Information Regarding Forward-Looking Statements This section outlines forward-looking statements, noting actual results may differ due to risks and uncertainties - The report contains forward-looking statements covered by safe harbor provisions, identifiable by terms like 'may,' 'expects,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'predicts,' 'potential,' or 'continue'8 - Actual results, activity levels, performance, or achievements may differ materially from expectations due to important factors, including risks related to the heavily regulated industry, complex legal frameworks, growth strategy execution, technology implementation difficulties, high competition, and potential decreases in reimbursement rates810 - The company does not plan to publicly update or revise any forward-looking statements unless required by applicable law9 Part I - Financial Information Item 1. Financial Statements This section presents unaudited consolidated financial statements and notes for Q2 2025 and FY 2024 Condensed Consolidated Balance Sheets Balance sheets show increased assets and liabilities from December 2024 to June 2025, driven by receivables and provider liability | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total assets | $1,272,542 | $1,135,783 | $136,759 | 12.04% | | Total liabilities | $538,996 | $452,336 | $86,660 | 19.16% | | Total stockholders' equity | $733,546 | $683,447 | $50,099 | 7.33% | | Cash and cash equivalents | $390,127 | $491,149 | $(101,022) | -20.57% | | Accounts receivable | $443,994 | $316,179 | $127,815 | 40.42% | | Intangible assets, net | $170,140 | $109,807 | $60,333 | 54.94% | | Goodwill | $172,215 | $141,615 | $30,600 | 21.61% | | Provider liability | $458,053 | $364,607 | $93,446 | 25.63% | Condensed Consolidated Statements of Operations Q2 2025 revenue increased, but operating and net income decreased; H1 2025 showed growth in all key metrics | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $521,153 | $422,326 | $98,827 | 23.40% | | Operating income | $3,336 | $5,098 | $(1,762) | -34.56% | | Net income attributable to Privia Health Group, Inc. | $2,687 | $3,467 | $(780) | -22.50% | | Basic EPS | $0.02 | $0.03 | $(0.01) | -33.33% | | Diluted EPS | $0.02 | $0.03 | $(0.01) | -33.33% | | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $1,001,250 | $837,569 | $163,681 | 19.54% | | Operating income | $8,554 | $5,921 | $2,633 | 44.47% | | Net income attributable to Privia Health Group, Inc. | $6,907 | $6,451 | $456 | 7.07% | | Basic EPS | $0.06 | $0.05 | $0.01 | 20.00% | | Diluted EPS | $0.05 | $0.05 | $0.00 | 0.00% | Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity increased to $733.5 million by June 2025, driven by paid-in capital and net income | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | % Change | | :-------------------------------------- | :------------ | :---------------- | :--------- | :------- | | Total Stockholders' Equity | $733,546 | $683,447 | $50,099 | 7.33% | | Common Stock Shares Outstanding | 122,673,254 | 120,309,346 | 2,363,908 | 1.96% | | Additional Paid-in Capital | $853,950 | $813,209 | $40,741 | 5.01% | | Accumulated Deficit | $(172,322) | $(179,229) | $6,907 | -3.85% | | Non-controlling Interest | $50,691 | $48,264 | $2,427 | 5.03% | - Issuance of common stock upon exercise of stock options and vesting of restricted stock units contributed $1.88 million to additional paid-in capital for the three months ended June 30, 202518 - Stock-based compensation expense added $18.85 million to additional paid-in capital for the three months ended June 30, 202518 Condensed Consolidated Statements of Cash Flows H1 2025 cash decreased due to acquisitions and operating activities, partially offset by financing activities | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Net cash (used in) provided by operating activities | $(16,090) | $1,330 | $(17,420) | | Net cash used in investing activities | $(89,058) | $(5,713) | $(83,345) | | Net cash provided by financing activities | $4,126 | $2,224 | $1,902 | | Net decrease in cash and cash equivalents | $(101,022) | $(2,159) | $(98,863) | | Cash and cash equivalents at end of period | $390,127 | $387,352 | $2,775 | - The substantial increase in cash used in investing activities is primarily due to business acquisitions, net of cash acquired, totaling $89.06 million in 202521160 - Operating activities shifted from providing $1.33 million in cash in 2024 to using $16.09 million in 2025, largely due to an increase in accounts receivable and prepaid expenses, partially offset by an increase in provider liability21159 Notes to Condensed Consolidated Financial Statements (Unaudited) These notes explain accounting policies, financial items, and disclosures for comprehensive understanding Note 1. Organization and Summary of Significant Accounting Policies Privia Health is a physician-enablement company operating in sixteen markets, consolidating Medical Groups and VIEs - Privia Health operates in sixteen markets as of June 30, 2025, including the Mid-Atlantic Region, Georgia, various Texas regions, Central Florida, Tennessee, California, Montana, Ohio, North Carolina, Connecticut, Washington state, South Carolina, Indiana, and Arizona24 - The company consolidates Owned Medical Groups, Friendly Medical Groups (e.g., PMG West Texas, PMG Tennessee, PMG Washington, PMG South Carolina, PMG Indiana), and PMG Arizona (an Owned Medical Group determined to be a VIE) based on ASC 810 criteria3335363738394041 - Non-Owned Medical Groups and Affiliated Practices are not consolidated as they do not meet the criteria for Variable Interest Entities (VIEs) under ASC 81035 | Metric (in millions) | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Aggregated carrying value of VIEs (current assets and liabilities) | $21.8 | $12.1 | Note 2. Revenue Recognition Revenue disaggregated by source shows growth in FFS, capitated, and shared savings; commercial insurers are largest payer | Revenue Source (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :---------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | FFS-patient care | $331,464 | $275,761 | $55,703 | 20.20% | | FFS-administrative services | $35,116 | $32,132 | $2,984 | 9.29% | | Capitated revenue | $75,511 | $56,438 | $19,073 | 33.80% | | Shared savings | $60,021 | $39,818 | $20,203 | 50.74% | | Care management fees (PMPM) | $16,919 | $16,163 | $756 | 4.68% | | Other revenue | $2,122 | $2,014 | $108 | 5.36% | | Total revenue | $521,153 | $422,326 | $98,827| 23.40% | | Payer Source | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | | :------------- | :--------------------------- | :--------------------------- | | Commercial insurers | 71% | 70% | | Government payers | 14% | 14% | | Patient | 15% | 16% | - Value Based Care (VBC) revenue, comprising Capitated revenue, Shared savings, and Care management fees, increased to 29.3% of total revenue for the three months ended June 30, 2025, from 26.6% in the prior year96 Note 3. Business Combinations On April 8, 2025, Privia Health acquired 51% of PMG AZ, entering Arizona, resulting in $95.0 million in net assets - Privia Health acquired a 51% ownership interest in Privia Medical Group Arizona (PMG AZ) on April 8, 2025, marking its entry into the Arizona market52 | Acquired Net Assets (in thousands) | Amount | | :--------------------------------- | :----- | | Cash | $5,942 | | Accounts receivable | $6,319 | | Payer contract and physician network intangibles | $64,400 | | Goodwill | $30,600 | | Accounts payable | $(12,261) | | Total acquired net assets | $95,000 | - PMG AZ contributed $17.70 million in revenue from the acquisition date through June 30, 202554 - The acquisition includes potential additional amounts up to $25.00 million, subject to future targets, with $10.00 million over three years and $15.00 million upon agreement renewal in 203054 Note 4. Goodwill and Intangible Assets, Net Goodwill increased to $172.2 million by June 2025 due to PMG AZ acquisition; intangible assets also rose | Metric (in millions) | June 30, 2025 | December 31, 2024 | Change ($) | % Change | | :------------------- | :------------ | :---------------- | :--------- | :------- | | Goodwill | $172.2 | $141.6 | $30.6 | 21.61% | | Intangible assets, net | $170.1 | $109.8 | $60.3 | 54.92% | - The increase in goodwill is primarily attributable to synergies related to the assembled workforce from the PMG AZ acquisition54 - Amortization expense for intangible assets was $2.40 million for the three months ended June 30, 2025 (up 60% YoY) and $4.10 million for the six months ended June 30, 2025 (up 34.4% YoY)57 - The remaining weighted average life of all amortizable intangible assets is approximately 17.3 years at June 30, 202556 Note 5. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses decreased to $74.3 million by June 2025, mainly due to reduced bonuses | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | % Change | | :-------------------- | :------------ | :---------------- | :--------- | :------- | | Accounts payable | $9,014 | $9,755 | $(741) | -7.59% | | Accrued employee compensation and benefits | $7,792 | $5,999 | $1,793 | 29.89% | | Bonuses payable | $12,953 | $20,421 | $(7,468) | -36.57% | | Other accrued expenses | $44,540 | $45,811 | $(1,271) | -2.77% | | Total | $74,299 | $81,986 | $(7,687) | -9.38% | Note 6. Provider Liability Provider liability increased to $458.1 million by June 2025, reflecting higher costs and medical claims | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | % Change | | :-------------------- | :------------ | :---------------- | :--------- | :------- | | Provider liability | $458,053 | $364,607 | $93,446 | 25.63% | | Medical Claims Liability (in thousands) | June 30, 2025 | June 30, 2024 | Change ($) | % Change | | :-------------------------------------- | :------------ | :------------ | :--------- | :--------- | | Balance, beginning of period | $66,355 | $67,138 | $(783) | -1.17% | | Total claims incurred | $144,285 | $107,915 | $36,370 | 33.70% | | Total claims paid | $(110,984) | $(100,856) | $(10,128) | 10.04% | | Balance, end of period | $99,656 | $74,197 | $25,459 | 34.31% | - Provider liability estimates are developed using actuarial methods, considering factors like medical service utilization trends, membership changes, and historical claim payment patterns60 Note 7. Debt Privia Health has a $125 million revolving credit facility, with no outstanding amounts as of June 30, 2025 - The company has a $125 million five-year senior secured revolving credit facility, established on November 16, 2023, with Wells Fargo Bank6465 - The Revolving Credit Facility bears interest at a base rate plus applicable margin, with the base rate being the higher of the Prime Rate or the Federal Funds Rate plus 0.50%, and a minimum base rate of 1.0%64 - As of June 30, 2025, there were no outstanding amounts under the Revolving Credit Facility66 Note 8. Income Taxes Income tax provision varied, with H1 2025 effective tax rate of 32.8% differing from statutory due to various factors | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Provision for income tax | $2,456 | $3,421 | $(965) | -28.21% | | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Provision for income tax | $4,559 | $4,172 | $387 | 9.28% | | Effective tax rate | 32.8% | 35.1% | -2.3% | -6.55% | - The effective tax rates differ from the 21% U.S. federal statutory rate primarily due to 162(m) limitations, state income taxes, and excess tax benefits related to equity award vesting and exercise events68 - No valuation allowance against deferred tax assets was recorded as of June 30, 2025, or December 31, 2024, as management determined it was more likely than not that DTAs would be realized69 Note 9. Stockholders' Equity This note details stock option, RSU, and PSU activity; stock-based compensation expense increased | Stock Option Activity | December 31, 2024 | June 30, 2025 | Change | | :-------------------- | :---------------- | :------------ | :----- | | Balance (shares) | 8,526,910 | 7,967,399 | -559,511 | | Weighted Average Exercise Price | $10.03 | $10.18 | $0.15 | | Aggregate Intrinsic Value (in thousands) | $93,074 | $102,955 | $9,881 | | RSU Activity | December 31, 2024 | June 30, 2025 | Change | | :------------- | :---------------- | :------------ | :----- | | Unvested and outstanding (shares) | 4,142,275 | 4,393,637 | 251,362 | | Grant Date Fair Value | $23.73 | $24.21 | $0.48 | | PSU Activity | December 31, 2024 | June 30, 2025 | Change | | :------------- | :---------------- | :------------ | :----- | | Unvested and outstanding (shares) | 1,637,681 | 2,459,736 | 822,055 | | Grant Date Fair Value | $27.02 | $26.42 | $(0.60) | | Stock-based Compensation Expense (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | % Change | | :---------------------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Total | $18,849 | $14,391 | $4,458 | 30.98% | | Cost of platform | $7,223 | $4,710 | $2,513 | 53.35% | | Sales and marketing | $1,488 | $1,043 | $445 | 42.66% | | General and administrative | $10,138 | $8,638 | $1,500 | 17.37% | - As of June 30, 2025, there was approximately $121.30 million of unrecognized stock-based compensation expense, expected to be recognized over a weighted-average period of 1.0 year76 Note 10. Commitments and Contingencies As of June 30, 2025, and December 31, 2024, there were no material commitments or contingencies - There are no material commitments and contingencies as of June 30, 2025, and December 31, 202478 Note 11. Concentration of Credit and Revenue Risk The company faces credit risk concentrations in cash and receivables, with revenue concentrated with major payers - Substantially all of the company's cash and cash equivalents were held at two financial institutions as of June 30, 202579 | Payer | Revenue Concentration (3 Months Ended June 30, 2025) | Revenue Concentration (3 Months Ended June 30, 2024) | | :---- | :--------------------------------------------------- | :--------------------------------------------------- | | Payer A | 29% | 27% | | Payer B | 16% | 16% | | Payer C | 15% | 17% | | Payer | Receivables Concentration (6 Months Ended June 30, 2025) | Receivables Concentration (6 Months Ended June 30, 2024) | | :---- | :------------------------------------------------------- | :------------------------------------------------------- | | Payer A | 50% | 53% | | Payer B | 18% | 17% | | Payer C | 14% | 10% | Note 12. Net Income Per Share Basic and diluted EPS varied, with antidilutive securities excluded from diluted EPS calculations | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Basic EPS | $0.02 | $0.03 | $(0.01) | | Diluted EPS | $0.02 | $0.03 | $(0.01) | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Basic EPS | $0.06 | $0.05 | $0.01 | | Diluted EPS | $0.05 | $0.05 | $0.00 | - Approximately 8.04 million potentially dilutive stock options, RSUs, and PSUs were excluded from the diluted EPS computation for the six months ended June 30, 2025, because their inclusion would have been antidilutive81 Note 13. Segment Financial Information The company operates as a single operating segment focused on patient care, with consolidated financial results reviewed by the CEO - Privia Health operates and reports as a single operating segment, which is to care for its patients' needs, in accordance with ASC Topic 280, Segment Reporting82 - The Chief Executive Officer, as the Chief Operating Decision Maker (CODM), manages operations on a consolidated basis and evaluates financial performance using consolidated net income attributable to Privia Health Group, Inc8384 - All of the company's long-lived assets were located in the United States as of June 30, 2025, and December 31, 202483 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section analyzes Privia Health's financial condition and results, covering business models, revenue drivers, and liquidity Overview Privia Health is a physician-enablement company focused on improving healthcare outcomes and patient/provider experience - Privia Health is a technology-driven, national physician-enablement company aiming for better outcomes, lower costs, improved patient experience, and happier, more engaged providers86 - The company's model combines a partnership in a large regional Medical Group with significant provider autonomy, where Privia Physicians can be owners of the Medical Group8687 - Privia provides management and administrative services through local MSOs, offering access to Value-Based Care (VBC) opportunities and clinical oversight88 - The Privia Care Partners model offers a flexible affiliation for providers seeking only VBC solutions without changing EMR providers, providing population health services, reporting, and analytics89 GAAP Financial Measures Q2 2025 revenue increased, net income decreased; H1 2025 revenue grew to $1.00 billion, net income increased | Metric (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $521.2 | $422.3 | $98.9 | 23.4% | | Gross profit | $112.8 | $98.3 | $14.5 | 14.75% | | Operating income | $3.3 | $5.1 | $(1.8) | -35.29% | | Net income attributable to Privia Health Group, Inc. | $2.7 | $3.5 | $(0.8) | -22.86% | | Metric (in millions) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $1,001.0 | $837.6 | $163.4 | 19.5% | | Gross profit | $216.4 | $191.6 | $24.8 | 12.94% | | Operating income | $8.6 | $5.9 | $2.7 | 45.76% | | Net income attributable to Privia Health Group, Inc. | $6.9 | $6.5 | $0.4 | 6.15% | Key Metrics and Non-GAAP Financial Measures The company tracks key operational and non-GAAP metrics, showing growth in providers, attributed lives, and practice collections | Metric | June 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------- | :------------ | :------------ | :----- | :------- | | Implemented Providers | 5,125 | 4,504 | 621 | 13.8% | | Attributed Lives (in thousands) | 1,382 | 1,200 | 182 | 15.2% | | Metric (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | % Change | | :------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Practice Collections | $862.9 | $728.0 | $134.9 | 18.5% | | Metric (in millions) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | % Change | | :------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Practice Collections | $1,661.5 | $1,435.7 | $225.8 | 15.7% | - FFS arrangements accounted for 81.5% of practice collections for the three months ended June 30, 2025, while VBC accounted for 18.3%114 Our Revenue Privia Health generates revenue from FFS patient care and growing VBC, reflecting a shift towards at-risk contracts - FFS-patient care revenue represented 63.6% of total revenue for the three months ended June 30, 2025, a decrease from 65.3% in the prior year, while FFS-administrative services revenue was 6.7%95 - VBC revenue, including Capitated revenue, Shared savings, and Care management fees, increased to 29.3% of total revenue for the three months ended June 30, 2025, up from 26.6% in the prior year96 - Capitated revenue is generated through 'at-risk contracts' where the company receives fixed monthly payments for providing healthcare services to attributed beneficiaries in Medicare Advantage plans49106 - The company renegotiated certain capitation agreements for more favorable contract structures during the first quarter of 2024 due to regulatory and utilization headwinds in Medicare Advantage96 Key Factors Affecting Our Performance Key performance drivers include adding providers, expanding markets, maintaining satisfaction, and accelerating VBC adoption - Growth in the number of Implemented Providers is a key indicator of business performance and expected revenue growth, driven by adding new practices and recruiting new providers in existing and new markets98 - The number of attributed patient lives in VBC programs is a key driver of VBC revenue growth, with branding and marketing strategies aimed at increasing patient panels per provider99 - Privia entered the Indiana market in November 2024 through the acquisition of PMG IN and the Arizona market in April 2025 through a partnership with Integrated Medical Services to launch PMG AZ101 - Provider satisfaction and retention are high, with greater than 90% Practice Collections predictability, demonstrating the stability of the provider base102 - The company's ability to maintain and increase payer contracts, particularly in new markets, and accelerate the adoption of VBC reimbursement are crucial for long-term success103104 Key Metrics and Non-GAAP Financial Measures (Detailed) This section details non-GAAP financial measures like Care Margin and Adjusted EBITDA, used to evaluate operating performance | Non-GAAP Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | % Change | | :----------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Care Margin | $115,161 | $99,790 | $15,371 | 15.4% | | Platform Contribution | $57,466 | $47,394 | $10,072 | 21.3% | | Adjusted EBITDA | $28,992 | $22,023 | $6,969 | 31.6% | | Non-GAAP Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | % Change | | :----------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Care Margin | $220,449 | $194,697 | $25,752 | 13.2% | | Platform Contribution | $109,199 | $92,131 | $17,068 | 18.5% | | Adjusted EBITDA | $55,907 | $41,945 | $13,962 | 33.3% | | Non-GAAP Margin | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (pp) | | :---------------- | :--------------------------- | :--------------------------- | :---------- | | Platform Contribution Margin | 49.9% | 47.5% | 2.4 | | Adjusted EBITDA Margin | 25.2% | 22.1% | 3.1 | - Care Margin as a percentage of revenue decreased to 22.1% for the three months ended June 30, 2025, from 23.6% in the prior year, due to strategic investments at a pace slower than revenue growth119 Components of Results of Operations This section details revenue and operating expense components, explaining their recognition and influencing factors - Provider expenses include amounts paid to physicians, hospitals, and other service providers, covering guaranteed payments, distributions, and medical claims costs under at-risk Capitated revenue arrangements131 - Cost of platform expenses are primarily variable, related to the number of implemented physicians, and include third-party EMR and practice management software expenses, as well as stock-based compensation132 - Sales and marketing expenses cover employee-related costs for marketing, sales, community outreach, and advertising to drive patient and provider engagement133 - General and administrative expenses include corporate employee-related costs, technology infrastructure, occupancy, and support for various departments134 Results of Operations Revenue increased for Q2 and H1 2025, driven by FFS, capitated, and shared savings; operating expenses rose | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $521,153 | $422,326 | $98,827 | 23.4% | | Provider expense | $405,992 | $322,536 | $83,456 | 25.9% | | Cost of platform | $64,918 | $57,106 | $7,812 | 13.7% | | Sales and marketing | $6,805 | $6,852 | $(47) | -0.7% | | General and administrative | $37,519 | $28,916 | $8,603 | 29.8% | | Depreciation and amortization | $2,583 | $1,818 | $765 | 42.1% | | Operating income | $3,336 | $5,098 | $(1,762) | -34.6% | | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Revenue | $1,001,250 | $837,569 | $163,681 | 19.5% | | Provider expense | $780,801 | $642,872 | $137,929 | 21.5% | | Cost of platform | $124,444 | $111,163 | $13,281 | 11.9% | | Sales and marketing | $13,727 | $12,937 | $790 | 6.1% | | General and administrative | $69,240 | $61,037 | $8,203 | 13.4% | | Depreciation and amortization | $4,484 | $3,639 | $845 | 23.2% | | Operating income | $8,554 | $5,921 | $2,633 | 44.5% | - The increase in revenue for the three months ended June 30, 2025, was primarily driven by FFS–patient care revenue ($55.70 million increase), shared savings revenue ($20.20 million increase), and capitated revenue ($19.07 million increase)139 - Provider expenses increased due to higher FFS-patient care revenue and growth in Implemented Providers142 - General and administrative expenses increased due to higher salaries and benefits, professional services, non-recurring expenses, and stock-based compensation146147 Liquidity and Capital Resources As of June 30, 2025, Privia Health had $390.1 million in cash, sufficient for needs despite acquisition-driven decrease - As of June 30, 2025, the company had $390.1 million in cash and cash equivalents, primarily consisting of highly liquid investments in money market funds and cash153 - Net cash used in operating activities was $16.09 million for the six months ended June 30, 2025, a decrease from $1.33 million provided in the prior year, mainly due to increased accounts receivable and prepaid assets158159 - Net cash used in investing activities significantly increased to $89.06 million for the six months ended June 30, 2025, from $5.71 million in the prior year, primarily due to business acquisitions158160 - Net cash provided by financing activities increased to $4.13 million for the six months ended June 30, 2025, from $2.22 million in the prior year, mainly due to increased proceeds from exercised stock options158161 - The company anticipates that net cash provided by operating activities, along with available cash, will be sufficient to meet anticipated cash requirements for both the short and long term156 Contractual Obligations, Commitments and Contingencies Primary contractual obligations include operating leases; no off-balance sheet arrangements or material commitments - The company leases office space under operating lease agreements with initial terms ranging from 2 to 9 years162 - Total rent expense under operating leases was $0.70 million for the three months ended June 30, 2025, and $1.40 million for the six months ended June 30, 2025162 - There are no off-balance sheet arrangements as of June 30, 2025162 - No material commitments and contingencies were reported as of June 30, 2025, and December 31, 2
Privia Health (PRVA) - 2025 Q2 - Quarterly Report