Privia Health Group, Inc. Q3 FY2025 earnings call

• Privia Health executed well across all business aspects in Q3 2025, with strong results in value-based care, including Medicare Shared Savings Program 2024. • New provider signings and implementations remained strong, providing visibility for 2026. • In September, Privia agreed to acquire an ACO business from Evolent Health for $100M cash plus up to $13M earn-out, adding over 120,000 value-based care attributed lives. • Privia's national footprint includes 5,250 implemented providers caring for over 5.6 million patients in 15 states and D.C., with over 1.4 million patients served through over 100 commercial and government programs. • Total attributed lives increased close to 13% YOY, with commercial, Medicare, Medicare Advantage, and Medicaid attributed lives all showing growth.

Privia Health demonstrated strong financial performance across segments. In the third quarter, implemented provider growth was 13.1% year-over-year, value-based attribution growth was 12.8% YOY, and practice collections grew 27.1%. Adjusted EBITDA increased 61.6% with EBITDA margin as a percentage of care margin expanding 720 basis points to reach 30.5%. For the first 9 months of 2025, practice collections increased 19.6% to $2.6 billion, care margin was up 16.7%, and adjusted EBITDA grew 43.5% to $94.1 million. The value-based care book, including Medicare Shared Savings Program, contributed significantly to these results.

• Privia raised its 2025 outlook. Implemented providers are expected to increase 11.2% YOY to reach 5,325 by year-end. • Attributed lives growth is expected to be approximately 12.5%. • Practice collections are guided to grow 17.1% and care margin 13.2% at their respective midpoints. • Adjusted EBITDA growth is guided to 32% at the midpoint, and over 80% of full year 2025 adjusted EBITDA is expected to convert to free cash flow.

• Market uncertainties that may cause actual results to differ materially from forward-looking statements. • Regulatory risks associated with M&A transactions, such as the Evolent Health ACO acquisition. • Risks related to integrating acquired businesses and achieving expected synergies. • Uncertainties in utilization trends and their impact on financial performance.

Q: Marco Criscuolo asked about how Privia plans to guide to MSSP performance in the future and if the outperformance in 2024 is factored into baseline planning.

A: Parth Mehrotra responded that they factor in all data from CMS, including attribution, program structure changes, etc., and past results are factored into future guidance.

Q: Elizabeth Anderson inquired about 4Q performance and 2026 EBITDA.

A: Parth Mehrotra stated they avoid quarterly guidance, are prudent, and expect strong performance into 2026 with continued momentum guiding to 20% growth off 2024 results.

Q: Whit Mayo asked about factors influencing strong fee-for-service growth.

A: Parth Mehrotra mentioned broad-based factors like utilization trends, value-based book results, new markets added, and momentum across the business.