Privia Health Group Reports 15.6% Revenue Growth to $480.1 Million in Q1 2025

Privia Health Group, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenue reaching $480.1 million, up 15.6% from $415.2 million in the same period last year. The growth was driven by increases in fee-for-service (FFS) patient care revenue, which rose by $36.9 million, and capitated revenue, which surged by $19.4 million due to a higher number of attributed lives. The company also noted a net income of $6.0 million, nearly doubling from $3.1 million in the prior year, with net income attributable to Privia Health Group, Inc. increasing by 41.4% to $4.2 million.

Operating expenses for the quarter totaled $474.9 million, reflecting a 14.6% increase compared to $414.4 million in the previous year. The rise in expenses was primarily attributed to higher provider expenses, which increased by $54.5 million, and costs associated with the platform, which rose by $5.5 million. Despite the increase in expenses, the company achieved an operating income of $5.2 million, a substantial improvement from $0.8 million in the prior year, indicating effective management of operational costs relative to revenue growth.

In terms of strategic developments, Privia Health expanded its market presence by entering the Indiana market in late 2024 and recently announced its entry into Arizona in April 2025, partnering with a multi-specialty practice. The company continues to focus on enhancing its technology-driven platform and expanding its provider network, which saw an 11.7% increase in implemented providers year-over-year. As of March 31, 2025, the company operated in 15 markets across the United States, with a total of 121.4 million shares outstanding.

Key operational metrics showed positive trends, with attributed lives increasing by 11.1% to support the growth in value-based care revenue. The company reported practice collections of $798.6 million, a 12.8% increase from the previous year, driven by organic growth and new market entries. Additionally, the company’s cash and cash equivalents stood at $469.3 million, providing a solid liquidity position to support ongoing operations and potential future investments.

Looking ahead, Privia Health expressed optimism about its growth trajectory, emphasizing its commitment to expanding its provider base and enhancing its value-based care capabilities. The company plans to continue investing in its technology platform and operational infrastructure to drive further revenue growth and improve patient outcomes. However, management acknowledged potential risks, including regulatory changes and market competition, which could impact future performance.