Privia Health (US:PRVA)2025-11-06 13:45Financial Performance - Revenue for Q3 2025 was $580.4 million, a 32.4% increase from $437.9 million in Q3 2024[97] - Gross profit for Q3 2025 was $122.6 million, up 22.7% from $99.9 million in Q3 2024[97] - Net income attributable to Privia Health Group, Inc. for Q3 2025 was $6.9 million, compared to $3.5 million in Q3 2024, representing a 97.1% increase[97] - Practice Collections reached $940.4 million in Q3 2025, a 27.1% increase from $739.9 million in Q3 2024[97] - Adjusted EBITDA for the three months ended September 30, 2025, was $38.2 million, up from $23.6 million in 2024, resulting in an Adjusted EBITDA Margin of 30.5%[123] - Total revenue for the three months ended September 30, 2025, was $580.4 million, a 32.5% increase from $437.9 million in the same period in 2024[144] - Net income for the nine months ended September 30, 2025, was $19.1 million, an increase of $7.4 million compared to $11.7 million in 2024[168] Revenue Sources - VBC revenue accounted for 33.1% of total revenue in Q3 2025, up from 27.8% in Q3 2024[101] - Capitated revenue increased by 70.3% to $90.9 million for the three months ended September 30, 2025, compared to $53.4 million in 2024[143] - Shared savings revenue for the three months ended September 30, 2025, increased by 68.6% to $80.0 million compared to $47.4 million in 2024[143] Growth Metrics - Implemented Providers increased by 13.1% to 5,250 as of September 30, 2025, compared to 4,642 in 2024, driven by organic growth and market expansion into Indiana and Arizona[117] - Attributed Lives rose by 12.8% to 1,406,000 as of September 30, 2025, from 1,247,000 in 2024, reflecting growth from new market entries and organic expansion[118] - The growth in Attributed Lives and Implemented Providers is expected to positively impact VBC revenue, aligning with the company's long-term strategic goals[118] Expenses - Provider expenses for the three months ended September 30, 2025, increased by 35.3% to $455.2 million compared to $336.5 million in 2024[142] - General and administrative expenses rose to $39.6 million for the three months ended September 30, 2025, a 29.1% increase from $30.7 million in 2024[151][152] - Cost of platform expenses were $61.4 million for the three months ended September 30, 2025, a 9.6% increase from $56.1 million in 2024[148][149] Strategic Initiatives - The company expanded into the Indiana market through the acquisition of a majority stake in an independent group practice in November 2024[106] - Investments in sales, marketing, and technology are expected to continue to drive long-term growth[113] - The company aims to increase its provider base and attributed patient lives to enhance revenue growth in both FFS and VBC contracts[103] - The company continues to invest strategically to enhance services for patients and physicians, aiming for sustainable growth in Care Margin and overall performance[124] Cash Flow and Assets - Cash and cash equivalents as of September 30, 2025, totaled $441.4 million, primarily consisting of highly liquid investments[158] - Net cash provided by operating activities was $35.9 million for the nine months ended September 30, 2025, an increase from $34.5 million in 2024[163] - Net cash used in investing activities was $90.3 million for the nine months ended September 30, 2025, compared to $5.7 million in 2024, primarily due to business acquisitions[163] Tax and Liabilities - The provision for income taxes was $6.9 million for the three months ended September 30, 2025, compared to $4.0 million in 2024, reflecting additional tax benefits from share-based compensation[155] - An increase of $118.8 million in provider liability for the nine months ended September 30, 2025, compared to an increase of $85.2 million in 2024, primarily due to growth in Implemented Providers[168]