Privia Health Q1 2025 Earnings Summary: Revenue Grows 16%, EBITDA Up 35%, Arizona Expansion Underway

• Total revenue: $480.1M (up 15.6%)
• Gross profit: $103.6M (up 11.0%)
• Operating income: $5.2M (up from $0.8M)
• Net income: $4.2M (up 41%)
• Adjusted net income: $27.8M (up 23%)
• Adjusted EPS (diluted): $0.22 (up 22%)
• Adjusted EBITDA: $26.9M (up 35%)

Key Operational Metrics:
• Implemented Providers: 4,871 (up 11.7%)
• Attributed Lives: 1.27M (up 11.1%)
• Practice Collections: $798.6M (up 12.8%)
• Care Margin: $105.3M (up 10.9%)
• Platform Contribution: $51.7M (up 15.6%)
• Adjusted EBITDA Margin: 25.6% (vs. 21.0%)

Geographic Expansion:
• Entered Arizona market via a $95M acquisition of Integrated Medical Services (IMS)
o IMS has ~70 providers across 21 locations and manages 28,000+ value-based patient lives
o Arizona operations expected to be profitable by Q4 2025

Revenue Breakdown (Q1 2025):
• FFS-patient care: $311.8M
• FFS-admin services: $32.3M
• Capitated revenue: $70.7M
• Shared savings: $47.9M
• Care management (PMPM): $15.2M
• Other: $2.3M

Cash & Balance Sheet:
• Cash on hand: $469.3M
• Net cash used in operations: ($24.1M), primarily due to AR growth
• No debt; strong cash reserves support growth investments

Updated Full-Year 2025 Guidance (as of May 8):
• Revenue: $1.8B–$1.9B (raised to mid-to-high end)
• Practice Collections: $3.15B–$3.25B (raised to mid-to-high end)
• Adjusted EBITDA: $105M–$110M (raised to mid-to-high end)
• Attributed lives: 1.3M–1.4M (unchanged)
• EBITDA-to-free cash flow conversion: ≥80%

Outlook:
Management reaffirmed confidence in its long-term growth strategy, driven by same-store growth, physician network expansion, and disciplined platform execution. The Arizona acquisition marks a meaningful entry into a new market, with expectations of Q4 profitability and no major additional acquisitions factored into 2025 guidance.

Privia Health Group, Inc. announced that its Compensation Committee has amended the employment terms of CEO Parth Mehrotra, effective March 24, 2025. Under the revised agreement, Mr. Mehrotra will receive an annual base salary of $650,000, an annual performance bonus of up to 125% of his base salary, and an annual long-term incentive award with a target value of $8 million starting in 2025.

Privia Health Group reported strong fourth-quarter and full-year 2024 financial results, surpassing the high end of all guidance metrics. The company demonstrated continued growth in its provider network, improved financial performance, and strong cash flow generation.

Full-year 2024 highlights:
- Revenue: $1.74 billion, a 4.7% increase year-over-year
- Gross profit: $397.7 million, up 12.4% from 2023
- Operating income: $17.0 million, compared to $20.6 million in 2023
- Net income: $14.4 million, a 37.7% decrease due to higher stock-based compensation expenses
- Adjusted net income: $97.6 million, up 19.8% year-over-year
- Adjusted EBITDA: $90.5 million, a 25.2% increase from the prior year
- Net cash provided by operating activities: $109.3 million, up 35.3% year-over-year
- Cash balance: $491.1 million with no debt

Privia saw an 11.2% increase in implemented providers, bringing the total to 4,789 by year-end. The company also grew attributed lives by 12.1%, reaching 1.26 million patients. Its Medicare Shared Savings Program (MSSP) generated $176.6 million in shared savings, a 34.1% increase over the previous year.

Fourth-quarter 2024 performance:
- Revenue: $460.9 million, up 4.6% from the prior year
- Gross profit: $106.1 million, an 18% increase
- Operating income: $5.2 million, up 269.6% from Q4 2023
- Net income: $4.4 million, a 55% increase
- Adjusted net income: $26.5 million, up 30.5%
- Adjusted EBITDA: $24.9 million, a 44% increase

The company’s practice collections reached $792.5 million in Q4 and $2.97 billion for the full year, reflecting 4.5% year-over-year growth.

2025 financial guidance:
- Revenue expected between $1.8 billion and $1.9 billion, a year-over-year increase of 3.7% to 9.4%
- Adjusted EBITDA projected between $105 million and $110 million, up 16.1% to 21.6%
- Implemented providers expected to reach between 5,200 and 5,300, reflecting 8.6% to 10.7% growth
- Attributed lives forecasted between 1.3 million and 1.4 million, a 3.5% to 11.5% increase
- Care margin expected between $435 million and $445 million, a growth of 7.7% to 10.2%
- Free cash flow conversion projected at 80% of adjusted EBITDA

Privia expects continued growth in provider density, expansion in value-based care models, and strong financial performance despite challenges in the Medicare Advantage and value-based care markets. The company remains focused on increasing scale, expanding its addressable market, and maintaining financial discipline with minimal capital expenditures.

A conference call to discuss the results and outlook is scheduled for today at 8:00 AM ET.