Why Privia Health (PRVA) Is the Clear Earnings Winner in the Healthcare Technology for Providers Sector

The healthcare technology sector for providers is witnessing a seismic shift toward value-based care (VBC), and among the contenders, Privia Health (PRVA) stands out as a paragon of operational execution and financial discipline. In Q3 2025, the company delivered a 32.5% year-over-year revenue increase to $580.4 million and a staggering 61.6% surge in adjusted EBITDA to $38.2 million, far outpacing peers like Astrana Health and Premier Inc. These results, coupled with a strategic ACO acquisition and a robust cash position, position Privia as the sector's most compelling investment.

Financial Performance: A Model of Efficiency

Privia's Q3 2025 results underscore its mastery of VBC. Revenue growth was driven by its Medicare Shared Savings Program (MSSP) ACOs, which generated $234.1 million in shared savings-a 32.6% increase from 2023. Adjusted EBITDA growth of 61.6% reflects operational efficiency, with over 80% of 2025 adjusted EBITDA projected to convert to free cash flow. This contrasts sharply with Astrana Health, which reported a 100% revenue increase to $956 million but a more modest 52% rise in adjusted EBITDA to $68.5 million. While Astrana's growth is impressive, its reliance on full-risk arrangements-77% of its contracts now under full risk-introduces volatility that Privia's shared-risk model avoids.

Premier Inc., another peer, posted Q3 2025 revenue of $261.4 million, a year-over-year decline despite a 28.4% adjusted EBITDA margin. Its performance highlights the challenges of balancing traditional healthcare services with VBC transitions. Privia, by contrast, has consistently prioritized VBC, with attributed lives growing 12.8% to 1.406 million and implemented providers rising 13.1% to 5,250.

Operational Execution: Strategic Acquisitions and Risk Management

Privia's recent acquisition of an ACO from Evolent Health exemplifies its disciplined approach to scaling. The $100 million upfront payment for 120,000 attributed lives is a calculated move to expand its VBC footprint without overextending capital. This acquisition, expected to close in Q4 2025, will add to 2026 adjusted EBITDA while maintaining Privia's focus on shared-risk models. CEO Parth Mehrotra emphasized that shared-risk arrangements "are critical to sustained growth," a stance that differentiates Privia from peers like Astrana, which has aggressively shifted to full-risk contracts.

The company's cash position further reinforces its strategic flexibility. Pro forma for the ACO acquisition, Privia expects to end 2025 with at least $410 million in cash and equivalents. This liquidity not only supports future acquisitions but also allows for shareholder returns, a critical factor in an industry where capital allocation often determines long-term success.

Peer Comparison: A Tale of Two Strategies

Astrana Health's 100% revenue growth in Q3 2025 is largely attributable to the Prospect Health acquisition, which contributed $897.7 million to its Care Partners segment. However, its shift to full-risk arrangements-up from 0% in 2021-exposes it to greater financial risk, particularly in volatile markets. Premier Inc.'s Q3 results, meanwhile, reveal the limitations of a diversified model: while its Supply Chain Services segment outperformed expectations, overall revenue declined, and its EBITDA margin, though strong at 28.4%, pales against Privia's 61.6% adjusted EBITDA growth.

Privia's focus on shared savings and its cautious approach to capitated revenue-2024's capitated book showed a 2% positive contribution margin-demonstrate a balanced strategy that mitigates downside risk while capturing upside potential. This is particularly relevant in an industry where full-risk models can lead to significant losses if patient outcomes or cost controls falter.

Long-Term Positioning: A Sector Leader in the Making

The healthcare sector's transition to VBC is accelerating, and Privia is uniquely positioned to benefit. Its ACO acquisition will add 120,000 attributed lives, expanding its reach without diluting margins. The company's full-year 2025 guidance raise-projecting 32% adjusted EBITDA growth-reflects confidence in its ability to sustain momentum. By comparison, Astrana's guidance, while ambitious, hinges on the success of its full-risk model, which remains unproven over the long term.

Moreover, Privia's cash reserves provide a buffer against macroeconomic headwinds, a critical advantage in an industry prone to regulatory and reimbursement shifts. As value-based care becomes the norm, companies with strong liquidity and operational discipline-like Privia-will outperform those relying on high-risk, high-reward strategies.

Conclusion

Privia Health's Q3 2025 results are a masterclass in value-based care execution. With revenue growth outpacing peers, a disciplined approach to risk, and a strategic acquisition poised to drive future EBITDA, the company is not merely keeping up with the sector's transformation-it is leading it. For investors seeking a healthcare technology provider with both financial rigor and long-term vision, Privia Health is the clear choice.