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]

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)

Financial Data and Key Metrics Changes - Privia Health reported a total practice collections growth of 12.8% year over year, reaching $798.6 million [9][16] - Adjusted EBITDA increased by 35.1% to $26.9 million, representing an EBITDA margin of 25.6%, which is a 460 basis point improvement from the previous year [9][16] - The company ended the first quarter with $469 million in cash and no debt, following typical quarterly cash outflows [16][17] Business Line Data and Key Metrics Changes - Implemented provider growth was 11.7% year over year, reaching 4,871 providers [9][16] - Value-based attribution growth was 11.1% year over year, contributing to the overall growth in practice collections [9][16] - The number of attributed lives increased by 11.1% year over year, with commercial attributed lives up 13.6% [14][16] Market Data and Key Metrics Changes - Privia Health now operates across 15 states and the District of Columbia, serving over 5.2 million patients [13] - The company serves 1.27 million attributed lives across more than 100 commercial and government value-based care programs [13][14] - Lives attributed to Medicare Advantage and Medicaid increased by over 811% year over year [14] Company Strategy and Development Direction - The company is pursuing disciplined growth, recently entering the Arizona market with a strategic partnership with IMS, a large independent multi-specialty practice [10][11] - The focus remains on generating positive contribution margins in value-based care contracts while managing risk and enhancing clinical operations [15] - The company aims for 20% EBITDA growth and continues to evaluate moving to greater downside risk when appropriate [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve consistent and sustainable earnings growth despite challenges in the healthcare environment [15][17] - The strong performance in Q1 has led to an increase in the 2025 guidance to the mid to high end of the initial ranges [17] - Management noted that the Arizona market is expected to be EBITDA positive by Q4 2025, contributing meaningfully to adjusted EBITDA in 2026 [11][12] Other Important Information - The company maintains a robust pipeline for market expansion and potential new opportunities, with capital expenditures expected to be minimal [17][18] - The company has delivered consistent growth in profitability across various economic and regulatory cycles over the past seven years [18] Q&A Session Summary Question: Can you discuss the IMS transaction and its prospects? - Management highlighted the strategic importance of the Arizona market and the cultural alignment with IMS, which is expected to contribute significantly to EBITDA [24][25] Question: What is the PCP versus specialist mix at IMS? - IMS is a multi-specialty practice with a healthy mix, slightly skewed towards specialists, and has a significant attributed life base [29][31] Question: How did ambulatory utilization perform relative to guidance? - Management noted strong ambulatory utilization trends, which have positively impacted practice collections and are expected to continue [35][36] Question: Are there new market entry costs included in the guidance? - Guidance includes new market entry costs, but the transaction is expected to be EBITDA positive upon implementation [39][41] Question: What is the growth in capitated lives? - Growth was primarily organic, with existing providers seeing more patients and new providers joining existing contracts [44][46] Question: Any updates on the AI partnership for physician productivity? - Adoption of the AI solution has been significant, improving clinical documentation and workflow for providers [86][87] Question: How have conversations with providers changed this year? - Providers are more receptive to joining the Privia platform due to the comprehensive nature of the services offered [118][120]

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]