Privia Health Group reported third‑quarter 2025 results that surpassed revenue expectations by nearly 18%, with total revenue reaching $580.42 million compared with the consensus estimate of $497.62 million. The jump was driven by a 32.5% year‑over‑year increase in practice collections, reflecting strong demand for the company’s Medicare Shared Savings Program and other value‑based care contracts. In comparison, revenue in Q3 2024 was $437.9 million, underscoring a 32.5% growth that signals accelerating market share gains.
The company’s earnings per share came in at $0.05, missing the $0.06 consensus estimate by $0.01. The miss is attributable to higher operating costs and a modest decline in margin pressure from the commercial segment, which offset the revenue lift. While the company’s EBITDA margin improved to 30.5% from 29.8% in the prior year—thanks to operational leverage and cost‑control initiatives—the higher cost base in the commercial arm and a one‑time restructuring charge contributed to the EPS shortfall.
Shared savings from the Medicare Shared Savings Program reached $234.1 million, a 32.6% increase from 2023. This growth reflects the company’s expanding provider network and improved care coordination, which have translated into higher savings for CMS. The $68.5 million CMS payment received in October 2025 for the 2024 performance year further bolstered the company’s cash position.
Privia also announced a definitive agreement to acquire an ACO business from Evolent Health. The transaction is valued at $100 million in cash, with an additional $13 million contingent on 2025 performance. The acquisition will add more than 1.5 million attributed lives to Privia’s value‑based care portfolio and is expected to close in the fourth quarter of 2025. Management projects the deal to positively contribute to Adjusted EBITDA in 2026, reinforcing the company’s growth strategy.
The company’s balance sheet remains robust, with $441.4 million in cash and no debt as of September 30 2025. After accounting for the acquisition payment, the pro‑forma cash balance is $409.9 million. Privia has also raised its full‑year 2025 Adjusted EBITDA guidance to $118 million–$121 million, up from the prior $105 million–$110 million range, reflecting confidence in continued revenue growth and margin expansion.
Management emphasized that the combination of strong shared‑savings performance, the ACO acquisition, and disciplined cost management positions the company for sustained earnings growth in 2026 and beyond. The updated guidance signals a positive outlook for the company’s value‑based care strategy, while the acquisition expands its geographic reach and provider network.
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