Financial Data and Key Metrics Changes - Privia Health reported a 61.6% increase in adjusted EBITDA, reaching $38.2 million, with an EBITDA margin of 30.5%, an improvement of 720 basis points year-over-year [6][10][12] - Practice collections grew by 27.1% year-over-year to $940.4 million in Q3 2025, while total collections for the first nine months of 2025 increased by 19.6% to $2.6 billion [10][11] - The company raised its 2025 outlook, expecting practice collections to grow by 17.1% and adjusted EBITDA to grow by 32% at the midpoint of guidance [12][13] Business Line Data and Key Metrics Changes - Implemented provider growth was 13.1% year-over-year, reaching 5,250 providers, contributing to a 12.8% growth in value-based attribution [5][10] - The total attributed lives increased by nearly 13% year-over-year, with commercial attributed lives up by more than 12% [7][8] - The acquisition of an ACO business from Elevance Health is expected to add over 120,000 value-based care attributed lives [6][7] Market Data and Key Metrics Changes - Privia Health managed over $2.5 billion in medical spend across its nine ACOs in the Medicare Shared Savings Program (MSSP) for 2024, achieving a savings rate of 9.4%, up from 8.2% in 2023 [9][10] - Total shared savings reached $234.1 million, a 32.6% increase from the previous year, with gross shared savings of $160.1 million, a 36% increase over 2023 [9][10] Company Strategy and Development Direction - The company aims to build scale and profitability without relying on any single contract, focusing on generating positive contribution margins in value-based contracts [8] - The acquisition of the ACO business is seen as a strategic move to enhance the company's national footprint and operational capabilities [6][7] - Privia Health continues to pursue organic provider growth and increase operating leverage for long-term adjusted EBITDA and free cash flow growth [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong operational trends into Q4 2025, despite not providing specific quarterly guidance [21][22] - The company anticipates a strong 2026, leveraging the momentum from its current performance and the upcoming acquisition [22][23] - Management highlighted the importance of aligning interests with payers and providers to ensure sustainable growth in the value-based care model [84] Other Important Information - Pro forma cash at the end of Q3 was $409.9 million with no debt, positioning the company for significant financial flexibility [11][12] - The company expects to close the ACO acquisition by year-end 2025, pending regulatory approvals [6][7] Q&A Session Summary Question: MSSP performance guidance for the future - Management indicated that strong results from 2024 will be factored into future planning, maintaining a consistent approach to guidance [16][17] Question: Core business performance going into Q4 - Management noted strong trends and did not foresee a change in momentum as they focus on annual results rather than quarterly guidance [19][20] Question: Factors influencing strong fee-for-service growth - Management attributed the growth to broad-based utilization trends and the addition of new markets, which contributed to practice collections [23][24] Question: Synergy opportunities with Evelyn Health ACO - Management discussed the potential for improving savings rates and the gradual integration of practices into Privia's medical groups [26][27][30] Question: Moving pieces in the capitated business - Management acknowledged the small size of the capitated book and expressed satisfaction with its performance, while remaining cautious about future growth [32][33] Question: Evolution of relationships with payers - Management highlighted ongoing discussions with payers and the importance of demonstrating strong results to enhance negotiations [46][48] Question: Impact of new legislation on Medicaid - Management indicated that the impact on their small Medicaid book is expected to be minimal, as practices run at capacity [75][77] Question: Ancillary services growth opportunities - Management emphasized the focus on building a multi-specialty medical group to manage total costs and expand ancillary services [79][80] Question: Future risk in MA contracts - Management reiterated the importance of sustainable contracts and alignment of interests among payers, providers, and the company [84]