0001759655-25-000110
SEC filingPrivia Health holds $441.4M cash, no debt, with $495.7M provider liability and a recent $89.1M acquisition.
Cash and cash equivalents were $441.4 million at September 30, 2025, down from $491.1 million at year-end 2024, largely due to $89.1 million of acquisition spending. The company has no outstanding debt, with a $125 million undrawn revolving credit facility (expiring November 2028). Accounts receivable surged to $499.0 million from $316.2 million, reflecting revenue growth and timing of collections. Provider liability, including medical claims payable, rose to $495.7 million (from $364.6 million), driven by capitation growth and increased physician distributions. Total equity grew to $762.8 million from $683.4 million, supported by net income and stock-based compensation.
Note 10 states no material commitments or contingencies as of the balance sheet date. However, the company has contingent earnout obligations for the PMG-AZ acquisition (up to $25 million if targets are met), which are expensed as incurred. Subsequent to quarter end, the company committed to acquire an ACO business for $100 million in cash (plus up to $13 million contingent), expected to close in Q4 2025. Also in October 2025, the company received $156.9 million from CMS for MSSP shared savings, of which approximately $88.4 million will be disbursed to providers.
No share repurchases or dividends were disclosed. The company used $89.1 million for business acquisitions (net of cash acquired) during the first nine months of 2025, primarily for the PMG-AZ acquisition. Debt remained zero; the $125 million revolver is undrawn. Stock-based compensation was $55.6 million year-to-date, a significant non-cash expense.
The company operates as a single reporting segment. All long-lived assets are in the United States. No further geographic or segment revenue breakdown is provided in the notes.
The Notes confirm a strong liquidity position with no leverage, but highlight increasing provider liability and significant cash outflows for acquisitions and earnout commitments.
Net income for 9M FY2025 was $19.1M, while operating cash flow was $35.9M, yielding a cash flow from operations to net income ratio of 1.9x, indicating strong earnings quality. The primary driver of the difference was non-cash charges: stock-based compensation ($55.6M), deferred tax expense ($9.3M), depreciation and amortization ($7.3M), partially offset by a significant increase in accounts receivable ($176.5M) and a large increase in provider liability ($118.8M). The working capital swings reflect the company's business model and timing of receipts and payments.
Capital expenditures are not separately disclosed; investing activities consist almost entirely of business acquisitions ($89.1M) and other investing ($1.2M). Without explicit capex, free cash flow cannot be computed. The heavy acquisition spending resulted in a net cash outflow of $49.8M for the period, despite positive operating cash flow.
Financing activities were limited to $4.6M from stock option exercises, with no share repurchases or dividends. The company ended the period with $441.4M in cash, down from $491.1M at the start of the year.
Anomalies: The massive swing in accounts receivable ($176.5M increase) and provider liability ($118.8M increase) suggest significant growth in the business or changes in payment terms, which should be monitored for sustainability.