Privia Health : 1Q'26 conf call script 5 7 26

Published: 2026-05-07 06:23:48 ET PRVA

Published on 05/07/2026 at 06:23 am EDT

Slide 1

Thank you, and good morning everyone. Joining me are Parth Mehrotra, our Chief Executive Officer, and David Mountcastle, our Chief Financial Officer. This call is being webcast and can be accessed in the Investor Relations section of priviahealth.com along with today's financial press release and slide presentation.

Slide 2 - Disclaimer

Following our prepared comments, we will open the line for questions. Please limit yourself to one question only, and return to the queue if you have a follow up, so we can get to as many questions as possible.

The financial results reported today are preliminary and are not final until our Form 10-Q for the quarter ended March 31, 2026 is filed with the Securities and Exchange Commission. Some of the statements we will make today are forward-looking in nature based on our current expectations and view of our business as of May 7, 2026. Such statements, including those related to our future financial and operating performance and future business plans and objectives, are subject to risks and uncertainties that may cause actual results to differ materially. As a result, these statements should be considered along with the cautionary statements in today's press release and the risk factors described in our Company's most recent SEC filings.

Finally, we may refer to certain non-GAAP financial measures on the call. Reconciliation of these measures to comparable GAAP measures are included in our press release and the accompanying slide presentation posted on our website. Now, I'd like to hand the call over to our CEO, Parth Mehrotra…

Slide 3 - Agenda

Thank you, Robert, and good morning everyone. Privia Health delivered a strong first quarter as we continue to execute extremely well and drive growth across our markets. This morning, I'll summarize our first quarter performance and business highlights. Then David will discuss our first quarter financial results and our updated 2026 guidance before we take your questions.

Slide 4 - Continued Momentum with First Quarter Performance

Privia Health's outstanding operational execution and the strength of our diversified business model clearly demonstrate our ability to perform in all types of market and healthcare regulatory environments. We are proud to deliver on our mission to achieve the quadruple aim: better outcomes, lower costs, improved patient experience, and happier and more engaged providers.

New provider signings and implementations remained strong. This provides great visibility through the remainder of 2026. We ended the first quarter with 5,535 providers, a 13.6% increase year over year, and with 1.6 million value-based attributed lives, up 26.5% from a year ago. The combination of implemented provider growth, attribution growth and value-based care performance helped increase Practice Collections 14.6% from the first quarter last year.

We continued to show strong operating leverage on Cost of Platform and G&A expenses. Adjusted EBITDA for the quarter increased 36.3% to $36.7 million, with EBITDA margin as a percentage of Care Margin expanding 290 basis points to reach 28.5%.

Given our strong Q1 performance, we feel confident about our annual guidance across all metrics. Since it's still early in the year, we are maintaining our 2026 guidance except for increasing our range for attributed lives given the strong first quarter attribution growth. Our ongoing business

momentum is expected to drive EBITDA growth of approximately 20% at the midpoint of guidance, while converting approximately 80% of EBITDA to free cash flow.

Slide 5 - Building One of the Largest Primary Care Centric Delivery Networks

Privia's national footprint now includes a presence in 24 states and the District of Columbia. Our 5,535 implemented providers care for over 5.9 million patients. We continue to demonstrate very high gross provider retention and patient net promoter score across our footprint. Our growth and momentum have positioned us as one of the leading primary care-centric medical groups and value-based care organizations in the country. We expect to expand our presence in existing and new states both organically and inorganically given our balance sheet strength.

Slide 6 - Diversified Value-Based Platform

Privia's diversified value-based platform serves over 1.6 million patients through more than 130 commercial and government contracts. Our total attributed lives increased over 26% from a year ago. This was driven by new provider growth and the addition of the Evolent ACO business.

Commercial attributed lives increased more than 17% from last year to reach 913,000. Lives attributed to the CMS Medicare programs were up 62%. Medicare Advantage and Medicaid attribution increased 20% and 36%, respectively, from a year ago.

We remain highly focused on increasing attribution and generating positive contribution margin across our value-based book. Ultimately, our goal is to achieve consistent and sustainable earnings growth for our physician partners and shareholders.

David will now review our first quarter financial results and updated 2026 guidance…

Slide 7 - 1Q Performance

Thank you, Parth. Privia Health's strong operational performance continued through the first quarter. Implemented Providers grew 155 sequentially from year-end 2025 and increased 13.6% year-over-year. Implemented Provider growth along with solid value-based performance and ambulatory utilization trends led to Practice Collections increasing 14.6% from the first quarter a year ago to reach $914.8 million.

Adjusted EBITDA, which is reconciled to GAAP Net Income in the Appendix, increased 36.3% over the first quarter last year to reach $36.7 million, representing 28.5% of Care Margin. This 290 basis-point margin improvement continues to highlight significant operating leverage.

Slide 9 - Strong Balance Sheet and Capital Position

We ended the first quarter with $419.5 million in cash and no debt following typical Q1 cash outflows from value-based care payments to providers and employee bonuses.

Slide 10 - FY'26 Guidance Metrics

We are reiterating our full-year 2026 guidance metrics following our strong performance in the first quarter, and raising our guidance range for attributed lives at year end. This guide implies Adjusted EBITDA growth of approximately 20% at the $150 million midpoint, and we expect 80% of full-year EBITDA to convert to Free Cash Flow as we become a full cash-tax payer.

While our guidance assumes no new business development, we have a robust pipeline of existing market expansion and new market opportunities. We will remain disciplined and strategic while leveraging our healthy balance sheet to grow the business and compound our EBITDA and free cash flow.

Slide 11 - Consistent Growth & Profitability Across Cycles

Over the last two years, our EBITDA growth rate has averaged 32%. Achieving the midpoint of our 2026 guidance will result in EBITDA more than doubling over three years. Our consistent growth and ability to compound EBITDA and free cash flow across economic, healthcare and regulatory cycles over the past nine years validates the strength of the Privia business model.

Privia's business momentum is powered by the consistent execution by our provider partners and our employees. This has positioned us well to continue to drive growth and profitability as we build and scale our national footprint. I would like to take this opportunity to thank each one of them for their hard work. Operator, we are now ready to take questions.

# # #

Disclaimer

Privia Health Group Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 10:21 UTC.