Privia Health Group (NASDAQ:PRVA) reported second-quarter results marked by double-digit growth in implemented providers, attributed lives and practice collections, while adjusted EBITDA rose 29% from a year earlier. Management also raised its 2026 outlook for several financial measures following what Chief Executive Officer Parth Mehrotra described as strong first-half execution.
The company said implemented providers increased 10.1% year over year to 5,644 as of June 30, while value-based attributed lives rose 19.2%. Total practice collections grew 12.4% to $970 million during the quarter. Adjusted EBITDA increased to $37.4 million, representing 28.3% of care margin and a 310-basis-point improvement from the prior-year period.
Guidance Raised Following Strong First Half
Mountcastle said Privia raised its 2026 outlook for attributed lives above the high end of its prior guidance range. The company also increased expectations to the high end of prior ranges for practice collections and GAAP revenue, and to the mid-to-high end of ranges for care margin, platform contribution and adjusted EBITDA.
The company did not change its outlook for implemented providers. At the midpoint of that guidance, Privia expects to add 570 providers in 2026, or growth of 10.6% over 2025, Mehrotra said.
When asked about guidance implying slower practice-collections growth in the second half, Mehrotra said the outlook reflected the company’s customary prudence rather than specific operational headwinds. He said ambulatory utilization remained favorable and noted that inpatient utilization trends reported by health systems do not directly apply to Privia’s business model.
Privia ended the quarter with more than $412 million in cash and no debt. Mountcastle said the company expects 70% to 80% of full-year adjusted EBITDA to convert to free cash flow, excluding capital deployment for business development and assuming it receives a significant portion of shared-savings cash payments for 2025 performance by year-end.
CMS Timing Could Affect Year-End Cash Flow
Management said proposed changes from the Centers for Medicare & Medicaid Services to the Medicare Shared Savings Program could delay final reconciliation results for the 2025 performance year until November if finalized. While Mountcastle said the development would have minimal impact on accruals, it could create an unusual year-end cash-flow dynamic depending on when CMS distributes payments and when Privia subsequently pays providers.
Mehrotra said the company was not concerned about ultimately receiving the payments. He said CMS has historically delivered results in August or September, followed by cash settlements around October, and characterized the potential delay as approximately 30 to 45 days.
Management viewed the broader MSSP proposals favorably. Mehrotra cited potential changes involving attribution, the addition of providers who have not previously participated in an ACO, and rebasing as constructive for the program. He said Privia remains supportive of direct contracting with the government through MSSP and expects the program to continue evolving.
Network Expansion and Value-Based Care Growth
In late May, Privia announced its entry into New Jersey through a partnership with Neurology Group of Bergen County, which has 25 adult and pediatric clinicians. The move marked Privia’s 25th state. Mehrotra said the practice was too small to materially affect guidance but described New Jersey as an important market with substantial healthcare spending and independent-provider opportunities.
The company now operates across 25 states and the District of Columbia, with more than 1,300 care center locations serving over 6.1 million patients. Privia said it has averaged 98% gross provider retention over the past three years.
Privia managed more than 1.64 million attributed lives across over 130 commercial and government value-based care programs. Commercial attributed lives rose 11.7% to 942,000. Attributed lives in CMS Medicare programs increased 55%, while Medicare Advantage and Medicaid attribution increased more than 12% and 18%, respectively.
Mehrotra said Privia estimates it manages $15.7 billion in total medical spending through its value-based risk arrangements. He said the company’s goal is to continue increasing attribution while generating positive contribution margin across its value-based business.
Margin Strategy Includes AI and Operating Scale
Management said it expects to move EBITDA margin toward the high end of its long-term target range of 30% to 35% of care margin over the next several years. Privia expects adjusted EBITDA to equal roughly 29% of care margin in 2026, Mehrotra said, placing the company near the low end of that long-term range.
The company cited scaling operations, maturation of newer markets and deployment of artificial intelligence tools as drivers of further margin expansion. Mehrotra said Privia is evaluating AI applications across corporate functions, fee-for-service workflows, value-based care workflows and patient-care processes.
Potential uses include revenue-cycle activities, patient experience, clinical decision-making, coding compliance and identifying suspect medical conditions. Mehrotra said Privia is measuring AI investments at a detailed workflow level based on time saved, outcomes achieved and costs reduced, and is tying its technology deployment to EBITDA margin improvement rather than pursuing spending without returns.
Privia also said its acquisitions of IMS and Evolent’s Care Partners business are progressing well and have been integrated into its operating cadence. Mehrotra said the Arizona-based IMS business provides momentum in a new state, while Care Partners expands Privia’s ability to work with providers through an ACO-focused model, including in markets where the company has not yet established a full medical group.
About Privia Health Group (NASDAQ:PRVA)
Privia Health Group (NASDAQ: PRVA) is a physician enablement company that partners with independent physicians, medical groups and health systems to transform the delivery of patient care. Through a clinically integrated network and a proprietary technology platform, the company supports providers in managing population health, delivering coordinated care and optimizing financial performance under both fee-for-service and value-based reimbursement models.
Founded in 2016 and headquartered in McLean, Virginia, Privia Health has rapidly expanded its footprint to serve multiple metropolitan markets across the United States.
