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Vitasora Health (ASX: VHL) has expanded its partnership with Evolent Care Partners, extending its Connected Care services across the US following a successful pilot program in Hawaii.The agreement positions Vitasora to deliver remote patient monitoring and chronic care management to between 20,000 and 30,000 patients from 2026 under the Medicare Shared Savings Program.Chief executive officer Mr Marjan Mikel said the nationwide rollout represented a highly significant growth milestone, with projected annual ...

ARLINGTON, Va., Oct. 07, 2025 (GLOBE NEWSWIRE) -- Privia Health Group, Inc. (Nasdaq: PRVA) today announced that it expects to release financial results for its third-quarter and nine-month periods ended September 30, 2025 before market open on Thursday, November 6, 2025. 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 am ...

Core Insights - Privia Health Group, Inc. has agreed to acquire an Accountable Care Organization (ACO) business from Evolent Health, Inc. for $100 million in cash, with an additional potential payment of $13 million based on Medicare Shared Savings Program performance for 2025 [1][2] - The acquisition will increase Privia's attributed lives in value-based care arrangements to approximately 1.5 million across various programs, enhancing its market presence [2][5] - The transaction is expected to close in the fourth quarter of 2025 and positively impact Adjusted EBITDA in 2026 [1][3] Financial Implications - Evolent Health will finance the transaction using cash from its balance sheet [2] - Evolent reaffirmed its full-year 2025 revenue outlook of $1.85-$1.88 billion, slightly below consensus estimates, and adjusted EBITDA of $140-$165 million [4] - For the third quarter of 2025, Evolent projects revenue of $460-$480 million and adjusted EBITDA of $34-$42 million, also slightly below consensus [3][4] Strategic Value - The acquisition is seen as strategically valuable for Privia, expanding its reach in existing states and adding new states, while providing synergy opportunities for ACO-participating providers to join Privia's Medical Groups [5] - Approximately 80,000 of the acquired lives are participants in the MSSP, where Privia has demonstrated leadership in cost and quality performance, indicating potential for operational leverage [6]

Core Viewpoint - Privia Health Group, Inc. has signed a definitive agreement to acquire an Accountable Care Organization (ACO) business from Evolent Health, which will enhance its value-based care (VBC) capabilities and expand its reach to approximately 1.5 million attributed lives across various healthcare programs [1][3]. Financial Summary - The acquisition will involve an initial payment of $100 million in cash at closing, with an additional potential payment of up to $13 million based on the final performance in the Medicare Shared Savings Program (MSSP) for 2025 [2]. - The transaction is expected to close in the fourth quarter of 2025 and is projected to positively contribute to Adjusted EBITDA in 2026 [2]. Strategic Implications - This strategic acquisition will increase the number of VBC attributed lives in existing Privia states and add new lives in different states, creating synergy opportunities for ACO-participating providers to join Privia's Medical Groups [3]. - The integration of Evolent Health's ACO business into Privia's national network of ACOs will allow the company to replicate its flexible operating model with new provider partners across the U.S. [4]. Company Overview - Privia Health is one of the largest physician enablement companies in the U.S., operating in 15 states and the District of Columbia, and optimizing over 1,300 physician practices to improve patient experiences for more than 5.3 million patients [5]. - The company's mission focuses on transforming healthcare delivery to achieve better outcomes, lower costs, and enhance community health and provider well-being [6].

Core Insights - Privia Health Group, Inc. announced that its Accountable Care Organizations (ACOs) achieved shared savings of $233.1 million for the 2024 performance year, marking a 32% increase from 2023 [1][2] - The company has increased its Adjusted EBITDA guidance for full-year 2025 to a range of $113 to $116 million based on the strong performance in the Medicare Shared Savings Program [4] Performance Highlights - The nine ACOs managed by Privia Quality Network (PQN) oversaw over $2.5 billion in healthcare benchmark spending, serving approximately 194,700 Medicare beneficiaries in 2024 [1][3] - PQN's ACOs delivered an aggregate savings rate of 9.3%, with the Mid-Atlantic ACO achieving the highest savings rate of 10.6% among ACOs with over 40,000 attributed lives [6] - Beneficiary expenditures were 8% lower than the median ACO and 22% below fee-for-service Medicare, while inpatient facility spend was 13% lower than the median ACO and 28% lower than fee-for-service Medicare [6] Strategic Approach - The company's physician-led approach emphasizes equipping physicians with essential tools and technology to manage total care costs effectively, leading to improved outcomes for nearly 195,000 Medicare beneficiaries [2] - Data-driven tools and strategic tactics empower physician partners, creating a beneficial situation for patients, the healthcare system, and the physicians [2] Historical Performance - Since 2014, PQN has delivered total shared savings exceeding $1.5 billion across various programs, including $922 million through the Medicare Shared Savings Program [3]

Core Insights - Privia Health reported revenue of $521.15 million for the quarter ended June 2025, reflecting a year-over-year increase of 23.4% and a positive surprise of 11.24% over the Zacks Consensus Estimate of $468.49 million [1] - The company's EPS was $0.02, down from $0.03 in the same quarter last year, resulting in a negative surprise of 60% compared to the consensus estimate of $0.05 [1] Financial Performance Metrics - Practice Collections reached $862.9 million, exceeding the five-analyst average estimate of $804.11 million [4] - Care Margin was reported at $115.2 million, also above the five-analyst average estimate of $109.25 million [4] - Platform Contribution amounted to $57.5 million, surpassing the average estimate of $52.25 million from five analysts [4] - The number of Implemented Providers at the end of the period was 5,125, exceeding the average estimate of 4,967 from two analysts [4] - Value-Based Care Attributed Lives stood at 1.38 million, above the two-analyst average estimate of 1.3 million [4] Stock Performance - Over the past month, Privia Health's shares have returned -6.7%, contrasting with the Zacks S&P 500 composite's increase of +1.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

[Information Regarding Forward-Looking Statements](index=4&type=section&id=INFORMATION%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section outlines forward-looking statements, noting actual results may differ due to risks and uncertainties - The report contains forward-looking statements covered by safe harbor provisions, identifiable by terms like 'may,' 'expects,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'predicts,' 'potential,' or 'continue'[8](index=8&type=chunk) - Actual results, activity levels, performance, or achievements may differ materially from expectations due to important factors, including risks related to the heavily regulated industry, complex legal frameworks, growth strategy execution, technology implementation difficulties, high competition, and potential decreases in reimbursement rates[8](index=8&type=chunk)[10](index=10&type=chunk) - The company does not plan to publicly update or revise any forward-looking statements unless required by applicable law[9](index=9&type=chunk) [Part I - Financial Information](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) This section presents unaudited consolidated financial statements and notes for Q2 2025 and FY 2024 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheets show increased assets and liabilities from December 2024 to June 2025, driven by receivables and provider liability | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total assets | $1,272,542 | $1,135,783 | $136,759 | 12.04% | | Total liabilities | $538,996 | $452,336 | $86,660 | 19.16% | | Total stockholders' equity | $733,546 | $683,447 | $50,099 | 7.33% | | Cash and cash equivalents | $390,127 | $491,149 | $(101,022) | -20.57% | | Accounts receivable | $443,994 | $316,179 | $127,815 | 40.42% | | Intangible assets, net | $170,140 | $109,807 | $60,333 | 54.94% | | Goodwill | $172,215 | $141,615 | $30,600 | 21.61% | | Provider liability | $458,053 | $364,607 | $93,446 | 25.63% | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue increased, but operating and net income decreased; H1 2025 showed growth in all key metrics | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $521,153 | $422,326 | $98,827 | 23.40% | | Operating income | $3,336 | $5,098 | $(1,762) | -34.56% | | Net income attributable to Privia Health Group, Inc. | $2,687 | $3,467 | $(780) | -22.50% | | Basic EPS | $0.02 | $0.03 | $(0.01) | -33.33% | | Diluted EPS | $0.02 | $0.03 | $(0.01) | -33.33% | | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $1,001,250 | $837,569 | $163,681 | 19.54% | | Operating income | $8,554 | $5,921 | $2,633 | 44.47% | | Net income attributable to Privia Health Group, Inc. | $6,907 | $6,451 | $456 | 7.07% | | Basic EPS | $0.06 | $0.05 | $0.01 | 20.00% | | Diluted EPS | $0.05 | $0.05 | $0.00 | 0.00% | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity increased to $733.5 million by June 2025, driven by paid-in capital and net income | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | % Change | | :-------------------------------------- | :------------ | :---------------- | :--------- | :------- | | Total Stockholders' Equity | $733,546 | $683,447 | $50,099 | 7.33% | | Common Stock Shares Outstanding | 122,673,254 | 120,309,346 | 2,363,908 | 1.96% | | Additional Paid-in Capital | $853,950 | $813,209 | $40,741 | 5.01% | | Accumulated Deficit | $(172,322) | $(179,229) | $6,907 | -3.85% | | Non-controlling Interest | $50,691 | $48,264 | $2,427 | 5.03% | - Issuance of common stock upon exercise of stock options and vesting of restricted stock units contributed **$1.88 million** to additional paid-in capital for the three months ended June 30, 2025[18](index=18&type=chunk) - Stock-based compensation expense added **$18.85 million** to additional paid-in capital for the three months ended June 30, 2025[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 cash decreased due to acquisitions and operating activities, partially offset by financing activities | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Net cash (used in) provided by operating activities | $(16,090) | $1,330 | $(17,420) | | Net cash used in investing activities | $(89,058) | $(5,713) | $(83,345) | | Net cash provided by financing activities | $4,126 | $2,224 | $1,902 | | Net decrease in cash and cash equivalents | $(101,022) | $(2,159) | $(98,863) | | Cash and cash equivalents at end of period | $390,127 | $387,352 | $2,775 | - The substantial increase in cash used in investing activities is primarily due to business acquisitions, net of cash acquired, totaling **$89.06 million** in 2025[21](index=21&type=chunk)[160](index=160&type=chunk) - Operating activities shifted from providing **$1.33 million** in cash in 2024 to using **$16.09 million** in 2025, largely due to an increase in accounts receivable and prepaid expenses, partially offset by an increase in provider liability[21](index=21&type=chunk)[159](index=159&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) These notes explain accounting policies, financial items, and disclosures for comprehensive understanding [Note 1. Organization and Summary of Significant Accounting Policies](index=9&type=section&id=Note%201.%20Organization%20and%20Summary%20of%20Significant%20Accounting%20Policies) Privia Health is a physician-enablement company operating in sixteen markets, consolidating Medical Groups and VIEs - Privia Health operates in **sixteen markets** as of June 30, 2025, including the Mid-Atlantic Region, Georgia, various Texas regions, Central Florida, Tennessee, California, Montana, Ohio, North Carolina, Connecticut, Washington state, South Carolina, Indiana, and Arizona[24](index=24&type=chunk) - The company consolidates Owned Medical Groups, Friendly Medical Groups (e.g., PMG West Texas, PMG Tennessee, PMG Washington, PMG South Carolina, PMG Indiana), and PMG Arizona (an Owned Medical Group determined to be a VIE) based on ASC 810 criteria[33](index=33&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - Non-Owned Medical Groups and Affiliated Practices are not consolidated as they do not meet the criteria for Variable Interest Entities (VIEs) under ASC 810[35](index=35&type=chunk) | Metric (in millions) | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Aggregated carrying value of VIEs (current assets and liabilities) | $21.8 | $12.1 | [Note 2. Revenue Recognition](index=13&type=section&id=Note%202.%20Revenue%20Recognition) Revenue disaggregated by source shows growth in FFS, capitated, and shared savings; commercial insurers are largest payer | Revenue Source (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :---------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | FFS-patient care | $331,464 | $275,761 | $55,703 | 20.20% | | FFS-administrative services | $35,116 | $32,132 | $2,984 | 9.29% | | Capitated revenue | $75,511 | $56,438 | $19,073 | 33.80% | | Shared savings | $60,021 | $39,818 | $20,203 | 50.74% | | Care management fees (PMPM) | $16,919 | $16,163 | $756 | 4.68% | | Other revenue | $2,122 | $2,014 | $108 | 5.36% | | **Total revenue** | **$521,153** | **$422,326** | **$98,827**| **23.40%** | | Payer Source | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | | :------------- | :--------------------------- | :--------------------------- | | Commercial insurers | 71% | 70% | | Government payers | 14% | 14% | | Patient | 15% | 16% | - Value Based Care (VBC) revenue, comprising Capitated revenue, Shared savings, and Care management fees, increased to **29.3% of total revenue** for the three months ended June 30, 2025, from 26.6% in the prior year[96](index=96&type=chunk) [Note 3. Business Combinations](index=14&type=section&id=Note%203.%20Business%20Combinations) On April 8, 2025, Privia Health acquired 51% of PMG AZ, entering Arizona, resulting in $95.0 million in net assets - Privia Health acquired a **51% ownership interest** in Privia Medical Group Arizona (PMG AZ) on April 8, 2025, marking its entry into the Arizona market[52](index=52&type=chunk) | Acquired Net Assets (in thousands) | Amount | | :--------------------------------- | :----- | | Cash | $5,942 | | Accounts receivable | $6,319 | | Payer contract and physician network intangibles | $64,400 | | Goodwill | $30,600 | | Accounts payable | $(12,261) | | **Total acquired net assets** | **$95,000** | - PMG AZ contributed **$17.70 million** in revenue from the acquisition date through June 30, 2025[54](index=54&type=chunk) - The acquisition includes potential additional amounts up to **$25.00 million**, subject to future targets, with **$10.00 million** over three years and **$15.00 million** upon agreement renewal in 2030[54](index=54&type=chunk) [Note 4. Goodwill and Intangible Assets, Net](index=14&type=section&id=Note%204.%20Goodwill%20and%20Intangible%20Assets%2C%20Net) Goodwill increased to $172.2 million by June 2025 due to PMG AZ acquisition; intangible assets also rose | Metric (in millions) | June 30, 2025 | December 31, 2024 | Change ($) | % Change | | :------------------- | :------------ | :---------------- | :--------- | :------- | | Goodwill | $172.2 | $141.6 | $30.6 | 21.61% | | Intangible assets, net | $170.1 | $109.8 | $60.3 | 54.92% | - The increase in goodwill is primarily attributable to synergies related to the assembled workforce from the PMG AZ acquisition[54](index=54&type=chunk) - Amortization expense for intangible assets was **$2.40 million** for the three months ended June 30, 2025 (up **60% YoY**) and **$4.10 million** for the six months ended June 30, 2025 (up **34.4% YoY**)[57](index=57&type=chunk) - The remaining weighted average life of all amortizable intangible assets is approximately **17.3 years** at June 30, 2025[56](index=56&type=chunk) [Note 5. Accounts Payable and Accrued Expenses](index=15&type=section&id=Note%205.%20Accounts%20Payable%20and%20Accrued%20Expenses) Accounts payable and accrued expenses decreased to $74.3 million by June 2025, mainly due to reduced bonuses | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | % Change | | :-------------------- | :------------ | :---------------- | :--------- | :------- | | Accounts payable | $9,014 | $9,755 | $(741) | -7.59% | | Accrued employee compensation and benefits | $7,792 | $5,999 | $1,793 | 29.89% | | Bonuses payable | $12,953 | $20,421 | $(7,468) | -36.57% | | Other accrued expenses | $44,540 | $45,811 | $(1,271) | -2.77% | | **Total** | **$74,299** | **$81,986** | **$(7,687)** | **-9.38%** | [Note 6. Provider Liability](index=15&type=section&id=Note%206.%20Provider%20Liability) Provider liability increased to $458.1 million by June 2025, reflecting higher costs and medical claims | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | % Change | | :-------------------- | :------------ | :---------------- | :--------- | :------- | | Provider liability | $458,053 | $364,607 | $93,446 | 25.63% | | Medical Claims Liability (in thousands) | June 30, 2025 | June 30, 2024 | Change ($) | % Change | | :-------------------------------------- | :------------ | :------------ | :--------- | :--------- | | Balance, beginning of period | $66,355 | $67,138 | $(783) | -1.17% | | Total claims incurred | $144,285 | $107,915 | $36,370 | 33.70% | | Total claims paid | $(110,984) | $(100,856) | $(10,128) | 10.04% | | Balance, end of period | $99,656 | $74,197 | $25,459 | 34.31% | - Provider liability estimates are developed using actuarial methods, considering factors like medical service utilization trends, membership changes, and historical claim payment patterns[60](index=60&type=chunk) [Note 7. Debt](index=16&type=section&id=Note%207.%20Debt) Privia Health has a $125 million revolving credit facility, with no outstanding amounts as of June 30, 2025 - The company has a **$125 million** five-year senior secured revolving credit facility, established on November 16, 2023, with Wells Fargo Bank[64](index=64&type=chunk)[65](index=65&type=chunk) - The Revolving Credit Facility bears interest at a base rate plus applicable margin, with the base rate being the higher of the Prime Rate or the Federal Funds Rate plus **0.50%**, and a minimum base rate of **1.0%**[64](index=64&type=chunk) - As of June 30, 2025, there were **no outstanding amounts** under the Revolving Credit Facility[66](index=66&type=chunk) [Note 8. Income Taxes](index=16&type=section&id=Note%208.%20Income%20Taxes) Income tax provision varied, with H1 2025 effective tax rate of 32.8% differing from statutory due to various factors | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Provision for income tax | $2,456 | $3,421 | $(965) | -28.21% | | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Provision for income tax | $4,559 | $4,172 | $387 | 9.28% | | Effective tax rate | 32.8% | 35.1% | -2.3% | -6.55% | - The effective tax rates differ from the **21% U.S. federal statutory rate** primarily due to 162(m) limitations, state income taxes, and excess tax benefits related to equity award vesting and exercise events[68](index=68&type=chunk) - No valuation allowance against deferred tax assets was recorded as of June 30, 2025, or December 31, 2024, as management determined it was more likely than not that DTAs would be realized[69](index=69&type=chunk) [Note 9. Stockholders' Equity](index=16&type=section&id=Note%209.%20Stockholders%27%20Equity) This note details stock option, RSU, and PSU activity; stock-based compensation expense increased | Stock Option Activity | December 31, 2024 | June 30, 2025 | Change | | :-------------------- | :---------------- | :------------ | :----- | | Balance (shares) | 8,526,910 | 7,967,399 | -559,511 | | Weighted Average Exercise Price | $10.03 | $10.18 | $0.15 | | Aggregate Intrinsic Value (in thousands) | $93,074 | $102,955 | $9,881 | | RSU Activity | December 31, 2024 | June 30, 2025 | Change | | :------------- | :---------------- | :------------ | :----- | | Unvested and outstanding (shares) | 4,142,275 | 4,393,637 | 251,362 | | Grant Date Fair Value | $23.73 | $24.21 | $0.48 | | PSU Activity | December 31, 2024 | June 30, 2025 | Change | | :------------- | :---------------- | :------------ | :----- | | Unvested and outstanding (shares) | 1,637,681 | 2,459,736 | 822,055 | | Grant Date Fair Value | $27.02 | $26.42 | $(0.60) | | Stock-based Compensation Expense (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | % Change | | :---------------------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Total | $18,849 | $14,391 | $4,458 | 30.98% | | Cost of platform | $7,223 | $4,710 | $2,513 | 53.35% | | Sales and marketing | $1,488 | $1,043 | $445 | 42.66% | | General and administrative | $10,138 | $8,638 | $1,500 | 17.37% | - As of June 30, 2025, there was approximately **$121.30 million** of unrecognized stock-based compensation expense, expected to be recognized over a weighted-average period of **1.0 year**[76](index=76&type=chunk) [Note 10. Commitments and Contingencies](index=18&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) As of June 30, 2025, and December 31, 2024, there were no material commitments or contingencies - There are **no material commitments and contingencies** as of June 30, 2025, and December 31, 2024[78](index=78&type=chunk) [Note 11. Concentration of Credit and Revenue Risk](index=18&type=section&id=Note%2011.%20Concentration%20of%20Credit%20and%20Revenue%20Risk) The company faces credit risk concentrations in cash and receivables, with revenue concentrated with major payers - Substantially all of the company's cash and cash equivalents were held at **two financial institutions** as of June 30, 2025[79](index=79&type=chunk) | Payer | Revenue Concentration (3 Months Ended June 30, 2025) | Revenue Concentration (3 Months Ended June 30, 2024) | | :---- | :--------------------------------------------------- | :--------------------------------------------------- | | Payer A | 29% | 27% | | Payer B | 16% | 16% | | Payer C | 15% | 17% | | Payer | Receivables Concentration (6 Months Ended June 30, 2025) | Receivables Concentration (6 Months Ended June 30, 2024) | | :---- | :------------------------------------------------------- | :------------------------------------------------------- | | Payer A | 50% | 53% | | Payer B | 18% | 17% | | Payer C | 14% | 10% | [Note 12. Net Income Per Share](index=19&type=section&id=Note%2012.%20Net%20Income%20Per%20Share) Basic and diluted EPS varied, with antidilutive securities excluded from diluted EPS calculations | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Basic EPS | $0.02 | $0.03 | $(0.01) | | Diluted EPS | $0.02 | $0.03 | $(0.01) | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Basic EPS | $0.06 | $0.05 | $0.01 | | Diluted EPS | $0.05 | $0.05 | $0.00 | - Approximately **8.04 million** potentially dilutive stock options, RSUs, and PSUs were excluded from the diluted EPS computation for the six months ended June 30, 2025, because their inclusion would have been antidilutive[81](index=81&type=chunk) [Note 13. Segment Financial Information](index=19&type=section&id=Note%2013.%20Segment%20Financial%20Information) The company operates as a single operating segment focused on patient care, with consolidated financial results reviewed by the CEO - Privia Health operates and reports as a **single operating segment**, which is to care for its patients' needs, in accordance with ASC Topic 280, Segment Reporting[82](index=82&type=chunk) - The Chief Executive Officer, as the Chief Operating Decision Maker (CODM), manages operations on a consolidated basis and evaluates financial performance using consolidated net income attributable to Privia Health Group, Inc[83](index=83&type=chunk)[84](index=84&type=chunk) - All of the company's long-lived assets were located in the **United States** as of June 30, 2025, and December 31, 2024[83](index=83&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Privia Health's financial condition and results, covering business models, revenue drivers, and liquidity [Overview](index=20&type=section&id=Overview) Privia Health is a physician-enablement company focused on improving healthcare outcomes and patient/provider experience - Privia Health is a technology-driven, national physician-enablement company aiming for better outcomes, lower costs, improved patient experience, and happier, more engaged providers[86](index=86&type=chunk) - The company's model combines a partnership in a large regional Medical Group with significant provider autonomy, where Privia Physicians can be owners of the Medical Group[86](index=86&type=chunk)[87](index=87&type=chunk) - Privia provides management and administrative services through local MSOs, offering access to Value-Based Care (VBC) opportunities and clinical oversight[88](index=88&type=chunk) - The Privia Care Partners model offers a flexible affiliation for providers seeking only VBC solutions without changing EMR providers, providing population health services, reporting, and analytics[89](index=89&type=chunk) [GAAP Financial Measures](index=20&type=section&id=GAAP%20Financial%20Measures) Q2 2025 revenue increased, net income decreased; H1 2025 revenue grew to $1.00 billion, net income increased | Metric (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $521.2 | $422.3 | $98.9 | 23.4% | | Gross profit | $112.8 | $98.3 | $14.5 | 14.75% | | Operating income | $3.3 | $5.1 | $(1.8) | -35.29% | | Net income attributable to Privia Health Group, Inc. | $2.7 | $3.5 | $(0.8) | -22.86% | | Metric (in millions) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $1,001.0 | $837.6 | $163.4 | 19.5% | | Gross profit | $216.4 | $191.6 | $24.8 | 12.94% | | Operating income | $8.6 | $5.9 | $2.7 | 45.76% | | Net income attributable to Privia Health Group, Inc. | $6.9 | $6.5 | $0.4 | 6.15% | [Key Metrics and Non-GAAP Financial Measures](index=20&type=section&id=Key%20Metrics%20and%20Non-GAAP%20Financial%20Measures) The company tracks key operational and non-GAAP metrics, showing growth in providers, attributed lives, and practice collections | Metric | June 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------- | :------------ | :------------ | :----- | :------- | | Implemented Providers | 5,125 | 4,504 | 621 | 13.8% | | Attributed Lives (in thousands) | 1,382 | 1,200 | 182 | 15.2% | | Metric (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | % Change | | :------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Practice Collections | $862.9 | $728.0 | $134.9 | 18.5% | | Metric (in millions) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | % Change | | :------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Practice Collections | $1,661.5 | $1,435.7 | $225.8 | 15.7% | - FFS arrangements accounted for **81.5%** of practice collections for the three months ended June 30, 2025, while VBC accounted for **18.3%**[114](index=114&type=chunk) [Our Revenue](index=21&type=section&id=Our%20Revenue) Privia Health generates revenue from FFS patient care and growing VBC, reflecting a shift towards at-risk contracts - FFS-patient care revenue represented **63.6% of total revenue** for the three months ended June 30, 2025, a decrease from 65.3% in the prior year, while FFS-administrative services revenue was **6.7%**[95](index=95&type=chunk) - VBC revenue, including Capitated revenue, Shared savings, and Care management fees, increased to **29.3% of total revenue** for the three months ended June 30, 2025, up from 26.6% in the prior year[96](index=96&type=chunk) - Capitated revenue is generated through 'at-risk contracts' where the company receives fixed monthly payments for providing healthcare services to attributed beneficiaries in Medicare Advantage plans[49](index=49&type=chunk)[106](index=106&type=chunk) - The company renegotiated certain capitation agreements for more favorable contract structures during the first quarter of 2024 due to regulatory and utilization headwinds in Medicare Advantage[96](index=96&type=chunk) [Key Factors Affecting Our Performance](index=21&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) Key performance drivers include adding providers, expanding markets, maintaining satisfaction, and accelerating VBC adoption - Growth in the number of Implemented Providers is a key indicator of business performance and expected revenue growth, driven by adding new practices and recruiting new providers in existing and new markets[98](index=98&type=chunk) - The number of attributed patient lives in VBC programs is a key driver of VBC revenue growth, with branding and marketing strategies aimed at increasing patient panels per provider[99](index=99&type=chunk) - Privia entered the Indiana market in November 2024 through the acquisition of PMG IN and the Arizona market in April 2025 through a partnership with Integrated Medical Services to launch PMG AZ[101](index=101&type=chunk) - Provider satisfaction and retention are high, with greater than **90% Practice Collections predictability**, demonstrating the stability of the provider base[102](index=102&type=chunk) - The company's ability to maintain and increase payer contracts, particularly in new markets, and accelerate the adoption of VBC reimbursement are crucial for long-term success[103](index=103&type=chunk)[104](index=104&type=chunk) [Key Metrics and Non-GAAP Financial Measures (Detailed)](index=23&type=section&id=Key%20Metrics%20and%20Non-GAAP%20Financial%20Measures%20(Detailed)) This section details non-GAAP financial measures like Care Margin and Adjusted EBITDA, used to evaluate operating performance | Non-GAAP Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | % Change | | :----------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Care Margin | $115,161 | $99,790 | $15,371 | 15.4% | | Platform Contribution | $57,466 | $47,394 | $10,072 | 21.3% | | Adjusted EBITDA | $28,992 | $22,023 | $6,969 | 31.6% | | Non-GAAP Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | % Change | | :----------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Care Margin | $220,449 | $194,697 | $25,752 | 13.2% | | Platform Contribution | $109,199 | $92,131 | $17,068 | 18.5% | | Adjusted EBITDA | $55,907 | $41,945 | $13,962 | 33.3% | | Non-GAAP Margin | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (pp) | | :---------------- | :--------------------------- | :--------------------------- | :---------- | | Platform Contribution Margin | 49.9% | 47.5% | 2.4 | | Adjusted EBITDA Margin | 25.2% | 22.1% | 3.1 | - Care Margin as a percentage of revenue decreased to **22.1%** for the three months ended June 30, 2025, from 23.6% in the prior year, due to strategic investments at a pace slower than revenue growth[119](index=119&type=chunk) [Components of Results of Operations](index=27&type=section&id=Components%20of%20Results%20of%20Operations) This section details revenue and operating expense components, explaining their recognition and influencing factors - Provider expenses include amounts paid to physicians, hospitals, and other service providers, covering guaranteed payments, distributions, and medical claims costs under at-risk Capitated revenue arrangements[131](index=131&type=chunk) - Cost of platform expenses are primarily variable, related to the number of implemented physicians, and include third-party EMR and practice management software expenses, as well as stock-based compensation[132](index=132&type=chunk) - Sales and marketing expenses cover employee-related costs for marketing, sales, community outreach, and advertising to drive patient and provider engagement[133](index=133&type=chunk) - General and administrative expenses include corporate employee-related costs, technology infrastructure, occupancy, and support for various departments[134](index=134&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Revenue increased for Q2 and H1 2025, driven by FFS, capitated, and shared savings; operating expenses rose | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $521,153 | $422,326 | $98,827 | 23.4% | | Provider expense | $405,992 | $322,536 | $83,456 | 25.9% | | Cost of platform | $64,918 | $57,106 | $7,812 | 13.7% | | Sales and marketing | $6,805 | $6,852 | $(47) | -0.7% | | General and administrative | $37,519 | $28,916 | $8,603 | 29.8% | | Depreciation and amortization | $2,583 | $1,818 | $765 | 42.1% | | Operating income | $3,336 | $5,098 | $(1,762) | -34.6% | | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $1,001,250 | $837,569 | $163,681 | 19.5% | | Provider expense | $780,801 | $642,872 | $137,929 | 21.5% | | Cost of platform | $124,444 | $111,163 | $13,281 | 11.9% | | Sales and marketing | $13,727 | $12,937 | $790 | 6.1% | | General and administrative | $69,240 | $61,037 | $8,203 | 13.4% | | Depreciation and amortization | $4,484 | $3,639 | $845 | 23.2% | | Operating income | $8,554 | $5,921 | $2,633 | 44.5% | - The increase in revenue for the three months ended June 30, 2025, was primarily driven by FFS–patient care revenue (**$55.70 million** increase), shared savings revenue (**$20.20 million** increase), and capitated revenue (**$19.07 million** increase)[139](index=139&type=chunk) - Provider expenses increased due to higher FFS-patient care revenue and growth in Implemented Providers[142](index=142&type=chunk) - General and administrative expenses increased due to higher salaries and benefits, professional services, non-recurring expenses, and stock-based compensation[146](index=146&type=chunk)[147](index=147&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Privia Health had $390.1 million in cash, sufficient for needs despite acquisition-driven decrease - As of June 30, 2025, the company had **$390.1 million** in cash and cash equivalents, primarily consisting of highly liquid investments in money market funds and cash[153](index=153&type=chunk) - Net cash used in operating activities was **$16.09 million** for the six months ended June 30, 2025, a decrease from **$1.33 million** provided in the prior year, mainly due to increased accounts receivable and prepaid assets[158](index=158&type=chunk)[159](index=159&type=chunk) - Net cash used in investing activities significantly increased to **$89.06 million** for the six months ended June 30, 2025, from **$5.71 million** in the prior year, primarily due to business acquisitions[158](index=158&type=chunk)[160](index=160&type=chunk) - Net cash provided by financing activities increased to **$4.13 million** for the six months ended June 30, 2025, from **$2.22 million** in the prior year, mainly due to increased proceeds from exercised stock options[158](index=158&type=chunk)[161](index=161&type=chunk) - The company anticipates that net cash provided by operating activities, along with available cash, will be sufficient to meet anticipated cash requirements for both the short and long term[156](index=156&type=chunk) [Contractual Obligations, Commitments and Contingencies](index=33&type=section&id=Contractual%20Obligations%2C%20Commitments%20and%20Contingencies) Primary contractual obligations include operating leases; no off-balance sheet arrangements or material commitments - The company leases office space under operating lease agreements with initial terms ranging from **2 to 9 years**[162](index=162&type=chunk) - Total rent expense under operating leases was **$0.70 million** for the three months ended June 30, 2025, and **$1.40 million** for the six months ended June 30, 2025[162](index=162&type=chunk) - There are **no off-balance sheet arrangements** as of June 30, 2025[162](index=162&type=chunk) - No material commitments and contingencies were reported as of June 30, 2025, and December 31, 2

Financial Data and Key Metrics Changes - Privia Health reported a total practice collections growth of 18.5% in the second quarter, reaching $862.9 million [13] - Adjusted EBITDA increased by 31.6% year-over-year to $29 million, representing 25.2% of care margin, an improvement of 310 basis points [13][14] - For the full year 2025, practice collections increased by 15.7% to $1.66 billion, with adjusted EBITDA growing 33.3% to $55.9 million [14][15] Business Line Data and Key Metrics Changes - Implemented provider growth reached 5,125, a 13.8% increase year-over-year, with value-based lives attribution growth of 15.2% [11][12] - Commercial attributed lives increased by 13.8% to 843,000, while Medicare Advantage and Medicaid attribution saw increases of over 1331% [12] Market Data and Key Metrics Changes - Privia Health's footprint now includes over 5.3 million patients across more than 1,300 care center locations in 15 states and the District of Columbia [11] - The company serves 1.38 million attributed lives across over 100 commercial and government value-based care programs, with total attributed lives increasing by 15.2% from the previous year [11][12] Company Strategy and Development Direction - Privia's model integrates medical groups, risk-bearing entities, and a technology and services platform, creating a stable and recurring earnings profile [9][10] - The company aims to continue building large-scale primary care-centric delivery networks across the nation, focusing on sustainable growth and profitability [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance, raising the 2025 outlook above initial guidance ranges due to strong first-half results [8][15] - The management highlighted the importance of a diversified value-based care contract portfolio to mitigate risks associated with specific programs [12][25] Other Important Information - The company ended the second quarter with over $390 million in cash and no debt, expecting to maintain significant financial flexibility [14] - Management noted that over 80% of full-year adjusted EBITDA is expected to convert to free cash flow, reflecting a capital-light operating model [16] Q&A Session Summary Question: What do you think is misunderstood in the investor landscape? - Management acknowledged an identity crisis in communicating their business model but emphasized the stability and predictability of their earnings stream [18][20] Question: What drives the guidance step down in the second half? - Management indicated that while they raised guidance, they are being prudent due to expected shared savings true-ups in Q3 [31][32] Question: Can you discuss your pipeline of providers? - Management reported record provider signings and noted that their value proposition is resonating well with practices [38][39] Question: How are you using AI on the platform? - Management detailed the use of AI in clinical workflows and revenue cycle management to enhance efficiency and outcomes [45][46] Question: What drove the better-than-expected shared savings revenue? - Management attributed the strong performance to effective risk management and operational execution across various contracts [49][51] Question: What are the implications of the proposed physician fee schedule rule? - Management viewed the proposed changes as a net positive for community-based physician practices [55][57] Question: Can you provide insights on G&A expense increases? - Management explained that the increase was due to higher bonus accruals and contractor expenses as the company continues to grow [60][61] Question: How is the IMS integration progressing? - Management confirmed that the integration is on track and expected to contribute positively to EBITDA in Q4 [78][81] Question: What impact might the new bill have on Medicaid or Medicare membership? - Management anticipated minimal impact, noting that patients typically shift to other programs if there are disruptions [85][87] Question: What trends are you seeing in utilization by payer type? - Management reported strong ambulatory utilization across all lines, with no unusual trends noted [90][92] Question: What are the business development trends? - Management expressed optimism about pursuing both existing market density and new market opportunities, indicating a strong pipeline [96][98]

Financial Data and Key Metrics Changes - Privia Health reported a total practice collections growth of 18.5% in the second quarter, reaching $862.9 million [11] - Adjusted EBITDA increased by 31.6% year-over-year to $29 million, representing 25.2% of care margin, an improvement of 310 basis points [11][12] - For the full year 2025, practice collections increased by 15.7% to $1.66 billion, with adjusted EBITDA growing 33.3% to $55.9 million [12][13] Business Line Data and Key Metrics Changes - Implemented provider growth was 13.8% year-over-year, reaching 5,125 providers [9][11] - Value-based lives attribution grew by 15.2% year-over-year, with total attributed lives increasing to 1.38 million [9][10] - Commercial attributed lives rose by 13.8% to 843,000, while Medicare Advantage and Medicaid attribution increased significantly [10] Market Data and Key Metrics Changes - Privia Health operates across 15 states and the District of Columbia, serving over 5.3 million patients [9] - The company has a diversified value-based care organization with 1,380,000 attributed lives across over 100 programs [9] - The entry into Arizona contributed to the growth in Medicaid lives, which increased by approximately 15,000 [40] Company Strategy and Development Direction - Privia's business model integrates medical groups, risk-bearing entities, and a technology platform, creating a stable earnings profile [7][8] - The company aims to continue expanding its market presence and enhancing its value proposition to payers and providers [8][13] - Management emphasized the importance of maintaining a diversified value-based care contract portfolio to mitigate risks [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic and regulatory challenges, citing strong operational execution [5][6] - The outlook for 2025 has been raised above initial guidance ranges due to strong first-half performance and provider growth [12][13] - Management highlighted the importance of shared risk arrangements with payers to ensure sustainable growth [24][72] Other Important Information - The company ended the second quarter with over $390 million in cash and no debt, positioning it for future opportunities [12] - Management expects over 80% of full-year adjusted EBITDA to convert to free cash flow, reflecting a capital-light operating model [14] Q&A Session Summary Question: What do you think is misunderstood in the investor landscape? - Management noted an identity crisis in communicating their business model, emphasizing the stability of their earnings stream akin to tech companies [18][19] Question: What drives the guidance for the second half? - Management indicated that while they expect a step down, they remain confident due to shared savings and strong performance trends [29][30] Question: Can you discuss your pipeline of providers? - Management reported record provider signings and strong momentum in their sales efforts, indicating a favorable environment for growth [34][36] Question: How are you using AI on the platform? - Management highlighted the use of AI in clinical workflows to improve patient care and reduce administrative burdens [41][42] Question: What drove the better-than-expected shared savings revenue? - Management attributed the success to effective risk management and operational execution across various contracts [48][50] Question: What are the implications of the proposed physician fee schedule rule? - Management viewed the proposed changes as a net positive for community-based practices, aligning reimbursement with inflation [54][56] Question: Can you provide an update on the IMS integration? - Management confirmed that the integration is progressing well and is expected to contribute positively to EBITDA in Q4 [78][80] Question: What impact do you foresee from the new big beautiful bill? - Management does not anticipate a significant impact, as they expect to capture any displaced patients in other programs [84][85]