0001759655-26-000029
SEC filingRevenue grew 25.8% to $603.8M, driven by FFS and VBC growth, but net income fell 27.4% due to higher expenses.
For the three months ended March 31, 2026, total revenue increased 25.8% to $603.8 million from $480.1 million in the prior-year period. The growth was led by FFS-patient care revenue, which rose 25.5% to $391.1 million, reflecting a 13.6% increase in Implemented Providers (to 5,535) and higher visit volumes. VBC revenue also contributed significantly, with capitated revenue up 21.9%, shared savings up 56.5%, and PMPM fees up 17.5%, driven by a 26.5% increase in Attributed Lives (to 1.606 million). Gross profit grew 21.2% to $125.6 million, while gross margin contracted slightly from 21.6% to 20.8% due to higher provider expenses as a percentage of revenue. Operating income increased 42.2% to $7.4 million, and operating margin improved from 1.1% to 1.2%. However, net income attributable to Privia declined 27.4% to $3.1 million, largely because of a $3.5 million increase in the provision for income taxes (impacted by stock-based compensation) and a $1.2 million decrease in net income attributable to non-controlling interests.
Revenue is disaggregated into FFS and VBC streams. FFS-patient care remains the largest segment at 64.8% of total revenue, driven by provider growth. FFS-administrative services declined 2.6%, likely due to mix shifts. VBC revenue collectively grew 29.3%, with shared savings more than doubling as a result of timing of accruals. The growth in Attributed Lives, partly from the December 2025 acquisition of an ACO business (adding over 120,000 lives), underpins VBC momentum. Platform Contribution (non-GAAP) increased 29.6% to $67.0 million, and Platform Contribution Margin expanded from 49.1% to 52.1%, indicating improving operating leverage. Care Margin increased 22.3% to $128.7 million but declined as a percentage of revenue from 21.9% to 21.3% due to strategic investments.
Management expects continued growth in Implemented Providers and Attributed Lives, supported by organic expansion and market entries (e.g., Arizona). The company is investing in sales, marketing, and technology to drive long-term growth, particularly in VBC. While no explicit financial guidance was provided, the MD&A emphasizes a focus on improving Platform Contribution margins and scaling the provider base. The recent Evolent ACO acquisition will contribute to VBC attributed lives. Cash and cash equivalents stood at $419.5 million, providing liquidity. The company anticipates that operating cash flows and available cash will meet near-term and long-term obligations.
As of March 31, 2026, Privia Health held $419.5 million in cash and cash equivalents, down from $479.7 million at December 31, 2025. The company had no outstanding debt under its $125 million revolving credit facility (subsequently increased to $250 million in May 2026). Total assets were $1.42 billion, with $805.9 million in stockholders' equity (including $52.8 million non-controlling interest). Accounts receivable rose to $513.7 million from $400.9 million, reflecting revenue growth. Goodwill remained flat at $209.8 million, with no impairment indicators. The company's working capital (current assets minus current liabilities) was $364.7 million.
Note 9 explicitly states no material commitments or contingencies exist as of March 31, 2026. The company has operating lease liabilities of $9.0 million total, with $2.1 million current. No other contractual obligations are disclosed beyond routine trade payables and accrued expenses.
The company did not repurchase any common stock during the quarter. It repurchased $11.4 million of non-controlling interests, reducing the NCI balance. No dividends were paid. Capital spending was negligible ($26 thousand in other investing). Stock-based compensation totaled $21.9 million, a significant non-cash expense. No debt was drawn or repaid.
Note 12 confirms the company operates as a single operating segment. The CODM uses consolidated net income attributable to Privia Health ($3.1 million for Q1 2026) to evaluate performance. All long-lived assets are in the United States. Revenue disaggregation is provided by source (FFS patient care $391.1M, capitated $86.1M, shared savings $75.0M, etc.), but not by geography or segment beyond the single entity.
Q1 2026 net income was $3.7M, yet operating cash flow was negative $49.5M, a significant divergence. The main driver was a $112.8M increase in accounts receivable, indicating that revenue growth is not translating into cash collections. Depreciation and amortization ($3.3M) and stock-based compensation ($21.9M) were non-cash add-backs, but were overwhelmed by working capital outflows. Provider liability increased $49.1M, partially offsetting the receivables build. Capex was negligible ($26K), so free cash flow is essentially operating cash flow. No share repurchases or dividends were paid; the only financing outflow was $11.4M for non-controlling interest repurchase. The negative operating cash flow, despite positive net income, raises a red flag on cash conversion, but the company may be early in a growth cycle. The prior year also had negative operating cash flow, but at a smaller magnitude (-$24.1M), suggesting worsening working capital dynamics.