Privia Health’s 2026 Q2 Call: EBITDA Margin Timeline, NJ Guidance Shifts, Acquisition Claims Clash

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Date of Call: Aug 6, 2026

Financials Results

• Revenue: $970M practice collections, up 12.4% YOY; $1.88B for first half, up 13.4% YOY
• Operating Margin: 28.3% adjusted EBITDA margin, up 310 basis points YOY

Guidance:

• Raised 2026 outlook for attributed lives to the high end of prior guidance.
• Raised outlook for practice collections, care margin, platform contribution, and EBITDA to the high end or mid-to-high end of prior ranges.
• Provider guidance unchanged, expecting to add 570 providers at midpoint, representing 10.6% growth over 2025.

Business Commentary:

Strong Operational Execution and Growth:

• Previa Health reported an increase in implemented providers by 10.1% year-over-year, reaching 5,644, and total practice collections grew by 12.4% in Q2.
• The growth was driven by strong new provider signings across all markets and the expansion of value-based attributed lives by 19.2% year-over-year.

Improved Financial Metrics:

• Adjusted EBITDA increased by 29%, with EBITDA margin expanding by 310 basis points from a year ago.
• This improvement was due to operating leverage across cost of platform and G&A while investing in all markets.

Expansion and Market Entry:

• Previa Health entered the state of New Jersey, partnering with a practice of 25 clinicians, marking its 25th state.
• This expansion is part of building a national primary care-centric delivery network, contributing to the growth in commercial and government value-based care programs.

AI Integration and Efficiency Gains:

• The company is deploying AI applications in various workflows, aiming to continue expanding EBITDA margin towards the high end of its long-term target range.
• The use of AI is expected to improve efficiency by enhancing existing workflows, potentially leading to cost savings and increased margins.

Sentiment Analysis:

Overall Tone: Positive

• "Previa Health has continued to execute at a very high level across all aspects of our business." "We delivered strong new provider signings..." "Adjusted EBITDA increased 29%..." "Our first half results gives us confidence to raise our 2026 outlook..." "We are confident that our integrated model...will continue to drive sustainable growth and profitability for years to come."

Q&A:

• Question from Elizabeth Anderson (Evercore ISI): Could we double click on your question about the CMS shared savings payment being delayed? I guess obviously out of your control as that's a government function, but I guess what gives you confidence that it is going to come in the fourth quarter and how should we think about sort of external signposts we can watch to monitor that?
  Response: Management is not worried, citing a good track record; delay is 30-45 days for reconciliation, in their interest to ensure providers get cash, no issues expected in receiving money.

• Question from Ryan Daniels (William Blair), asked by Matthew Mardula: In your prepared remarks, you talked about being towards the high end of your long-term target range of 30% to 35% for the care margin over the next few years. Can you give us some color on what has changed to give you confidence of being at the high end for your long-term target, as well as the drivers of what will help you get to that target. And then any directional timeline on when this could be achieved?
  Response: Confidence stems from current EBITDA margin near 30%, AI applications, scaling business, and mature markets already at or above target; no set timeline, will keep accreting margin over next few years.

• Question from Daniel Grossleith (Citi): I want to focus a little bit on the updated guide, particularly around practice collections. It does imply a pretty strong deceleration in growth from 1H to 2H. I think it's around, you mentioned, 13% in the first half to around 3% in the second half year over year. And that's despite continued provider and attributed lives growing. I'm just curious, what's driving that implied deceleration?
  Response: Attributed to prudence in middle of year guidance, not specific headwinds; feels good about ambulatory utilization, upside possible if trends continue.

• Question from AJ Rice (UBS): You also now, for several quarters, have been mentioning the AI opportunities. And I wondered if it's possible to get you to enumerate a little bit on some of the use cases, either at the corporate level or at the practice level, that you're seeing that get you excited about the opportunities for that to drive improved efficiencies.
  Response: AI applied across four core workflows (corporate, fee-for-service, value-based, patient care) with partners like Google, seeing tangible benefits and linking to EBITDA margin expansion; already piloting and seeing improvements.

• Question from Jalindra Singh (Truist): I want to ask about the New Jersey entry. I know it's a small size initial anchor practice, but just to confirm, did that have any impact to your guidance on any metric?
  Response: Practice is small, important state, onboarding ongoing; does not meaningfully impact 2026 guidance metrics, but aligns with long-term strategy to build local density.

• Question from Ryan Langston (TD Cohen): Just maybe any updates on how the Evalent and IMS transactions from last year are progressing this year.
  Response: Integration progressing well, acquisitions are good additions, growth rates reflect them, updated guidance includes their performance; excited about Arizona state and future tuck-in acquisitions.

• Question from Sean Dodge (BMO Capital Markets), asked by Thomas Keller: From the practice or the physician's perspective and thinking about the economics and the value prop around joining the Privia platform, how much incrementally do they typically stand to benefit and how has that that value prop evolved over the last few years?
  Response: Value proposition has improved over time with better fee-for-service rates, technology savings (10-20% productivity lift), and sophisticated value-based care machinery; total benefits range 15-50% plus organic business development.

• Question from Andrew Mock (Barclays), asked by Jeffrey: Provider expenses increased to $500 million in the quarter, which grew faster than revenue and was a bit higher than street expectations. Can you provide more detail on the drivers of that variance, particularly across care categories and business lines?
  Response: Attributed to growth of business, payments passed through to providers on both fee-for-service and value-based books; looks at annually, guidance reflects good performance.

• Question from Matthew Gilmore (KeyBank): I wanted to follow up on some of the MSSP discussion and the proposed changes to the financial methodology. It seemed positive overall, and CMS is trying to encourage participation. There were some sort of puts and takes for enhanced track ACOs, at least the way we read it. I was curious what you all thought of the proposal and if there are any sort of noteworthy implications for Privia.
  Response: Overall positive, CMS refining program for better; changes on adding new providers, attribution, rebasing are positive; guidance increase reflects optimism, will see how programs evolve over time.

• Question from Whit Mayo (LeRinc Partners): Looking at the implemented provider growth this quarter, would you be willing to share how much of that growth is coming from new physicians joining existing groups versus new groups affiliating with Privia?
  Response: Does not break out; same store growth usually 1-2%, adding new practices and entering new states; predictable 9-12 months out due to implementation timeline.

• Question from Matthew Shea (Needham): Maybe on go-to-market, you know, you're running the two distinct go-to-market motions now, the full medical group and the wider ACO-only model. How is the two-pronged strategy do you need done so far in 2026?
  Response: ACO-only model allows more conversations in states without medical group entity, partnerships with bigger TAM, potential for tuck-in acquisitions; early days but excited, cross-sell to full medical group possible over time.

• Question from Jessica Tassan (Piper Sandler): Should we still think about the cost of platform as kind of the cost associated with third-party EHR software? And then just does the 2Q leverage reflect the full extent of that opportunity, or is there a longer-term opportunity to kind of negotiate pricing down and continue to drive margin expansion on that line?
  Response: Cost of platform includes technology and practice operations; will keep improving over time through scaling levers and contract negotiations, as seen in EBITDA margin accretion over past nine years.

• Question from Jack Slevin (Jefferies): Just understanding we have this transition this year from ACO reach to lead, you know, possibly some disruption in the marketplace. Just wanted to hear if you have any additional color on sort of if that's creating pockets of opportunity or how you think about organic adds to the ACO business going forward.
  Response: Both organic and inorganic opportunities; care partners platform allows organic sales to REACH practices, acquisitions possible as industry consolidates; scale matters, will capture opportunities from disruption.

• Question from Brian Halstead (RBC): My question is about the managed care landscape looking ahead at 2027. Just curious if there's anything you are starting to think about as you hear about MA plans reevaluating which markets that they're looking to stay in or exit.
  Response: Payer disruptions happen every five years; business well-positioned as partner delivering cost-effective care at ground level; patients remain regardless of payer changes, bodes well for continued capitalization on opportunities.

• Question from Olivia Miles (Baird), asked by Michael Ha: Can you help us understand how you think about the puts and takes of your 20% long-term EBITDA growth targets? Specifically, I'm interested in which factors or developments could cause you to revisit and potentially raise your multi-year view on EBITDA growth.
  Response: Target around 20%, can be higher or lower yearly; drivers include organic growth, acquisitions, value-based performance, and large TAM; focus on executing and expanding platform with healthy margins.

• Question from John Penny (Canaccord Genuity), asked by John Pinion: Is there anything that's been surprising to you as far as like the cost of the compute and the token use and just generally how are you thinking about managing AI spend?
  Response: Tying AI spend to EBITDA margin expansion; expensing on P&L, measuring impact by workflow and outcomes; focus on creating EBITDA while using technology to increase margins, not overly spending without positive results.

• Question from David Larson (BTIG), asked by Jenny Shen: I was just wondering if you could provide some updated thoughts on cost and volume trends in the quarter, maybe compared to last quarter or a year ago, and whether you've seen any notable pockets of higher acuity and any notable shifts in the acuity mix.
  Response: Not much to speak on, look at annual basis; ambulatory utilization good, inpatient down; performing well in value-based book, diversified platform benefiting from trends.

Contradiction Point 1

Timeline for Achieving High-End EBITDA Margin Target

A shift from an indefinite timeline to a specific near-term target.

Ryan Daniels (William Blair) - asked by Matthew Mardula - Ryan Daniels (William Blair) - asked by Matthew Mardula

2026Q2: The goal is to keep accreting margin over the next few years. - David Mountcastle(CFO)

What factors and timeline support confidence in reaching the high end of your long-term EBITDA margin target (30-35% of care margin)? - Matthew Madvil (William Blair)

2026Q2: They expect to continue accreting margin over the next few years. - David Mountcastle(CFO) and Parth Mehrotra(CEO)

Contradiction Point 2

Impact of New Jersey Market Entry on Guidance

Shifts from stating no impact to acknowledging a contribution to raised guidance.

Jalindra Singh (Truist) - Jalindra Singh (Truist)

2026Q2: The New Jersey practice is small and did not meaningfully impact 2026 guidance. - Parth Mehrotra(CEO)

Did the New Jersey market entry have any impact on your guidance, and what is your approach and onboarding process there, and do you expect it to evolve like past successful launches? - Jailendra Singh (Truist)

2026Q2: The strong first six months overall are reflected in the raised guidance. - Parth Mehrotra(CEO)

Contradiction Point 3

Outlook and Drivers for Shared Savings Growth

Guidance for shared savings growth shifts from expecting year-over-year growth to being maintained at prior levels.

Daniel Grossleith (Citi) - Daniel Grossleith (Citi)

2026Q2: The guidance is prudent and conservative... If current trends continue, there is potential for upside. - David Mountcastle(CFO)

What is driving the implied deceleration in practice collections growth from ~13% in H1 to ~3% in H2—is it conservatism or specific headwinds? - Jailendra Singh (Truist Securities)

2026Q1: Shared savings should grow year-over-year if the Q1 trend continues. - Parth Mehrotra(CEO)

Contradiction Point 4

Expected Contribution from the Evolent/Avalyn Acquisition

The timeline for the acquisition's contribution to provider growth and shared savings shifts from being early-stage to being fully integrated and contributing to current guidance.

Ryan Langston (TD Cowen) - asked by Ron - Ryan Langston (TD Cowen) - asked by Ron

2026Q2: Integration is complete... contributing to growth rates reflected in the updated guidance. - Parth Mehrotra(CEO)

Any updates on last year's Evalent and IMS transactions? - Daniel Grosslight (Citi)

2026Q1: It’s still early days (less than five months since acquisition)... Progress will be reflected in future implemented provider numbers. - Parth Mehrotra(CEO)

Contradiction Point 5

Contribution of Recent Acquisitions to Guidance

Conflicting statements on whether acquisition impact is explicitly embedded in guidance.

Ryan Langston (TD Cowen) - asked by Ron - Ryan Langston (TD Cowen) - asked by Ron

2026Q2: Integration is complete... contributing to growth rates reflected in the updated guidance. - Parth Mehrotra(CEO)

What is the current status of the Evalent and IMS transactions from last year? - Sean Dodge (BMO Capital Markets Equity Research)

2025Q4: The acquisition is accretive... but specific EBITDA numbers are not broken out by acquisition. - Parth Mehrotra(CEO)

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