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]

Financial Performance - Total revenue for Q3 2025 was $580.4 million, a 32.5% increase from $437.9 million in Q3 2024[2] - Net income for Q3 2025 reached $6.9 million, up 94.1% from $3.5 million in Q3 2024[2] - Adjusted EBITDA for Q3 2025 was $38.2 million, reflecting a 61.6% increase compared to $23.6 million in Q3 2024[3] - Operating income for Q3 2025 was $14,403,000, compared to $5,813,000 in Q3 2024, reflecting a 147.5% increase[26] - Net income attributable to Privia Health Group, Inc. for Q3 2025 was $6,861,000, up from $3,535,000 in Q3 2024, representing a 94.5% increase[26] - The adjusted net income for the three months ended September 30, 2025, was $37.3 million, compared to $25.1 million in 2024, representing a growth of 48.9%[41] - The adjusted net income per share attributable to Privia Health Group, Inc. stockholders was $0.30 for the three months ended September 30, 2025, compared to $0.21 in 2024, an increase of 42.9%[41] Revenue Growth - Practice collections for Q3 2025 totaled $940.4 million, a 27.1% increase from $739.9 million in Q3 2024[5] - The company raised its full-year 2025 guidance for practice collections to between $3,450 million and $3,500 million[13] - Capitated revenue for Q3 2025 was $90,906,000, a significant increase of 70.2% from $53,393,000 in Q3 2024[31] - The company experienced a 33.5% increase in total revenue for the nine months ended September 30, 2025, reaching $1,581,669,000 compared to $1,275,490,000 in 2024[31] - For the three months ended September 30, 2025, the revenue was $580.4 million, an increase from $437.9 million in the same period of 2024, representing a growth of 32.4%[38] - The practice collections for the nine months ended September 30, 2025, totaled $2,601.9 million, up from $2,175.6 million in 2024, indicating a growth of 19.5%[34] Provider and Attributed Lives Growth - Implemented providers increased by 13.1% to 5,250 in Q3 2025 from 4,642 in Q3 2024[3] - Attributed lives reached 1,406,000 as of September 30, 2025, compared to 1,247,000 in 2024, marking an increase of 12.7%[34] Asset and Cash Position - Cash and cash equivalents at September 30, 2025, were $441.4 million, with no debt reported[12] - The company expects to end FY 2025 with at least $410 million in cash and equivalents after the ACO transaction[15] - Total current assets increased to $970,926,000 as of September 30, 2025, compared to $834,823,000 at the end of 2024, a growth of 16.3%[28] - Total assets rose to $1,350,987,000 as of September 30, 2025, up from $1,135,783,000 at the end of 2024, marking an increase of 18.9%[28] - Cash and cash equivalents decreased to $441,352,000 from $491,149,000, a decline of 10.2%[30] - The company reported a net cash provided by operating activities of $35,904,000 for the nine months ended September 30, 2025, compared to $34,484,000 for the same period in 2024[30] Margin Improvements - The platform contribution margin improved to 56.3% for the three months ended September 30, 2025, compared to 49.6% in 2024[35] - The care margin for the three months ended September 30, 2025, was $125.2 million, an increase from $101.4 million in 2024, reflecting a growth of 23.5%[38] - The adjusted EBITDA margin for the three months ended September 30, 2025, was 30.5%, compared to 23.3% in 2024, showing an improvement of 7.2 percentage points[35] ACO and Shared Savings - Privia's ACOs achieved shared savings of $234.1 million in the MSSP for 2024, a 32.6% increase from 2023[8] - The company signed an agreement to acquire an ACO business from Evolent Health, which will add over 120,000 attributed lives[9] Unpaid Medical Claims - The balance for unpaid medical claims under at-risk capitation arrangements increased to $76,434,000 as of September 30, 2025, from $75,077,000 in 2024[32]

Core Insights - Privia Health Group, Inc. reported strong financial results for the third quarter of 2025, with total revenue increasing by 32.5% year-over-year to $580.4 million [2][5] - The company raised its full-year 2025 guidance across all key operating and financial metrics, reflecting confidence in continued growth [5][15] Financial Performance - Total revenue for Q3 2025 was $580.4 million, compared to $437.9 million in Q3 2024, marking a 32.5% increase [2] - Gross profit rose to $122.6 million, up 22.7% from $99.9 million in the same quarter last year [2] - Operating income surged by 147.8% to $14.4 million, while net income increased by 94.1% to $6.9 million [2][5] - Non-GAAP adjusted net income for Q3 2025 was $37.3 million, a 49.1% increase from $25.1 million in Q3 2024 [2] Key Operating Metrics - The number of implemented providers grew by 13.1% to 5,250 compared to 4,642 in Q3 2024 [3] - Value-based care attributed lives increased by 12.8% to 1,406,000 from 1,247,000 [3] - Practice collections reached $940.4 million, reflecting a 27.1% increase from $739.9 million in Q3 2024 [3][5] Year-to-Date Performance - For the nine months ended September 30, 2025, total revenue was $1,581.7 million, up 24.0% from $1,275.5 million in the same period of 2024 [7] - Adjusted EBITDA for the nine months increased by 43.5% to $94.1 million compared to $65.6 million in 2024 [13] Strategic Developments - Privia Health signed an agreement to acquire an ACO business from Evolent Health, which will expand its value-based care footprint to over 1.5 million attributed lives [10][11] - The acquisition is expected to close in Q4 2025 and will positively impact adjusted EBITDA in 2026 [11] Updated Guidance - The company raised its full-year 2025 guidance for implemented providers, attributed lives, practice collections, and GAAP revenue, indicating strong growth expectations [15] - The updated guidance includes a practice collections target of $3,450 to $3,500 million and GAAP revenue of $2,050 to $2,100 million [15]