Privia Health — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $657.0 million, a 13.2% increase from $580.4 million in the prior year period.
• Total revenue for the nine months ended September 30, 2026, was $1,893.4 million, a 19.7% increase from $1,581.7 million in the prior year period.
• Net income for the three months ended September 30, 2026, was $13.5 million, a 96.6% increase from $6.9 million in the prior year period.
• Net income for the nine months ended September 30, 2026, was $25.6 million, an 85.9% increase from $13.8 million in the prior year period.
• Non-GAAP adjusted net income for the three months ended September 30, 2026, was $28.0 million, a 16.3% increase from $24.1 million in the prior year period.
• Non-GAAP adjusted net income for the nine months ended September 30, 2026, was $77.6 million, an 18.9% increase from $65.3 million in the prior year period.
• Adjusted EBITDA for the three months ended September 30, 2026, was $40.6 million, a 6.3% increase from $38.2 million in the prior year period.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $114.7 million, a 21.9% increase from $94.1 million in the prior year period.
• Operating income for the three months ended September 30, 2026, was $20.5 million, a 42.6% increase from $14.4 million in the prior year period.
• Operating income for the nine months ended September 30, 2026, was $39.7 million, a 73.1% increase from $23.0 million in the prior year period.
• Gross profit for the three months ended September 30, 2026, was $134.7 million, a 9.9% increase from $122.6 million in the prior year period.
• Gross profit for the nine months ended September 30, 2026, was $389.3 million, a 14.8% increase from $339.0 million in the prior year period.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $19.4 million, compared to net cash provided by operating activities of $35.9 million in the prior year period.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $12.6 million, compared to $90.3 million in the prior year period.
• Net cash used in financing activities for the nine months ended September 30, 2026, was $1.4 million, compared to net cash provided by financing activities of $4.6 million in the prior year period.
• Cash and cash equivalents as of September 30, 2026, were $446.3 million.
• The company reported no debt as of September 30, 2026.
• Provider liability increased to $572.5 million as of September 30, 2026, from $469.5 million as of December 31, 2025.
• Accounts receivable increased to $623.6 million as of September 30, 2026, from $400.9 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 guidance was raised to the high end for all key financial metrics.
• Updated FY 2026 guidance for Implemented Providers is 6,000 (High End).
• Updated FY 2026 guidance for Attributed Lives is 1,675,000 to 1,690,000.
• Updated FY 2026 guidance for Practice Collections is $3,900 million to $3,950 million.
• Updated FY 2026 guidance for GAAP Revenue is $2,500 million to $2,550 million.
• Updated FY 2026 guidance for Care Margin is $535 million to $540 million.
• Updated FY 2026 guidance for Platform Contribution is $280 million to $285 million.
• Updated FY 2026 guidance for Adjusted EBITDA is $154 million to $157 million.
• The company expects approximately 70% of Adjusted EBITDA to convert to free cash flow in full-year 2026.
• The company expects to end the year with at least $520 million in cash and cash equivalents, including the American Choice Healthcare transaction and assuming the 2025 MSSP cash settlement and related provider disbursements occur before year end.
• Guidance does not assume any new business development activity.
• The American Choice Healthcare acquisition is expected to positively contribute to Attributed Lives and Adjusted EBITDA in 2027.
• The exit of the Montana partnership is expected to have no material impact on Adjusted EBITDA in 2027.

Business Segments and Product Lines:

• Implemented Providers increased to 5,893 as of September 30, 2026, from 5,250 in the prior year period.
• Attributed Lives increased to 1,676,000 as of September 30, 2026, from 1,406,000 in the prior year period.
• Practice Collections for the three months ended September 30, 2026, were $1,028.8 million, a 9.4% increase from $940.4 million in the prior year period.
• Practice Collections for the nine months ended September 30, 2026, were $2,913.6 million, a 12.0% increase from $2,601.9 million in the prior year period.
• Care Margin for the three months ended September 30, 2026, was $138.1 million, a 10.3% increase from $125.2 million in the prior year period.
• Care Margin for the nine months ended September 30, 2026, was $399.0 million, a 15.4% increase from $345.7 million in the prior year period.
• Platform Contribution for the three months ended September 30, 2026, was $73.9 million, a 4.8% increase from $70.6 million in the prior year period.
• Platform Contribution for the nine months ended September 30, 2026, was $209.9 million, a 16.8% increase from $179.8 million in the prior year period.
• The company acquired the American Choice Healthcare MSSP Business, an Accountable Care Organization caring for more than 36,000 attributed lives in the Medicare Shared Savings Program.
• The American Choice Healthcare acquisition adds lives in ten existing Privia states and three new states, effective January 1, 2027.
• The company agreed to end its partnership with Surgery Partners in Montana effective January 2027, supporting 69 providers that generated approximately $23 million in annual Practice Collections.

Market and Competitive Landscape:

• Privia Health operates in 25 states and the District of Columbia.
• The company collaborates with medical groups, health plans, and health systems to optimize approximately 1,400 physician practices.
• The company serves over 6.3 million patients and rewards over 5,800 physicians and advanced practitioners.
• The industry is heavily regulated, with risks related to compliance with extensive applicable healthcare laws and government regulations.
• The company faces a high level of competition in its industry.
• The company relies on third-party vendors, including its primary electronic medical record vendor, athenahealth, Inc., with risks associated with service disruptions.

Risks and Challenges:

• Risks include the complexity of the legal framework governing relationships with Medical Groups and Privia providers.
• Execution of the growth strategy may not prove viable, and expected results may not be realized.
• Difficulties may arise in timely implementing the proprietary end-to-end, cloud-based technology solution.
• Challenges exist in successfully establishing a presence in new geographic markets.
• Potential decreases in reimbursement rates by governmental and third-party payers or changes to payment terms.
• Compliance with complex and changing federal and state privacy and security laws related to personal and protected health information.
• Impact of actual and potential security threats, cybersecurity incidents, or data breaches.
• Continued availability of qualified workforce and upward pressure on compensation.
• Legal challenges or shifting interpretations of applicable laws.

Management Commentary and Tone:

• Management raised full-year 2026 guidance to the high end for all key financial metrics, indicating confidence in performance.
• Management stated the American Choice Healthcare transaction is expected to have minimal impact on all key metrics in 2026.
• Management noted the Montana partnership exit is expected to have no material impact on Adjusted EBITDA in 2027.
• Management highlighted that guidance does not assume any new business development activity.
• Management expects to end the year with at least $520 million in cash and cash equivalents.

Other Key Points:

• Privia Health paid approximately $36 million at closing for the American Choice Healthcare MSSP acquisition using balance sheet cash.
• The acquisition of American Choice Healthcare occurred at the end of October 2026.
• The company reported $55.3 million in non-cash stock compensation expense for the nine months ended September 30, 2026.
• The company reported $55.6 million in non-cash stock compensation expense for the nine months ended September 30, 2025.
• The company reported $14.0 million in non-cash stock compensation expense for the three months ended September 30, 2026.
• The company reported $19.0 million in non-cash stock compensation expense for the three months ended September 30, 2025.
• Net cash used in investing activities for the nine months ended September 30, 2026, included $11.4 million in business acquisitions, net of cash acquired.
• Net cash used in investing activities for the nine months ended September 30, 2025, included $89.1 million in business acquisitions, net of cash acquired.
• The company repurchased non-controlling interest for $11.4 million during the nine months ended September 30, 2026.
• Proceeds from exercised stock options were $7.5 million during the nine months ended September 30, 2026.
• Proceeds from non-controlling interest were $2.6 million during the nine months ended September 30, 2026.
• The company holds a balance of $105.4 million for unpaid medical claims under at-risk capitation arrangements as of September 30, 2026.
• The company holds a balance of $76.4 million for unpaid medical claims under at-risk capitation arrangements as of September 30, 2025.
• Revenue sources for the nine months ended September 30, 2026, included $1,236.9 million in FFS-patient care, $99.4 million in FFS-administrative services, $280.8 million in Capitated revenue, $212.7 million in Shared savings, $58.0 million in Care management fees (PMPM), and $5.7 million in Other revenue.
• The company will host a conference call on November 5, 2026, at 8:00 am ET to discuss results.