StockNews.AI
PRVA
StockNews.AI
103 days

Privia Health Reports First Quarter 2025 Financial Results

1. PRVA's Q1 2025 revenue increased by 15.6% to $480.1 million. 2. Operating income rose to $5.2 million, an increase of 534%. 3. Privia Health entered Arizona with a $95 million acquisition of IMS. 4. Full-year 2025 guidance raised to mid-high end metrics, showing growth optimism. 5. Non-GAAP adjusted net income increased by 23.3% to $27.8 million.

25m saved
Insight
Article

FAQ

Why Very Bullish?

Strong revenue and profit growth indicate robust operational performance. Historically, similar financial improvements have led to increased investor confidence and stock price appreciation in health sector stocks like PRVA.

How important is it?

The article highlights significant revenue growth, operational performance, and strategic expansion which are critical in assessing PRVA's future prospects.

Why Short Term?

The market will likely react promptly to the strong Q1 results. Immediate financial performance often influences short-term stock trading behavior, especially after positive guidance adjustments.

Related Companies

HUMCNCUNH
Strong First Quarter Performance and Operating ExecutionEnters the State of ArizonaFull-Year 2025 Outlook Raised to Mid- to High End of Guidance Ranges for All Metrics with Attributed Lives Unchanged ARLINGTON, Va., May 08, 2025 (GLOBE NEWSWIRE) -- Privia Health Group, Inc. (Nasdaq: PRVA) today announced financial results for the first quarter ended March 31, 2025.   Three Months Ended March 31,  ($ in millions, except per share amounts) 2025 2024 Change (%)*       Total revenue $480.1 $415.2 15.6%Gross profit $103.6 $93.4 11.0%Operating income $5.2 $0.8 534.0%Net income a $4.2 $3.0 41.4%Non-GAAP adjusted net income b d e $27.8 $22.5 23.3%Net income per share $0.03 $0.02 50.0%Non-GAAP adjusted net income per share b d e $0.22 $0.18 22.2%       *   Any slight variations in totals are due to rounding.a. Net income for the three months ended March 31, 2025, included $17.8 million in non-cash stock compensation expense. Net income for the three months ended March 31, 2024 included $11.9 million in non-cash stock compensation expense.b. Reconciliations of non-GAAP adjusted net income and other non-GAAP financial measures are presented in tables near the end of this press release.  First Quarter 2025 highlights include: Continued strength in same-store growth and new provider additions;Practice Collections of $798.6M, +12.8% versus 1Q’24; andAdjusted EBITDA b d e of $26.9M, +35.1% versus 1Q’24. Key Operating and Non-GAAP Financial Metrics b, d, e   Three Months Ended March 31,  ($ in millions) 2025 2024 Change (%)       Implemented Providers  4,871  4,359 11.7%Value-Based Care Attributed Lives  1,270,000  1,143,000 11.1%Practice Collections $798.6 $707.7 12.8%Care Margin b d $105.3 $94.9 10.9%Platform Contribution b d $51.7 $44.7 15.6%Adjusted EBITDA b d e $26.9 $19.9 35.1%  Privia Health Enters the State of Arizona On April 9, 2025, Privia Health announced its entrance into the state of Arizona in partnership with Integrated Medical Services (IMS), one of the largest independent multi-specialty practices in the state. IMS has approximately 70 physicians and advanced practice providers in 21 locations, and manages over 28,000 patient lives in value-based care arrangements across Commercial, Medicare, MA and Medicaid programs. Privia Health paid $95 million in cash at closing. IMS is the anchor practice in the launch of Privia Medical Group—Arizona, and is expected to be implemented on the Privia Platform in the fourth quarter of 2025. The transaction and launch in Arizona is expected to be profitable starting in the fourth quarter of 2025. Updated FY’25 Guidance c d e f Privia Health raised its full-year 2025 outlook to the mid- to high end of most of its guidance ranges, as follows:  FY 2024 Initial FY 2025 Guidance at 2.27.25 c Updated FY 2025 Guidance at 5.8.25($ in millions)Actual Low High  Implemented Providers 4,789  5,200  5,300 Mid to High EndAttributed Lives 1,256,000  1,300,000  1,400,000 UnchangedPractice Collections$2,968.0 $3,150 $3,250 Mid to High EndGAAP Revenue$1,736.4 $1,800 $1,900 Mid to High EndCare Margin c d$403.9 $435 $445 Mid to High EndPlatform Contribution c d$195.6 $208 $218 Mid to High EndAdjusted EBITDA c d e$90.5 $105 $110 Mid to High End  Guidance assumes minimal year-over-year increase in value-based shared savings accruals given current environmentGuidance includes impact of Arizona market entry, and assumes no other new business development activityDe minimis capital expenditures expected in full-year 2025At least 80% of Adjusted EBITDA expected to convert to free cash flow in full-year 2025Effective tax rate expected to be approximately 26-28% c.Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures of gross margin, operating income and net income. This is because the Company cannot predict with reasonable certainty and without unreasonable efforts the ultimate outcome of certain GAAP components of such reconciliations due to market-related assumptions that are not within our control as well as certain legal or advisory costs, tax costs or other costs that may arise. For these reasons, management is unable to assess the probable significance of the unavailable information, which could materially impact the amount of the future directly comparable GAAP measures.  d.See “Key Metrics and Non-GAAP Financial Measures” for more information as to how the Company defines and calculates Implemented Providers, Attributed Lives, Practice Collections, Care Margin, Platform Contribution, and Adjusted EBITDA, and for a reconciliation of the most comparable GAAP measures to Care Margin, Platform Contribution, Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income Per Share.  e.Certain non-recurring or non-cash and other expenses will be treated as an add back in the reconciliation of Net Income to Adjusted EBITDA, and the reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income Per Share, the details of which can be found in the Reconciliation schedules near the end of this and in future quarterly press releases.  f.Any slight variations in totals due to rounding.   Webcast and Conference Call Information The Company will host a conference call on May 8, 2025, at 8:00 am ET to discuss these results and management’s outlook for future financial and operational performance. You can visit ir.priviahealth.com/news-and-events/events-and-presentations to listen to the call via live webcast. The webcast will be archived and available for replay for on-demand listening shortly after the completion of the call under the same link. If you wish to participate in the live conference call, then please go to https://register.vevent.com/register/BIa226cff209a046a0ae8a7711f796fc02 to pre-register and obtain your dial-in number and passcode. This news release and the financial statements contained herein, and the slide presentation for the webcast, are also available on the Privia Health Investor Relations website at ir.priviahealth.com. About Privia Health Privia Health™ is one of the largest physician enablement companies in the United States with a presence in 15 states and the District of Columbia. Privia builds scaled provider networks with primary-care centric medical groups, risk-bearing entities, a physician-led governance structure, and the Privia Platform comprising an extensive suite of technology and service solutions. Privia collaborates with medical groups, health plans and health systems to optimize 1,200+ physician practices, improve the patient experience for 5.2+ million patients, and reward 4,800+ physicians and advanced practitioners for delivering high-value care. Privia’s mission is to transform healthcare delivery to achieve better outcomes, lower costs, and improve the health of communities and the well-being of providers. For more information, visit priviahealth.com and connect with us on LinkedIn. Non-GAAP Financial Measures The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States ("GAAP"). From time to time, in press releases, financial presentations, earnings conference calls or otherwise, the Company may disclose certain non-GAAP financial measures. The non-GAAP financial measures presented in this press release should not be viewed as alternatives or substitutes for the Company's reported GAAP results. A reconciliation to the most directly comparable GAAP financial measure is set forth in the tables that accompany this release. The Company believes that the non-GAAP financial measures presented in this press release are relevant and provide useful information to the Company's management, investors, and other interested parties about the Company's operating performance because the measures allow them to understand and compare the Company's actual and expected operating results during the prior, current and future periods in a more consistent manner. The non-GAAP measures presented in this press release may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provides a more complete understanding of the results of operations and trends affecting the Company's business. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to financial measures calculated in accordance with GAAP. Safe Harbor Statement The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company’s Form 10-Q is filed with the Securities and Exchange Commission (“SEC”). This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such statements relate to our current expectations, projections and assumptions about our business, the economy and future events or conditions. They do not relate strictly to historical or current facts. Forward-looking statements can be identified by words such as “aims,” “anticipates,” "assumes," “believes,” “estimates,” “expects,” “forecasts,” “future,” “intends,” “likely,” “may,” “outlook,” “plans,” “potential,” “projects,” “seeks,” “strategy,” “targets,” “trends,” “will,” “would,” “could,” “should,” and variations of such terms and similar expressions and references to guidance, although some forward-looking statements may be expressed differently. In particular, these include statements relating to, among other things: our future actions, business plans, objectives and prospects; and our future operating or financial performance and projections, including our full-year guidance for 2025. Factors or events that could cause actual results to differ may emerge from time to time and are difficult to predict. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results may differ materially from past results and those anticipated, estimated or projected. We caution you not to place undue reliance upon any of these forward-looking statements. Factors related to these risks and uncertainties include, but are not limited to: the heavily regulated industry in which we operate, and any failure by us or our medical groups to comply with the extensive applicable healthcare laws and government regulations; the complexity of the legal framework governing our relationships with Medical Groups, some of which we do not own, and Privia providers, and the impact of legal challenges or shifting interpretations of applicable laws; the execution of our growth strategy, which may not prove viable and we may not realize expected results; difficulties timely implementing our proprietary end-to-end, cloud-based technology solution for Privia physicians and new medical groups; the high level of competition in our industry; challenges in successfully establishing a presence in new geographic markets; the impact of failures by or service disruptions at key third-party vendors, such as our primary electronic medical record vendor, athenahealth, Inc.; potential decreases in reimbursement rates by governmental and third-party payers, changes to payment terms or challenges negotiating and retaining favorable contracts with private third-party payers, and changes impacting our patient population; the financial and operational impact of our compliance with various complex and changing federal and state privacy and security laws and regulations related to our use, disclosure, and other processing of personal information and protected health information, including the Health Insurance Portability and Accountability Act of 1996; the impact of actual and potential security threats, cybersecurity incidents or privacy or other forms of data breaches involving us, our vendors or other third parties; the continued availability of qualified workforce, including staff at our medical groups, and the continued upward pressure on compensation for such workforce; and other risk factors described in our Annual Report on Form 10-K for the year ended December 31, 2024 and the Company’s subsequent Quarterly Reports on Form 10-Q. All information in this press release is as of the date of the release, and the Company undertakes no duty to update this information unless required by law. Contact:Robert BorchertSVP, Investor & Corporate CommunicationsIR@priviahealth.com817.783.4841  Privia Health Group, Inc.Condensed Consolidated Statements of Operations(g)(unaudited)(in thousands, except share and per share data)  For the Three Months Ended March 31, 2025 2024    Revenue$480,097 $415,243    Operating expenses:   Provider expense 374,809  320,336Cost of platform 59,526  54,057Sales and marketing 6,922  6,085General and administrative 31,721  32,121Depreciation and amortization 1,901  1,821Total operating expenses 474,879  414,420Operating income 5,218  823Interest income, net 2,931  2,984Income before provision for income taxes 8,149  3,807Provision for income taxes 2,103  751Net income 6,046  3,056Less: Net income attributable to non-controlling interests 1,826  72Net income attributable to Privia Health Group, Inc.$4,220 $2,984Net income per share attributable to Privia Health Group, Inc. stockholders – basic$0.03 $0.03Net income per share attributable to Privia Health Group, Inc. stockholders – diluted$0.03 $0.02Weighted average common shares outstanding – basic 120,623,670  118,505,320Weighted average common shares outstanding – diluted 127,752,527  125,053,404  (g) Any slight variations in totals due to rounding. Privia Health Group, Inc.Condensed Consolidated Balance Sheets(h)(in thousands)  March 31, 2025 December 31, 2024Assets(unaudited)  Current assets:   Cash and cash equivalents$469,331  $491,149 Accounts receivable 388,727   316,179 Prepaid expenses and other current assets 28,409   27,495 Total current assets 886,467   834,823 Non-current assets:   Property and equipment, net 1,014   1,242 Operating right-of-use asset 4,719   4,828 Intangible assets, net 108,134   109,807 Goodwill 141,615   141,615 Deferred tax asset 24,670   26,383 Other non-current assets 16,919   17,085 Total non-current assets 297,071   300,960 Total assets$1,183,538  $1,135,783     Liabilities and stockholders’ equity   Current liabilities:   Accounts payable and accrued expenses$68,136  $81,986 Provider liability 400,288   364,607 Operating lease liabilities, current 2,386   2,553 Total current liabilities 470,810   449,146 Non-current liabilities:   Operating lease liabilities, non-current 3,049   3,037 Other non-current liabilities 153   153 Total non-current liabilities 3,202   3,190 Total liabilities 474,012   452,336 Commitments and contingencies   Stockholders’ equity:   Common stock 1,214   1,203 Additional paid-in capital 833,231   813,209 Accumulated deficit (175,009)  (179,229)Total Privia Health Group, Inc. stockholders’ equity 659,436   635,183 Non-controlling interest 50,090   48,264 Total stockholders’ equity 709,526   683,447 Total liabilities and stockholders’ equity$1,183,538  $1,135,783   (h) Any slight variations in totals are due to rounding. Privia Health Group, Inc.Condensed Consolidated Statements of Cash Flows(i)(unaudited)(in thousands)  For the Three Months Ended March 31,  2025   2024 Cash flows from operating activities   Net income$6,046  $3,056 Adjustments to reconcile net income to net cash used in operating activities:   Depreciation 228   294 Amortization of intangibles 1,673   1,527 Stock-based compensation 17,790   11,904 Deferred tax expense 1,713   863 Changes in asset and liabilities:   Accounts receivable (72,548)  (55,320)Prepaid expenses and other current assets (914)  (10,391)Other non-current assets and right-of-use asset 275   (1,321)Accounts payable and accrued expenses (13,850)  (7,180)Provider liability 35,681   24,208 Operating lease liabilities (155)  (777)Net cash used in operating activities (24,061)  (33,137)Cash from investing activities   Business acquisitions, net of cash acquired —   (707)Other —   (5,006)Net cash used in investing activities —   (5,713)Cash flows from financing activities   Proceeds from exercised stock options 2,243   475 Net cash provided by financing activities 2,243   475 Net decrease in cash and cash equivalents (21,818)  (38,375)Cash and cash equivalents at beginning of period 491,149   389,511 Cash and cash equivalents at end of period$469,331  $351,136     Supplemental disclosure of cash flow information:   Interest paid$—  $93 Income tax refunds received$(313) $(230)  (i) Any slight variations in totals are due to rounding. Additional Financial Information Revenues disaggregated by source:  For the Three Months Ended March 31,(Dollars in Thousands)2025 2024FFS-patient care$311,761 $274,823FFS-administrative services 32,255  29,076Capitated revenue 70,690  51,304Shared savings 47,912  47,464Care management fees (PMPM) 15,201  10,603Other revenue 2,278  1,973Total Revenue$480,097 $415,243  The Company’s liabilities for unpaid medical claims under at-risk capitation arrangements:   March 31,(Dollars in Thousands)  2025   2024 Balance, beginning of period $66,355  $67,138 Incurred health care costs:    Current year  70,565   51,040 Prior years  (954)  600 Total claims incurred $69,611  $51,640 Claims paid:    Current year  (10,273)  (2,072)Prior year  (39,332)  (42,185)Total claims paid $(49,605) $(44,257)Balance, end of period $86,361  $74,521   Key Metrics and Non-GAAP Financial Measures Privia Health reviews a number of operating and financial metrics, including the following key metrics and non-GAAP financial measures, to evaluate the Company’s business, measure performance, identify trends affecting the Company’s business, formulate business plans, and make strategic decisions. Key Metrics(j)   For the Three Months Ended March 31,(unaudited; $ in millions) 2025 2024     Implemented Providers (as of end of period) (1)  4,871  4,359Attributed Lives (as of end of period) (2)  1,270,000  1,143,000Practice Collections (3) $798.6 $707.7     (1) Implemented Providers is defined as the total of all service professionals on Privia Health’s platform at the end of a given period who are credentialed by Privia Health and billed for medical services, in both Owned and Non-Owned Medical Groups during that period.(2) Attributed Lives are defined as any patient that a payer deems attributed to Privia to deliver care as part of a value-based care arrangement through a provider of primary care services as of the end of a particular period.(3) Practice Collections are defined as the total collections from all practices in all markets and all sources of reimbursement that the Company receives for delivering care and providing Privia Health’s platform and associated services. Practice Collections differ from revenue by including collections from Non-Owned Medical Groups.(j) Any slight variations in totals are due to rounding.  Non-GAAP Financial Measures (4)(k)   For the Three Months Ended March 31,(unaudited; $ in thousands)  2025   2024      Care Margin $105,288  $94,907 Platform Contribution $51,733  $44,737 Platform Contribution Margin  49.1%  47.1%Adjusted EBITDA $26,915  $19,922 Adjusted EBITDA Margin  25.6%  21.0%     (4) In addition to results reported in accordance with GAAP, Privia Health discloses Care Margin, Platform Contribution, Platform Contribution margin, Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. Each are defined as follows: Care Margin is Gross Profit excluding amortization of intangible assets.Platform Contribution is Gross Profit, excluding amortization of intangible assets, less Cost of platform and excluding stock-based compensation expense included in Cost of platform.Platform Contribution margin is Platform Contribution divided by Care Margin.Adjusted EBITDA is net income attributable to Privia Health Group, Inc. shareholders and subsidiaries excluding non-controlling interests, provision for income taxes, interest income, interest expense, depreciation and amortization, stock-based compensation, employer taxes on equity vesting/exercises, severance charges and other non-recurring expenses.Adjusted EBITDA Margin is Adjusted EBITDA divided by Care Margin. (k) Any slight variations in totals are due to rounding.  Reconciliation of Gross Profit to Care Margin(l)   For the Three Months Ended March 31,(unaudited; $ in thousands)  2025   2024 Revenue $480,097  $415,243 Provider expense  (374,809)  (320,336)Amortization of intangible assets  (1,673)  (1,527)Gross Profit $103,615  $93,380 Amortization of intangibles assets  1,673   1,527 Care margin $105,288  $94,907 (l) Any slight variations in totals are due to rounding.  Reconciliation of Gross Profit to Platform Contribution(m)   For the Three Months Ended March 31,(unaudited; $ in thousands)  2025   2024 Revenue $480,097  $415,243 Provider expense  (374,809)  (320,336)Amortization of intangibles assets  (1,673)  (1,527)Gross Profit $103,615  $93,380 Amortization of intangibles assets  1,673   1,527 Cost of platform  (59,526)  (54,057)Stock-based compensation (5)  5,971   3,887 Platform Contribution $51,733  $44,737 (m) Any slight variations in totals are due to rounding.(5) Amount represents stock-based compensation expense included in Cost of Platform.  Reconciliation of Net Income to Adjusted EBITDA(n)   For the Three Months Ended March 31,(unaudited; $ in thousands)  2025   2024 Net income $4,220  $2,984 Net income attributable to non-controlling interests  1,826   72 Provision for income taxes  2,103   751 Interest income, net  (2,931)  (2,984)Depreciation and amortization  1,901   1,821 Stock-based compensation  17,790   11,904 Other expenses (6)  2,006   5,374 Adjusted EBITDA $26,915  $19,922      (n) Any slight variations in totals are due to rounding.(6) Other expenses include employer taxes on equity vesting/exercises, severance and certain non-recurring costs.  Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income Per Share(o)  For the Three Months Ended March 31,(unaudited; $ in thousands)2025 2024Net income$4,220 $2,984Stock-based compensation 17,790  11,904Intangible amortization expense 1,673  1,527Provision for income tax 2,103  751Other expenses (7) 2,006  5,374Adjusted net income$27,792 $22,540Adjusted net income per share attributable to Privia Health Group, Inc. stockholders – basic$0.23 $0.19Adjusted net income per share attributable to Privia Health Group, Inc. stockholders – diluted$0.22 $0.18Weighted average common shares outstanding – basic 120,623,670  118,505,320Weighted average common shares outstanding – diluted 127,752,527  125,053,404(o) Any slight variations in totals due to rounding.(7) Other expenses include employer taxes on equity vesting/exercises, severance and certain non-recurring costs. 

Related News