Privia Health Reports Second Quarter 2025 Financial Results

Very Strong First Half Performance Across All Key Operating and Financial MetricsImplemented Providers +13.8% and Practice Collections +18.5% compared to 2Q’24Guidance Raised to Above High End of Range for Practice Collections, GAAP Revenue, Platform Contribution and Adjusted EBITDA c ARLINGTON, Va., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Privia Health Group, Inc. (Nasdaq: PRVA) today announced financial results for the second quarter ended June 30, 2025. Second Quarter Performance For the Three Months Ended June 30, ($ in millions, except per share amounts) 2025 2024 Change (%) Total revenue $521.2 $422.3 23.4%Gross profit $112.8 $98.3 14.8%Operating income $3.3 $5.1 (34.6)%Net income a $2.7 $3.5 (22.5)%Non-GAAP adjusted net income b d e $30.6 $23.5 30.1%Net income per share $0.02 $0.03 (33.3)%Non-GAAP adjusted net income per share b d e $0.24 $0.19 26.3% a.Net income for the three months ended June 30, 2025, included $18.8 million in non-cash stock compensation expense. Net income for the three months ended June 30, 2024 included $14.4 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. Second Quarter 2025 highlights include: Continued strength in same-store growth and new provider additions, +13.8% versus 2Q’24;Practice Collections of $862.9 million, +18.5% versus 2Q’24;Adjusted EBITDA b d e of $29.0 million, +31.6% versus 2Q’24;Strong sales and business development pipeline; andCash of $390.1 million and no debt following $95 million deployed for IMS transaction in Arizona. Key Operating and Non-GAAP Financial Metrics b, d, e For the Three Months Ended June 30, ($ in millions) 2025 2024 Change (%) Implemented Providers 5,125 4,504 13.8%Value-Based Care Attributed Lives 1,382,000 1,200,000 15.2%Practice Collections $862.9 $728.0 18.5%Care Margin b d $115.2 $99.8 15.4%Platform Contribution b d $57.5 $47.4 21.3%Adjusted EBITDA b d e $29.0 $22.0 31.6% Six-Month Performance For the Six Months Ended June 30, ($ in millions, except per share amounts) 2025 2024 Change (%) Total revenue $1,001.3 $837.6 19.5%Gross profit $216.4 $191.6 12.9%Operating income $8.6 $5.9 44.5%Net income a $6.9 $6.5 7.1%Non-GAAP adjusted net income b d e $58.4 $46.1 26.8%Net income per share $0.05 $0.05 —%Non-GAAP adjusted net income per share b d e $0.46 $0.37 24.3% a.Net income for the six months ended June 30, 2025 included $36.6 million in non-cash stock compensation expense. Net income for the six months ended June 30, 2024 included $26.3 million in non-cash stock compensation expense.b.Reconciliations of non-GAAP adjusted net income and other non-GAAP financial measures are presented in tables near the end of this press release. Key Operating and Non-GAAP Financial Metrics b d e For the Six Months Ended June 30, ($ in millions) 2025 2024 Change (%) Practice Collections $1,661.5 $1,435.7 15.7%Care Margin b d $220.4 $194.7 13.2%Platform Contribution b d $109.2 $92.1 18.5%Adjusted EBITDA b d e $55.9 $41.9 33.3% Updated FY’25 Guidance c d e f Privia Health raised its full-year 2025 outlook as follows: FY 2024 Initial FY 2025 Guidance at 2.27.25 c Updated FY 2025 Guidance at 8.7.25($ in millions)Actual Low High Implemented Providers 4,789 5,200 5,300 High EndAttributed Lives 1,256,000 1,300,000 1,400,000 High EndPractice Collections$2,968.0 $3,150 $3,250 Above High EndGAAP Revenue$1,736.4 $1,800 $1,900 Above High EndCare Margin c d$403.9 $435 $445 High EndPlatform Contribution c d$195.6 $208 $218 Above High EndAdjusted EBITDA c d e$90.5 $105 $110 Above High End Guidance 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 2025 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 August 7, 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 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 dial 888-596-4144 (or 646-968-2525 for international callers) and provide Conference ID 5704885. 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 1,300+ physician practices, improve the patient experience for 5.3+ million patients, and reward 5,100+ 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 June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Revenue$521,153 $422,326 $1,001,250 $837,569 Operating expenses: Provider expense 405,992 322,536 780,801 642,872Cost of platform 64,918 57,106 124,444 111,163Sales and marketing 6,805 6,852 13,727 12,937General and administrative 37,519 28,916 69,240 61,037Depreciation and amortization 2,583 1,818 4,484 3,639Total operating expenses 517,817 417,228 992,696 831,648Operating income 3,336 5,098 8,554 5,921Interest income, net 2,408 2,966 5,339 5,950Income before provision for income taxes 5,744 8,064 13,893 11,871Provision for income taxes 2,456 3,421 4,559 4,172Net income 3,288 4,643 9,334 7,699Less: Net income attributable to non-controlling interests 601 1,176 2,427 1,248Net income attributable to Privia Health Group, Inc.$2,687 $3,467 $6,907 $6,451Net income per share attributable to Privia Health Group, Inc. stockholders – basic$0.02 $0.03 $0.06 $0.05Net income per share attributable to Privia Health Group, Inc. stockholders – diluted$0.02 $0.03 $0.05 $0.05Weighted average common shares outstanding – basic 122,132,245 119,301,350 121,370,949 118,902,095Weighted average common shares outstanding – diluted 128,447,069 125,317,908 128,149,252 125,315,681 (g) Any slight variations in totals due to rounding. Privia Health Group, Inc. Condensed Consolidated Balance Sheets(h)(in thousands) June 30, 2025 December 31, 2024Assets(unaudited) Current assets: Cash and cash equivalents$390,127 $491,149 Accounts receivable 443,994 316,179 Prepaid expenses and other current assets 48,839 27,495 Total current assets 882,960 834,823 Non-current assets: Property and equipment, net 827 1,242 Operating right-of-use asset 6,038 4,828 Intangible assets, net 170,140 109,807 Goodwill 172,215 141,615 Deferred tax asset 23,712 26,383 Other non-current assets 16,650 17,085 Total non-current assets 389,582 300,960 Total assets$1,272,542 $1,135,783 Liabilities and stockholders’ equity Current liabilities: Accounts payable and accrued expenses$74,299 $81,986 Provider liability 458,053 364,607 Operating lease liabilities, current 2,502 2,553 Total current liabilities 534,854 449,146 Non-current liabilities: Operating lease liabilities, non-current 4,142 3,037 Other non-current liabilities — 153 Total non-current liabilities 4,142 3,190 Total liabilities 538,996 452,336 Commitments and contingencies Stockholders’ equity: Common stock 1,227 1,203 Additional paid-in capital 853,950 813,209 Accumulated deficit (172,322) (179,229)Total Privia Health Group, Inc. stockholders’ equity 682,855 635,183 Non-controlling interest 50,691 48,264 Total stockholders’ equity 733,546 683,447 Total liabilities and stockholders’ equity$1,272,542 $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 Six Months Ended June 30, 2025 2024 Cash flows from operating activities Net income$9,334 $7,699 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation 415 585 Amortization of intangibles 4,069 3,054 Stock-based compensation 36,639 26,295 Deferred tax expense 2,671 3,896 Changes in asset and liabilities: Accounts receivable (121,497) (79,287)Prepaid expenses and other current assets (21,344) (1,739)Other non-current assets and right-of-use asset 1,055 (676)Accounts payable and accrued expenses (7,687) 2,987 Provider liability 81,185 40,047 Operating lease liabilities (778) (1,531)Other long-term liabilities (153) — Net cash (used in) provided by operating activities (16,097) 1,330 Cash from investing activities Business acquisitions, net of cash acquired (89,058) (707)Other — (5,006)Net cash used in investing activities (89,058) (5,713)Cash flows from financing activities Proceeds from exercised stock options 4,126 1,224 Proceeds from non-controlling interest — 1,000 Net cash provided by financing activities 4,126 2,224 Net decrease in cash and cash equivalents (101,022) (2,159)Cash and cash equivalents at beginning of period 491,149 389,511 Cash and cash equivalents at end of period$390,127 $387,352 Supplemental disclosure of cash flow information: Interest paid$124 $156 Income taxes paid$5,771 $2,881 Supplemental disclosure of non-cash operating activities: Lease liabilities obtained in exchange for right-of-use assets$1,832 $— (i) Any slight variations in totals are due to rounding. Additional Financial Information Revenues disaggregated by source: For the Three Months Ended June 30, For the Six Months Ended June 30,(Dollars in Thousands) 2025 2024 2025 2024FFS-patient care$331,464 $275,761 $643,225 $550,584FFS-administrative services 35,116 32,132 67,371 61,208Capitated revenue 75,511 56,438 146,201 107,742Shared savings 60,021 39,818 107,933 87,282Care management fees (PMPM) 16,919 16,163 32,121 26,766Other revenue 2,122 2,014 4,399 3,987Total Revenue$521,153 $422,326 $1,001,250 $837,569 The Company’s liabilities for unpaid medical claims under at-risk capitation arrangements: June 30,(Dollars in Thousands) 2025 2024 Balance, beginning of period $66,355 $67,138 Incurred health care costs: Current year 144,840 104,610 Prior years (555) 3,305 Total claims incurred $144,285 $107,915 Claims paid: Current year (63,025) (47,979)Prior year (47,959) (52,877)Total claims paid $(110,984) $(100,856)Balance, end of period $99,656 $74,197 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 June 30, For the Six Months Ended June 30,(unaudited; $ in millions) 2025 2024 2025 2024 Implemented Providers (as of end of period) (1) 5,125 4,504 5,125 4,504Attributed Lives (as of end of period) (2) 1,382,000 1,200,000 1,382,000 1,200,000Practice Collections (3) $862.9 $728.0 $1,661.5 $1,435.7 (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 June 30, For the Six Months Ended June 30,(unaudited; $ in thousands) 2025 2024 2025 2024 Care Margin $115,161 $99,790 $220,449 $194,697 Platform Contribution $57,466 $47,394 $109,199 $92,131 Platform Contribution Margin 49.9% 47.5% 49.5% 47.3% Adjusted EBITDA $28,992 $22,023 $55,907 $41,945 Adjusted EBITDA Margin 25.2% 22.1% 25.4% 21.5% (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 June 30, For the Six Months Ended June 30,(unaudited; $ in thousands) 2025 2024 2025 2024 Revenue $521,153 $422,326 $1,001,250 $837,569 Provider expense (405,992) (322,536) (780,801) (642,872)Amortization of intangible assets (2,396) (1,527) (4,069) (3,054)Gross Profit $112,765 $98,263 $216,380 $191,643 Amortization of intangibles assets 2,396 1,527 4,069 3,054 Care margin $115,161 $99,790 $220,449 $194,697 (l) Any slight variations in totals are due to rounding. Reconciliation of Gross Profit to Platform Contribution(m) For the Three Months Ended June 30, For the Six Months Ended June 30,(unaudited; $ in thousands) 2025 2024 2025 2024 Revenue $521,153 $422,326 $1,001,250 $837,569 Provider expense (405,992) (322,536) (780,801) (642,872)Amortization of intangibles assets (2,396) (1,527) (4,069) (3,054)Gross Profit $112,765 $98,263 $216,380 $191,643 Amortization of intangibles assets 2,396 1,527 4,069 3,054 Cost of platform (64,918) (57,106) (124,444) (111,163)Stock-based compensation(5) 7,223 4,710 13,194 8,597 Platform Contribution $57,466 $47,394 $109,199 $92,131 (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 June 30, For the Six Months Ended June 30,(unaudited; $ in thousands) 2025 2024 2025 2024 Net income $2,687 $3,467 $6,907 $6,451 Net income attributable to non-controlling interests 601 1,176 2,427 1,248 Provision for income taxes 2,456 3,421 4,559 4,172 Interest income, net (2,408) (2,966) (5,339) (5,950)Depreciation and amortization 2,583 1,818 4,484 3,639 Stock-based compensation 18,849 14,391 36,639 26,295 Other expenses(6) 4,224 716 6,230 6,090 Adjusted EBITDA $28,992 $22,023 $55,907 $41,945 (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 June 30, For the Six Months Ended June 30,(unaudited; $ in thousands) 2025 2024 2025 2024Net income$2,687 $3,467 $6,907 $6,451Stock-based compensation 18,849 14,391 36,639 26,295Intangible amortization expense 2,396 1,527 4,069 3,054Provision for income tax 2,456 3,421 4,559 4,172Other expenses(7) 4,224 716 6,230 6,090Adjusted net income$30,612 $23,522 $58,404 $46,062Adjusted net income per share attributable to Privia Health Group, Inc. stockholders – basic$0.25 $0.20 $0.48 $0.39Adjusted net income per share attributable to Privia Health Group, Inc. stockholders – diluted$0.24 $0.19 $0.46 $0.37Weighted average common shares outstanding – basic 122,132,245 119,301,350 121,370,949 118,902,095Weighted average common shares outstanding – diluted 128,447,069 125,317,908 128,148,252 125,315,681(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.

Privia Health Reports Second Quarter 2025 Financial Results

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