Privia Health Lifts 2026 Revenue Outlook To $2.5–$2.55 Billion As Its Care Network Expands
The physician-services company paid approximately $36 million for a Medicare care business expected to add patients and adjusted earnings in 2027.
Privia Health, which provides software and management services to physician practices, raised its 2026 revenue forecast Thursday to $2.5–$2.55 billion, from $2.35–$2.45 billion, according to the earnings release accompanying its SEC filing. Preliminary, unaudited third-quarter results put revenue at $657.0 million, up 13.2% from a year earlier, as the company's network grew.
Higher Sales, Faster Profit Growth
Profit attributable to Privia reached $13.5 million in the third quarter, compared with $6.9 million a year earlier, while diluted earnings per share rose to $0.10 from $0.05. The results included $14.0 million of non-cash stock compensation expense, versus $19.0 million in the prior-year quarter.
Adjusted EBITDA — earnings excluding taxes, interest, depreciation, stock compensation and certain other items — grew 6.3% to $40.6 million from $38.2 million. Privia lifted its annual forecast for that measure to $154–$157 million, from $145–$155 million.
For the first nine months, revenue totaled $1,893.4 million, versus $1,581.7 million a year earlier. Profit attributable to Privia rose 85.9% to $25.6 million, and adjusted EBITDA increased 21.9% to $114.7 million.
PRVA shares rose about 2% to $24.37 in Friday trading. The company's market value was $3.1 billion in Friday trading.
More Providers And Assigned Patients
Privia ended September with 5,893 providers credentialed and billing for medical services, up from 5,250 a year earlier. Patients assigned to its arrangements linking care payments to costs and outcomes numbered 1,676,000, compared with 1,406,000.
The company helps practices manage operations, coordinate care and handle insurance contracts, working with physician groups, health plans and health systems. Its revenue includes patient-care payments, administrative services, monthly care-management fees and payments tied to care costs and quality.
Quarterly practice collections reached $1,028.8 million, versus $940.4 million a year earlier. That measure includes money collected by medical groups Privia does not own, making it broader than company revenue. Privia now forecasts annual collections of $3,900–$3,950 million, compared with its initial $3,650–$3,750 million range.
A Medicare Purchase, A Montana Exit
Privia paid approximately $36 million from its cash reserves to buy Cano Health's American Choice Healthcare Medicare Shared Savings Program business. The purchase closed at the end of October.
Starting January 1, 2027, the business will serve more than 36,000 assigned patients, adding patients across ten existing Privia states and three new states. Management expects little effect on 2026 metrics, but contributions to assigned-patient counts and adjusted EBITDA in 2027.
Privia's September 30 balance sheet held $446.3 million in cash and cash equivalents and no debt, before the purchase. Operating activities used $19.428 million during the first nine months, compared with generating $35.904 million a year earlier.
Management expects at least $520 million in year-end cash, including the acquisition, assuming its 2025 Medicare Shared Savings Program settlement and associated payments to providers occur before year-end under current accruals.
Privia also agreed to end its Surgery Partners partnership in Montana effective January 2027. The operation covers 69 providers and approximately $23 million in annual practice collections; management expects no material effect on 2027 adjusted EBITDA.
The 2026 provider forecast still includes Montana's 69 providers, and the annual outlook assumes no new business-development activity.
