Privia Health Group, Inc. Q1 FY2026 earnings call

• Previa Health delivered a strong first quarter with growth across markets, having 5,535 implemented providers and 1.6 million value-based attributed lives.
• Practice collections saw a 14.6% increase, and adjusted EBITDA rose 36.3% with a 28.5% care margin.
• The company has a national presence in 24 states and the District of Columbia, with 5,535 implemented providers serving over 5.9 million patients.
• Showcased strong operational execution and a diversified business model, with new provider signings and implementations remaining robust.

Implemented providers grew 13.6% year-over-year to 5,535, with 1.6 million value-based attributed lives up 26.5% year-over-year. Practice collections increased 14.6% to $914.8 million. Adjusted EBITDA increased 36.3% to $36.7 million, with EBITDA margin as a percentage of care margin expanding 290 basis points to 28.5%. National footprint includes 24 states and the District of Columbia, with 5,535 implemented providers caring for over 5.9 million patients. Commercial attributed lives increased more than 17% to 913,000, CMS Medicare programs lives up 62%, Medicare Advantage and Medicaid attribution increased 20% and 36% respectively.

• Maintaining the 2026 guidance overall, except increasing the range for attributed lives.
• Expecting approximately 20% EBITDA growth at the midpoint of the guidance and converting about 80% of EBITDA to free cash flow.
• Has a robust pipeline of existing market expansion and new market opportunities while leveraging a healthy balance sheet.

Q: Congrats on strong start to the year, about maintaining outlook and shared savings.

A: It's early in the year, the approach is to keep executing each quarter, with some ups and downs, and shared savings should grow if the trend continues.

Q: Perspective on Medicare Advantage.

A: MA has tailwinds due to demographic changes, focused on growing the MA book, prefers the shared risk model.

Q: Growth and M&A.

A: Business development pipeline is strong, looking at deals across a wide spectrum, with a broad platform for acquisitions.

Q: Specialty mix.

A: Is happening naturally, varies by geography, and is well-positioned to expand the specialty strategy.

Q: LEAD program.

A: Unlikely to move existing MSSP ACOs into LEAD, will evaluate the new program for new geographies.

Q: Commercial risk.

A: Converts fee-for-service to value-based, payers are willing to compensate for care management and shared savings.

Q: Technology.

A: The new CTO brings a great background, and they are excited about AI applications across the tech stack.

Q: Shared savings and Evelyn assets.

A: There's a mix of prior year and current year performance, and the Evelyn assets are performing well with integration progress.

Q: Sell-through of Privia platform.

A: It's early days, focusing on integration, and sales cycles take time.

Q: Repurchase of NCI and ambulatory utilization.

A: The repurchase leads to better cash flow, and ambulatory utilization is diversified with no major swings.

Q: Cash and buybacks.

A: Guidance on cash and free cash flow, with a preference to compound the business through acquisitions.

Q: Implemented provider growth.

A: Varies by market and specialty, provider-to-provider referrals are strong, and visibility is over 90% at year end.

Q: Acute care hospitals.

A: Pressures on health systems bode well for Previa as physicians look to outpatient settings.

Q: Medicaid and capitated profitability.

A: Capitated profitability had prior year adjustments, and Medicaid growth is organic with a value-based strategy.

Q: Medicare Advantage and risk.

A: Reimbursement isn't massively increasing, prefers a shared risk arrangement for sustainable earnings.

Q: Prior authorization.

A: Not a big impact on the business, payers and providers are aligned for patient care.

Q: Medical cost trends and risk appetite.

A: Medical cost trends are consistent, and the risk appetite is consistent with a prudent approach.