PRVA Q3 Deep Dive: Acquisition and Value-Based Care Expansion Shape Outlook

Core Insights - Privia Health Group reported Q3 CY2025 revenue of $580.4 million, exceeding Wall Street expectations by 16.6% and reflecting a year-on-year growth of 32.5% [1][5] - The company raised its full-year revenue guidance to $2.08 billion, which is 3.6% above analysts' estimates and represents a 9.2% increase from previous guidance [1][5] - Non-GAAP profit per share was $0.29, surpassing analysts' consensus estimates by 33.7% [1][5] Financial Performance - Revenue: $580.4 million vs analyst estimates of $497.7 million, a 32.5% year-on-year growth [5] - Adjusted EPS: $0.29 vs analyst estimates of $0.22, a 33.7% beat [5] - Adjusted EBITDA: $38.19 million vs analyst estimates of $28.29 million, with a margin of 6.6% [5] - Operating Margin: 2.5%, up from 1.3% in the same quarter last year [5] - Sales Volumes rose 13.1% year on year [5] - Market Capitalization: $2.94 billion [5] Strategic Outlook - The raised guidance is supported by ongoing provider additions and the acquisition of Evolent Health's accountable care organization business [4] - Management emphasized the importance of entering new markets and integrating the Evolent business for expanding the company's national footprint [4] - CEO highlighted strong execution in the Medicare Shared Savings Program and operational leverage through an expanding provider network [3][4] - Management cautioned about the need for a disciplined approach to capital deployment and contract structuring due to integration challenges and headwinds in the Medicare Advantage environment [4]