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]

View all Key Company Metrics for Privia Health here>>> Shares of Privia Health have returned -6.7% over the past month versus the Zacks S&P 500 composite's +1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Practice Collections: $862.9 million versus the five-analyst average estimate of $804.11 million. Care Margin: $115.2 million versus the five-analyst average estimate of $109.25 million. Platform Contribution: $ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ Table of Contents FORM 10-Q _______________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40365 _________________________ Privia Health Group, ...

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]

Group 1 - Privia Health reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.05 per share, and down from $0.03 per share a year ago, representing an earnings surprise of -60.00% [1] - The company posted revenues of $521.15 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 11.24%, compared to year-ago revenues of $422.33 million [2] - Privia Health has topped consensus revenue estimates four times over the last four quarters [2] Group 2 - The stock's immediate price movement will depend on management's commentary on the earnings call and future earnings expectations [3] - Privia Health shares have added about 1.2% since the beginning of the year, underperforming the S&P 500's gain of 7.9% [3] Group 3 - The current consensus EPS estimate for the coming quarter is $0.07 on revenues of $474.01 million, and $0.21 on revenues of $1.91 billion for the current fiscal year [7] - The estimate revisions trend for Privia Health was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 4 - The Medical Info Systems industry, to which Privia Health belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook [8]

Second Quarter and First-Half Performance - Implemented Providers increased by 13.8% compared to the second quarter of 2024[8] - Practice Collections grew by 18.5% compared to the second quarter of 2024[8] - Adjusted EBITDA increased by 31.6%[8] with an Adjusted EBITDA margin of 25.2%, a 310 bps increase compared to the second quarter of 2024[8] - Platform Contribution increased by 15.4% for the second quarter[18] and 15.7% for the six-month period[21] - Care Margin increased by 18.5% for the second quarter[18] and 18.5% for the six-month period[21] Full Year 2025 Guidance - The company raised its full year 2025 guidance to above the high end of the range for Practice Collections, GAAP Revenue, Platform Contribution and Adjusted EBITDA[8] - The company anticipates ending FY'25 with over $450 million in cash, assuming no further capital deployment for business development[25] - The company expects at least 80% of FY'25 Adjusted EBITDA to convert to Free Cash Flow[29] - Initial FY'25 Guidance for Implemented Providers was between 5,200 and 5,300, reaching the high end at 5,300[27] - Initial FY'25 Guidance for Attributed Lives was between 1,300,000 and 1,400,000, reaching the high end at 1,400,000[27]

[Executive Summary](index=1&type=section&id=1.%20Executive%20Summary) [Second Quarter 2025 Performance Highlights](index=1&type=section&id=1.1%20Second%20Quarter%202025%20Performance%20Highlights) Privia Health reported strong Q2 2025 financial and operational growth, with significant increases in total revenue, adjusted income, and key operating metrics, despite a GAAP net income decrease Second Quarter 2025 Financial Performance | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | | Total revenue | 521.2 | 422.3 | 23.4% | | Net income | 2.7 | 3.5 | (22.5)% | | Non-GAAP adjusted income | 30.6 | 23.5 | 30.1% | | Net income per share | 0.02 | 0.03 | (33.3)% | | Non-GAAP adjusted income per share | 0.24 | 0.19 | 26.3% | | Gross profit | 112.8 | 98.3 | 14.8% | | Operating income | 3.3 | 5.1 | (34.6)% | | Adjusted EBITDA | 29.0 | 22.0 | 31.6% | Second Quarter 2025 Key Operating Metrics | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | | Implemented Providers | 5,125 | 4,504 | 13.8% | | Value-Based Care Attributed Lives | 1,382,000 | 1,200,000 | 15.2% | | Practice Collections ($M) | 862.9 | 728.0 | 18.5% | | Care Margin ($M) | 115.2 | 99.8 | 15.4% | | Platform Contribution ($M) | 57.5 | 47.4 | 21.3% | - The company maintained a strong cash position of **$390.1 million** with no debt, even after deploying **$95 million** for the IMS transaction in Arizona[5](index=5&type=chunk) [First Half 2025 Performance Highlights](index=2&type=section&id=1.2%20First%20Half%202025%20Performance%20Highlights) For the first six months of 2025, Privia Health demonstrated robust growth across key financial and operational metrics, including significant increases in total revenue, non-GAAP adjusted net income, and Adjusted EBITDA, reflecting strong underlying business momentum First Half 2025 Financial Performance | Metric | H1 2025 ($M) | H1 2024 ($M) | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | | Total revenue | 1,001.3 | 837.6 | 19.5% | | Gross profit | 216.4 | 191.6 | 12.9% | | Operating income | 8.6 | 5.9 | 44.5% | | Net income | 6.9 | 6.5 | 7.1% | | Non-GAAP adjusted net income | 58.4 | 46.1 | 26.8% | | Net income per share | 0.05 | 0.05 | —% | | Non-GAAP adjusted net income per share | 0.46 | 0.37 | 24.3% | | Adjusted EBITDA | 55.9 | 41.9 | 33.3% | First Half 2025 Key Operating Metrics | Metric | H1 2025 ($M) | H1 2024 ($M) | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | | Practice Collections | 1,661.5 | 1,435.7 | 15.7% | | Care Margin | 220.4 | 194.7 | 13.2% | | Platform Contribution | 109.2 | 92.1 | 18.5% | [Updated FY'25 Guidance](index=2&type=section&id=1.3%20Updated%20FY'25%20Guidance) Privia Health has raised its full-year 2025 outlook for several key metrics, including Practice Collections, GAAP Revenue, Platform Contribution, and Adjusted EBITDA, now expecting them to be above the high end of the previously provided range. Guidance also includes the impact of the Arizona market entry Updated FY 2025 Guidance | Metric | FY 2024 Actual | Initial FY 2025 Guidance (Low) | Initial FY 2025 Guidance (High) | Updated FY 2025 Guidance | | :-------------------------- | :------------- | :----------------------------- | :------------------------------ | :----------------------- | | Implemented Providers | 4,789 | 5,200 | 5,300 | High End | | Attributed Lives | 1,256,000 | 1,300,000 | 1,400,000 | High End | | Practice Collections ($M) | 2,968.0 | 3,150 | 3,250 | Above High End | | GAAP Revenue ($M) | 1,736.4 | 1,800 | 1,900 | Above High End | | Care Margin ($M) | 403.9 | 435 | 445 | High End | | Platform Contribution ($M) | 195.6 | 208 | 218 | Above High End | | Adjusted EBITDA ($M) | 90.5 | 105 | 110 | Above High End | - The updated guidance incorporates the impact of the Arizona market entry and assumes no other new business development activity[9](index=9&type=chunk) - The company expects de minimis capital expenditures and at least **80% of Adjusted EBITDA** to convert to free cash flow in full-year 2025[9](index=9&type=chunk) [Company Information](index=3&type=section&id=2.%20Company%20Information) [About Privia Health](index=3&type=section&id=2.1%20About%20Privia%20Health) Privia Health is a leading physician enablement company in the U.S., operating in 15 states and D.C. It focuses on building scaled primary-care centric provider networks, offering a comprehensive technology and service platform to optimize practices, enhance patient experience, and reward physicians for high-value care - Privia Health is one of the largest physician enablement companies in the United States, with a presence in **15 states** and the District of Columbia[13](index=13&type=chunk) - The company's platform includes an extensive suite of technology and service solutions, supporting over **1,300 physician practices**, **5.3+ million patients**, and **5,100+ physicians** and advanced practitioners[13](index=13&type=chunk) - Privia's mission is to transform healthcare delivery to achieve better outcomes, lower costs, and improve community health and provider well-being[14](index=14&type=chunk) [Webcast and Conference Call Information](index=3&type=section&id=2.2%20Webcast%20and%20Conference%20Call%20Information) Privia Health hosted a conference call on August 7, 2025, to discuss its Q2 2025 financial results and future outlook. Details for accessing the live call and archived webcast were provided - A conference call was held on **August 7, 2025, at 8:00 am ET** to discuss financial results and management's outlook[11](index=11&type=chunk) - Webcast and presentation materials are available on the Privia Health Investor Relations website (ir.priviahealth.com)[11](index=11&type=chunk)[12](index=12&type=chunk) [Financial Statements](index=6&type=section&id=3.%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=6&type=section&id=3.1%20Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations show a significant increase in total revenue for both the three and six months ended June 30, 2025, compared to the prior year. While operating income and net income attributable to Privia Health Group, Inc. saw mixed results, non-GAAP adjusted income metrics generally improved Condensed Consolidated Statements of Operations (Selected Data, $ in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Revenue | 521,153 | 422,326 | 1,001,250 | 837,569 | | Total operating expenses | 517,817 | 417,228 | 992,696 | 831,648 | | Operating income | 3,336 | 5,098 | 8,554 | 5,921 | | Net income attributable to Privia Health Group, Inc. | 2,687 | 3,467 | 6,907 | 6,451 | | Net income per share (diluted) | 0.02 | 0.03 | 0.05 | 0.05 | - Non-cash stock compensation expense was **$18.8 million** for Q2 2025 and **$36.6 million** for H1 2025, impacting GAAP net income[2](index=2&type=chunk)[6](index=6&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=3.2%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows an increase in total assets, driven primarily by higher accounts receivable and intangible assets. Total liabilities also increased, mainly due to a rise in provider liability, while stockholders' equity grew Condensed Consolidated Balance Sheets (Selected Data, $ in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Cash and cash equivalents | 390,127 | 491,149 | | Accounts receivable | 443,994 | 316,179 | | Total current assets | 882,960 | 834,823 | | Intangible assets, net | 170,140 | 109,807 | | Goodwill | 172,215 | 141,615 | | Total assets | 1,272,542 | 1,135,783 | | Provider liability | 458,053 | 364,607 | | Total current liabilities | 534,854 | 449,146 | | Total liabilities | 538,996 | 452,336 | | Total stockholders' equity | 733,546 | 683,447 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=3.3%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, Privia Health experienced a net decrease in cash and cash equivalents, primarily due to significant cash used in investing activities for business acquisitions, despite positive adjustments from stock-based compensation and provider liability in operating activities Condensed Consolidated Statements of Cash Flows (Selected Data, $ in thousands) | Metric | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | | Net income | 9,334 | 7,699 | | Stock-based compensation (non-cash adjustment) | 36,639 | 26,295 | | Changes in Accounts receivable | (121,497) | (79,287) | | Changes in Provider liability | 81,185 | 40,047 | | Net cash (used in) provided by operating activities | (16,090) | 1,330 | | Business acquisitions, net of cash acquired | (89,058) | (707) | | Net cash used in investing activities | (89,058) | (5,713) | | Net cash provided by financing activities | 4,126 | 2,224 | | Net decrease in cash and cash equivalents | (101,022) | (2,159) | | Cash and cash equivalents at end of period | 390,127 | 387,352 | - Cash used for business acquisitions significantly increased to **$89.1 million** in H1 2025, compared to **$0.7 million** in H1 2024[27](index=27&type=chunk) [Detailed Financial and Operational Metrics](index=9&type=section&id=4.%20Detailed%20Financial%20and%20Operational%20Metrics) [Revenues Disaggregated by Source](index=9&type=section&id=4.1%20Revenues%20Disaggregated%20by%20Source) Privia Health's revenue streams are diversified, with Fee-for-Service (FFS) patient care being the largest component, followed by capitated revenue and shared savings. All revenue categories showed growth for both the three and six months ended June 30, 2025 Revenues Disaggregated by Source ($ in thousands) | Revenue Source | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | FFS-patient care | 331,464 | 275,761 | 643,225 | 550,584 | | FFS-administrative services | 35,116 | 32,132 | 67,371 | 61,208 | | Capitated revenue | 75,511 | 56,438 | 146,201 | 107,742 | | Shared savings | 60,021 | 39,818 | 107,933 | 87,282 | | Care management fees (PMPM) | 16,919 | 16,163 | 32,121 | 26,766 | | Other revenue | 2,122 | 2,014 | 4,399 | 3,987 | | **Total Revenue** | **521,153** | **422,326** | **1,001,250** | **837,569** | - Capitated revenue showed strong growth, increasing by **33.8%** in Q2 2025 and **35.7%** in H1 2025[28](index=28&type=chunk) - Shared savings also significantly increased by **50.7%** in Q2 2025 and **23.7%** in H1 2025[28](index=28&type=chunk) [Liabilities for Unpaid Medical Claims](index=9&type=section&id=4.2%20Liabilities%20for%20Unpaid%20Medical%20Claims) The company's liabilities for unpaid medical claims under at-risk capitation arrangements increased significantly from $74.2 million at June 30, 2024, to $99.7 million at June 30, 2025, driven by higher current year incurred health care costs Liabilities for Unpaid Medical Claims ($ in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------ | | Balance, beginning of period | 66,355 | 67,138 | | Incurred health care costs: Current year | 144,840 | 104,610 | | Incurred health care costs: Prior years | (555) | 3,305 | | Total claims incurred | 144,285 | 107,915 | | Claims paid: Current year | (63,025) | (47,979) | | Claims paid: Prior year | (47,959) | (52,877) | | Total claims paid | (110,984) | (100,856) | | Balance, end of period | 99,656 | 74,197 | - The balance of unpaid medical claims increased by **34.3%** year-over-year, primarily due to a **38.4%** increase in current year incurred health care costs[29](index=29&type=chunk) [Key Operating and Non-GAAP Financial Measures Definitions](index=10&type=section&id=4.3%20Key%20Operating%20and%20Non-GAAP%20Financial%20Measures%20Definitions) Privia Health utilizes several key operating and non-GAAP financial measures to assess business performance and trends. These include Implemented Providers, Attributed Lives, Practice Collections, Care Margin, Platform Contribution, and Adjusted EBITDA, each with specific definitions to provide a comprehensive view of the company's operations Key Operating Metrics (as of end of period) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Implemented Providers | 5,125 | 4,504 | 5,125 | 4,504 | | Attributed Lives | 1,382,000 | 1,200,000 | 1,382,000 | 1,200,000 | | Practice Collections ($M) | 862.9 | 728.0 | 1,661.5 | 1,435.7 | - Implemented Providers are credentialed service professionals on Privia Health's platform who billed for medical services[31](index=31&type=chunk) - Attributed Lives represent patients attributed to Privia for value-based care arrangements[31](index=31&type=chunk) - Practice Collections include total collections from all practices and reimbursement sources, differing from revenue by including Non-Owned Medical Groups[31](index=31&type=chunk) - Non-GAAP measures like Care Margin, Platform Contribution, and Adjusted EBITDA are used to evaluate operating performance, with specific adjustments for non-cash or non-recurring expenses[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [Non-GAAP Reconciliations](index=11&type=section&id=4.4%20Non-GAAP%20Reconciliations) [Gross Profit to Care Margin Reconciliation](index=11&type=section&id=4.4.1%20Gross%20Profit%20to%20Care%20Margin%20Reconciliation) Care Margin, a non-GAAP measure, is derived by adding back amortization of intangible assets to Gross Profit. This reconciliation shows an increase in Care Margin for both the three and six months ended June 30, 2025 Gross Profit to Care Margin Reconciliation ($ in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Gross Profit | 112,765 | 98,263 | 216,380 | 191,643 | | Amortization of intangibles assets | 2,396 | 1,527 | 4,069 | 3,054 | | **Care Margin** | **115,161** | **99,790** | **220,449** | **194,697** | - Care Margin increased by **15.4%** in Q2 2025 and **13.2%** in H1 2025, reflecting improved operational efficiency before intangible asset amortization[3](index=3&type=chunk)[8](index=8&type=chunk)[35](index=35&type=chunk) [Gross Profit to Platform Contribution Reconciliation](index=11&type=section&id=4.4.2%20Gross%20Profit%20to%20Platform%20Contribution%20Reconciliation) Platform Contribution, another non-GAAP measure, is calculated by adjusting Gross Profit for amortization of intangible assets, cost of platform, and stock-based compensation expense within the cost of platform. This metric also showed growth for both periods Gross Profit to Platform Contribution Reconciliation ($ in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Gross Profit | 112,765 | 98,263 | 216,380 | 191,643 | | Amortization of intangibles assets | 2,396 | 1,527 | 4,069 | 3,054 | | Cost of platform | (64,918) | (57,106) | (124,444) | (111,163) | | Stock-based compensation (in Cost of Platform) | 7,223 | 4,710 | 13,194 | 8,597 | | **Platform Contribution** | **57,466** | **47,394** | **109,199** | **92,131** | - Platform Contribution increased by **21.3%** in Q2 2025 and **18.5%** in H1 2025, indicating improved profitability from the core platform services[3](index=3&type=chunk)[8](index=8&type=chunk)[36](index=36&type=chunk) [Net Income to Adjusted EBITDA Reconciliation](index=11&type=section&id=4.4.3%20Net%20Income%20to%20Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA, a key non-GAAP measure of operational performance, is reconciled from net income by adding back non-controlling interests, income taxes, interest, depreciation, amortization, stock-based compensation, and other non-recurring expenses. This reconciliation shows a substantial increase in Adjusted EBITDA for both periods Net Income to Adjusted EBITDA Reconciliation ($ in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Net income | 2,687 | 3,467 | 6,907 | 6,451 | | Net income attributable to non-controlling interests | 601 | 1,176 | 2,427 | 1,248 | | Provision for income taxes | 2,456 | 3,421 | 4,559 | 4,172 | | Interest income, net | (2,408) | (2,966) | (5,339) | (5,950) | | Depreciation and amortization | 2,583 | 1,818 | 4,484 | 3,639 | | Stock-based compensation | 18,849 | 14,391 | 36,639 | 26,295 | | Other expenses | 4,224 | 716 | 6,230 | 6,090 | | **Adjusted EBITDA** | **28,992** | **22,023** | **55,907** | **41,945** | - Adjusted EBITDA increased by **31.6%** in Q2 2025 and **33.3%** in H1 2025, demonstrating strong underlying operational profitability[3](index=3&type=chunk)[8](index=8&type=chunk)[37](index=37&type=chunk) [Net Income to Adjusted Net Income and Adjusted Net Income Per Share Reconciliation](index=12&type=section&id=4.4.4%20Net%20Income%20to%20Adjusted%20Net%20Income%20and%20Adjusted%20Net%20Income%20Per%20Share%20Reconciliation) Adjusted Net Income and Adjusted Net Income Per Share are non-GAAP measures that exclude stock-based compensation, intangible amortization, provision for income tax, and other non-recurring expenses from GAAP net income. These adjusted metrics show significant growth, providing a clearer view of core earnings Net Income to Adjusted Net Income Reconciliation ($ in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Net income | 2,687 | 3,467 | 6,907 | 6,451 | | Stock-based compensation | 18,849 | 14,391 | 36,639 | 26,295 | | Intangible amortization expense | 2,396 | 1,527 | 4,069 | 3,054 | | Provision for income tax | 2,456 | 3,421 | 4,559 | 4,172 | | Other expenses | 4,224 | 716 | 6,230 | 6,090 | | **Adjusted net income** | **30,612** | **23,522** | **58,404** | **46,062** | | Adjusted net income per share (diluted) | 0.24 | 0.19 | 0.46 | 0.37 | - Adjusted net income increased by **30.1%** in Q2 2025 and **26.8%** in H1 2025, while diluted adjusted net income per share grew by **26.3%** and **24.3%** respectively[2](index=2&type=chunk)[6](index=6&type=chunk)[38](index=38&type=chunk) [Legal and Investor Information](index=3&type=section&id=5.%20Legal%20and%20Investor%20Information) [Non-GAAP Financial Measures Disclosure](index=3&type=section&id=5.1%20Non-GAAP%20Financial%20Measures%20Disclosure) Privia Health uses non-GAAP financial measures to supplement GAAP results, believing they offer useful insights into operating performance and trends for management and investors. These measures are not substitutes for GAAP results and are reconciled to the most directly comparable GAAP measures - Non-GAAP financial measures are presented as a supplement to GAAP results to provide a more consistent understanding of operating results and trends[15](index=15&type=chunk)[16](index=16&type=chunk)[18](index=18&type=chunk) - Reconciliations to the most directly comparable GAAP financial measures are provided in the press release[15](index=15&type=chunk)[17](index=17&type=chunk) [Safe Harbor Statement](index=4&type=section&id=5.2%20Safe%20Harbor%20Statement) The press release contains forward-looking statements regarding future expectations, projections, and assumptions, including the full-year 2025 guidance. These statements are subject to various risks and uncertainties, which could cause actual results to differ materially from those anticipated - The press release includes forward-looking statements, identifiable by terms like 'expects,' 'forecasts,' 'outlook,' and 'guidance,' which are based on current expectations and assumptions[19](index=19&type=chunk) - Actual results may differ materially due to various factors, including regulatory compliance, legal framework complexity, growth strategy execution, competition, third-party vendor failures, reimbursement rate changes, privacy and security risks, and workforce availability[19](index=19&type=chunk)[20](index=20&type=chunk) - The company cautions against undue reliance on forward-looking statements and undertakes no duty to update this information unless required by law[19](index=19&type=chunk)[20](index=20&type=chunk) [Contact Information](index=5&type=section&id=5.3%20Contact%20Information) Contact details for investor and corporate communications are provided for inquiries regarding Privia Health - Robert Borchert, SVP, Investor & Corporate Communications, is the contact person for inquiries[21](index=21&type=chunk) - Contact can be made via email at IR@priviahealth.com or phone at 817.783.4841[21](index=21&type=chunk)

Core Insights - Privia Health Group, Inc. reported strong financial results for the second quarter of 2025, with total revenue increasing by 23.4% year-over-year to $521.2 million, and gross profit rising by 14.8% to $112.8 million [2][4][6]. Financial Performance - Total revenue for the second quarter of 2025 was $521.2 million, compared to $422.3 million in the same period of 2024, reflecting a 23.4% increase [2]. - Gross profit for the second quarter of 2025 was $112.8 million, up from $98.3 million in 2024, marking a 14.8% increase [2]. - Operating income decreased by 34.6% to $3.3 million, while net income fell by 22.5% to $2.7 million [2][6]. - Non-GAAP adjusted net income increased by 30.1% to $30.6 million, with adjusted net income per share rising by 26.3% to $0.24 [2][6]. Key Operating Metrics - The number of implemented providers increased by 13.8% to 5,125, and value-based care attributed lives rose by 15.2% to 1,382,000 [2][4]. - Practice collections for the second quarter reached $862.9 million, an 18.5% increase compared to the previous year [2][4]. - Adjusted EBITDA for the second quarter was $29.0 million, reflecting a 31.6% increase from $22.0 million in 2024 [2][4]. Six-Month Performance - For the first half of 2025, total revenue was $1,001.3 million, up 19.5% from $837.6 million in the same period of 2024 [6]. - Gross profit for the first half was $216.4 million, a 12.9% increase from $191.6 million [6]. - Non-GAAP adjusted net income for the first half increased by 26.8% to $58.4 million [6]. Updated Guidance - Privia Health raised its full-year 2025 guidance for practice collections, GAAP revenue, platform contribution, and adjusted EBITDA, indicating strong growth expectations [8][9]. - The updated guidance includes expectations for implemented providers to reach 5,300 and attributed lives to reach 1,400,000 [8][9]. Cash Position - The company reported cash and cash equivalents of $390.1 million with no debt, following a $95 million deployment for an IMS transaction in Arizona [5][6].

Core Viewpoint - Privia Health Group, Inc. is set to release its financial results for the second quarter and six-month periods ending June 30, 2025, on August 7, 2025, before market open [1] Financial Results Announcement - The press release will be available at 7:00 am ET on August 7, 2025, on the Company's Investor Relations website [2] - A conference call will be hosted by Privia Health management at 8:00 am ET on the same day to discuss the financial results and future outlook [2][3] 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 [4] - The company builds scaled provider networks with a focus on primary-care centric medical groups and risk-bearing entities [4] - Privia collaborates with medical groups, health plans, and health systems to optimize over 1,200 physician practices, enhancing the patient experience for more than 5.2 million patients [4] - The company rewards over 4,800 physicians and advanced practitioners for delivering high-value care [4] Mission Statement - Privia's mission is to transform healthcare delivery to achieve better outcomes, lower costs, and improve community health and provider well-being [5]