Privia Health Reports First Quarter 2025 Financial Results

   -- Strong First Quarter Performance and Operating Execution 
 
   -- Enters the State of Arizona 
 
   -- Full-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; and 
 
   -- Adjusted 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 $(IMS.AU)$, 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:

 
                                                              Updated 
                                                              FY 2025 
                                                             Guidance 
                               Initial FY 2025 Guidance at      at 
                   FY 2024             2.27.25 (c)            5.8.25 
                  ----------  -----------------------------  --------- 
($ in millions)     Actual         Low            High 
                  ----------  -------------  --------------  --------- 
Implemented                                                     Mid to 
 Providers             4,789          5,200           5,300   High End 
Attributed Lives   1,256,000      1,300,000       1,400,000  Unchanged 
Practice                                                        Mid to 
 Collections      $  2,968.0   $      3,150   $       3,250   High End 
                                                                Mid to 
GAAP Revenue      $  1,736.4   $      1,800   $       1,900   High End 
Care Margin (c                                                  Mid to 
 d)               $    403.9   $        435   $         445   High End 
Platform 
 Contribution (c                                                Mid to 
 d)               $    195.6   $        208   $         218   High End 
Adjusted EBITDA                                                 Mid to 
 (c d e)          $     90.5   $        105   $         110   High End 
 
 
   -- Guidance assumes minimal year-over-year increase in value-based shared 
      savings accruals given current environment 
 
   -- Guidance includes impact of Arizona market entry, and assumes no other 
      new business development activity 
 
   -- De minimis capital expenditures expected in full-year 2025 
 
   -- At least 80% of Adjusted EBITDA expected to convert to free cash flow in 
      full-year 2025 
 
   -- Effective 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$(TM)$ 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.

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