Group 1 - Privia Health Group, Inc. appointed Lance V. Berberian to its Board of Directors, effective July 15, 2025, increasing the Board to 10 directors [1][2] - Berberian brings over 30 years of experience in technology strategy and digital transformation, having previously served as EVP and Chief Information and Technology Officer at Labcorp Holdings Inc. [2] - His expertise includes IT governance, infrastructure management, and cybersecurity, which is expected to support Privia Health's growth and development of provider networks across the U.S. [2] Group 2 - 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 optimizes over 1,200 physician practices, enhancing patient experiences for more than 5.2 million patients and rewarding over 4,800 physicians and advanced practitioners [4] - Privia's mission focuses on transforming healthcare delivery to achieve better outcomes, lower costs, and improve community health and provider well-being [5]

Financial Performance - Privia Health reported revenue of $480.1 million for the quarter ended March 2025, marking a year-over-year increase of 15.6% [1] - The reported revenue exceeded the Zacks Consensus Estimate of $455.65 million by 5.37% [1] - Earnings per share (EPS) for the quarter was $0.03, compared to $0.02 a year ago, but fell short of the consensus EPS estimate of $0.06, resulting in a surprise of -50.00% [1] Key Metrics - Practice Collections reached $798.60 million, surpassing the average estimate of $780.88 million from six analysts [4] - Care Margin was reported at $105.30 million, slightly below the average estimate of $106.25 million based on five analysts [4] - Platform Contribution amounted to $51.70 million, exceeding the five-analyst average estimate of $50.60 million [4] - The number of Implemented Providers at the end of the period was 4,871, slightly above the average estimate of 4,867 from two analysts [4] - Value-Based Care Attributed Lives stood at 1.27 million, just below the average estimate of 1.28 million from two analysts [4] Stock Performance - Shares of Privia Health have returned +1.2% over the past month, in contrast to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Part I [Financial Statements](index=5&type=section&id=Item%201.%20Condensed%20Financial%20Statements%20(Unaudited)) Privia Health reported Q1 2025 total revenue of $480.1 million, a 15.6% increase, with net income of $4.2 million and total assets of $1.18 billion, while operating cash outflow improved to $24.1 million [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $1.18 billion as of March 31, 2025, driven by higher accounts receivable, while cash and equivalents decreased to $469.3 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $469,331 | $491,149 | | Accounts receivable | $388,727 | $316,179 | | Total current assets | $886,467 | $834,823 | | Goodwill | $141,615 | $141,615 | | Total assets | $1,183,538 | $1,135,783 | | **Liabilities & Equity** | | | | Provider liability | $400,288 | $364,607 | | Total current liabilities | $470,810 | $449,146 | | Total liabilities | $474,012 | $452,336 | | Total stockholders' equity | $709,526 | $683,447 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue increased 15.6% to $480.1 million, with operating income surging to $5.2 million and net income attributable to Privia Health growing to $4.2 million Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $480,097 | $415,243 | | Provider expense | $374,809 | $320,336 | | Total operating expenses | $474,879 | $414,420 | | Operating income | $5,218 | $823 | | Net income attributable to Privia Health Group, Inc. | $4,220 | $2,984 | | Diluted EPS | $0.03 | $0.02 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $24.1 million in Q1 2025, with no cash used in investing activities and $2.2 million provided by financing activities Q1 2025 vs. Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(24,061) | $(33,137) | | Net cash used in investing activities | $0 | $(5,713) | | Net cash provided by financing activities | $2,243 | $475 | | **Net decrease in cash and cash equivalents** | **$(21,818)** | **$(38,375)** | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Key notes detail revenue sources, assets, liabilities, and debt, with a significant subsequent event being the April 2025 entry into the Arizona market for approximately $95 million - The company operates in 15 markets as of March 31, 2025, providing management services to Medical Groups through Management Services Organizations (MSOs)[25](index=25&type=chunk)[26](index=26&type=chunk) Disaggregated Revenue by Source (in thousands) | Revenue Source | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | FFS-patient care | $311,761 | $274,823 | | FFS-administrative services | $32,255 | $29,076 | | Capitated revenue | $70,690 | $51,304 | | Shared savings | $47,912 | $47,464 | | Care management fees (PMPM) | $15,201 | $10,603 | | **Total revenue** | **$480,097** | **$415,243** | - The company's provider liability for unpaid medical claims under at-risk capitation arrangements increased to **$86.4 million** at the end of Q1 2025, up from $74.5 million in the prior-year period[62](index=62&type=chunk) - As of March 31, 2025, no amounts were outstanding under the **$125 million Revolving Credit Facility**[65](index=65&type=chunk) - In April 2025, the company entered the Arizona market through a partnership with a multi-specialty practice, paying approximately **$95 million** in cash at closing[85](index=85&type=chunk) [Management's Discussion and Analysis (MD&A)](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes 15.6% Q1 revenue growth to FFS and VBC streams, with Implemented Providers up 11.7% and Adjusted EBITDA rising 35.1% to $26.9 million [Key Metrics and Non-GAAP Financial Measures](index=20&type=section&id=Key%20Metrics%20and%20Non-GAAP%20Financial%20Measures) Key operational metrics show strong growth, with Implemented Providers up 11.7% and Attributed Lives up 11.1%, while Adjusted EBITDA increased 35.1% to $26.9 million Key Operational Metrics | Metric | As of March 31, 2025 | As of March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Implemented Providers | 4,871 | 4,359 | 11.7% | | Attributed Lives (in thousands) | 1,270 | 1,143 | 11.1% | | Practice Collections ($ in millions) | $798.6 | $707.7 | 12.8% | Non-GAAP Financial Measures (in thousands) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Care Margin | $105,288 | $94,907 | 10.9% | | Platform Contribution | $51,733 | $44,737 | 15.6% | | Adjusted EBITDA | $26,915 | $19,922 | 35.1% | - Adjusted EBITDA increased **35.1%** due to organic growth, growth in Attributed Lives, and expansion of the value-based care business[128](index=128&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Total revenue for Q1 2025 increased 15.6% to $480.1 million, driven by FFS-patient care and capitated revenue, leading to a significant improvement in operating income to $5.2 million Results of Operations Comparison (in thousands) | Line Item | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$480,097** | **$415,243** | **$64,854** | **15.6%** | | Provider expense | $374,809 | $320,336 | $54,473 | 17.0% | | Cost of platform | $59,526 | $54,057 | $5,469 | 10.1% | | General and administrative | $31,721 | $32,121 | $(400) | (1.2)% | | **Operating income** | **$5,218** | **$823** | **$4,395** | **534.0%** | | **Net income attributable to Privia** | **$4,220** | **$2,984** | **$1,236** | **41.4%** | - The **15.6% revenue growth** was primarily driven by a **13.4% increase in FFS-patient care revenue** and a **37.8% increase in capitated revenue**, reflecting growth in providers, visit volume, and Attributed Lives in at-risk arrangements[140](index=140&type=chunk)[141](index=141&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held $469.3 million in cash and equivalents, with management confident in sufficient liquidity to meet both short-term and long-term capital requirements - The company ended Q1 2025 with **$469.3 million in cash and cash equivalents**[151](index=151&type=chunk) - Net cash used in operating activities improved to **$24.1 million** in Q1 2025 from $33.1 million in Q1 2024, mainly due to higher net income and changes in working capital[157](index=157&type=chunk) - Management believes existing cash and operational cash flow will be adequate to meet anticipated cash requirements for both the short term (next 12 months) and long term (beyond 12 months)[154](index=154&type=chunk) [Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk stems from interest rate fluctuations on its variable-rate credit agreement, though no debt was outstanding, and inflation has not materially impacted operating results - The company's primary market risk is from changing interest rates on its Credit Agreement, which has a variable rate. However, as of March 31, 2025, there was **no outstanding debt**[165](index=165&type=chunk) - Management believes that inflation has not had a material effect on operating results for the periods presented[166](index=166&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[167](index=167&type=chunk) - No changes were made during Q1 2025 that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[168](index=168&type=chunk) Part II [Legal Proceedings and Risk Factors](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary legal proceedings not expected to have a material adverse effect, with no material changes to previously disclosed risk factors - The company is involved in legal proceedings in the ordinary course of business but does not believe the final outcome of current matters will have a **material adverse effect**[169](index=169&type=chunk) - There have been **no material changes** to the risk factors disclosed in the Company's Annual Report[170](index=170&type=chunk)

Privia Health Group (PRVA) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Company Participants Robert Borchert - SVP, Investor and Corporate CommunicationsParth Mehrotra - CEODavid Mountcastle - EVP & CFOJailendra Singh - Managing DirectorJoshua Raskin - Partner - Managed Care & ProvidersRichard Close - Managing DirectorAlberta Massey - Equity Research AssociateA.J. Rice - Managing DirectorThomas Walsh - Equity Research AssociateConstantine Davides - Managing DirectorJack Slevin - VP - Healthcare Services E ...

Core Viewpoint - Privia Health (PRVA) reported quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.06 per share, representing a 50% earnings surprise [1][6] - The company posted revenues of $480.1 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 5.37% and showing a year-over-year increase from $415.24 million [2] Group 1: Earnings Performance - Privia Health's earnings of $0.03 per share for the recent quarter is an increase from $0.02 per share a year ago, but still below expectations [1] - The company has not surpassed consensus EPS estimates over the last four quarters [2][6] Group 2: Revenue Performance - The reported revenue of $480.1 million for the quarter represents a 15.6% increase compared to the previous year's revenue of $415.24 million [2] - Privia Health has exceeded consensus revenue estimates in all four quarters over the past year [2] Group 3: Stock Performance and Outlook - Privia Health shares have increased by approximately 19.3% since the beginning of the year, contrasting with a decline of 4.3% in the S&P 500 [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Group 4: Earnings Estimates and Industry Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $461.1 million, and for the current fiscal year, it is $0.24 on revenues of $1.88 billion [7] - The Medical Info Systems industry, to which Privia Health belongs, is currently ranked in the top 32% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Q1 2025 Performance Highlights - Implemented Providers increased by 11.7% compared to Q1 2024[8] - Practice Collections grew by 12.8% compared to Q1 2024[8] - Adjusted EBITDA increased by 35.1%[8] - Adjusted EBITDA margin was 25.6%, a 460 bps increase compared to Q1 2024[8] Strategic Expansion - Entered the Arizona market through a partnership with IMS, a multi-specialty group with approximately 70 MDs and APPs[9] - The Arizona market includes 28,000+ value-based care attributed lives across various programs[9] - $95 million in cash consideration was paid at closing for the Arizona market entry[9] National Presence and Value-Based Care - The company operates in 15 states plus D C, with over 1,200 care center locations and 5 2 million+ patients[10] - Total Attributed Lives amount to 1 27 million[14] - Government Lives account for 491,000, while Commercial Lives account for 779,000[14] Financial Position and Updated Guidance - The company has $469 3 million in cash and no debt as of March 31, 2025[20] - FY 2025 guidance for Implemented Providers, Practice Collections, GAAP Revenue, Care Margin, and Platform Contribution was raised to the mid-to-high end of the initial ranges[8, 23] - Attributed Lives guidance for FY 2025 remains unchanged at 1 3 million to 1 4 million[8, 23]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) [First Quarter 2025 Financial Performance](index=1&type=section&id=First%20Quarter%202025%20Financial%20Performance) Privia Health reported strong financial results for the first quarter of 2025, with significant year-over-year growth across key metrics First Quarter 2025 Financial Performance (Millions USD) | Metric | 2025 (Millions USD) | 2024 (Millions USD) | Change (%) | | :--- | :--- | :--- | :--- | | **Total revenue** | $480.1 | $415.2 | 15.6% | | **Gross profit** | $103.6 | $93.4 | 11.0% | | **Operating income** | $5.2 | $0.8 | 534.0% | | **Net income** | $4.2 | $3.0 | 41.4% | | **Non-GAAP adjusted net income** | $27.8 | $22.5 | 23.3% | | **Net income per share** | $0.03 | $0.02 | 50.0% | | **Non-GAAP adjusted net income per share** | $0.22 | $0.18 | 22.2% | - Net income for Q1 2025 included **$17.8 million** in non-cash stock compensation expense, an increase from **$11.9 million** in Q1 2024[3](index=3&type=chunk) [First Quarter 2025 Operating Metrics](index=1&type=section&id=First%20Quarter%202025%20Operating%20Metrics) The company demonstrated robust operational growth in Q1 2025, driving increased practice collections and Adjusted EBITDA First Quarter 2025 Operating Metrics (in millions, except as noted) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Implemented Providers | 4,871 | 4,359 | 11.7% | | Value-Based Care Attributed Lives | 1,270,000 | 1,143,000 | 11.1% | | Practice Collections (Millions USD) | $798.6 | $707.7 | 12.8% | | Care Margin (Millions USD) | $105.3 | $94.9 | 10.9% | | Platform Contribution (Millions USD) | $51.7 | $44.7 | 15.6% | | Adjusted EBITDA (Millions USD) | $26.9 | $19.9 | 35.1% | [Strategic Developments & Financial Outlook](index=2&type=section&id=Strategic%20Developments%20%26%20Financial%20Outlook) [Arizona Market Entry](index=2&type=section&id=Arizona%20Market%20Entry) Privia Health expanded into Arizona by acquiring Integrated Medical Services (IMS) for $95 million in cash, with profitability expected in Q4 2025 - Privia Health entered the Arizona market through a partnership with Integrated Medical Services (IMS), one of the state's largest independent multi-specialty practices[6](index=6&type=chunk) - The transaction involved a **$95 million** cash payment at closing[6](index=6&type=chunk) - IMS has approximately **70 physicians** and advanced practice providers, managing over **28,000 patient lives** in value-based care arrangements[6](index=6&type=chunk) - The transaction and launch in Arizona are expected to be profitable starting in the **fourth quarter of 2025**[7](index=7&type=chunk) [Updated FY'25 Guidance](index=2&type=section&id=Updated%20FY%2725%20Guidance) Reflecting strong Q1 performance and the Arizona market entry, Privia Health raised its full-year 2025 outlook for most key metrics - The full-year 2025 outlook was raised to the **mid- to high end** of guidance ranges for all metrics except for Attributed Lives, which remains unchanged[4](index=4&type=chunk)[8](index=8&type=chunk) Updated Full-Year 2025 Guidance (in millions, except as noted) | Metric | FY 2024 Actual (Millions USD) | Initial FY 2025 Guidance (Low) (Millions USD) | Initial FY 2025 Guidance (High) (Millions USD) | Updated FY 2025 Guidance (5.8.25) | | :--- | :--- | :--- | :--- | :--- | | Implemented Providers | 4,789 | 5,200 | 5,300 | Mid to High End | | Attributed Lives | 1,256,000 | 1,300,000 | 1,400,000 | Unchanged | | Practice Collections (Millions USD) | $2,968.0 | $3,150 | $3,250 | Mid to High End | | GAAP Revenue (Millions USD) | $1,736.4 | $1,800 | $1,900 | Mid to High End | | Care Margin (Millions USD) | $403.9 | $435 | $445 | Mid to High End | | Platform Contribution (Millions USD) | $195.6 | $208 | $218 | Mid to High End | | Adjusted EBITDA (Millions USD) | $90.5 | $105 | $110 | Mid to High End | - Guidance assumes at least **80% of Adjusted EBITDA** is expected to convert to free cash flow in full-year 2025[8](index=8&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated statements of operations, balance sheets, and cash flows for the reporting period [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, Privia Health reported total revenue of $480.1 million, operating income of $5.2 million, and net income of $4.2 million Condensed Consolidated Statements of Operations (in thousands) | Metric | For the Three Months Ended March 31, 2025 (Thousands USD) | For the Three Months Ended March 31, 2024 (Thousands USD) | | :--- | :--- | :--- | | **Revenue** | **$480,097** | **$415,243** | | Total operating expenses | $474,879 | $414,420 | | **Operating income** | **$5,218** | **$823** | | Income before provision for income taxes | $8,149 | $3,807 | | **Net income attributable to Privia Health Group, Inc.** | **$4,220** | **$2,984** | | Net income per share – diluted | $0.03 | $0.02 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets reached $1.18 billion, with cash and cash equivalents at $469.3 million, and total stockholders' equity at $709.5 million Condensed Consolidated Balance Sheets (in thousands) | Metric | March 31, 2025 (Thousands USD) | December 31, 2024 (Thousands USD) | | :--- | :--- | :--- | | **Total current assets** | **$886,467** | **$834,823** | | Cash and cash equivalents | $469,331 | $491,149 | | **Total assets** | **$1,183,538** | **$1,135,783** | | **Total current liabilities** | **$470,810** | **$449,146** | | **Total liabilities** | **$474,012** | **$452,336** | | **Total stockholders' equity** | **$709,526** | **$683,447** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $24.1 million in Q1 2025, with cash and cash equivalents ending at $469.3 million Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | For the Three Months Ended March 31, 2025 (Thousands USD) | For the Three Months Ended March 31, 2024 (Thousands USD) | | :--- | :--- | :--- | | Net cash used in operating activities | ($24,061) | ($33,137) | | Net cash used in investing activities | — | ($5,713) | | Net cash provided by financing activities | $2,243 | $475 | | **Net decrease in cash and cash equivalents** | **($21,818)** | **($38,375)** | | Cash and cash equivalents at end of period | $469,331 | $351,136 | [Supplemental Financial Information & Non-GAAP Reconciliations](index=8&type=section&id=Supplemental%20Financial%20Information%20%26%20Non-GAAP%20Reconciliations) This section provides further detail on the company's financial performance, including revenue breakdown and reconciliations of non-GAAP financial measures [Disaggregated Revenue](index=8&type=section&id=Disaggregated%20Revenue) In Q1 2025, Fee-for-Service patient care remained the primary revenue driver, while capitated revenue showed strong growth Disaggregated Revenue (in thousands) | Revenue Source | For the Three Months Ended March 31, 2025 (Thousands USD) | For the Three Months Ended March 31, 2024 (Thousands USD) | | :--- | :--- | :--- | | FFS-patient care | $311,761 | $274,823 | | FFS-administrative services | $32,255 | $29,076 | | Capitated revenue | $70,690 | $51,304 | | Shared savings | $47,912 | $47,464 | | Care management fees (PMPM) | $15,201 | $10,603 | | **Total Revenue** | **$480,097** | **$415,243** | [Non-GAAP Reconciliations](index=9&type=section&id=Non-GAAP%20Reconciliations) The company provides reconciliations for its key non-GAAP metrics to bridge the gap with reported GAAP figures [Reconciliation of Gross Profit to Care Margin](index=10&type=section&id=Reconciliation%20of%20Gross%20Profit%20to%20Care%20Margin) Care Margin is calculated by adding back the amortization of intangible assets to Gross Profit Reconciliation of Gross Profit to Care Margin (in thousands) | Metric | For the Three Months Ended March 31, 2025 (Thousands USD) | For the Three Months Ended March 31, 2024 (Thousands USD) | | :--- | :--- | :--- | | Gross Profit | $103,615 | $93,380 | | Amortization of intangibles assets | 1,673 | 1,527 | | **Care margin** | **$105,288** | **$94,907** | [Reconciliation of Gross Profit to Platform Contribution](index=10&type=section&id=Reconciliation%20of%20Gross%20Profit%20to%20Platform%20Contribution) Platform Contribution is derived from Gross Profit by adjusting for amortization, stock-based compensation, and the cost of the platform Reconciliation of Gross Profit to Platform Contribution (in thousands) | Metric | For the Three Months Ended March 31, 2025 (Thousands USD) | For the Three Months Ended March 31, 2024 (Thousands USD) | | :--- | :--- | :--- | | Gross Profit | $103,615 | $93,380 | | Amortization of intangibles assets | 1,673 | 1,527 | | Cost of platform | (59,526) | (54,057) | | Stock-based compensation | 5,971 | 3,887 | | **Platform Contribution** | **$51,733** | **$44,737** | [Reconciliation of Net Income to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Adjusted EBITDA is calculated by adjusting Net Income for items such as taxes, interest, depreciation & amortization, and stock-based compensation Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | For the Three Months Ended March 31, 2025 (Thousands USD) | For the Three Months Ended March 31, 2024 (Thousands USD) | | :--- | :--- | :--- | | Net income | $4,220 | $2,984 | | Adjustments (taxes, interest, D&A, stock comp, etc.) | $22,695 | $16,938 | | **Adjusted EBITDA** | **$26,915** | **$19,922** | [Reconciliation of Net Income to Adjusted Net Income](index=11&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) Adjusted Net Income excludes non-cash expenses like stock-based compensation and intangible amortization, as well as other non-recurring items Reconciliation of Net Income to Adjusted Net Income (in thousands) | Metric | For the Three Months Ended March 31, 2025 (Thousands USD) | For the Three Months Ended March 31, 2024 (Thousands USD) | | :--- | :--- | :--- | | Net income | $4,220 | $2,984 | | Stock-based compensation | 17,790 | 11,904 | | Intangible amortization expense | 1,673 | 1,527 | | Provision for income tax | 2,103 | 751 | | Other expenses | 2,006 | 5,374 | | **Adjusted net income** | **$27,792** | **$22,540** |

Core Insights - Privia Health Group, Inc. reported strong financial results for Q1 2025, with total revenue increasing by 15.6% to $480.1 million compared to $415.2 million in Q1 2024 [2][21] - The company achieved a significant increase in operating income, rising 534.0% to $5.2 million from $0.8 million year-over-year [2][21] - Privia Health raised its full-year 2025 guidance to the mid- to high end of its previous estimates across various metrics, indicating confidence in continued growth [5][8] Financial Performance - Total revenue for Q1 2025 was $480.1 million, up from $415.2 million in Q1 2024, reflecting a 15.6% increase [2] - Gross profit increased by 11.0% to $103.6 million from $93.4 million [2] - Net income rose by 41.4% to $4.2 million compared to $3.0 million in the same quarter last year [2] - Non-GAAP adjusted net income was $27.8 million, a 23.3% increase from $22.5 million [2] Key Operating Metrics - The number of implemented providers increased by 11.7% to 4,871 from 4,359 [4] - Value-based care attributed lives grew by 11.1% to 1,270,000 from 1,143,000 [4] - Practice collections reached $798.6 million, a 12.8% increase from $707.7 million [4] - Adjusted EBITDA for Q1 2025 was $26.9 million, up 35.1% from $19.9 million in Q1 2024 [4][6] Strategic Developments - Privia Health entered the Arizona market in partnership with Integrated Medical Services, which includes approximately 70 physicians and advanced practice providers [5][7] - The Arizona launch is expected to be profitable starting in Q4 2025, contributing to the company's growth strategy [5][7] Updated Guidance - Full-year 2025 guidance was raised to the mid- to high end of previous estimates for implemented providers, practice collections, and GAAP revenue [8] - The updated guidance includes expectations for minimal year-over-year increases in value-based shared savings accruals and assumes no other new business development activity [10]

Group 1 - Analysts project that Privia Health (PRVA) will announce quarterly earnings of $0.06 per share, representing a 200% increase year over year [1] - Revenues are projected to reach $455.65 million, increasing by 9.7% from the same quarter last year [1] - The consensus EPS estimate has undergone a downward revision of 4% in the past 30 days, indicating a reassessment by covering analysts [2] Group 2 - Analysts estimate that 'Practice Collections' will likely reach $780.88 million, compared to $707.70 million in the same quarter of the previous year [5] - The consensus for 'Care Margin' is projected to be $106.25 million, up from $94.90 million a year ago [5] - The estimated 'Platform Contribution' is $50.60 million, an increase from $44.70 million in the previous year [6] Group 3 - Shares of Privia Health have experienced a change of +4.5% in the past month, compared to a +10.6% move of the Zacks S&P 500 composite [6] - With a Zacks Rank 4 (Sell), PRVA is expected to underperform the overall market in the near future [6]

Core Insights - Privia Health Group, Inc. has entered into a partnership with Integrated Medical Services, Inc. (IMS) to expand its operations into Arizona, marking the 15th state in its national network [1][5] - The partnership will establish Privia Medical Group—Arizona, which aims to provide a new alternative for independent providers to care for patients across various reimbursement models [2][4] - The implementation of IMS on the Privia Platform is expected to occur in the fourth quarter of 2025, with profitability anticipated starting in the same quarter and for the full year of 2026 [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, and managing over 1,200 physician practices [5] - The company focuses on building scaled provider networks with a primary-care centric approach, utilizing a physician-led governance structure and a comprehensive technology and service platform [5][6] - Privia's mission is to transform healthcare delivery to achieve better outcomes, lower costs, and enhance community health and provider well-being [6] Partnership Details - IMS, with approximately 70 physicians and advanced practice providers, manages over 28,000 attributed lives across various value-based care arrangements [1][2] - The partnership is designed to maintain IMS's physician-owned and operated structure while leveraging Privia's expertise and technology to enhance patient care and practice vitality [4] - Both parties express a commitment to preserving IMS's culture and community focus while expanding their capabilities through this collaboration [4]