Privia Health’s second quarter saw notable momentum, with the market reacting positively to its strong revenue and profit performance. Management emphasized that robust provider growth and higher patient attribution across all payer segments, especially commercial and Medicaid, supported the results. CEO Parth Mehrotra attributed this consistency to the company’s platform model, noting, “The bedrock of our financial performance over the years is a very simple concept that we get paid a very recurring predictable fees for providing a tech and services platform to all of our practices.” Enhanced operating leverage from scale, alongside disciplined risk management in value-based contracts, also contributed to margin stability.
Is now the time to buy PRVA? Find out in our full research report (it’s free).
Privia Health (PRVA) Q2 CY2025 Highlights:
- Revenue: $521.2 million vs analyst estimates of $470 million (23.4% year-on-year growth, 10.9% beat)
- Adjusted EPS: $0.24 vs analyst estimates of $0.20 (19.5% beat)
- Adjusted EBITDA: $28.99 million vs analyst estimates of $26.17 million (5.6% margin, 10.8% beat)
- The company lifted its revenue guidance for the full year to $1.9 billion at the midpoint from $1.85 billion, a 2.7% increase
- EBITDA guidance for the full year is $110 million at the midpoint, in line with analyst expectations
- Operating Margin: 0.6%, in line with the same quarter last year
- Sales Volumes rose 13.8% year on year (16.4% in the same quarter last year)
- Market Capitalization: $2.58 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Privia Health’s Q2 Earnings Call
- Elizabeth Hammell Anderson (Evercore ISI) asked what investors may be missing about Privia’s business model, given sector volatility. CEO Parth Mehrotra explained that recurring platform fees and diversified value-based contracts provide stability and resilience across cycles.
- Richard Collamer Close (Canaccord Genuity) questioned why second-half guidance implied a step-down. Mehrotra replied that guidance was set prudently, with shared savings payments and utilization trends expected to support ongoing momentum.
- Jailendra P. Singh (Truist Securities) inquired about shifts in provider conversations amid industry challenges. Mehrotra noted increased urgency among providers to join Privia, citing the company’s broad value proposition and strong momentum in provider sales.
- Joshua Richard Raskin (Nephron Research) asked how AI is being used in the platform. Mehrotra described applications in revenue cycle management, clinical workflow optimization, and scribing, all aimed at reducing administrative burden and improving outcomes.
- Ryan Scott Daniels (William Blair) wondered if payer pressures are creating more contracting opportunities for Privia. Mehrotra confirmed that payers increasingly value Privia’s balanced approach and are more willing to negotiate recurring fees and shared risk arrangements.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be tracking (1) the integration and financial contribution of the IMS acquisition in Arizona, (2) ongoing provider growth and density expansion in both new and established markets, and (3) progress in AI-driven workflow enhancements that could improve provider productivity and patient outcomes. Additional attention will be paid to the company’s ability to maintain margin stability while scaling value-based care relationships.
Privia Health currently trades at $21.02, up from $19.80 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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