Privia Health Group, Inc. (PRVA) Earnings

Management highlights

### National Network Expansion - Expanded footprint to 25 U.S. states (plus the District of Columbia) via entry into New Jersey in partnership with Neurology Group of Bergen County, a 25-clinician practice - Total network reaches 5,644 implemented providers serving over 6.1 million patients across more than 1,300 care center locations - Maintains 98% average gross provider retention over the past three years, serving 1.64 million attributed lives across 130+ commercial and government value-based care programs - Completed full integration of 2025's Evalent and IMS acquisitions, which are performing in line with expectations and contributing to 2026 growth ### Operational and Strategic Progress - Delivered strong new provider signings across all markets, creating clear earnings visibility through the end of 2026 and into 2027 - Operating model combines community-based medical groups, risk-bearing entities, and an integrated technology and services platform to generate consistent scalable growth - The two-pronged go-to-market strategy (full medical group affiliation and ACO-only model) is progressing as planned; the ACO-only model expands the total addressable market in states where Privia has not yet established a full medical group footprint, with cross-sell opportunities to convert ACO-only partners to full affiliation over time ### AI and Margin Expansion Initiatives - Actively deploying AI applications across four core workflows: corporate functions, fee-for-service workflows, value-based workflows, and direct patient care experiences - AI deployments are focused on improving efficiency, reducing administrative burden, and enabling margin expansion without proportional increases in fixed costs or headcount - Management expects to continue expanding adjusted EBITDA margin (as a percentage of care margin) toward the high end of the long-term 30% to 35% target range over the next few years, driven by operating leverage and AI-enabled efficiency gains ### Balance Sheet and Cash Flow - Ended Q2 2026 with $412 million in cash and no debt, providing significant financial flexibility for capital deployment and business development opportunities - As a full cash taxpayer starting in 2026, management expects 70-80% of full-year 2026 adjusted EBITDA will convert to free cash flow (excluding new business development capital deployment, assuming 2025 shared savings payments are received by year-end)

Guidance

- Raised 2026 guidance for attributed lives above the high end of the prior guidance range, and raised guidance for practice collections and gap revenue to the high end of the prior ranges - Raised 2026 guidance for care margin, platform contribution, and adjusted EBITDA to the mid-to-high end of the prior ranges - Guidance for implemented provider growth remains unchanged: 570 net new providers at the 2026 guidance midpoint, representing 10.6% growth over 2025 - 2026 guidance does not include any assumption of additional unannounced business development activity - Management expects adjusted EBITDA margin as a percentage of care margin to reach ~29% in 2026, near the low end of the 30-35% long-term target range, with continued accretion toward the high end over the next few years - Management maintains a long-term target of ~20% annual adjusted EBITDA growth, noting that results may vary above or below this target in individual years depending on growth and acquisition activity

Segment performance

Privia Health does not break out separate product segment financials in this call. Aggregate firm-level results for Q2 2026 are: implemented providers grew 10.1% YoY to 5,644; total practice collections grew 12.4% YoY to $970 million; adjusted EBITDA grew 29% YoY to $37.4 million, equal to 28.3% of care margin (a 310 basis point YoY improvement). For the first half of 2026, aggregate results are: practice collections grew 13.4% YoY to $1.88 billion; care margin grew 18.3% YoY; adjusted EBITDA grew 32.5% YoY to $74.1 million. Value-based attributed lives grew 19.2% YoY overall, with commercial attributed lives up 11.7% YoY to 942,000, CMS Medicare program attributed lives up 55% YoY, Medicare Advantage attribution up over 12% YoY, and Medicaid attribution up over 18% YoY. Privia manages an estimated $15.7 billion in total medical spend across all commercial and government value-based risk arrangements.

Risks & headwinds

- CMS has proposed retroactive changes to the Medicare Shared Savings Program (MSSP) for performance year 2025, which may delay final reconciliation results and cash settlement for 2025 performance until November 2026, creating an atypical year-end 2026 cash flow timing dynamic; accruals are not materially impacted, but cash flow will shift depending on the timing of CMS payment and subsequent disbursements to provider partners - Forward-looking statements about future performance, growth, and strategic initiatives are subject to risks and uncertainties that could cause actual results to differ materially from expectations, as detailed in Privia's most recent SEC filings - Industry consolidation and market disruption from Medicare ACO program transitions (from REACH to LEAD) create uncertainty for smaller subscale ACO operators, though management views this as a long-term opportunity for Privia as a scaled platform provider - Potential changes to payer participation in Medicare Advantage and Medicaid managed care markets could create near-term disruption, though management notes this creates opportunities for Privia as a low-cost community-based provider partner

Analyst Q&A

• Q: What is the risk of the delayed CMS MSSP payment, and what signposts can investors watch for this? /

  A: Management is not concerned about the delayed payment, which is only pushed 30-45 days from the typical August/September timeline. CMS has a strong track record of honoring payments, and needs extra time to implement proposed program changes which management views as broadly positive. Payment will arrive by late 2026 regardless of the exact timing, with no material impact to expected full-year cash receipts.

• Q: What gives management confidence to reach the high end of the 30-35% long-term EBITDA margin target, and when will this be achieved? /

  A: Privia is already on track to hit 29% margin in 2026, very near the low end of the target range, with mature markets already exceeding the low end. Ongoing scaling of the business and AI-enabled efficiency gains will continue to drive margin accretion over the next few years, with no fixed firm timeline, but consistent steady progress expected.

• Q: What is driving the implied deceleration of practice collections growth from 1H to 2H 2026, and is this due to underlying headwinds? /

  A: The implied deceleration is simply the result of prudent, conservative guidance setting mid-year, not a reflection of underlying business headwinds. Management says if current strong trends continue, there will be further upside to guidance as the year progresses, and ambulatory utilization trends remain strong for Privia's business.

• Q: What specific AI use cases is Privia deploying that drive margin improvement, and how is AI spend managed? /

  A: AI is being rolled out across corporate workflows, revenue cycle, clinical decision support, and patient experience, with partnerships including Google Gemini and existing portfolio investments like Navina. All AI spending is tied directly to measurable efficiency gains and margin expansion; management does not approve unproductive AI spending that would compress margins, and all investments are measured by time saved, cost reduced, and outcomes improved.

• Q: How does the MSSP program changes impact Privia, and what is your view of the proposals? /

  A: Management views the proposed MSSP changes as broadly positive, including adjustments to attribution for new providers and regional rebasing. While there are still opportunities to simplify the number of overlapping CMS ACO programs, the changes are a step in the right direction that support continued growth of Privia's value-based business, and the guidance increase reflects this positive outlook.