Privia Health (PRVA) - 2025 Q1 - Quarterly Report

Part I Financial Statements 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 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 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 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 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][26] 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] - As of March 31, 2025, no amounts were outstanding under the $125 million Revolving Credit Facility[65] - 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] Management's Discussion and Analysis (MD&A) 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 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] Results of Operations 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][141] Liquidity and Capital Resources 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] - 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] - 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] Market Risk 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] - Management believes that inflation has not had a material effect on operating results for the periods presented[166] Controls and Procedures 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] - 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] Part II Legal Proceedings and Risk Factors 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] - There have been no material changes to the risk factors disclosed in the Company's Annual Report[170]