Privia Health (PRVA) - 2025 Q1 - Quarterly Results

Financial & Operational Highlights First Quarter 2025 Financial Performance 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] First Quarter 2025 Operating Metrics 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 Arizona Market Entry 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] - The transaction involved a $95 million cash payment at closing[6] - IMS has approximately 70 physicians and advanced practice providers, managing over 28,000 patient lives in value-based care arrangements[6] - The transaction and launch in Arizona are expected to be profitable starting in the fourth quarter of 2025[7] Updated FY'25 Guidance 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][8] 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] Consolidated Financial Statements 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 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 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 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 This section provides further detail on the company's financial performance, including revenue breakdown and reconciliations of non-GAAP financial measures Disaggregated Revenue 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 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 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 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 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 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 |