Privia Health Group, Inc. Q1 FY2025 earnings call

• Privia started 2025 with strong growth and momentum, with new provider signings across markets. - Entered the State of Arizona in early April with a partnership with IMS, a large independent multi-specialty practice. - Has a footprint of 4,871 implemented providers caring for over 5.2 million patients in over 1,200 care centers. - Attributed lives increased 11.1% year-over-year, with commercial, Medicare, Medicare Advantage, and Medicaid attributed lives all showing growth. - Demonstrated operating leverage across cost of platform and G&A while investing in growth.

Privia Health saw strong growth in the first quarter. Implemented Providers grew 11.7% year-over-year, and value-based attribution growth was 11.1% year-over-year. Total Practice Collections increased 12.8%. Adjusted EBITDA rose 35.1% with EBITDA margin expanding 460 basis points. The company entered the Arizona market with a partnership with IMS, which has approximately 70 providers and over 28,000 value-based care attributed lives. Privia operates across 15 states and the District of Columbia, with 4,871 implemented providers caring for over 5.2 million patients in over 1,200 care centers, and serves 1.27 million attributed lives across over 100 value-based care programs.

• Raised 2025 outlook to the mid to high end of initial guidance. - Attributed Lives guidance remains unchanged. - Arizona market expected to be EBITDA positive in Q4 2025 and meaningfully contribute to adjusted EBITDA in 2026. - Expect at least 80% of adjusted EBITDA to convert to free cash flow.

• Uncertainties in the healthcare market environment that could impact financial and operating performance. - Potential changes in value-based care programs and regulatory requirements. - Risks associated with new market entries, including initial investment and achieving expected EBITDA contribution. - Utilization trends and their impact on fee-for-service and value-based care business.

Q: Can you talk about the IMS transaction and prospects in the Arizona market, what differentiated it from past deals, and how much practice collection and EBITDA benefit is included in guidance?

A: IMS is a large, well-established practice in Arizona with cultural alignment. It's a significant transaction with meaningful EBITDA contribution, but specifics on deal and EBITDA contribution are not disclosed separately, embedded in guidance.

Q: How about ambulatory utilization versus guidance and thoughts on utilization for the rest of the year?

A: Ambulatory utilization has been strong, normalized in guidance, and expected to continue, reflecting in practice collections.

Q: Clarification on IMS in guidance, absorbing new market entry costs and accounting for revenue before implementation on Privia platform?

A: There are new market entry costs absorbed in guidance. Accountingly, revenue and practice collections from the acquired Medical Group are recognized upon acquisition, but care margin in adjusted EBITDA is recognized upon implementation on the Athena platform in Q4 2025.

Q: Growth in capitated lives quarter-over-quarter and perspective on Medicare Advantage in 2026?

A: Capitated lives growth was organic within existing contracts. On Medicare Advantage, will continue to pursue shared risk arrangements, not expecting full cap contracts, but looking to grow the book with existing and new payers.

Q: Any surprises in MSSP implementation versus expectations and practice care management strategies?

A: V28 mainly impacts MA, MSSP is not greatly affected. MA book playing out as expected, with conservative views given industry headwinds.