18] - Adjusted EBITDA increased by 61.6% compared to Q3 2024, reaching a 30.5% margin, a 720 bps increase[8] Year-to-Date (YTD) 2025 Performance - Platform Contribution increased by 26.2%[21] - Care Margin increased by 19.6%[21] - Adjusted EBITDA increased by 43.5%[21] Value-Based Care (VBC) Performance - Total shared savings of $234.1 million (+32.6%) across Privia ACOs in MSSP 2024 performance year[15] - Mid-Atlantic ACO achieved the highest savings rate (11.0%) among ACOs with 40K+ lives for the 5th consecutive year[15] Financial Position and Outlook - Pro forma net cash of $409.9 million as of September 30, 2025[26] - Expects to use $100 million in Q4 2025 to acquire Evolent's ACO business[8, 26] - Updated FY'25 guidance for Practice Collections is $3.45 billion - $3.5 billion[27] - Updated FY'25 guidance for GAAP Revenue is $2.05 billion - $2.1 billion[27] - Updated FY'25 guidance for Adjusted EBITDA is $118 million - $121 million[27]